Category: Blog

In the past decade, video games have become increasingly popular especially among the millennial and generation Z demographics. The rise of video games has extended past being a hobby as many have made careers in gaming. Esports (electronic gaming) has become a multi-billion-dollar industry where professional gamers compete in teams across multiple video games, such as Fortnite, League of Legends and eNASCAR. Esports is not only an emerging market in sports but has also redefined what it means to be an athlete. With gaming in an upward trajectory, it has become a question whether Esports should be included in future Olympic Games.

Why Is the IOC Exploring Esports?

The creation of electronic gaming consoles in 1972 ignited competitive gaming. However, competitive gaming did not begin until 1980, when 10,00 gamers participated in a Space Invades tournament. Over the next three decades, competitive gaming consistently grew, not only in participation but in viewership. By 1998, a Starcraft gaming tournament reached 50 million viewers. By 2002, competitive gaming had become so popular that major international tournaments were created such as the World Cyber Games, Electronic Sports World Cup and Major League Gaming (MLG). In 2006, history was made when the first Esports event was televised on USA Network. When Twitch was introduced in 2011, Esports broadcasting became not only more accessible, but popular and consistent. Now, we see Esports tournaments broadcast globally, with in-person tournaments selling out within minutes.

The International Olympic Committee announced that they would have a slate of five esports events for the 2021 Tokyo Games. These virtual events included auto racing, baseball, cycling, rowing, and sailing. In a statement, IOC President Thomas Bach said: “The Olympic Virtual Series is a new, unique Olympic digital experience aimed to grow direct engagement with new audiences in the field of virtual sports. It encourages sports participation and promotes the Olympic values, with a special focus on youth.” For more details on the results of the events, check out this link.

Like many Olympic athletes, those competing in Esports can compete at the collegiate level. Currently, there are 175 Esports varsity teams in colleges across the nation including Boise State, Miami (Ohio), and Ohio State. These teams regularly compete in league tournaments with the chance to win prizes in the form of scholarship money. While Esports athletes typically gain exposure via independent channels such as twitch or tournaments, college programs could also give Esports athletes a direct path to the Olympic Virtual Series.

The Hurdles: Governance, Olympic Values & Sporting Integrity

While Esports provides many opportunities for athletes, there are some current setbacks. Rule 40 of the Olympic Charter states that athletes cannot compete in the games if they are using their name, image, or sporting performance to be used in advertising during a “blackout period,” which occurs between games, without the permission of the IOC. While this rules prohibits current Esports athletes from competing, it will take some time for the IOC to give permission to the athletes to compete.

What the Future of the Olympics Could Look Like with Esports

Even though the Olympic Virtual Series is not an official Olympic sport, its creation has created a pathway to where Esports can become an integral part of the Olympics. The inclusion of Esports would show the international community how gaming has evolved and the inclusion of popular Esports athletes could potentially benefit the streaming numbers and platforms for future Olympic games (The Tokyo 2020 Olympics recorded the highest streaming numbers of any Olympics in history). 

Sources

1. https://www.ncsasports.org/college-esports-scholarships/varsity-esports
2. https://www.siue.edu/esports/about/history.shtml#:~:text=Esports%20traces%20its%20origins%20back%20to%201972%2C%20when,in%20the%20surprisingly%20cutthroat%2C%20inaugural%20Donkey%20Kong%20tournament.
3. https://www.washingtonpost.com/video-games/esports/2021/04/22/ioc-olympics-esports/
4. https://olympics.com/ioc/news/inaugural-olympic-virtual-series-concludes-successfully
5. https://sportytell.com/esports/biggest-esports-sponsors/
6. https://thestreamable.com/news/2020-tokyo-olympics-most-streamed-games-yet-as-traditional-tv-numbers-fall#:~:text=The%201988%20Summer%20Olympics%20were%20the%20first%20Games,according%20to%20data%20from%20Nielsen%20and%20Adobe%20Analytics.
7. https://www.kreedon.com/olympic-sponsors-tokyo-2020/
8. https://www.teamusa.org/team-usa-athlete-services/athlete-marketing/ioc-rule-40-ipc-athlete-image-policy-guidelines#:~:text=Rule%2040%20of%20the%20Olympic%20Charter%20is%20an,and%20maintain%20the%20long-term%20health%20of%20the%20Movement.

Surfing is a sport that has a very particular fanbase. As a smaller level sport, it is not going to have the number of widespread fans as one of the major sports. However, there is a growing audience. That can be seen through many outlets, but the Olympics may be the best example of that.

Surfing made its Olympic debut in Tokyo this summer. For the first time, surfers from all over the world were able to have their hard work and talent recognized across a global event like the Olympics. It truly was the best opportunity for these athletes to be recognized and people definitely became aware and took notice of how special this sport truly is. It was deemed so successful that the sport got the nod to also have a spot in the Summer Olympics in 2024 that will take place in Paris, France. Surfing was one of the ten most viewed sporting events in the Olympics this year.

Interestingly enough, surfing has now made a move to the mainstream. ABC has premiered ‘The Ultimate Surfer’. The Ultimate Surfer is a competition series that was created by eleven-time surfing world champion Kelly Slater. Former NFL Quarterback Jesse Palmer hosts the show with sports anchor Erin Coscarelli and Joe Turpel as commentators. The series includes 7 up-and-coming male and female surfers to train and live together as they compete against one another at World Surf League’s state-of-the-art Surf Ranch in Lemoore, California. While it is a reality show and there is a dramatic aspect to the show, the surfers compete in both individual and team challenges that are focused on different aspects of the sport. There are weekly eliminations on both the men’s and women’s sides that will eventually leave two men and two women as finalists. The winner of each side will be declared the winner and will have the opportunity to compete on the WSL Championship Tour.

Episode 1 brought in 1.432 million viewers and episode 2 brought in 1.318 million viewers. Although there was a drop-off in viewership from the premier, the demographic change from episodes 1 to 2 increased by 17.65%. What the TV show will do for surfing, however, is introduce the sport and allow it to become more mainstream. In the Olympics, people saw the talent and hard work of these tremendous athletes. However, in ‘The Ultimate Surfer’ people are going to be able to get an inside look at the hardships that these Surfers go through, as well as the constant time and effort that these athletes have to put into work on their craft. It truly is an exciting time for surfing, as the sport is bringing in genuine interest, obviously enough interest for ABC to feel confident making it a premier television show on one of the biggest networks on cable.

Andy Dehnard, a Television Critic, said, “The Ultimate Surfer has more than I gave it credit for… Add that to some impressive surfing, and The Ultimate Surfer is a compelling reality TV competition with just the right amount of strategy and interpersonal drama that is balancing out perfectly right now.” I think that taking surfing and showing the lifestyle and making them out to be more than just athletes will truly create a special brand to this show. This will help people understand the ins and outs of surfing, but also letting viewers get connected to each of these surfers through their personal experiences and stories will add a new dimension to the sport. 

Also, the large-scale exposure that these surfers will be getting will help them bring in interest from different brands that would end up creating mutually beneficial partnerships and help boost their careers to the next level.

Sources

1. https://www.reuters.com/lifestyle/sports/surfing-skating-boosts-viewership-lack-fans-has-zero-impact-ioc-2021-08-03/
2. https://www.latimes.com/entertainment-arts/tv/story/2021-08-23/ultimate-surfer-abc-kelly-slater-surf-ranch
3. https://www.realityblurred.com/realitytv/2021/08/ultimate-surfer-abc-review/
4. https://tvseriesfinale.com/tv-show/the-ultimate-surfer-season-one-ratings/

Over the past couple of years, cryptocurrency and NFTs have begun making their way into the headlines, particularly in the sport sponsorship space. Although cryptocurrencies and NFTs (non-fungible tokens) have existed for several years, the two terms have achieved significant popularity and growth in the 2020s and there are seemingly no signs these new trends will stop anytime soon.

Why Crypto & NFTs Are Reshaping the Sports Sponsorship Landscape

To try and thoroughly explain what cryptocurrency and NFTs are would take thousands of words given their complexity, but here’s a basic understanding of how they work and why they are so important. Cryptocurrency involves direct peer-to-peer online payments (aka “digital currency”) that can be exchanged for goods and services backed by specific encryption codes on a blockchain network. To take a deeper dive and explain blockchain would also take thousands of more words, but it’s a thorough verification system that proves the legitimacy of cryptocurrency payments and transactions. NFTs are non-fungible (or unique) tokens (or units of data) stored within a blockchain that proves a digital asset is 100% unique and certifies its value.

Collectibles like artwork, literature, and trading cards are all examples of items that are often evaluated and given a monetary value denoting their worth based on such metrics as condition, scarcity, and context. This evaluation process has sparked the desire to obtain NFTs of iconic moments in sports, entertainment, news, and culture. Since the only way to currently obtain NFTs is through the exchange of cryptocurrency, the two terms are closely related and the NFT marketplace’s growth coincides with the increasing popularity of cryptocurrency.

Sponsorships, Digital Collectibles & New Revenue Streams

These trends have capitalized on their growth by entering the sport sponsorship space in traditional and non-traditional ways. Much has changed since the “Bitcoin St. Petersburg Bowl,” the first major sports deal between bitcoin, arguably the most well-known cryptocurrency, and ESPN back in 2014. Now that cryptocurrency has become more mainstream, deals have been made across several different leagues, teams, and athletes on a global scale. One of the most visible companies making moves has been Crypto.com, an all-encompassing digital asset management company that has thrived through partnerships as the official kit sponsors with UFC and Sprint qualifying sponsor alongside significant brand awareness with Formula 1. FTX, a cryptocurrency exchange platform, has leveraged its official umpire patch with the MLB and official venue naming rights of the Miami Heat to tap into fan bases within the “core four” of American professional sports leagues. Chiliz, a cryptocurrency rewards platform designed for sport and entertainment audiences, has dominated the European football space and their services are now being utilized with eSports teams. For NFTs, the NBA’s Top Shot marketplace has been instrumental in providing a framework for how collectibles can thrive in this new area. Companies like Panini America added a completely new business arm to collect exclusive digital items of professional and collegiate athletes. The list goes on but what’s key here is the diversity in terms of where cryptocurrency and NFTs are popping up.

From Athlete Salaries to Fan Tokens: Crypto is Changing the Game

An interesting case study with the intersection of cryptocurrency, motorsports, and athlete compensation came back in June of this year. NASCAR Xfinity Series driver Landon Cassill set a precedent as he became the first NASCAR driver to be paid entirely in cryptocurrency as part of a sponsorship with Voyager, a cryptocurrency brokerage firm. Similar deals have been made in professional sports — Kansas City Chiefs announced that tight end Sean Culkin’s salary would be paid in 100% bitcoin — but the 19-race deal between JD Motorsports and Voyager was the first of its kind in the NASCAR scene. According to Cassill, the company would pay “‘market rate’ for the sponsorship” but the funds would actually be a “‘portfolio of digital assets” that includes Litecoin and Bitcoin, two of the most well-known cryptocurrencies (NBC Sports). Cassill noted that the versatility in what he can do with the funds works in his favor: “I can trade it out right away before the market changes or hang on to it as the market goes up or goes down, carve out a little bit, pay my bills with it and hold the rest” (NBC Sports). Other than Josh Wise’s Dogecoin “Moonrocket” in 2014 and Kyle Busch’s BitPay collaboration a year later, cryptocurrency was practically a foreign entity to NASCAR until Cassill took the first step to break down that barrier. The door is open now to other professional athletes to step up and become the trailblazers that capitalize on these new trends.

Challenges Ahead: Education, Risk, Regulation — What Sports Must Get Right

But what’s the next step? Strategic partnerships and creative activation have successfully brought cryptocurrency and NFTs to the forefront of the sponsorship side of the sport and entertainment industry. A big hurdle for crypto was simply exiting the deep corners of the web and earning credibility as a proven way to redesign the way people think of their assets.

Aiding that transition has been the research and development of blockchain technology to drive the move towards digital currency. But, not surprisingly, education and awareness of how cryptocurrency and NFTs function is something a simple sponsorship will solve. So many people want to join the party, but when you do send them an invite, they find it tough to figure out how to get there, what to bring with them, and who will be there when they arrive. To keep the momentum generated by these trends going and for partnerships to realize their full value, education needs to be a priority. Education from athletes, institutions, brands… whatever it takes to make the new and exciting space more accessible for people. People are naturally resistant to change and when they experience mixed emotions (see chart below from bitcoin.com), it’s that much tougher to attract a greater following. Being creative in the ways parties effectively communicate to them why and how they can participate with these trends should correlate to more revenue in the long run.

Sources

1. https://www.forbes.com/sites/cathyhackl/2021/07/29/what-brands-can-learn-from-italian-soccer-club-as-romas-42-million-branding-partnership/?sh=ea9b11a86a8f
2. https://nascar.nbcsports.com/2021/06/17/landon-cassill-nascar-xfinity-series-jd-motorsports-voyager-cryptocurrency/
3. https://cryptobriefing.com/how-the-sports-world-embracing-crypto/
4. https://www.harlemworldmagazine.com/cryptocurrency-deals-for-sports-fans-from-harlem-to-hollywood/
5. https://www.latimes.com/sports/story/2021-07-15/nft-role-future-of-sports
6. https://sports.yahoo.com/ufc-sell-first-nfts-fighters-123041217.html
7. https://news.bitcoin.com/survey-shows-3-out-of-4-sports-fans-are-skeptical-about-the-longevity-of-nft-investments/

It’s been nearly two weeks since the fateful day when college athletics turned the page to a new chapter: the NIL era. On June 30th, an interim rule change adopted by the NCAA allowed all student-athletes to capitalize on their name, image, and likeness beginning July 1st. Some players, like Auburn QB Bo Nix and University of Miami QB D’Eriq King, signed deals with local companies like Milo’s Sweet Tea and Murphy Auto Group, respectively. Others, like Clemson WR Justyn Ross and Villanova Guard Collin Gillespie, paired up with The Player’s Trunk to sell customized merchandise. There’s been no shortage of creative ways for student-athletes to monetize their assets and build their own personal brand. So, given this new freedom, who has or will become the true winners of the NIL era of college athletics?

The answer may surprise you. It’s no secret that the highest revenue-generating sports – Football and Men’s Basketball — cashed in easily and will continue to prosper under new NIL rules. However, the true winners who will undoubtedly benefit the most are the women college athletes, and here is why.

Flashback to March Madness 2021 and the catastrophe that was the conspicuous discrepancies between the men’s and women’s basketball tournaments. While gender inequity in sport is not a new problem by any means, the evidence from the women’s tournament spoke volumes and shook the NCAA to its core. Outrage on social media sparked a movement to push the governing body of college athletics to start treating all athletes with the respect they deserve. And while this nightmare unraveled, the two-headed monster reeled its other head and #NotNCAAProperty was seen on millions of screens across the country. While Stanford and Baylor made history on the court, the history of the NCAA was already being rewritten. 

Fast forward now to June 30th, 2021, and the storm of new sponsorships and endorsements that came as the clock struck midnight. Perhaps the first women college athletes to make headlines were Fresno State Women’s Basketball players Haley and Hanna Cavinder who signed endorsements with Boost Mobile and Six Star Pro Nutrition. The twins, who have over 3 million followers on TikTok, are estimated to make hundreds of thousands of dollars per year based on their NIL and social media following (Robert Kuwada, The Fresno Bee). Nebraska Volleyball player Lexi Sun came out with her own clothing line based on her name. Jacksonville State University volleyball player Adelaide Halverson became the first “Barstool Athlete” to sign, followed by thousands of other athletes from all kinds of sports. 

What do these examples shed light on? Another aspect of the tremendous growth that is already underway for women’s sports. TV ratings for women’s sports are up significantly, most recently demonstrated by the record-setting Women’s College World Series where average viewership for the three final games eclipsed 1.84 million, an increase of 15% over 2019. The ratings for the Women’s Gymnastics on ABC skyrocketed to 808,000 viewers, up 510% over 2019 (Cliff Brunt, ABC News). Outside of the college landscape, almost every male professional league struggled to retain their audience while the WNBA and National Women’s Soccer League saw an increase in viewers (Ben Strauss & Molly Hensley-Clancy, Washington Post). The positive trend for women’s sports is showing no signs of slowing down either, as infrastructure for women’s sports visibility continues to progress.

The women student-athletes of today are in the most advantageous position as there ever has been. Not only are women’s sports visibility and engagement trending upwards, but female college athletes have been given the tools to become powerful influencers for brands willing to accept the changing of the guard. Brands can now position themselves to “get in on the ground floor before college athletes head to the big leagues” (Kimeko Mccoy & Seb Joseph, Digiday). Or, at worse, collaborate with the student-athletes who will not turn pro but are currently resonating with the Gen Z audience on the top social media platforms. It’s a far more cost-effective strategy to reach a valuable target market through NIL than signing with professionals. Additionally, technology is constantly improving and offering new avenues for creativity. How much could an NFT of Sedona Prince’s video of the weight room at the women’s March Madness facility be worth 30, 40 years from now? Who will be the first female athlete to be paid in cryptocurrency?

It still remains to be seen what specific kinds of endorsements student-athletes can pursue with the NCAA tightening up their rules and regulations in the future. But for the time being, the greatest potential for college athletes to grow their brand and cash in lies within women’s college athletes. 

Sources

1. https://www.fresnobee.com/article252490978.html
2. https://abcnews.go.com/Entertainment/wireStory/womens-college-sports-boost-tv-ratings-visibility-78373009
3. https://www.washingtonpost.com/sports/2021/04/01/womens-sports-growth-ratings-business/
4. https://digiday.com/marketing/as-nil-era-arrives-marketers-find-an-influencer-playbook/

During a time when one’s personalized Instagram feed no longer displays the images of close friends and family. The social media audience craves to understand what is going on in the lives of people that interest them the most. Instead, we open the app only to be forced to observe the millions of targeted brand advertisements, pages we’ve never interacted with before, and of course the influencers… The realm of social media influencers has taken over all social media platforms and has become a sort of normalcy in contemporary society. Whether it be presenting a product or a service, these so-called “influencers” are given an incentive to “influence” the people who follow them in order to create a pipeline from the fan to the consumer. With this being understood, I think it’s important to define what makes an influencer successful.

What is an Influencer?

Before we dive in, we must first ask “What is an influencer?” According to Influencermarketinghub.com, they state that an influencer is someone who has, “the power to affect the purchasing decisions of others because of his or her authority, knowledge, position, or relationship with his or her audience.” Knowing this, every self-proclaimed influencer could range from someone who has 1,000+ followers to a notable public figure such as Kim Kardashian who boasts an impressive 229 million followers on Instagram. The power of an influencer lies in the loyalty of their audience. If an influencer has a large number of followers, but a low engagement rate they aren’t technically an influencer and rather just someone with a lot of eyes on them or someone with fake followers. Influencers are often broken up into categories based on their follower count. These categories are listed as Mega-Influencers, Macro-Influencers, Micro-Influencers, and Nano-Influencers. Brands will often target a certain type of influencer depending on the project or campaign that they are planning to run for marketing purposes. The thought behind the process is absurdly fundamental at its core. The more people that see a product/service being used by an influencer they follow will translate to those same people hopefully wanting to try that same product because one of their public idols influenced them to do so. This process is called Influencer Marketing.

What is Influencer Marketing?

Influencer Marketing has been around for a while now. Dating back to when bloggers and celebrities were the main focus of pop culture media. Now, as social media began to skyrocket and become more popular among groups of all ages, influencer marketing kicked into another gear. According to Sproutsocial.com, they explain influencer marketing, “At a fundamental level, influencer marketing is a type of social media marketing that uses endorsements and product mentions from influencers–individuals who have a dedicated social following and are viewed as experts within their niche. Influencer marketing works because of the high amount of trust that social influencers have built up with their following, and recommendations from them serve as a form of social proof to your brand’s potential customers.” Knowing how influencers are utilized as types of “brand ambassadors” for differing companies it shows how clout/attention has become sort of a social currency today. The interesting thing about influencer marketing is that it has proved itself to be an effective tool for marketing and branding. In an article by Bigcommerce.com they mention, “65% of influencer marketing budgets will increase in 2020. Nearly two-thirds of marketers will increase their spending on influencer marketing this year.” With more companies spending money on influencer marketing, this proves that the power of influencers is something that businesses find value in.

Authenticity, Engagement & Building a Loyal Audience

As mentioned before, influencers are broken into categories that are specified by the number of followers that they have. Yet, there are different types of influencers. Individuals ranging from attractive people in a popular city, food vloggers, celebrities, artists, world travelers, and athletes. These individuals cater to a certain niche in a societal culture that allows them to gain more authority than others which makes them an influencer. Depending on the area of attention, these people can create a sense of trust or interest in a brand that they choose to work for. Due to this occurrence, people tend to follow the lead of their favorite social media personalities as a way to almost mimic their lifestyle and appearance. Those with the largest communities supporting them often become the more “successful” influencers.

What Makes an Influencer Successful?

Identifying what makes an influencer “successful” is completely subjective and can differ from case to case depending on what success is defined as to that individual. However, an effective influencer can be more easily described as someone who covers the most important bases of social media marketing. Business coach and thought leader Jonathan Farrington wrote this article for allbusiness.com mentioning the characteristics of what makes an effective influencer. One of the characteristics he mentions is listed as, “Base the success of their communication on the response it produces in others. If other people don’t respond in the way that the influencer was wanting, they accept responsibility and change their communication until they do achieve their desired outcome.” The list goes on as he continues to mention other attributes that make influencers effective. However, this one point, in particular, can encompass one of the most important attributes an influencer can possess, that being communication. If an influencer cannot properly communicate with their followers to create some sort of impact on them, then they have ultimately failed to influence their crowd. With that being said, most influencers find success in creating compelling content and interacting with the people that choose to follow them. There is no proper way to gauge how successful an influencer is, rather measuring the amount of influence they have on their niche and community around them.

What Influencers and Brands Should Focus on Next

As new features and content creator tools continue to roll out for social media, the presence of social media influencers will continue to rise. The decision to appear authentic lies in their hands. Whether they learn to become more genuine as people or fall into the trap of robotic engagement, only time will tell how effective influencers will become in the future. Yet, understanding what this means for the marketing/branding space. This can only lead to further marketing innovations and create new opportunities for promotions/sponsorships regardless of the brand. Becoming an influencer isn’t the difficult part of the journey, it’s understanding how to leverage their followers to create new business for others.