A new formula

Acronyms and abbreviations are common in the sports industry. From FIFA and UEFA to the IOC or FIA, NBA and LTA to the VAR, DRS and FPS. We could probably make an alphabet of acronyms from football and F1 on their own. Any idea of the sport with the most acronyms? Answers on a postcard. There is no prize, I am just curious….

If this is confusing just imagine what lies ahead. In addition to blockchain there will be a growing influence of NFTs, POAP, DAOs, PFPs and crypto-anything as we enter a metaverse where all these technologies reside across different systems. The writing is already on the digital wall. In November adidas revealed their metaverse ambitions by partnering with Bored Ape Yacht Club, Pixel Vault’s Punks Comic, and crypto investor Gmoney. Bored Yacht Ape Club was founded in April 2021 as a digital collection of 10,000 unique and Bored Ape NFTs. Ownership of a Bored Ape NFT doubles as an exclusive membership pass for activities of the community.

Download the adidas ‘Confirmed’ app and you can become a member of the ‘Creators Club’. The launch of this new partnership with Bored Ape Yacht Club included a Proof of Attendance Protocol (POAP) and people who attended received a digital token as reward, to be saved for future use. Early indications suggest there could be an ‘adiVerse’ in the making as adidas also purchased an ‘estate’ including 144 parcels on The Sandbox. In this virtual metaverse players can build, own, and monetize their own gaming experiences in the Ethereum blockchain.

These latest developments may be anathema to sports fans who prefer the adrenalin rush of a live match or thrilling end to an F1 Grand Prix like 5 million Dutch viewers experienced on Sunday when Max Verstappen became F1 World Champion for the first time. It would be hard to imagine anything comparable in the metaverse. No doubt Max has attracted a new generation of fans to F1 in addition to the Netflix series ‘Drive to Survive’.

But here is the challenge. How to capture the profiles and data of these new fans or followers and convert into subscribers or customers of the networks, advertisers and sponsors who fund this global entertainment property? Following strict privacy changes to the likes of Apple’s App Tracking Transparency policy, only 26% of global users allow advertisers to track them. In the US this drops to 16%. The cost of reaching people online is getting tougher and more expensive. This despite the fact more than 50% of global advertising is now invested with Alphabet, Meta, and Amazon (AMA).

Coming back to the adidas ‘Creators Club’ membership program, the goal is simple and clear. Increased engagement with the brand and capture the all-important first party data. The alternative is more traditional advertising around big events that target groups are consuming, like football or F1 via sponsorship, TV, websites and billboards.

Through the pandemic consumers have moved more online with video on demand (VOD) and streaming video on demand services (SVOD). According to Criteo, we have now reached our limit and 70% of consumers in the UK would accept an ad-based service instead of a subscription in a bid to save money. Budgets are limited and consumers want value for money.

There is no standard formula for success. Brands cannot rely on one platform, partnership, or universe. It is increasingly important to build your own data and learn for use across multiple channels. Perhaps now would be an appropriate time to consider an NFT collection of MV and RBR for F1 fans who also exist in a parallel metaverse. At least the FIA would not be able to make a mess of that one!