Fragmentation. It’s a word that has permeated the television industry in the U.S., and now on a global level, in recent years. The announcement late Tuesday from The Walt Disney Company, Warner Bros. Discovery and FOX that it is launching a joint venture described as a “Hulu for Sports” will only exacerbate the fragmentation on a domestic level.
What are the opportunities, and challenges, for brand advertisers? WARC Media has just released a report that seeks to answer that question.
Alex Brownsell, Head of Content at WARC Media, notes that sport’s “enduring qualities are under threat as consumption fragments.”
The new report, with that mindset in place, sees WARC Media analysts take a closer look at the current state of sport advertising “at a time when media consumption poses a dilemma for brand advertisers.”
The timing of the report comes not only as a forthcoming “Hulu for Sports” is on track for a Q4 2024 launch, but also as Super Bowl LVIII approached on Sunday. In 2023, the Chiefs-Eagles matchup became the most-watched telecast in the U.S. of all time. This is one example why spending on sports media rights is forecast to reach $60.9 billion on a global level in 2024, according to SportsBusiness data. That’s up 18.9% from pre-pandemic levels, WARC Media says.
This year is being predicted to be a major year for live sport, as the Olympics returns with NBC coverage from Paris. There’s also UEFA Euro 2024.
Still, WARC Media predicts sporting events of this magnitude will fail to reverse declines in linear TV ad spend.
In the U.S., a recovery of linear TV spend (+6.3%) will owe more to favorable year-over-year comparisons and the upcoming U.S. Presidential election than to sports, WARC notes.
Adrian Sutherland, Vice President for ad agency arm Publicis Sports, commented, “Sports is the one constant within media plans. Live sport is getting the eyeballs and sport content is getting the engagement. However, in some sports, local fans may need at least three separate subscriptions to watch a full season of games. It is imperative platforms keep a strong content plan in place to keep consumers engaged.”
Read a complimentary sample report of WARC’s Global Ad Trends: Sports media in the era of fragmentation here.