The fusion of live sports, digital interaction, and e-commerce has set the stage for an exciting new chapter in sports monetization, spearheaded by the innovative phenomenon of live commerce. The integration of live streaming and on-the-spot purchasing capabilities has not just reimagined the fan experience but also opened up lucrative new revenue streams for sports brands and events. Pair it with a unique approach of live POV content of sports athletes and live sales made during the streams — and you get next-generation streaming, pioneered by MetaPax, which we will cover later in the article.
The Super Bowl and FIFA World Cup lead the charge
Forbes has highlighted the transformative power of live commerce during headline-grabbing events like the Super Bowl and FIFA World Cup. Take, for example, the 2023 Super Bowl, where live-commerce initiatives reportedly contributed to a spike in online sales of team merchandise during and immediately after the game. Fans could instantly buy jerseys, caps, and other memorabilia as they watched their favorite players on the field, contributing to a record-setting $17.3 million in sales through the NFL’s official online store on game day alone — a clear testament to the impact of live-commerce.
Now, think of what these viewers would pay to tune into the pre-show content, backstage action, and the journey of the performers and sports stars coming toward the big finale! Buying a personalized Kelce’s shirt just after a game from Kelce himself is a whole different ball game. More about it coming up below!
Deciphering the global sports and outdoor e-commerce revenue
As per Statista forecasts, the e-commerce revenue in the sports and outdoor industry is expected to grow steadily, reaching new heights by 2027. Athletic footwear is projected to garner $28 billion in revenue, representing the largest segment in sports-related e-commerce. With live-commerce set to amplify this growth, the potential revenue boost for brands like Nike could be monumental. By bringing the immediacy of purchasing into the excitement of live sports, Nike could significantly tap into the projected growth, potentially growing their market share even further.
The Nike use case: a blueprint for success
Nike, a titan in the sports industry with $46 billion in revenue in 2022, nearly doubling that of its closest competitor Adidas, has masterfully leveraged its brand influence in live commerce. With its founding roots going back to 1964 and a historic legacy of sponsorships like that of Michael Jordan and the legendary ‘Jordan’ trainers, Nike has consistently stayed ahead of the curve.
Imagine Nike’s live-commerce strategy during a major NBA game, where viewers could interact with a stream of their favorite athletes wearing the latest Nike gear. Building on their existing digital storefronts, Nike could theoretically see a significant lift in sales by offering exclusive game-time promotions. A real-time purchasing option could capitalize on the heightened emotions of sports fans, possibly translating to a conversion rate far exceeding the standard e-commerce benchmarks.
Considering the projected growth in the athletic footwear segment, Nike’s investment in live commerce could propel their sales figures to unprecedented levels. If Nike captures even a conservative estimate of up to a 10x increase in conversion rates through live-commerce initiatives during major sporting events, this could translate into hundreds of millions in additional revenue, assuming a proportional response from their global customer base.
Live commerce in football
According to Nielsen Fan Insights, 80% of sports fans, 76% of NFL fans and 89% of soccer fans have regularly or sometimes watched sports on any streaming or online channel this year.
And while the majority regularly watch football via online channels, 32% of viewers committed to broadband-only viewership fit the 21/22 FIFA World Cup finals Argentina V.S. France with a historic 16,783,000 viewers. At the time, Argentina was sponsored by Adidas and France by Nike. Needless to say, with live commerce in play, the potential for sales was huge.
It could be your brand
Taking two major players in the industry as examples, we aim to present the transformative power of live commerce in the sports industry. It could be injected into any type of sport, for any team, and any category of sportswear, merchandise, or collectibles.
Consumer behavior is changing and emerging technologies are there to support the increasing demands. Whether it’s basketball, baseball, or tennis — fans are keen to tune into live streams and support their favorite athletes. Whether you are a sportswear brand or a person who has desired collectibles or merchandise — organize a live stream and start selling live. How? Here’s where MPAX steps in.
Live-commerce, sports, and MPAX
Live commerce is still a fairly new market, having emerged in 2016 with Alibaba's Taobao Live. Already promising 10x increased conversion rates, the prospects of implementing live commerce into the sports industry are immense. MPAX, however, takes it to the next level.
Offering untapped sports monetization models of pre and post-game content, MPAX creates huge live commerce opportunities to increase the air time of the promoted items beyond the actual game.
Having in mind that the biggest Basketball league stars like James Lebron have more X followers than the actual NBA is a clear indication that the fans are buying more into the stars than into the clubs. MPAX creates a huge opportunity to utilize this trend by giving the clubs the chance to monetize their players’ off-court time like never before.
The benefits of MPAX live-commerce are mutual:
- Increases sales of sponsored items
- Increased revenue share for the player
- Unlocked a new huge revenue stream for the club
So, if you haven’t discovered live commerce yet — it’s about time. And if you are ready for the next step — get on board with MPAX.
Conclusion: the game-changing potential of live-commerce
The synthesis of live sports excitement with the convenience and thrill of live shopping could revolutionize sports monetization. For a brand like Nike, which already enjoys a robust market presence and consumer base, the adoption of live commerce is not merely a new channel for revenue — it’s a transformative strategy that can leverage real-time marketing to amplify sales and fan engagement to hitherto unseen levels.
As industry giants like Nike lead by example, the sports industry stands on the precipice of a new digital age of commerce. Live commerce is not just a passing trend but a game-changing evolution of fan engagement and sports marketing, with the power to turn every game into a dynamic shopping experience. MPAX takes it one step further and unlocks new ways of pre and post-game live commerce opportunities that not only increase the sponsored items' screen time but also create a unique connection between the brand and the consumer from the POV of their favorite sports athlete.
With the right implementation, the future of sports monetization through live commerce could outpace all current forecasts, marking a new era of digital engagement and revenue growth, and MPAX is the pioneer of it.
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