Data Monetization in Sports
In today’s digital landscape, data is a critical asset, and the sports industry is no exception. At C’mon Sports, we identified a significant gap in how sports organizations were leveraging their data, particularly for sponsorship opportunities. This insight led us to develop a unique index and methodology for pricing digital placements and valuing data.
Inspiration Behind Developing Our Own Index
C’mon Sports was founded after observing that many sports organizations were not fully utilizing their data for sponsorships. To address this, we developed our proprietary index to create a standardized methodology for pricing digital placement assets.
Key Components of Our Engagement Index
Our engagement index stands out from traditional metrics by focusing on three core criteria:
- Duration: Measures the amount of time a sponsorship placement is visible.
- Visibility: Counts the number of times the sponsorship placement has been viewed (impressions).
- Engagement: Tracks user interactions with the sponsorship placement (likes, comments, conversions).
Using these the core criteria, we developed a complex algorithm to determine the pricing policy.
Collecting and Analyzing Data for Sports Engagement
We collect data from third-party platforms like Facebook, Instagram, and TikTok, as well as from first-party data owned by the clubs. This data is managed through a data management system that tracks fan behavior across digital ecosystems, including newsletters, online ticketing, e-commerce, and mobile apps.
Successful Data-Driven Strategies in Sports
One example of our successful data-driven strategy is a season ticketing campaign for a sports organization. By leveraging first-party data to retarget audiences, we achieved a 47% higher click-through rate (CTR) than the industry average.
Another case is our collaboration with Decathlon and Hockey Club La Chaux-de-Fonds. We utilized the fanbase to promote Decathlon’s new store, creating engaging content and broadcasting it on social media. By using paid ads and retargeting the database, we maximized delivery and impressions, demonstrating the effectiveness of data-driven marketing.
Determining the Value of Data for Sponsorships
Our criteria—duration, visibility, and engagement—form the basis of our grading system. Each criterion is weighted using our algorithm, and the average grade determines the pricing based on a predefined scale. This standardized approach ensures consistent and fair pricing for sponsorship placements.
Overcoming Challenges in Implementing Data-Driven Strategies
One of the biggest challenges we faced was convincing sports organizations of the ROI of our solution and fostering a data-driven culture. Through persistent education and demonstrating tangible results, we successfully overcame these obstacles.
Benefits of Using Our Index for Sports Organizations
Using our index provides sports organizations with a clear pricing tool and methodology for sponsorship placements. This consistency in pricing adds value and prevents the need to bundle placements with other offers due to uncertainty in their worth.
Future Trends in Data Monetization for Sports
Looking ahead, the importance of data in the sports business is expected to grow. Sports organizations, due to their social significance and ability to systematically collect data, are poised to become major data aggregators. At C’mon Sports, we are preparing to adapt to these trends by continuously refining our methodologies and staying at the forefront of data-driven strategies.
Unlocking Revenue Through Data Monetization
Data monetization in the sports industry involves transforming data into actionable insights and measurable value. By leveraging our unique index and engagement metrics, C’mon Sports is helping sports organizations unlock new revenue streams and achieve greater success in their sponsorship endeavors.
FAQ
Our index is designed to be versatile and adaptable to various types of sponsorship placements. For in-stadium ads, the duration and visibility metrics are adjusted to consider the unique environment, such as the number of attendees and the visibility of the ad from different seating areas. For digital ads, we leverage detailed engagement metrics such as click-through rates, likes, shares, and comments. By capturing these specific metrics, our index provides a comprehensive evaluation of both in-stadium and digital sponsorship placements, ensuring that each type’s effectiveness is accurately assessed and valued.
Real-time data plays a crucial role in adjusting and optimizing sponsorship strategies. By continuously monitoring real-time data, sports organizations can quickly identify which sponsorship placements are performing well and which are underperforming. This allows for immediate adjustments to maximize effectiveness. For example, if a particular digital ad is receiving high engagement, the organization can allocate more resources to that campaign. Conversely, if an in-stadium ad is not gaining the expected visibility, adjustments can be made, such as changing the ad’s location or enhancing its design. Real-time data ensures that sponsorship strategies remain dynamic and responsive to current trends and audience behaviors.
Smaller sports organizations can effectively implement our data-driven approach by focusing on a few key strategies:
- Leveraging Existing Platforms: Utilize affordable third-party platforms like social media analytics tools to gather initial data.
- Starting with First-Party Data: Use data already available through ticketing systems, newsletters, and mobile apps to begin building a data-driven strategy.
- Focusing on High-Impact Metrics: Prioritize key metrics such as engagement and visibility that directly influence sponsorship value.
- Seeking Partnerships: Partner with larger organizations or sponsors who can provide additional resources and support.
- Incremental Implementation: Start with small, manageable data projects and gradually scale up as the organization becomes more comfortable with the approach and begins to see returns on investment.
By focusing on these strategies, smaller sports organizations can maximize their sponsorship revenue without requiring significant upfront investments in complex data infrastructure.
