All change.. in the sports world for web3 rights acquisition, to create products such as NFTs. Overall we see this as a positive change, the market has leveled moving toward Sponsor led activation focused on fan engagement.
1st off big vendors & blockchain software firms offered large MG’s (Minimum Guarantees) for the exclusive ownership of a Rights Holder’s digital assets to create NFTs.
The products weren’t diverse enough, and standardisation meant an emphasis on aggressive marketing rather than aligned engagement, to achieve revenues.
Revenue forecasts were not realistic & revenue splits don’t cover the upfront costs the solution provider invests. The success of projects such as NBA TopShot was encouraging globally, but fan-centric engagement & core principles such as Utility, Access, ESG & Value were missed in many offerings. Meanwhile, NFTs surged generally with consumers understanding that digital assets absolutely can have value & come in many forms.
If you you’re a solution provider working with sports brands to create NFTs and other digital assets, make sure you’re prioritising fan engagement over aggressive marketing.
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By aligning with core principles such as utility, access, ESG, and value, you can create products that truly resonate with fans and drive long-term sustainable value.
The Crypto-Winter by association, (although one that should be much more distant, more on that to come), meant that doors closed, people lost money & the potential upside looked like it was very much downhill rather than a ski-jump.. the question started to be asked – how do we use web3 to create long-term sustainable value… ?
What we see and part of our remit at The Digital Moon is utilising rights holders assets, IP & content to create a new type of value exchange that engages fans, educates the ecosystems, and appeals to the natives in Gen Z & A ultimately growing the audience.
Sponsor-led web3 activations lead to valuable data – Sponsors need more meaningful relationships from their brands & web3 can offer this – they are looking for this deeper value exchange and 360 fan view , created with permission.
It works. Plus, back at base, the enterprise sponsors are all looking at the same thing. How do I engage with fans i.e. those who have made a decision to engage with us; how do I grow that base &, and how do I serve & diversify revenues for my brand ecosystem?
If you’re a sponsor looking to build more meaningful relationships with fans, consider leveraging web3 technologies to gather valuable data and create 360-degree views of your brand ecosystem.
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By offering a deeper value exchange and engaging fans in relevant ways, you can grow your audience and diversify your revenues over the long term.
Ultimately this new model makes sense allowing for products & experiences that are valuable & relevant to fans, players, sponsors & stakeholders alike.. Web3 is a long-term journey through to mixed reality, not a sprint to sell digital assets.
Digital rights acquisition is not dead, in fact, it’s coming alive! The mindset is changing & knowledge is growing.
Overall, a good shift that should add to a super productive coming year in the world of web 3 in sports.
What does this mean for your sports brand?
If you’re a sports brand looking to connect with fans in a meaningful way, consider exploring web3 technologies and sponsor-led activation. By engaging fans in a deeper value exchange and offering more relevant products and experiences, you can build a loyal following and diversify your revenues.