Analysis by Alex Willner in SRM 435 (section 1)
Twitter has developed into an intriguing platform where sporting agencies can capitalize on consumer engagement and consumption. Many sports have recognized that twitter is a cheap and easy way to interact with fans and possible customers. The article “Leagues Embrace Twitter, With Eye on Future Revenue” explains how various sports view twitter as a powerful means to connect with fans on and off the field.
From a marketing standpoint, twitter is a perfect way for fans to stay tuned-in with team or player interest stories. At this point, twitter is not looked upon as such a way to maximize profits, but more of a menas for fans to stay connected with teams. Leagues believe twitter will drive profits in the long run but in the mean time, it is a great way to stay connected. During major sporting events such as the World Series, Final Four, and Super Bowl, sports can make up about 90 percent of all TV-related tweets. In the last month, the NFL and twitter signed a large-scale deal worth and undisclosed amount in the low eight figures. The deal includes football highlights, fantasy material and other content posted on the micro blogging site. In addition, the deal allows the league to partner with Twitter’s new Amplify advertising platform.
Twitter utilized the Nielson study as of August, which found 29 percent of 221 broadcast shows from across various genres, saw a significant increase in their live ratings from heightened Twitter activity. This not only is a sign that people closely follow Twitter feeds, but also and indication that people took action based off of tweets. An increase in viewership not only means greater exposure for teams, but also opens an intriguing opportunity for sponsors to become integrated. Existing NFL sponsors such as McDonalds and Verizon have signed on as advertisers in the venture. Both of these corporate partners have a shown their values and goals align closely with the NFL and feel they can mutually benefit from an opportunity such as this. Through extensive efforts between Twitter and leagues, there can be mutual benefits to maximize profits.
---Analysis by Schuyler LaClair in SRM 435 (section 1)
The past five to seven years nothing has grown quicker and more vastly than social media. Twitter is one of the top dogs when it comes to the social media industry. Twitter is so widely used now it’s starting to turn into an untapped marketing tool, especially to sports leagues like the NFL, NBA, and MLB. As John Ourand and Eric Fisher write in an article in Sports Business Journal, leagues are starting to embrace twitter as a possible tactic to increase their revenue stream.
Two main events that saw increased TV views along with high twitter activity were Sunday Night Football with the Cowboys versus the Redskins and Game 2 of the American League Championship Series with the Red Sox versus the Tigers on October 13th, 2013. Both games had a combined 1.1 million tweets along with increased viewership, SNF getting over 22 million viewers and the ALCS Game 2 around 8 million. Leagues are starting to see the connection between high twitter activity and TV viewership and ratings. The NFL is one league that is trying to partner with Twitter and harness the tools that Twitter offers tweeting game highlights and stats along with fantasy stats. They recently signed a one-year deal around eight figures to “test the waters” and other leagues are watching closely to see how it goes.
This relates to marketing to the point where this is just the start of a whole new type of marketing strategy. Even with leagues having high interest in possibly partnering up with Twitter they are still nervous about the risks of possible flopping if money were to be put into the idea. Over the next one to two years the NBA, MLB, and NHL will be watching closely to see not only what happens with the NFL but to gain more knowledge and find a link between Twitter activity and increased revenue. If successful, who knows where the marketing industry will be after social media tactics are introduced.
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