A Media House
ACT I: You Changed The Game Forever
Social Media has changed the landscape of sports forever. If you are a designer, illustrator, strategist, producer, editor, copywriter, or marketer, you're leading the revolution, making the change, and creating a sport. And you're doing it daily.
You are creating and recreating fan experience and fan engagement. You're leading a massive change. A change includes everyone who works for a team, including players, fans, executives, and media personalities. We all have a forum to push forward the most dramatic change the spots industry has gone through. Ever.
Going from set shots and banned dunking to today's deep threes and high-flying dunks is a dramatic change in the NBA. It's nothing compared to how social media reinvented fans' consumption of the game. Social media channels are the collection of distribution platforms, and the content is its strength. Both the channels and types of content we create are evolving.
The Heart of it All
Today, social media should be at the heart of every team's marketing plan. The center. The core. It is the key to meteoric fan engagement and revenue growth – both old and new. And if social media is the heart, content is the blood. It pumps through the heart and provides oxygen for the other marketing channels. Whether we know it or not, we are in a content arms race. And in every league, we're starting to see the effects on the game. The primary content distribution platform is social media. To win the content game, we have to win the social game. We must win the content game to win the social game; the two weave in and out of each other. To bring this ecosystem together, teams have to build an internal Media House.
We're the Problem
Look at the NBA, the most progressive and forward-thinking of all the leagues. Early on, it was a league that embraced social media and youth culture and gave the players a voice and personality before any other. Thank you, Adam Silver, Amy Brooks, and others at the NBA.
For four straight years, the NBA noticed record TV viewership and similar records for game attendance. The game's popularity is at an all-time high. Year after year, the league surpassed the previous year's record-setting numbers. The league was and is hot. However, something happened last year during the 2018-19 season. TV viewership dropped. Game attendance dropped. On average, both local and national ratings were down. But with popularity at an all-time high and merchandise sales continuing to grow, why the dip? Why are fans staying away from their TV and their local arena?
For every action, there is an equal and opposite reaction.
It's simple: the attention has shifted to social media, where you can get every key highlight and commentary from multiple sources. You can join a community of like-minded fans (e.g., #NBATwitter) and not just watch but participate and get a reaction. You can create. Now, there is no need to watch every game live or to attend a game. Social media filters the best and adds commentary that can be far more entertaining than the average game. Thus, we – social media – are the problem. But that's good because social is also the solution. To solve this problem, we must double down on social media and the content we create. Go all in.
ACT II: IT'S TIME TO CREATE A MEDIA HOUSE
Build it Now
Although it's only one year, the NBA doesn't like the downward viewership and attendance trend. TV – both national and local – is a significant source of revenue. High ratings lead to larger revenue packages from all the networks, which leads to more top sponsorship deals. Ticket sales are another major factor. Demand for tickets increases ticket prices in primary and secondary ticket markets.
The first reaction may be to slow down the "off the court" activity in social media and funnel all the attention back to the TV and in-game experience. But that would be wrong.
The issue comes down to revenue, and more specifically, we need better ways to measure and monetize new media. We need better ways to track and determine the value of all the social media attention and engagement. As an industry, we're not there. But the value is. We can't see it or measure it all – yet. And that's the dilemma: the value is there, but we can't monetize it. TV ratings and attendance may continue to dip, but game interest and social media activity will continue to grow.
This result has been brewing for some time, and the 2018-19 season was the first time social media demand significantly contributed to a decline in TV and attendance. In fairness, Lebron moving from the East Coast to the West Coast hurt TV ratings, but that didn't alter game attendance. This shift has been coming for years.
It's time to move social media to the center and begin to invest in our social and digital ecosystem. Think of social media not as an expense but as a source of revenue. Social should have revenue goals and be held accountable to a higher standard than it is today. We need to change our mindset. It's past time. We will only solve the problem if we go all-in. It's time to double down. The reward will be huge.
Create and Build
To do this, each team must become that Media House – whether you are an NBA team or one in another league. Social media channels and content creation should be our expertise. And the two must be a significant driver to the business side of sports. We need to go deep down this path. Hire the right people, expand teams, and continue to create the game in new and inventive ways.
Build and develop an ecosystem that creates communities of fans and communities of content creators. Today, content creation is at an all-time high. Some of the content is good, and some could be better. While we need to expand what we are creating, we must do it correctly. Sometimes, we make content out of a desire to create content – but it lacks a real purpose or goal. We are doing it because everyone is doing it. There doesn't appear to be a strategy behind it. We need to take a step back and think about this approach.
Stop the Talk
We've discussed content relevance and that messaging and content must speak directly to the fans. Content must follow the overarching business strategy and align with the brand strategy. It's time to stop talking about it and do it. Move from the conference rooms to actual execution.
Our approach should be holistic, which goes back to an earlier point: social media and content should be the heart and blood of every team's marketing plan. Social is not just an afterthought or a side channel but the core marketing focus.
Some have started this change, but only some are genuinely all in. Few view these channels as revenue drivers. Only some see how a robust social media community with highly engaging content will sell more tickets. Only some recognize the opportunity to create more branded platforms with content that aligns with the brand. But it's all right there.
Everything is in place to make this happen. It starts with understanding the value of digital media, the value of sponsorship, an impression, and a video view. This method is how large media companies generate revenue and how sports teams should generate revenue.
The long-term measurement and TV viewership tradeoff still need to improve, but that isn't a team issue; it's an industry issue. While we can't precisely measure it, we can do a better job. That shouldn't stop the progress.
The Future of Sports Marketing
The future of sports marketing is becoming a Media House. That is the future of all sports teams. It's some combination of Complex, Red Bull, Nike, Bleacher Report, and ESPN, but with even more intimate team and player access. Teams produce content, and social media channels are the main distribution points.
Implementing this platform requires investments from teams. The current social media and content teams must be significantly expanded – in some cases - strategists, designers, producers, editors, copywriters, filmmakers, illustrators, production managers, etc. We must move away from one person plus an intern social media team. We can no longer wear many hats. Analyzing the revenue opportunity and the business case will be easy. Even with today's limited form of revenue measurement, the ROI is there right now. The long-term revenue opportunity is even more incredible. Again, hold this department to revenue goals just like a sales team. We have to shift our mindset.
We're 10% of the way there. It's not time to dip our toes in and get a good feel for the water. It's not time to go small and slowly figure it out. It's not time to wait and follow others. The NBA got where it is today because it gave the teams and players a voice in social and let the fans participate. The NBA gave their league and teams a massive advantage over the other leagues. While the NFL, NHL, and MLB were conservative, the NBA pushed forward. And the NBA is on a path to one day become the most popular sport in America and the world. Yes, the world – the NBA will rival the Premier League, and the two will be significant international sports leagues. The NBA is now in this position because of past decisions - the brilliant decision to open up and embrace the change. Don't stop now; go harder. Get 100% of the way.
ACT III: CHALLENGES DRIVE LEADERSHIP OPPORTUNITIES
Make the Uncomfortable, Hard Choice
But going harder includes rethinking what we're doing, not because the NBA is behind, but because the NBA is leading, because they want to continue to lead. Other leagues should take notice. Develop new methods and opportunities, and continue expanding into international markets – like China. All other leagues need to catch up fast. There is much catching up and work to do.
How will this all play out? It's hard to say. If you use other industries as a benchmark, some teams will see the opportunity, get a significant jump on the other teams, and then everyone will scramble to catch up. The Pioneers will have an advantage.
The worst-case scenario for all leagues may come from third parties. Third parties will form new sectors within the sports industry, not have a specific tie to a team or league. And because they have nothing to lose, they will make this their business and be dedicated to it. Then, new companies will launched and cause revenue to shift from the leagues to these third parties.
For the fan, this is great. For the leagues, it's probably not if third parties start to pull revenue away from the league and don't act as a compliment.
As team leaders, we need to champion these initiatives. If you get pushback, don't sit still. We need to push our organization and educate our leaders. Show them the way. Keep pounding. Understand that some leadership and owners may need selling during these early conversations, and there will be pushback, but don't rest. Their eyes are starting to open, and the barriers are coming down. Push your team to be the first to build a media house that continues to create sport and reimagine the game. Find the revenue, and then buy-in and resources will follow.
