As Sports Media executives, we have seen a significant change in how sports events are produced and marketed. Gone are the days when traditional advertising was the only way to attract sponsors and generate revenue. The advent of virtual production and advertising has opened up new opportunities for federations, team owners, and brands. In this blog, we will explore the growing trend of virtual output and advertising in sports. We will discuss how it becomes the next natural revenue-generating frontier in the Live Sports landscape.

Why Virtual

According to a report by MarketsandMarkets, the global virtual advertising market is expected to grow from $12.9 billion in 2021 to $31.1 billion by 2026, at a CAGR of 19.3% during the forecast period. This growth is driven by factors such as the increasing adoption of augmented reality in advertising, the growth of the e-commerce industry, and technological advancements.

In the sports industry specifically, a report by Allied Market Research has estimated the global sports market to be worth around $600 billion today and highlighted the increasing adoption of virtual advertising in sports as a significant driver of the market's growth.

While the exact figures for the potential revenue growth of virtual advertising in sports may vary based on various factors such as geographical regions, specific sports, and adoption rates, the overall trend suggests significant potential for revenue growth in the industry.

Regionalised Advertising in the Local Language

One of the most significant revenue generation capabilities of virtual production and advertising is the ability to offer regionalised advertising in the local language. This can support the multiple languages offered in commentary, ensuring viewers are engaged and the message is delivered effectively. By offering regionalised advertising, sports organisations can attract more sponsors looking to target specific markets, increasing the revenue stream.

Visual Enhancement with AR (Augmented Reality)

Another significant advantage of virtual production and advertising is how it enhances the visual experience. Augmented Reality (AR) helps create an immersive and engaging experience for viewers, essential in today's fast-moving digital landscape. Capturing the eyeball and the metric by which advertisers assess a product before sponsoring it is vital. AR provides exceptional engagement and interactivity, making viewers feel part of the action. This creates a closer connection between fans and the sport, maximising the impact of the advertising.

Displaying Live Sports Data

Using AR to show Live data is now a ‘must-have’ for sports. Fans want real-time information delivered in a visually compelling way. As sports fans are increasingly connected through various digital channels, providing information in ways that create social engagement and conversations is essential. It makes what in the past was called ‘Water Cooler Moments’ – memorable events that people talk about long after the actual game is over. With AR, fans can access engaging and interactive content that draws them closer to the sport, making it more enjoyable and increasing engagement. AR technology makes visual data more content-friendly and shareable, allowing fans to share, like and respond to it. Therefore, the Live Sports data presented using AR is becoming an essential element of the sports industry. It provides engaging content to fans and entices them to watch and learn more about their favourite sports and teams.

The Advancements in AI (Artificial Intelligence)

With the advent of AI, virtual production and advertising solutions are becoming more accessible and faster to install. Software is replacing hardware, and the cloud has replaced on-premise. These technological progressions have facilitated the development of new solutions, enabling sports organisations to create compelling virtual content. The number of solution providers is increasing rapidly, and the demand for their services is expected to grow significantly.

How LCA Can Help

LCA specialises in providing expert guidance to sports organisations looking to set up virtual production solutions and advertising strategies. We understand the complexities involved and can help explain the steps required, identify the leading service and commercial companies involved, and evaluate their setups. Our expertise ensures that clients are well informed and can make informed decisions that align with their goals and objectives. By partnering with LCA, sports organisations can leverage our experience and knowledge to create compelling virtual content and maximise revenue generation potential.

Conclusion

Virtual production and advertising are becoming critical components of the sports industry. They offer a range of benefits, including regionalised advertising, AR-enhanced visual experience, and significant revenue generation capabilities. With the advancements in AI, virtual production and advertising are becoming more accessible, and the number of solution providers is increasing rapidly. LCA is at the forefront of this trend and is well-positioned to help federations, team owners, and brands achieve their objectives in this new and exciting area of sports marketing. If you're looking for a partner to help create a sustainable sports partnership that drives business growth, look no further than LCA.