For all the latest details on the Ivy Sports Symposium, check out http://www.sportssymposium.org/ivy/2014-symposium/agenda/
Sports Publicity, Marketing & Brand Building in a New Age: With Joe Favorito
For all the latest details on the Ivy Sports Symposium, check out http://www.sportssymposium.org/ivy/2014-symposium/agenda/
Last year during Super Bowl, Bud Light’s “Up for Whatever” campaign scored huge marks for buzz, digital engagement and creativity, and the campaign continued to gain steam and eyeballs, and hopefully sales and brand awareness, throughout the year.
New elements have been introduced throughout the year to give the campaign more steam and re-engage consumers who liked the first go-round, and were interested in seeing what could be next for the characters of “Up For Whatever.”
However with such a buzz-worthy high end national platform, the question existed, could this become hyper-local as well? Could local distributors take the platform and drill it down with their own creative engagement in their local markets. Well if you are in Texas, the answer is yes.
In and around the state, one of the most ultra-competitive beer markets in the country, distributors sought out an idea to take the buzz ad viral awareness of “Up For Whatever” tie it to an efficient and noteworthy micro-campaign of their own; one that would engage their local consumers and keep the beat going through local events. The result was a highly effective digital campaign, manufactured and executed by our friends at Huddle Productions, that brought all sorts of “Up For Whatever” messaging, branding and fun to the people of the Lone Star State.
The group highlighted eight high traffic events tied to sports and music; from the Bud Light Hotel at the Final Four to World Cup events to a Dallas Mavericks game to an MLB game with the Texas Rangers and others, and captured fans enjoying all elements of a Bud Light experience and sharing their thoughts and experiences on “Up For Whatever.” The crews encouraged fans to share videos and photos, drop in celebrity references and surprise appearances, and bring the noise, as well as the fun, of the national “Up for Whatever” campaign back to the local market. They tied it back with all elements of social and digital including the campaigns own microsite for fans to engage and share more content.
The result was impressive, especially for a controlled cost experience. Over 20 million social impressions, thousands of shared photos and videos and hours of good will and brand engagement for Bud Light and their local distributors that set them apart from their competitors and tied in very nicely to the mage-sized national campaign.
While there are scores of examples of brands activating locally around a national campaign, the low cost, high impact benefit that Bud Light got locally for their brand, and the awareness that was generated for a national campaign with a hyper-local effort, was impressive, and certainly worth a few cold ones for the media crew who pulled the effort together and for the execs who saw a unique way to engage locally and exploit a national viral trend.
Well done, well executed and a great best practice for the brand.
Toward the end of the series finale of Boardwalk Empire, Nucky Thompson, played so well be the actor Steve Buscemi for these past few years, turns to a young man in his employ and makes a reference about sweeping the sand off the front porch. Thompson knows from his work as a youth in the hotel business that the sweeping is the same as trying to battle against the tide, inevitably you lose, as wind and sane and nature will have their way.
While not exactly the same, it is becoming more and more apparent that the fight for legalized sports betting in some way, shape or form, not just in New Jersey but across the country, is a battle that eventually will be regulated and won out, and will be a major, major revenue stream for sports teams and leagues down the line.
For now, State legislators continue to battle the Federal law prohibiting sports betting while states far and near grandfathered into the system, find ways to make a solid profit. This past week John Brennan, perhaps the best authority in the media on the sports betting fight, had an extensive piece on how Delaware has used its loophole to create a profitable sports wagering system that has boosted the coffers of small business that have worked the lottery system for years. One part of the story has stores setting up kiosks and tents OUTSIDE their stores on Sunday mornings to take advantage of blue laws prohibiting them to open before noon, because the demand for NFL (called “pro football” to get around an NFL trademark issue) is so high. Nevada continues to thrive on their sports betting operations, and other states have quietly assembled “gambling czars to work on horse racing, casino and other currently legal forms of sports gambling, while keeping an eye out for best practices that states can take advantage of as loopholes and opportunities open up for sports wagering. Be in position to strike quickly, the theory is.
Every week that passes there is another chink in the armor in the fight that states, especially New Jersey, are making in this battle for a revenue stream that is very fertile around the world. Two years ago the NCAA banned New Jersey colleges and university from hosting post-season events because of the State’s challenge to legalized sports betting, and that banishment was overturned last year. The New Jersey Devils and the Philadelphia 76ers had two firsts in the space, first with an online poker sponsorship and then last month the Devils struck a first-ever team deal with New Jersey based Hot Box Sports to create a team pay fantasy game for the first time. NBA commissioner Adam Silver has been the most vocal and bullish of all the major sports heads on the subject, stating in September that he supported legalized gambling and stating time and again that it will be inevitable and a big source of income for the leagues and the clubs if and when it does happen…with more stress on the when than the if.
This week a good amount of focus fell on the political front, where pundits weighed in on whether the shift in power from the Republicans to the democrats in the Senate could affect the viability of the anti-sports betting lobby outside of Nevada. Senator-elect Cory Booker of New Jersey, a former football player himself, has yet to formally and fully engage in the subject, but his input now that he has a six year term could be very important as the issue grows more and more from a New Jersey issue to a national issue.
Is sports wagering inevitable, and is it the cash cow many predict? In a state like New Jersey it’s hard to say, but it does present great opportunity not as much for casinos but for the income a lottery-style taxed game can bring in to the state coffers. The loopholes with programs like pay fantasy football are becoming stronger and stronger and teams and leagues are seeing income from those streams become more and more a reality. The Brooklyn Nets just became the latest team to add a fantasy sports partner, and more will follow. The leagues and the NCAA will continue to monitor and keep the engine revving should laws change and continue to adjust. The NFL’s announcement this week of an expansion even more to games in London, along with the New England Patriots’ Tom Brady signing a sponsorship deal for a company called FantasyMVP, raise more questions about the validity of legalized gambling in sport. London has long carried NFL gaming lines, and there is no issue with patrons of legal betting parlours wagering on the games there, although the NFL has no affiliation and doesn’t yet profit in the take.
But why wouldn’t or shouldn’t the league profit from an industry that is global and currently unchecked in many places. The theory is that the leagues would make the money not on running betting entities but on the licensing and use of data and on each transaction. Given the fact that mobile usage and connectivity is growing daily in stadia, the amount of revenue leagues and teams could make…think of the amount of activity in a baseball game where every pitch, every swing could be a transaction…is something that could dwarf almost all other sources, except maybe live broadcast rights.
Other “vices,” lottery, hard liquor and spirits, casino advertising, fantasy sports, once taboo are now accepted by professional leagues as legitimate sources of income. Sports gambling will be the next, and maybe the greatest hurdle with the most upside. As the consumer clamors for more access and affordable prices, teams and leagues need to find new revenue sources, and gaming is the biggest one sitting out there to be had.
Are there issues and concerns about game fixing or an illegal element that could go on? Yes. But those concerns have been weighed and dealt with for every other questionable revenue stream, and federal acceptance and legislation can and will be a big step in legitimizing what will come. It will be smart, calculated, engaging and very profitable.
So as New Jersey politicians and track operators continue to wage a battle in the courts against the anti-sports gaming lobby, other states and companies who have found a way make their money; some boldly, some quietly. Many businesses small and large are following and hoping that the gamble The Garden State is taking will be an economic win for all in the long run.
Until that happens, all bets, legal ones outside of Nevada anyway, are off.
As the NBA season gets going, here are three of the many best practices teams have put forth this past week, with many more to come.
Sixers, Media, Mix It up: The relationship between teams and media members is probably as cautious and contentious in some cases as it has ever been, but some teams and officials still do “get it,” and understand that there needs to be a co-existence as both professionals, and more importantly, as people. Case in point this past week was the Sixers hosting a pickup game for all their media with team staff. CEO Scott O’Neil loves to ball, and mixed in with media members big and small from all over the area.
It was a simple, fun way to connect with those who cover the team at every level, and certainly scores points with a little extra effort for when times will be tough for the Sixers, and most predict it will be a long rebuilding winter. In years past the Sixers were known for doing little things for the media that did not appear in print and online; extra snacks, making sure everyone got giveaways, birthday and holiday cards, things which years ago for most teams were seen as important but which have fallen by the wayside with slimmer budgets for many organizations.
Those little things go a long way in developing relationships which are more important today than ever before, as teams look to build their brands and access fans in every conceivable way.
Now maybe every team doesn’t have a CEO to go on court, but a little humanity; a note here, a card there, a question about one’s family here and there, certainly doesn’t hurt and should be the rule, not the exception, no matter how a team is doing on the field.
Warriors and Weibo: The Golden State Warriors continue to find ways to engage audiences outside their borders. The recently surpassed one million followers on Weibo the Chinese social media platform akin to a hybrid of Facebook and Twitter, and is one of China’s most popular websites.
With a fan base that can be largely Asian in the Bay area, and a growing global presence of the NBA in China, the effort makes great sense not just for Golden State but for all clubs looking to expand brand beyind their borders. There are little restrictions on engagement abroad in the social space by the NBA, and using content already in place to seed new markets is very smart, and a trend that should grow. It also gets the Warriors brand front and center with an audience that could pull in remote sponsors or find brands looking to engage for the first time in the States.
Now an engagement like this should not be taken lightly, and you need to understand censorship, culture and posting rules to be effective, but the Weibo Warriors work is a great example of a team casting its net a little wider and doing a little extra to engage in the digital space, with the rewards yet to come.
Clippers Let Fans Choose: Our friends at Sporttechie also found this little gem, with the LA Clippers scoring on a “first,” using a technology which lets fans choose replays being shown on video boards and then getting those fans the credit for selection on the board itself. It is a great way to keep fans even more focused and engaged during the game, provided that the mobile connectivity at Staples Center is up to snuff. The new engagement platform is also highly sponsorable, and can geo-target those engaging and send them push messages for promotions targeted only to them, as a reward for engagement.
As mobile connectivity improves in all arenas, push engagement and these type of fan-driven contests will grow pretty quickly, but Steve Ballmer seems to have found himself in a “first” for his first season as Clippers owner.
The allure of minor league sports is very powerful. Doing the right thing, having a great experience with young people as they work their way up the ladder on and off the field, an affordable family experience, a year-round chance for brands both locally and nationally to engage all are great opportunities that happen in a host of professional sports in the United States, from hockey and soccer to hoops and baseball. It is a multi-million dollar cottage industry that has launched thousands of careers.
So into the mix the past few weeks comes the FXFL, the latest in a series of developmental leagues around American football. The premise is that the football talent pool is deep, there is a need to develop that talent, there are other jibs like coaching that need opportunities, and there are rules to be experimented in and brands that are looking to engage that can’t afford the prices of the NFL or are locked out of categories, and there is a whole lot of potential content to be had out there. There are also stadia looking for events, and presumably, there are investors looking to throw money into the dream of sports ownership at some level.
The premise works in other minor league sports, football is arguably the largest and most engaged sport in America, so there has to be a market for it. Right?
So welcome in the four team FXFL, which in two weeks proved what many thought; the talent on the field and in the coaching area is there for more room. They have found a TV home, so there is an interest in content, and they have facilities who want to host games. So that works. They also have set spending limits on talent and have played with rules to help grow the game, so all that makes sense.
The question is; is it a business that can return revenue at some point? That is very hard to say. Staging events, especially football, is a very, very expensive proposition, and gaining market share where money is coming in to justify cost, and investor ROI at some point, is also really really tricky once the buzz of initial exposure wears off and a grind of a season starts. It has been tried before in football, and has never worked, even with the NFL-owned properties a decade ago that tried to develop talent in a smaller setting. Arena football? Some limited success in a different model. The CFL? Much more successful in a culture and a style, and with a TV partner and national brands that have worked for decades. The FXFL in the fall? Tough to say.
Is it fun and engaging? Yes. Is there content to potentially go and do reality or digital programming which could generate interest? Sure. Is there potential as a viable business? Maybe. Will brands look at it, assuming there is a consistent broadcast package and effective and consistent local marketing and sales, to say we want to out our dollars here and activate against and with you? Maybe, but that has to be proven. Will investors step up and buy and operate teams in local markets with substantial capital for years at a time? Hard to say.
The biggest challenge with the FXFL and other parallels like minor league affiliated baseball, the DLeague and even minor league hockey and in some instances soccer now, is that the parent club, major league sports, spends a lot of the cash and in many instances absorbs the L in a P and L. Even in Independent baseball, the possibility exists for those teams, which run greater risk but have good talent, to sell contracts to MLB or MiLB or even Japan for a profit. The FXFL has none of that as a safety net to be innovative or creative and not always look at the bottom line. The NFL, as it has since the failure of the WLAF, watches with no risk and simply picks up the talent with no cost or effort. They are quietly supportive with n involvement, which is a great situation to be in.
Would it be great if the FXFL bucks the trend of minor league football, finds investors and cities willing to support with a media company diving in for a partnership akin to what the NHL and NBC had at one point? Sure. Would it be great for brands to come on board with fixed partnerships that involve cash to raise the bottom line? Yes. Success of the FXFL is a success for everyone involved in sport.
Will it work? It is great the investor group got the league up and running to prove concept. That already is ahead of scores of others who have just talked and spent and never saw the light of day. If it is long term and viable, we will see hopefully next fall and the one after that. Ideas and sports are great, but in the end bottom line is what matters in sports business. Time, and dollars, will tell.
Several years ago when I was with the New York Knicks we were planning a promotion around Allan Houston, and as part of the plan, were going to send out to interested media the LEGO figure that had been made of our-then star, as a way to keep him top of mind when award voting season came along. It was quick, easy to mail and very unique amongst collectables. Did it really look like Allan? Not really but it was official and had his number, so it made sense. We found a way through the NBA to get 50 little Allan’s and off they went. As a collector of the unique, as well as a longtime supporter of LEGO, I had been interested in the possibilities of the product to engage sports kids, and somewhere in our basement, not passed on to my son Andrew, a master builder if there ever was one, are the original NBA-licensed sets as well as some hockey and extreme sports sets as well. They are now all collectors’ items, as the patients, and LEGO’s interest in sports, stagnated after a few years and the patents lapsed.
The problem then was that the Danish company didn’t really “get” the sports market in the States, and the risk of getting the wrong LEGO figures to market, they could not produce every player, far outweighed the rewards. In an era before short form video, 3D printing, and high speed molds, let alone self-generated content, LEGO was probably ahead of its time.
That was then, and to the delight of millions, another US-based company has taken LEGO’s seed, and their lapsed patents, and injected digital media and state of the art engineering into and opportunity. Welcome OYO Toys.
Boston based and now Boston-area manufactured, OYO has taken the old LEGO-licensed idea and brought it into the next decade. They have licenses to manufacture products for MLB, NFL, NHL and MLS, with more coming not just in the US, but internationally as well (how many kids in the States will now buy Messi figures who would not have a few years ago, thanks to soccer’s expansion in the media here?). Their system allows for custom printing and design of almost ANY player they have a license for that people can order, with delivery taking only a few days.
More importantly, OYO has used video, data and technology to bring the figures to life in short form video with self-created “stadia,” which thousands of young people with an interest in sport AND film (along with their dads and older siblings) can have fun with in re0creation scenarios, much like LEGO has done with the Star Wars themes line. Even better, the figures are compatible with LEGO blocks, so parents don’t have to discard those mounds of blocks sitting around the basement. The kids can build stadia, or other scenarios, and use the OYO sports figurines as well.
The best part about OYO’s potential is that it again seeks to marry what were once divergent worlds for young people. Like robotics, LEGO were once thought to be nerdy and not for “sports” kids. Same with film and full motion video, or even photography. Now OYO can help merge those world’s, and make the arts and building good for “sports” kids, especially on rainy days, and can probably help the kids once thought to be a bit “nerdy” and not engaged in sports find a common ground as well. That merging doesn’t just help at home, it will help in the classroom, as suddenly science and technology, and even engineering, may seem just a bit more cooler to kids who might have been bored with sports. It also doesn’t hurt that media companies like Nickelodeon and Marvel are looking to find ways to pull sports into entertainment, and OYO’s analytics, video, and interchangeable parts can also play right into their plans as well.
Are there some limitations? Sure. Making the figures as life-like as possible is a challenge, and there is probably a limit as to how many figures the company can customize for now. However the upside and potential for OYO in any host of sports, even on the NCAA level, is very bright, and certainly makes their business one to watch. The Boston Globe had a piece the last few days on how the company came about and its new infusion of cash from Mandalay Entertainment, which is certainly worth a read.
Keep building OYO, and we will keep watching. What was a rare fail for LEGO is an opportunity for you.
It hasn’t been the greatest of baseball years in the Valley of Sun, but that doesn’t mean the Arizona Diamondbacks haven’t continued to make an impact on the lives of young people through programs on and off the field. One that will bring classroom work together with a baseball club will take place this weekend, when the DBacks become one of the first professional sports teams to tie baseball together with the key core teaching curriculum of STEM (Science, Technology, Engineering, Math).
The team will host 14,000 students and their families, and give 3,000 students and teachers a chance to take part in a pregame STEM parade on the field and receive a D-backs Science of Baseball t-shirt. Combined with their naming rights partner, Chase and the Arizona Diamondbacks Foundation, 10 different STEM clubs with a $2,500 grant for their work, especially in the growing field of competitive robotics, and a host of other teams from schools will be able to present their projects throughout the stadium during the night for the other fans in attendance.
While a great way to fill distressed seats and celebrate community, the DBacks work goes far beyond just one special night for kids and teachers who may rarely get recognized in an athletic setting. It is part of a growing trend to tie analytics and science to give kids an added boost and create more fun in academics, much like “Schoolhouse Rock” did with music for a previous generation. The program in Arizona was started in 2013 by Science of Baseball Founder, and University of Arizona Professor, Ricardo Valerdi, and his engineering students to keep the kids engaged by using curriculums that include classroom activities, athletic activities, and take-home activities. It has grown vastly since then, and should be replicated not just by baseball, but by every sport going forward as a way to link onfield and offfield activities. An event, and a program like this, is also highly sponsorable and can open new areas for brands who were not originally involved in sports but can use science and technology as a key area of ROI on their own businesses. For financial services firms like Chase, a tie to a sports-related STEM program further enhances their brand affiliation with sports, and also gets them connected to a younger demo which they crave but have probably not been able to hit with during a traditional signage and advertising campaign.
There is no doubt that the growing field of analytics in all areas of sport has become a hot button. On the field, teams are looking to get the extra edge through analysis like never before, while in recreation sports wearable tech and geolocation have created a new and fast growing industry. Lop on to all that the fast-expanding field of pay fantasy and e-gaming and you have a whole slew of new business opportunities tied to science and technology through sport that did not exist even a few years ago. In order to enhance and grow that field, and its future workforce who can be loyal followers and consumers of professional sport, or even college sport, teams big and small should look to the DBacks program as a way to tie in and get younger people interested and engaged through science, while at the same time taking “sports” kids and showing cool and interesting ways that science can engage with sports.
The program, and programs like it, have a very long tail for growth going forward, and should be embraced as a best practice. They tie to community, sponsorship, education, and on field performance like few others.
A big win for Arizona with this one on all fronts, and a best practice that should be copied across the board and around the world.
(Hat tip to our friends at sporttechie for pointing this out)
As the fall sports now get into full swing we see analytics, gaming and pay fantasy becoming more and more a factor in the decisions of American sport. Into that mix later this fall will be another combination of all of those efforts, the latest, most robust installment of the World Mind Sports Championships, which will be held in Beijing . The bi-annual event grows in stature and acceptance every year, and now comes with a growing list of brands looking to activate in and around the space much like they do in traditional sports.
Are all these events some sort of rise of “nerds” into competitive events to try and steal the thunder from the die-hard sports fans and jocks for media and social attention? No. What these events signify is actually a melding of entertainment and gaming worlds to hopefully form a partnership of healthy mind, healthy body which can appeal to millions and even attract some amazing brands to a more diverse audience.
Mind Sports have been around for thousands of years, and many, especially chess, have been used by world leaders to teach strategy for ages, that is certainly no secret. Most have always operated in a vacuum and away from the casual public eye. The advent of competitive poker on television, as well as an elite champion like a Bobby Fischer, have helped to gradually raise the image of some Mind Sports over time. However in more recent times, as science comes to understand more about the stimulation of the brain to combat issues such as ADHD and Alzheimer’s Disease, the value of all mind sports has grown. Factor in the ever-growing popularity of gaming, both casual and competitive, and the case for unifying the millions who play mind sports together for a country by country competition and celebration makes great sense, and has endless possibilities. The strength will be in the numbers.
Similar to the mind sports opportunity, robotics is growing in popularity amongst young people. A culture that has grown up with gaming tied to advances in technology gives robotics on a competitive level a wide audience that can connect across any boundary via the digital world, as well as in person to person traditional competitions. The competitions teach the same skills…teamwork, strategy, attention to detail…as traditional sports do and help to also stimulate the mind.
So what does this all mean to traditional sports?
First, the simple connection is to analytics and strategy. Coaches of any level, as well as elite athletes are constantly looking for a competitive edge, and the lessons taught by mind sports or even robotics, can satisfy another dimension for both strategy that applies to athletics and for an alternative way of thinking and expanding the ability to think quickly and effectively while competing. The world of traditional sports is also becoming more and more digitized, whether that is in scouting, analyzing skills, communicating or even watching events. Robotics and mind sports can also help provide a bridge of understanding into a high tech world by applying tools and technical elements to athletes and coaches. Then there is gaming. Perhaps the fastest growing segment of competition globally is competitive and casual gaming, whether you are considered a jock or a techie. Everyone enjoys games from Angry Birds to Madden ’14, and gaming provides another key common ground between mind sports and competitive traditional athletics. There is also the jobs marketplace. More and more we are seeing professional and collegiate athletics look outside traditional circles for leadership, and those with an understanding of the tech, strategic and business world are getting more and more opportunities. The competition in mind sports could help bring another employment dimension for those versed in both convention athletics and the expanded use of competitive mind sports and gaming.
There is also the projection of the complete individual, one that marries healthy mind and healthy body. First Lady Michelle Obama’s “Let’s Move” initiative has inspired thousands to get up and get active physically, and balancing that physical aspect with a healthy and active strategic mind fits very well, so a mix of competitive athletics with mind sports is a great balance.
If you are a brand what does all of this mean? Lots. Those brands of all sizes involved in traditional sport are always looking to get more bang and get access to a larger, wider demo. Activities like mind sports and robotics provide that wider audience. Tech brands are always looking to access a more mainstream audience that is becoming more savvy, and traditional sports provide that mix. Does it mean we may see Nike or Under Armour sponsoring robotics or the U.S. chess team somewhere down the line? It is actually a possibility. Does it mean that you may see more athletes paying attention to bridge or more poker players throwing a baseball, or watching rugby? That’s already happening. For 2014 brands like Rado, Renault Nissan and Samsung are already on board to activate around the games and against the thousands who will follow online or watch in person.
Mind Sports continue to grow as an intriguing alternative to the traditional engagement, one without many of the controversies and issues of traditional sport with lots of the gamification and strategies built in for a global audience of all ages. While it will always be a niche, it is a niche that is growing, as evidenced by media partners and brands in engaging in an organized fashion, which makes the property an intriguing one to watch this fall.
This past Sunday, three of the most read stories in the New York Times involved the growing and ever-changing world of gaming and gambling. From competitive, professional e-gaming to lotteries now being devised to teach people about healthy savings to the continued troubles two of the biggest online games companies, Rovio and Zynga, are having, it is becoming more and more apparent that the digital and mobile gaming world is becoming more relevant, more fluid and in many ways more treacherous than ever before as brands and investors look to throw money good and bad into the space to see how to engage not just millennials, but a growing consumer base that wants to be more connected in the digital world than ever before.
Against that volatile and ever-changing mobile backdrop also came the final nail in the coffin for two of Atlantic City’s biggest resorts, the venerable Showboat and the quick to burn Revel, along with another massive employer going down the tubes in the coming weeks in the Trump Plaza. Put against that the massive marketing dollars being thrown about by arguably the two biggest players in the pay fantasy world, Draft Kings and Fan Duel, and the ongoing battle States are having to overturn federal law to bring relevance and dollars to sports gambling, and you have a virtual sports, gaming and gambling business that resembles the wild west, with huge investors trying to find answers as to how and where people want to engage in the gaming space, and what exactly they will, or won’t pay for.
Now the casino business is far from dead. Just looking at the companies lining up to open buildings in states like Massachusetts and New York and other states shows that sin is in, and those governments are more than willing to get their slice of the current pie. The problem is that the pie, at least as it exists today for boots on the ground casinos is not growing. The goal for these new venues is to keep people home, and to find the right critical mass of players to keep the new casinos vibrant and healthy. That is the same challenge Atlantic City will now face; how many are too many for the clientele that make the trip down and across the Atlantic City Expressway, and what will keep bringing them back?
Some legislators feel that sports gambling, via mobile device or in person, will be the difference and could be a billion dollar federally regulated industry that will create new revenue streams for governments, for the casinos and for the leagues that would get a piece of each transaction. After all the sports gambling industry has flourished in Nevada for years, and is a growing multi-billion dollar business globally, with clubs like those in the Barclays Premier League aligned with legitimate legal betting houses for years. The theory is not if, but when, the legal gambling spigot gets turned on that the revenue, and the fan engagement, will rise all ships. Today that remains a theory though, as lobbyists on both sides battle back and forth to keep Nevada as the sole spot for sports gambling. Arguments of match and game fixing abound on one side; arguments of a tight federal system that works in many parts of the world fill the other side. When the stalemate will break is open for debate.
On the e-gaming side, insiders say the business is exploding, with million dollar tournament and some events drawing in excess of 10-12,000 fans, all millennials, watching tournaments both live and online, with brands lining up to engage and drop product in and around those games. Whether or not professional e-gaming is a massive sustainable business is up for debate though. Yes some players make huge sums and some brands have found healthy engagement and some tournaments draw big numbers. But what happens when those millennials turn to the next big thing and abandon the game they are so loyal to. Or what happens when they become a bit older and turn to more traditional discretionary spends; like sports or music or family or even school. Will they continue to turn out in massive numbers? The jury is still very much out. It is intriguing, but so are the X Games and the Dew Tour and the UFC and competitive surfing and Comic-con and any number of platforms all battling for attention in a business environment that is becoming more targeted and much more competitive on a global scale with each passing week. Witness the issues Angry Birds has had in trying to stay engaged with an evolving and fickle audience, or the problems Zynga has had in keeping their massive scale with simple games.
Then there is the largest part of the population; those over 50. They are on fixed incomes in some cases and while they were the sweet spot of many casinos, they obviously don’t have the amount of discretionary income to keep all those brick and mortar casinos viable. They don’t really engage in e-gaming yet, but they do enjoy sports, so is there some type of hybrid that makes since in the digital world there that could cross over all platforms? They are avid lottery players, so the pay fantasy sports model could work for them, and the recent launch of effective savings programs tied to a lottery system seems to be hitting home not just with Baby Boomers but with a growing number of middle to lower income families who play traditional lottery in the hopes of hitting it big, but can now use an effective savings program that will help them get a chance at a bigger prize as well.
So where is all this e-gaming/gambling/traditional gaming business going? That is literally a billion dollar question. While right now all of these business seem to be working in legislative silos, the breakthrough success will come with more and more convergence down the line. Can e-game athletes mesh with traditional sports, and is there a pay system for consumers through a mobile, regulated environment that would bring revenue and excitement to consumers of all ages? Can federal regulators find a system where casinos now struggling as brick and mortar businesses battling for the same pie actually grow the pie and not just the pieces? Is some form of pay fantasy an answer in some way?
All has yet to play out, but thousands of brands are sitting on the sidelines waiting to see where all this nets out. For now, the collateral damage, especially in New Jersey, is pretty devastating in the form of lost jobs. Hopefully that is a temporary problem because one thing is for sure; the mobile digital gaming and gambling world is growing in interest on all fronts, and somehow, some way, the path to success needs to be carved.
It certainly wasn’t the greatest week for Gannett, with their news of the virtual shuttering of their long form national sports platform “Sports on Earth” and the spinning off of their newspapers. However for the local sports fan, a new offering on the digital Gannett platforms could provide a nice option for additional coverage of college, high school and special event sports throughout the state, an area which news 12 and Verizon Fios have covered to various levels of success on broadcast TV, bit one which has seen a loss of hyper local coverage with the loss of an entity like MSG Varsity.
The new offering is called “Jersey Sports Rant,” and it will be hosted by longtime area voice Joey Wahler, who consumers in New York may recognize from places like MSG Network and News 12, and have heard on WFAN and WCBS radio for years. The digital offering debuts Monday. Aug. 18, streaming live video Monday through Thursday from 6:30 to 7:00 p.m. Wahler will host the show from the new Asbury Park Press newsroom in Neptune, bringing in personalities with Jersey ties via digital connection, and in some cases in person. The audience will be asked to interact with the show through social media platforms and by a live chat box on the screen. Consumers can access the show live or through a daily archive on Gannett’s five New Jersey newspaper websites: app.com (Asbury Park Press), mycentraljersey.com (Home News Tribune/Courier News), courierpostonline.com, dailyrecord.com and dailyjournal.com, giving some great added value to those news site’s subscribers, and helping to give the Gannett papers statewide a more unified presence in the local sports conversation.
The goal of “Jersey Sports Rant” is to provide a state-specific platform to discuss the sports news of the day; from Rutgers and the Big 10 to minor league baseball to the casino industry to high school sports, with a mix of coverage and discussion about the professional game as well. In addition to being a nice addition to the news sites, it can provide much-desired video that can drive traffic, and in theory, brands and dollars back to fund the project. This works in many smaller markets, can it work in a large market like New Jersey?
While not venturing outside the studio at first, the show will look to spread its wings with event content and news of the day as well; making it much more than a stagnant “talking head” with calls just coming in. Video and guests can drive conversation and engagement, something which sometimes gets lost in New Jersey sports as the talk is controlled by the professional sports across the rivers in Philadelphia and New York.
Will “Sports Rant” find an audience to make it viable and desirable to advertisers? That will take time to build, but studies do show that the consumer today loves hyper-local engagement and unique content. In this crowded environment it may be a challenge, but it is one that Gannett looks like it is willing to take on as it tries to find new ways to engage its subscribers and grow its base.
Let the story pitching begin.
Joe has over 30 years of strategic communications / marketing, business development and public relations expertise in sports, entertainment, brand building, media training, television, athletic administration and business. He is a producer of award winning and cutting edge programs designed to increase ROI and minimize cost.
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