A new study on sports media predicts that global spending on sports media rights will reach $61bn this year. However, a fragmented media landscape poses dilemmas for brand advertisers at a time when marketers are increasingly reliant on sport for mass reach.
Live sports rights are splintering between broadcast, over-the-top (OTT or streaming) and mobile apps, while social platforms are rising in importance for fans, per WARC Media’s latest Global Advertising Trends report – “Sports Media in the era of fragmentation”.
In the United States, brands are anticipated to allocate an additional $2bn towards advertising during the Paris Olympics, while Euro 2024 is expected to drive €250 million in additional ad spend across Europe. Despite these boosts, they are unlikely to counteract the ongoing decline in TV viewership.
In a time when marketers increasingly rely on sports for widespread exposure, the sector faces fragmentation. Live sports rights are becoming dispersed among various platforms including broadcast, over-the-top (OTT) or streaming services, and mobile apps. Additionally, social media platforms are gaining prominence among fans.
The report reveals several key insights
*Despite the fragmentation of media, major live sporting events still attract massive audiences. For instance, the Super Bowl LVII witnessed over 115 million viewers across Fox properties, marking it as the most-watched telecast in US history.
*Television networks continue to invest significant sums in securing sports media rights. Global spending on these rights is projected to reach $60.9 billion in 2024, a notable increase of 18.9% from pre-pandemic levels. Traditional broadcasters are intensifying their efforts to retain access to premium sports content.
*The year 2024 is poised to be significant for live sports, with the return of major events such as the Paris 2024 Summer Olympics, UEFA Euro 2024, and the T20 Cricket World Cup. Broadcasters and streaming platforms anticipate heightened viewership during these events.
*Despite the prominence of live sports, linear TV ad spend continues to decline in several regions. In the UK and Germany, linear TV spend is expected to decrease, while France experiences a slight increase. In the US, the recovery in linear TV spend is attributed more to favorable year-on-year comparisons and upcoming events like the Presidential election rather than sports.
*The fragmentation of sports rights poses challenges to achieving mass audience reach. NFL coverage, for example, is spread across various platforms including broadcast TV, cable networks, OTT services, and mobile apps, making it increasingly complex for fans to access all live games.
*Social media platforms are emerging as significant channels for sports consumption, particularly among younger demographics. Approximately 93% of individuals aged 18-24 engage with sports content on social media weekly. However, Gen Z fandom tends to be more fluid, focusing more on athletes’ narratives rather than specific teams or competitions.
