One of the big debates in our industry is about D2C as sports organisations (finally) recognise the limits of the B2B(2C) model and begin taking the tentative steps towards building their own Direct-to-Consumer product.
But, according to research conducted over the summer by PTI, the UK sports industry (with one or two notable exceptions, such as the IPL) is nowhere near ready to take that leap and indeed it feels like the optimism around D2C is more the product of wishful thinking than of any proactive strategy.
PTI ran a survey of senior sports leaders over the summer of 2024 to try to understand better how they viewed their short, medium and long-term financial prospects, where they saw growth coming from, any blockers to growth and to explore the industry’s relationship with data and technology more broadly.
PTI’s research shows that whilst 40% of respondents named “D2C/Digital Products” as having substantial or significant growth potential in the next five years, but….
- 88% DO NOT have a data strategy that is integrated into business decision making
- 90% CANNOT extract any meaningful customer insights from their data
- 50% of Sports Organisations are commercialising 10% or less of their known audience
The basis for any D2C business is data. If we are talking about shifting the fundamental basis for any business model, it must be done with the confidence that the business in question understands its customer base, what they want, what they’re prepared to pay etc but the research suggests that very few of these pre-requisites are in place.
Sport has been talking excitedly about data for the best part of 15 years but beyond is adoption as just another sales channel, whilst other industries have been revolutionised, sport remains very much in square one.
71% of respondents said that “data was important” to their commercial growth plans but it is clear that there is a significant discrepancy between what people think or say about data and what they have actually done.
As long-time evangelists for the need for a shift in the underlying basis of the sports commercial model, we agree that there is much greater potential in the digital potential of D2C but we are clear that it’s not just going to happen on its own. In our report we explain why data strategy is so important and is a critical first step but to become a D2C business goes beyond data and technology, it starts with the realisation that the current way of doing business is no longer fit for purpose.
ENDS
Post by Ben Wells, Chief Executive Officer, PTI Digital. For more information please contact ben.wells@ptidigitalgroup.com
