Four Major Trends in the Sports Digital Media Landscape
The digital media landscape has changed rapidly in the last two years and has been completely reshaped since the beginning of the global pandemic. At Fifty-Three Six, we wanted to share some of the key digital trends shaping the market right now. We have put together a list of four key trends which we believe are the most relevant to sports organisations this year. We hope you enjoy reading these trends - we would love to hear any feedback, questions, or further market trends you have noticed!
Trend #1: the rise in Social Commerce
There has been a significant shift towards social commerce in recent months. Social media companies are enabling businesses to sell their products in a new and seamless way directly on or through their social media accounts. Facebook and Instagram Shops now provide an end-to-end e-commerce service from product discovery through to purchase, fulfillment and customer service, and customers can now contact businesses through Messenger, WhatsApp and Instagram as a means of customer service. On top of that, Shopify has recently announced a partnership with TikTok which provides entrepreneurs with a new opportunity to reach customers and allow them to purchase their products within the TikTok app through TikTok Shopping.
Social commerce is the new and improved storefront; it offers the opportunity to create seamless, shoppable experiences directly in the apps that consumers are already spending time on. Consumers are turning to social apps for personalised inspiration and curated recommendations with over 50% of online brand discovery now happening in consumers’ social feed. Research has found that shorter, more intuitive, buyer journeys lead to higher conversion rates and more emotion led purchasing. Worldwide, social commerce generated approximately 474.8 billion U.S. dollars in revenue in 2020 and is expected to grow at a CAGR of 28.4% from 2021 to 2028.
One of the major benefits of social commerce is the audience size a brand can reach. However, this broad reach comes at a cost as brands will have to pay platforms to access and transact with these audiences. Facebook charges a 5% fee per transaction on the platform. Putting this in perspective, these fees are significantly higher than the cost of a card processing fee on the brand’s own website or processing systems in-store. In saying that, the service fee on Facebook grants access to an untapped audience that may have never visited its website organically so is very much worth the investment.
For sports brands, competing in this new era of social commerce will require time investment in product ideation, creative campaign planning and execution, and putting processes in place for timely production and order fulfillment. Managing product returns and refunds must also be a key consideration for brands looking to begin their social commerce journey. Nonetheless, there is a massive opportunity in this space for sports brands to sell their team’s merchandise in a natural and novel way at key engagement points.
Trend #2: The Value in having a Social Impact
Fans today have a whole host of new expectations that they did not have before. Research has shown that younger fans, in particular, will only lend their support for a team if they feel the club represents them and their values. As this demographic grows older, their influence and spending power will only increase which means brands and sports organisations must step up.
Inclusivity and equality matters more now than ever before, and fans are holding sports organisations accountable for their actions. Fans expect strong action in areas such as women’s sports, grass roots clubs, disability sports, equal pay, and environmental action. Sports and politics are becoming increasingly interconnected which means a brand's marketing communications, both online and offline, must promote its CSR activities to show consumers the value they place on social causes.
Trend #3: the Shift towards Interest Based Groups
Since 2020, there has been a rapid uptake of technologies that supports live interactivity amongst fans. Fans are consistently looking for more ways to engage with their favourite teams and are becoming more accustomed to social experiences built alongside content.
There are a variety of new live entertainment environments where sports fans can connect and ‘hang out’ together during live sporting events. Social watching, group chats, fan polls and discussion forums have all become more popular in recent years and don’t seem to be going away any time soon. More and more fans are moving from public groups to private interest-based groups where they can share information, thoughts, and predictions with like minded individuals in a closed-group environment. Facebook groups, Twitter communities, Reddit and WhatsApp groups offer brands the opportunity to engage more deeply with fans, co-create as a community, and increase fan loyalty.
Trend #4: changes in Video Formats
It’s no secret that videos have become the most popular choice for content consumption today. Short form video continues to lead the way in driving awareness, engagement and action. In 2020, 96% of consumers increased their online video consumption, with 90% of viewers saying they wanted to see more videos from brands and businesses they follow.
Sports fans, in particular, love engaging with video and branded content on social media platforms. Their love of the game extends beyond match-day, making the potential for added content on social platforms very high. Social media is reshaping the fan experience. Modern sports fans are seeking out content they love across different devices and platforms. Highlights, commentary, live streaming and behind-the-scenes access to teams, coaches, and players should all be key components of a sports organisation's digital marketing strategy if they want to build their brand online and connect with a new generation of sports fans.
When it comes to video formats, vertical video is becoming increasingly important. As more than 75% of all videos are played on mobile devices, vertical video is playing a crucial role in the shift towards a more enhanced user experience on mobile. Research has shown that we hold our phone vertically approximately 94% of the time, with only 30% of people rotating their phones when watching horizontal videos. The average views from mobile devices last more than 40 minutes, while mobile has become the preferred device to watch short-form video. With 82% of users finding it off-putting to watch videos that are not optimised in their chosen orientation, there is significant opportunity for brands to appeal to this demand by expanding their usage of vertical video formats. What’s more, research has shown the importance of mobile devices in purchasing decisions. One study found that a third of consumers now make purchasing decisions exclusively on mobile, making mobile touch points even more critical for brands to make optimal use of. In summary, the vertical vs. horizontal conversation will be extremely important for brands when deciding what content to produce for different business goals. If sales is the objective, research has shown that short-form vertical video is the way forward.
Fifty-Three Six is a full service marketing agency with expertise in digital strategy, performance marketing, video production and creative design.
If you or your company need any support across these aforementioned services or fancy a chat, please get in touch with us. We’d love to hear from you!
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