Sports marketing: How Kayo Sports engages fans in the digital age

Sports marketing is rapidly changing, and multi-channel strategies, storytelling and audience insights play key roles in turning casual viewers into paying fans

The sports marketing industry is a multibillion-dollar sector that continues to grow exponentially. In 2022, the industry’s global revenue amounted to over US$403 billion, and is expected to grow at a compound annual growth rate of 9.13 per cent over the coming years to be worth more than US$680 billion by 2028. In Australia, the sports market is a significant part of the entertainment landscape, with revenues of $17.8 billion and more than 91,000 people employed in the sports industry.

This growth is driven by technological advancements, shifting consumer behaviours and the increasing importance of digital platforms. Kayo Sports is one such platform – a wholly owned subsidiary of Foxtel Group which offers on-demand video from the likes of Fox Sports, ESPN and Racing.com via streaming subscription services.

Getting the multi-channel mix right

“There’s a new wave of channel mix for marketers and business leaders to be abreast of,” said Darren Werner, Head of Marketing at Kayo Sports. “Whether that's people consuming podcasts or going to YouTube for key information or leaning on the trusted word of content creators and influencers who influence their day-to-day behaviour – what they consume, what they watch, what they pay for – is really critical. And I think as a business leader, staying up to date with these cultural trends, because they're moving that quickly, is absolutely important.”

For marketers, this shift necessitates a multi-channel approach, according to Mr Werner, who spoke with Dr Juliet Bourke, Professor of Practice in the School of Management and Governance at UNSW Business School for The Business Of, a podcast from UNSW Business School. Mr Werner described the current media landscape as a "360 model" that combines traditional marketing channels with emerging digital platforms. "The channel mix has fundamentally changed and what we're seeing is that these new growth platforms are emerging and becoming incredibly, increasingly important to that mix," he explained. 

"Whether that be the growth of podcasts, especially in Australia, in almost replacing long-form versions of content. Where people may have traditionally read in print media or newspapers, they're looking to consume that digitally through podcasts, which presents amazing branding opportunities, sponsorship opportunities, as well as a beautiful mix when you mix podcasts with the growth of social media."

Tailoring strategies to different markets

Werner's experience marketing the NBA across various Asian markets highlighted the importance of understanding local nuances and tailoring strategies accordingly. While the product remained the same, consumption habits and market maturity varied significantly between countries.

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"Each of the markets across Asia that we were working on had its nuances that were really important for us to profile, what the audience look like and what the opportunity was," Werner said. "I think what's key there is understanding where each market is at its lifecycle stage."

He provided contrasting examples of Japan and the Philippines: "If you take Japan for example, huge population of over 100 million people, but basketball is not one of the favourite sports there. So it's approaching that sport in that market with the lens to understand what will it take to drive fandom up and reach a bigger audience to get them to consume more," Werner explained.

"Really understanding what the key cultural nuances in those markets and the audience profiles were really key for us. So, a market like Philippines, the second biggest basketball fandom market outside of the US, was an amazing example here where consumers would really look to watch basketball on TV, on free-to-air TV and in some cases pay TV, but the appetite to pay to purchase, because it wasn't part of audience behaviour, was limited."

These insights informed tailored strategies for each market, from offering free trials and localised commentary in Indonesia to leveraging Australia's higher willingness to pay for premium content.

Engaging casual fans and new audiences

A key challenge for sports marketers is converting casual viewers into dedicated fans. Mr Werner, who earned a Bachelor of Commerce (Marketing Co-op Scholarship) from UNSW Business School in 2011, emphasised the importance of understanding where different sports are in their journey with Australian audiences and adapting approaches accordingly.

For established sports like AFL, NRL, and cricket, the focus is on attracting the next generation of fans and casual viewers who may not commit to watching entire matches. Emerging sports like UFC present opportunities to engage younger audiences through non-traditional channels.

Werner highlighted netball as an interesting case study: "A really great example here is netball. In the new world of having Netball on Kayo, previously on a free-to-air network, now netball fans who are a real passionate stronghold base have to pay to watch some of the content. Fifty per cent of it sits in front of the paywall but the rest is, so it's how do you educate the netball audience that this is content worth paying for and really showing the benefits of having it on a streaming service like Kayo."

To capture casual fans' attention, Kayo has adapted its offerings to suit changing consumption habits. "The key word there is attention and people's attention span has changed,” he said. “Not everyone can sit down, you know, and watch sport for two to three hours so it's really important that streaming services just like Kayo have evolved their offering to provide snackable formats and condensed versions. So one of our most popular formats on the platform is Kayo Minis, which is a shortened 15 to 20-minute version across sports, such as your F1."

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Leveraging key moments and storytelling

Werner emphasised the power of storytelling and leveraging key moments to drive engagement. He cited the example of LeBron James' career trajectory and how both highs and lows have contributed to fan engagement: "You've really seen him grow up on the world stage,” he explained.

“Whether that's been him professionally on the basketball court or outside as he develops as a business mogul. Most recently, his son was actually drafted into the same team that he plays for, a real full-circle moment for him and NBA fans around the world. But along that journey, he's had amazing moments at the peak, really at the top of the mountain, but also, both on the court and off the court, some moments that have been filled with controversy that has turned fans away from him but also brought in a new generation of fans."

This approach extends beyond individual athletes to entire sports. Werner pointed to the success of Formula 1's Drive to Survive series in attracting new audiences. "What Netflix and what the F1 has done amazingly through content is tell these stories and hook people in to continue to follow that story over several seasons," he said. "I think what that allows is that, even if you have not the most exciting season, it's just hook people in that they're going to stick it out for the long run knowing that just around that corner there's more drama to unfold."

Future trends in sports marketing

Looking ahead, Werner anticipates further evolution in the streaming landscape. He predicts consolidation among digital platforms and streaming services, with a few key players emerging as dominant forces.

"I think we've seen this almost battle in the digital world of all these various streaming services, social media platforms and I think over the next five years there will be one or two that die off and there'll be one or two that really rise to the top," Werner said.

He pointed to Netflix's recent forays into live sports as a potential game-changer. "The big players that we're seeing in the space from Netflix in leaning into live sports, starting to dabble in that space, you know, recently that they had F1 drivers the day before their race having a celebrity golf tournament, really has put shockwaves through the market to say 'Hey, Netflix are really here to play within that sports scene',” he said.

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Werner also highlighted Netflix's plans to stream a high-profile boxing match between Mike Tyson and Jake Paul, signalling the platform's serious intentions in the sports market.

For business leaders and marketers, staying abreast of these trends and continuously adapting strategies will be crucial. As Werner's insights demonstrate, success in sports marketing – and marketing more broadly – hinges on understanding evolving audience behaviours, tailoring approaches to different markets, and leveraging compelling storytelling to drive engagement.