In 2003 when the Seattle Seahawks of the NFL launched the “12th Man” campaign to engage with fans and make them a part of the team, it led to a packed CenturyLink field with 69,000 fans every home game. This initiative significantly improved the Seahawks’ on-field performance along with enhanced brand loyalty and fan engagement.
The global fan engagement market, i.e., revenue generated by direct fan experience initiatives (Such as Ticket sales, Merchandise, and sponsorship activation via personalised engagement) is set to reach US $6.69 billion by the end of 2024.
Engaged fans also impact the revenue generated from them through ticket and merchandise sales. In fact, the revenue of the major leagues in the USA is significantly dependent on the number of tickets sold every year.
In Asia, however, revenue from fans is not as driven as opposed to other sources of revenue. IPL’s 66% revenue comes from central rights, 33.6% comes from sponsorship, and only a small percentage is earned through traditional channels like ticket and merchandise sales. Similarly, in the AFC Champions League, only 36% of the total stadium capacity gets filled on an average every year, which underscores the challenge of low ticket sales in the region.
While fan engagement is a significant revenue driver in Western markets, particularly through ticket and merchandise sales, sports organisations in Asia tend to rely more on central rights and sponsorships, with less emphasis on fan-generated revenue. However, by investing in direct-to-fan strategies, Asian sports and live event organisations can boost revenue from fan-driven channels. This shift would reduce dependence on central rights and sponsorships, leading to a more balanced and sustainable revenue model.
To achieve this, it’s crucial for Asian sports organisations to enhance fan engagement through direct-to-fan initiatives. Below are some effective strategies that can help drive this transformation and increase fan-driven revenue streams.
5 Proven direct Fan Experiences to drive revenue
1. Personalized Content Delivery
Personalising content for each fan offers them a tailored viewing experience and builds a solid fan and brand relationship. Content such as highlights of fan favourite games, interviews from fans’ favourite player, and product recommendations based on their past purchases or interests craft an unique experience, thus keeping them engaged and build a brand loyalty.
When fans have control over how they experience the game, and receive content tailored specifically to their interests, their engagement increases.
For instance, the newly launched Formula 1 Channel in the USA, offering subscription-free streaming with personalised content, satisfies diverse fan preferences. By sending exclusive highlights or recommending products tied to a fan's past interactions, rights holders can further enhance satisfaction and loyalty.
2. Interactive Digital Platforms
Social media platforms and live streaming services now provide real-time interaction and behind-the-scenes content, allowing fans to engage more deeply with their favourite teams. These platforms create a space for fans to participate in live discussions, watch exclusive interviews, and connect with other fans.
The growing trend of "Second Screen" viewing shows that fans crave more than just watching the game—they want to interact and engage.
According to data, 28% of younger fans prefer to follow sports on multiple devices. With the rise of platforms like YouTube and Twitch for live commentary, and new features on Instagram and WhatsApp, rights holders can maintain daily engagement with fans, keeping them connected year-round.
3. Fan-centric Community Building
Year-round fan engagement is crucial for maintaining loyalty. By providing continuous, personalised content and interactive opportunities—such as off-season updates, behind-the-scenes content, and exclusive challenges—teams can keep fans connected and invested even when games aren't being played.
Maintaining an active fan community throughout the year builds stronger, long-lasting relationships. This sense of belonging encourages consistent participation, higher merchandise sales, and stronger overall brand affinity.
4. Exclusive Membership Programs
Membership programs offering tiered membership programs that provide exclusive benefits such as early access to tickets, special content, player meet and greets, and members-only events help rights holders to make fans feel special and a part of the squad.
By making fans feel valued and understood through personalised communications, teams can drive higher engagement and loyalty. Rights holders worldwide are utilising Fan Data Platforms to segment and personalise each marketing message, ensuring fans receive content that resonates with them.
5. Social Media Engagement
Leveraging social media platforms to interact with followers through live Q&A sessions, contests, real-time updates, and crafter experiences, rights holders can turn digital followers into active fans.
Active social media engagement keeps fans connected to the team on a daily basis, driving higher attendance and sales through constant, interactive touchpoints.
The Role of data in personalised engagement
The emphasis on fan engagement in Asia is present, but it hasn't yet reached the same level of importance as seen in the rest of the world, where first-party data and artificial intelligence (AI) have significantly transformed fan interaction.Approximately 63% of fans believe data analytics positively impacts their experience, and 50% view AI favourably. Real-time updates and personalised content, which are top priorities for these fans, help maintain a high level of engagement.
While Asian sports entities are gradually integrating these advanced data backed technologies, there’s still room for growth as they continue to explore and adopt innovative approaches to enhance fan engagement. The potential benefits of customer data platform or fan engagement tool integration are evident, as seen in industries like e-commerce and entertainment, where personalised user experiences have driven significant growth.
Conclusion
Data indicates that without year round engagement, sports teams can lose up to 52% of potential revenue from tickets and merchandise sales and 37% through sponsorship. Fan engagement in Asia is the untapped potential for rights holders, and with evolution in sports broadcasting, and sponsorship revenue, sustained direct to fan experiences is the next frontier.
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