If there’s one thing that can unite people around the world, it’s the passion, competitiveness and love of a sport. For years, various leagues have made it their mission to globalize certain sports in order to increase monetization, audiences and popularity.
The NFL for one is moving into its 11th year of the international series. Four matchups are on the schedule in 2016, up from three last year. And the league has inked a new deal to continue the international series through the 2020 season. The National Collegiate Athletic Association recently announced that its August 27 face off between the University of California, Berkeley and University of Hawaii will take place in Sydney, Australia. And most timely of all, the U.S. hosted the Copa America Centenario, which is not only celebrating the 100th anniversary of the tournament, but also marks the first time it was held outside of South America.
Now for reasons varying from massive audience numbers worldwide to the rising importance of Hispanic marketing in the U.S., soccer is emerging as one of the most enticing opportunities for sports advertising today. The coveted Copa America Centenario saw nearly 1.5 million attendees across its 32-game tournament that took place in 10 different U.S.
Read MoreIf there’s one thing that can unite people around the world, it’s the passion, competitiveness and love of a sport. For years, various leagues have made it their mission to globalize certain sports in order to increase monetization, audiences and popularity.
The NFL for one is moving into its 11th year of the international series. Four matchups are on the schedule in 2016, up from three last year. And the league has inked a new deal to continue the international series through the 2020 season. The National Collegiate Athletic Association recently announced that its August 27 face off between the University of California, Berkeley and University of Hawaii will take place in Sydney, Australia. And most timely of all, the U.S. hosted the Copa America Centenario, which is not only celebrating the 100th anniversary of the tournament, but also marks the first time it was held outside of South America.
Now for reasons varying from massive audience numbers worldwide to the rising importance of Hispanic marketing in the U.S., soccer is emerging as one of the most enticing opportunities for sports advertising today. The coveted Copa America Centenario saw nearly 1.5 million attendees across its 32-game tournament that took place in 10 different U.S. cities. These numbers broke the previous aggregate attendance record by more than 350,000. In addition, the tournament set new records for revenue, TV ratings, digital and social media engagement. In the U.S. alone, there were more than 100 million TV viewers. The success of this tournament also means the U.S. is now considered a strong contender to host the World Cup in 2026.
The growth in popularity of soccer in this country can be attributed to a number of factors. First, it attracts a younger and highly-coveted audience. The number of participants in youth soccer leagues has skyrocketed from roughly 100,000 in 1974 to more than 3 million in 2014. And a 2014 ESPN poll found that professional soccer is ranked as the third most popular sport behind the NFL and MLB, respectively. Their data showed that 17.98 percent of kids ages 12 to 17 are avid soccer fans, which came in just under baseball at 18.04 percent.
Looking long term, the PR nightmare currently bombarding parents with Chronic Traumatic Encephalopathy (CTE) horror stories to dissuade them from heavy-contact sports isn’t going to let up anytime soon. Given this heightened awareness of the long-term effects of tackle football, parents are now more hesitant than ever to enroll their children in youth football leagues. Pop Warner, one of the most trusted youth football leagues, has recently seen the largest year-over-year enrollment declines in the organization’s history. Now, soccer seems to be swooping in as the natural and less violent alternative. By continuing to attract more young athletes, it’s building an avid fan base that will have a much greater appreciation of the sport throughout their lives. This latter point is crucial for building the sport’s popularity in the long term, especially at a time when the average fan’s age for the four mainstream U.S. sports leagues continues to increase.
Soccer is also the most popular sport among Hispanics, who happen to be the fastest growing ethnicity in the U.S. About 26 percent of Hispanics list soccer as their favorite sport followed by football (22 percent), basketball (14 percent) and baseball (13 percent). And according to the Pew Research Center, this demographic is expected to triple in size over the next 30 years, accounting for “60 percent of the nation’s population growth from 2005 to 2050.” By 2050, they are projected to make up one-third of the total U.S. population.
Another big contributing factor to the sport’s popularity here is its newfound accessibility. U.S. TV networks are broadcasting more soccer events across Major League Soccer (MLS) and foreign domestic leagues (e.g., English Premier League, La Liga, UEFA Champions League, Europa League, etc.) than ever before. Put another way, the number of U.S. TV networks broadcasting soccer has increased from five in 2010 to more than 13 in 2015. And this expansion isn’t likely to stop. Networks have seen revenue exceed their expectations and ad dollars soar. In the 2015 FIFA women’s world cup, the cost for a :30 spot, $210,000, exceeded the unit rate for a spot in the Stanley Cup Final ($96,000).
Though of even greater interest to marketers right now, is the sport’s relative value considering its loyal and engaged fan base. MLS packages for instance are usually sold on a lower CPM pricing model and therefore can provide more bang for the buck. In addition, MLS and local-team soccer games are typically played in smaller venues than their NFL and MLB competitors, offering more intimate on-site activations and ways for advertisers to “own” these spaces. So for any brands that haven’t previously looked into the consumer opportunities this sport can bring, it’s probably time to reconsider your strategy.