Has the phenomenon of working from home damaged the way sports brands can reach their audiences? Joe Langsworthy investigates.
Sport in 2024 has never been more accessible. Yet watching our favourite pastimes live in stadiums, arenas and other venues remains out of reach to millions. Recently, Sir Lewis Hamilton condemned the rising prices of tickets to the British Grand Prix at Silverstone, with three-day general admission entry costing north of £350. This is the same sport that has handsomely profited from the rise of OTT (Over-the-Top) and on-demand streaming services, that satisfy our fast-food diet of instant access entertainment. Our hunger for on-demand sport has seen Formula 1 strike deals with streaming platforms such as FanCode and DAZN.
It’s hardly a surprise the post-pandemic hangover is requiring more than a few pain relievers to shift. Fiscally and behaviourally, sport has experienced change on an unprecedented scale in a relatively short period of time. It’s an industry that thrives on the connections between brand sponsors, rights holders and audiences. But the domino effect of Covid-19 has shifted not only how these relationships are formed, solidified, and retained, but also how we engage with sports brands as a whole.
Sport vs cost of living
As the cost of living crisis tightens its grip on our disposable income, the physical proximity and shared experiences of live sporting events have become something of a casualty. While some statistics have shown that attendance at live sporting events has recovered to pre-pandemic levels, Saxo data suggests nearly half of us attend fewer sports events now because of the continued squeeze on their finances. Even away from the pitch in the comfort of our living rooms. Similar data suggests 40 per cent of us have cancelled sports subscriptions, citing the cost-of-living crisis as the primary reason.
As a sports fan, it’s hard to not feel indignant towards the rise of subscription-based channels. Turn the clock back two decades, and fans could flick on a terrestrial television channel like BBC or Channel 4 and choose from a catalogue of freeview sports, which gave brands a vehicle to drive large consumer audiences and a platform to activate. But now, sports enthusiasts are being priced out by increasingly exclusive and expensive subscription television.
As if our lighter wallets weren’t troubling enough, our cultural shift to remote work is fracturing sport’s communal ties – dispersing audiences across disparate digital platforms and diminishing the collective experience of fandom. There’s now palpable public resilience against trekking into the office five days a week – a non-negotiable for many workplaces pre-pandemic. As we spend less time commuting to our respective places of business, there’s a significantly slimmer window for brands and rights holders to get in front of consumers through OOH (Out of Home) advertising.
Attention span
The dispersed nature of online engagement makes it increasingly challenging for brands to capture the attention of potential new fans and convert them into active participants. Not to mention that as an ecosystem it’s incredibly saturated, and with our attention spans having decreased from an average of 12 seconds to just over 8 seconds in the last two decades, competition is fierce for brands and rights holders to seize their slice of market share. Now, our reliance on an internet connection and a mobile phone as a primary conduit between our work and social lives has meant audiences no longer resonate the same way with in-person events.
That said, the digital pivot for brands to engage with new audiences is necessary for continuity. Virtual events and online activations, such as webinars, game-athons, or influencer content creation, have risen to prominence in recent years, largely shaped by our newly adopted remote working culture, and arguably the cost-of-living. While these events often lack the spontaneity and authenticity that characterise in-person interactions, they do offer the consumer a certain degree of flexibility – a buzzword in the vernacular of the modern professional.
New pathways for sports brands
While work from home culture has brought about numerous benefits and efficiencies, its impact on how sports brands and rights holders are engaging with their audiences, when combined with the burgeoning cost-of-living, is causing challenges.
It’s essential that industry stakeholders embrace adaptability and innovation to navigate these trends successfully, and ensure they are mindful of limited consumer disposable income.
The currency most valuable to sports brands and rights holders is their respective communities, and by coordinating low-cost live events, such as free-to-attend watch parties, these organisations can continue to foster relationships that are vital for sustained growth.
By leveraging technology, creativity, and a deep understanding of shifting consumer behaviour, sports brands and rights holders can forge new pathways to engage audiences and cultivate lasting connections in an increasingly digital world.