Insights
From Fandom to Fanbase
How Sports And Entertainment Franchises Are Transforming Their Digital Strategies
- Article
- 5 MIN READ
- July 7, 2024
-
Dennis ClausStrategy Consultant
Summary
Fandom is at the heart of today’s cultural zeitgeist. A prominent topic of conversation at SXSW London (something that our team witnessed first hand by attending multiple panels), fandoms represent some of the most active and passionate communities across social media platforms like TikTok and Reddit. For committed fans, music artists and sports teams aren’t just casual interests — they’re an intrinsic part of their identity.
Historically, franchises have relied on emotional resonance to drive engagement. But sentiment alone no longer guarantees loyalty. In today’s hyper-saturated landscape, people’s attention spans are dwindling — and countless other franchises are vying for the same spotlight.
In order to stop their value from drifting into the ether, franchises must stop relying on fleeting moments and embrace round-the-clock activation. The catalyst to achieving this: cross-fertilisation.
Fans aren’t consumers — they’re your most stalwart stakeholders
For years, brands have turned to franchises and famous people for lessons in offering highly personal experiences, at scale, to devoted audiences. Now, it’s time to turn the tables. While some franchises and celebrities are already embracing round-the-clock engagement, those that adopt brands’ strategic, systematic and corporate mindsets, and invest in coordinated digital experiences across content, commerce and community, will not only ensure they stay relevant today — but also future-proof for tomorrow.
Sports organisations already invest more in personalisation than other companies. They have little other choice, as "fans" expect more than mere "consumers". In fact, 50% of sports industry leaders plan to spend $2.5-$3.75 million USD on personalisation in 2025, compared to just 23% of leaders in other sectors. Meanwhile, 65% of sports organisations deploy location-based recommendations, and 52% use dynamic pricing for last-minute sales, both higher than any other sector.
In some ways, franchises are setting the standards for digital engagement — they’re simply lacking the cross-platform coordination that brands effectively achieve. So, how can sports teams, music artists and movies evolve the rest of their online footprints into 24/7 fan immersion spaces? By navigating three strategic hurdles — and opportunities — through digital transformation.
1. Moving from moments to momentum will bolster fan engagement
Large-scale, landmark events have traditionally been franchises’ go-to activation for galvanising fans. Cup finals, midnight film premieres and worldwide music tours are all proven methods for capturing attention in the moment.
The problem is that when the final whistle blows or the credits roll, attendees depart en masse — and with them, their excitement and interest. No matter the scale, event effectiveness is finite. Even Taylor Swift, whose Eras Tour spanned 149 performances across five continents, would have experienced a lull once the curtain fell for the final time.
The situation isn’t helped by fans’ evolving expectations, particularly amongst Gen Z and Gen Alpha: the “always-on” generations. These are digital natives that have become accustomed to interacting with tech-savvy brands and services — companies that have mastered the art of using loyalty programmes, influencer marketing and unexpected collaborations to extend engagement beyond the point of same. In the world of franchises, this translates to finding ways to communicate beyond marquee moments, tied together in a coordinated approach to keep engagement and conversion up all year long.
2. From live to life: everyday fan expression will foster life-long loyalty
It’s not just the price of admission that causes in-person experiences to be effective revenue drivers. These environments are flooded with merchandise — be it special edition vinyls at concerts or branded foam fingers and team jerseys at matches. However, we still see limited sales innovation in this space, with big-budget productions like Elton John’s concert tour still employing lowly on-screen QR codes to encourage souvenir purchases.
These exclusive products aren’t always enough to satisfy the modern fan’s appetite for connection, either. In the past, fandom was shown in loud ways, with movie posters on your bedroom wall and a hoodie from your favourite band. Today, communities crave subtle fan expression; an aspirational aesthetic, a style and a way of living that is inspired by the fandom, but doesn't necessarily scream it. Think following the diet of an athletic idol, or adhering to the makeup routine of a pop icon. Through lifestyle, franchises can turn affinity into everyday engagement and commercial gain.
Here, leaders must view digital as more than a means of selling merch and sharing content. It needs to be a place that inspires a lifestyle and a tool that becomes part of a fan’s life, not just live moments. And it must always remain rooted in fans’ real connections with the franchise, sport or band.
3. Turning fandoms into fanbases to capture hearts and data points
Franchises are the root source of their fandoms’ devotion. They generate the currency that matters: emotional and cultural capital. However, they often fail to retain possession of their digital ecosystems. Owning your fanbase’s data, and harnessing a Fan Data Platform to collect, manage and analyse it is crucial to improving engagement and driving business outcomes.
In sport, broadcasters and streaming platforms collect billions in subscription fees every year. Meanwhile, streaming services and ticket marketplaces enjoy the lion’s share in the music industry. These are the entities that own the data, CRM systems and transactions. If franchises want to shift the balance of power in their favour, they must create engaging, multi-channel ecosystems that reinforce their relationships with fans.
Formula One is a standout example of the dilemma franchises face. A decade ago, the motorsport was a niche interest at best. Today, it’s broken into mainstream consciousness, boasting over 800 million global fans.
Its newfound popularity can be traced back to its ability to find relevance off the track. Netflix’s Drive to Survive provided viewers with an all-access pass, showcasing both high-octane racing drama and a peek behind the inter-team rivalry curtain. Season 4, covering the intense battle between Max Verstappen and Lewis Hamilton for the 2021 World Championship, achieved over 57m hours of viewership in its first week of release.
More recently, Formula One’s collaboration with Lego will see a new line of tangible products bridge the gap to younger audiences, ensuring the fandom crosses the generational divide. A 2024 Instagram announcement on the extended partnership generated 1.87m likes — only outperformed by Max Verstappen’s championship-winning post across the entire year.
But while F1 has generated record numbers of new fans, it still relies on this brand collaboration model. The future opportunity for the motorsport — and all types of franchises — lies in managing its own fanbase across all ecosystems and partnerships. Franchises need to find a way to monetise their offerings without pivoting too far, to the point they compromise their principles. Delivering an authentic, valuable experience shouldn’t be at the expense of the emotional connections that they’ve worked so hard to build.
How we’re helping sports leagues navigate all three challenges
Apply Digital used this theory to guide the redesigns of two major North American sports leagues’ digital ecosystems. Our introduction of innovative data initiatives and digital experiences, including unified commerce login, personalisation and new direct-to-consumer live streaming, ensures fans remain totally immersed in the action, wherever they go. Plus, the multiple types of coverage available throughout the week’s downtime — including injury reports, match previews/predictions and player performance breakdowns — meant that fans could follow the ever-changing narrative with ease.
The projects delivered true digital transformation for the sports leagues, and even established a foundation for future AI-enabled experiences. And for the franchises? They saw significant increases in mobile app engagement through personalised account features, allowing affiliates to engage, retain and monetise millions of users across leagues and teams.
Reach out to us at emeamarketing@applydigital.com — we’d love to answer any questions you have about the role that AI plays in improving efficiency and increasing engagement.
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