Building digital assets is the entire game in sponsorship right now.
The Space Race, I wasn’t alive for it, but from what I can tell it was all a power move.
Two countries were looking to prove their technological dominance and be the first into space…then first to the moon.
The world watched as two heavyweights went at it to build world clout and value.
Well, in sponsorship for sports and events…our space race can be called the Digital Race.
We have some of the most captivated audiences in the world….but a captivated audience means nothing if you aren’t shifting with the attention.
Building Digital Assets Is the Entire Game Right Now In Sponsorship
I think something that we are MASSIVELY undervaluing in sponsorship is the shift of advertising to digital mediums. As digital advertising shifts, there are more efficient options out there for brands to invest in.
In essence, we are losing a battle to Facebook ads, Instagram ads, Snapchat ads…and the soon to come Tik Tok ads.
Right now…it’s micro. You are losing this spend on a micro-level. A couple of 5 figure deals here & there.
Does it hurt…absolutely. But to be honest…it doesn’t hurt enough for us to make a change right now.
I’ve written on my prediction before, but I honestly believe the only reason things like in-stadium signage is selling is due to the fact that the economy is good.
We can convince our brands to buy these traditional assets because…well…they have money to do so.
The problem with these assets is they can’t answer the direct question of “How many sales did this lead to?”
Even a year ago that was fine…because social media advertising hadn’t matured to what it is today.
Today…the cat is out of the bag. Social media advertising is one of the most powerful tools to market.
The problem is we don’t have enough digital assets in our sponsorship packages to survive.
Plain and simple, we are like Blockbuster not home delivering when Netflix is offering it and customers love it.
Most of our assets are traditional…and, to be honest, we are the Blockbuster of advertising.
Simply put we will suffer a Blockbuster type of fate unless we make a massive shift in our assets and how we are pricing them.
That’s why the entire game right now is building as many digital assets as we can.
It’s a race right now to get these assets into our packages and game day. From digital content to in-stadium digital contests, our only goal right now should be adding digital assets that fit our fan base and brand as a team.
I know, I know. I’m getting the eye rolls of digital is no the entire answer. And I agree. There are some intangibles in sports that only come in a live atmosphere.
Nothing does better than an item like the Coca-Cola slide at the Giants Park. I’ll be honest, as a kid sliding down that slide…I buy more Coke than Pepsi.
But, these are few and far between. Most of the time it is a rink board, in-stadium sign, back of game day program.
Again, to beat a dead horse, but there are better ad products out there. And when it comes down to it…brands will pull money back.
On the micro-level…I’m seeing it right now. I’ve seen $1M plus dollar deals pulled for this reason.
This is the shift of customers from Blockbuster to Netflix. Was it all at once? Absolutely not. Blockbuster had brand and familiarity.
Why it is urgent? Well, there is an economic downturn coming in ~18 months and no one will buy your assets that aren’t trackable.
I wasn’t in the professional world for the last recession, so I’m a bit ignorant here. But I know from others that marketing dollars dry up.
When marketing dollars dry up, trackability will be the only currency we can trade on for our assets.
You will be asked “how does this lead to sales?” more than ever.
This is what I mean when I say digital ads are a better product. In comparison to the Netflix example, trackability is the home delivery and eventually streaming that Netflix brought.
The teams that have the most trackable assets will win deals. Plain and simple.
What’s crazy, with the reach you can get on social it won’t matter the size of your team. You will see minor and niche league teams win solely on the fact that they can track sales through their efforts.
The arms race is not just online with social…your stadium needs an upgrade too.
Building digital video content is the first step to this. It’s pretty easy since you can just take highlights and produce across multiple social channels.
If you haven’t checked out my post on doing that with the Snapchat Spectacles…check it out HERE.
If you haven’t check out my post on which assets you should build on…check that one out HERE.
But while building out of stadium assets is important. I would say equally, if not more valuable, are your in-stadium assets.
Your game atmosphere is what you have against a 13-year-old influencer. You have an atmosphere that is incomparable to anything on this planet. You have a passionate temple of sports that explodes every game day.
If you add digital assets to your temple…the value to a sponsor will be exponential.
If you can marry the passion with the trackability. The sheer energy with the attention of the phone…You will have an unstoppable suite of assets.
I am a sports purest. I believe that the actual game should not be tampered with for fan amusement. We don’t need digital to invade the game, or even be pushed during gameplay.
But can the experience be boosted to match the needs of fans and brands…absolutely.
At SQWAD this is our mission…we help add digital activations to these temples of excitement we call stadiums to connect fans & sponsors.
And sponsors looove it. Mainly because it is upgrading something they are already buying. And they will pay more.
Assets like these are what we need to fill our gameday with in order to bring value.
In my opinion, it should be a 75% digital — 25% analog split with your sponsorship packages and assets.
If not in the number of assets, then in price…meaning you should be charging the most for your digital assets.
Obviously this will change client to client. All brands have different needs and goals that you need to take into account when building packages.
But the fact still remains that brands are deciding between your sponsorship packages and digital ads.
When the economic downturn hits your in-stadium signs, reads, and assets will go unsold…or at the very least you won’t get the prices you used to for them.
A lot will use the recession as the reason “brands aren’t spending money.”
They will be spending money…just not on your non-trackable assets.
This is why it is important to build your digital asset portfolio now in sponsorship.
You have about 18 months, if the experts are right, to build as many trackable & digital assets as you can.
It’s not like you’re stockpiling them for the winter either. Brands are buying these assets at a high rate right and high price right now.
But you want to build them up before this happens. You want to test them, have case studies, and have a solid set when it does hit.
Even if a recession doesn’t hit, you’ll be ahead of the game on this digital shift.
There will be winners and losers…the losers will look back and say “We should have tripled down on digital assets”.
Plain and simple, black & white, there will be winners and losers here.
Some will look back at the winners and say how the hell did you win huge clients in this recession?
Others will see exactly why and kick themselves for not doing the same.
The winners will be the ones who built up their digital assets. The ones who implemented them and have a solid suite to offer brands.
Some will be late to this… and be successful… but not wildly because they are late to it.
Others, and unfortunately probably a lot, will be losers playing catch up.
Some will suffer the same fate as Blockbuster and Toys R’ Us…which sucks.
I am writing this as a plea. Build up as many digital assets as you can NOW.
There is still time. You can still destroy here. You can still be a top dog here.
The strategy of your sponsorship department should be all-in on digital assets. There should be a total overhaul on the assets you have and a push to adding those trackable pieces.
Again, at SQWAD we can help, but there are many ways to do this.
This is a call to action for the industry. My hope is some listen and are the team that ads them.
Again there will be winners and losers…don’t be on the wrong side here.
Written by Nick Lawson, a co-founder at SQWAD. SQWAD helps sports teams and events connect fans to sponsors digitally during breaks in the action with amazing digital contests.
