The Industry Column – 6th May
Darryl Newton, managing director of Factory Media which runs the MPORA.com website, believes that action sports fans are a fascinating subset of sport and offer a diverse offering for brands in terms of consumer engagement.
As a digital publisher across the snow, mountain bike, surf, BMX, wakeboarding, skiing, windsurfing, motocross, skateboard and cycling markets, we have long been advocates of the opportunities that action sports present.
For a long time these communities operated in relative isolation from one another online; forming small niche groups of passionate, loyal fans dedicated solely to their individual pursuits. Over the past few years we have seen these groups come together, creating a very defined core demographic – a lifestyle audience of mainly 18-24 year old, educated males.
This is a fascinating subset of sport, because our research has shown that this group is less likely to consume traditional media, even TV, and overriding characteristics include extensive and loyal investment in their activity and a trend toward online purchasing, with 26% of all board sport purchases now online (38% UK).
They also display a general acceptance of advertising, but are savvy and insist that it adds value, whether it be quality content like brand films, or fair product comparisons.
This digital focus has brought about a considerable shift in buying habits during the past few years, with two distinct trends.
Firstly, core action sports advertisers like Nike and Quiksilver are investing more online than ever before and secondly, a significant number of non-endemic, lifestyle brands, like Ford, EA, Canon and Sony Ericsson, have entered the fray in a big way.
In recognition of the unique behaviour of these fans, we are now doing a lot of one-to-one consulting with brands, as they explore ways to connect with this audience in a meaningful way. The industry average for Click-Through-Rates (CTR) on advertising is 2.14%, however we have experienced way above this for the action sports audience, for example the EA Need for Speed campaign reached 17.5%.
The action sports industry as a whole has seen phenomenal growth in recent years, with revenues in excess of £9bn in 2008 according to industry estimates.
A recent Forbes report handed professional snowboarder, American Shaun White, the enviable title of highest paid athlete at this year’s winter Olympics in Vancouver – a title only matched by his half-pipe gold medal.
Competitions such as the XGames continue to generate huge audiences, both off and online, and commercial sponsorship revenue continues to grow exponentially.
As the consumer thirst for high-definition video-on-demand grows across all spectrums of the media, the digital advertising landscape for action sports will continue to evolve quickly as brands seize on the opportunities provided by this fascinating and defined audience.
