Partners, Properties, and Rights Holders All Benefit From Verizon’s 5G Sports Investments
BY ADAM GROSSMAN
Verizon announced last week that its 5G technology is now available in 60+ sports venues, and the company has been named the 5G partner for 15 NBA teams. Verizon’s most recent announcement builds on its 5G sports partnership strategy that should have benefits for other partners, properties and rights holders in addition to the company itself.
A good example of this impact was when NASCAR announced a new partnership in 2020 with Verizon to “upgrade wireless connectivity at 12 of its race tracks.” While the original focus appeared to be facilitating faster social media interactions, race updates, and interpersonal communication, one of the NASCAR-Verizon partnership’s largest beneficiaries could be its sports betting partners.
In past posts, we have highlighted how the potential biggest boon from the legalization of sports gambling would come from an increase in partnership revenues. More specifically, fans having a financial interest in the outcomes of sporting events means that more people are more likely to be engaged with sports content. B6A research has shown that increased audience engagement leads to a higher likelihood of fan interaction with corporate partnerships and that has a strong relationship with increasing the likelihood of lifts in companies’ revenues.
NASCAR, however, has discovered a novel way to unlock potential engagement through gambling. More specifically, “one of the newest demands on stadium connectivity comes from the rise of mobile sports betting.” Verizon has been and will continue to leverage sports to demonstrate the power of its 5G network starting with the NFL. NFL teams need high-speed wireless connectivity so that their fans can use their mobile devices effectively in their venues.
Verizon’s relationship with NASCAR, however, could make this message even more tangible for consumers. More specifically, fans want to be able to place one or multiple types of in-race bets during a NASCAR event as quickly possible using their mobile device. Verizon making the sports betting experience better demonstrates the value of 5G directly to a large number of customers it is trying to reach through this partnership.
That is great news for its partners including Penn National Gaming, Wynn Resorts, and BetMGM. Enabling faster sports betting through better connectivity means it is more likely someone will make one or multiple bets at a race. This increased activity should enable its betting partners to generate new revenue directly through its NASCAR relationship in mobile or online channels.
Better mobile wireless service also makes it easier for its betting partners help drive fans to their brick and mortar locations (i.e., casinos and racetracks) as well. This is where sports betting companies have realized much of their revenues particularly before COVID-19. Increased usage of mobile apps in a NASCAR context becomes a marketing channel for its betting partners to reach new customers in an environment that can help drive future purchasing decisions. More specifically, sports bettors having a good experience using the mobile apps at NASCAR races will then be more likely to visit the companies’ onsite locations where applicable.
NASCAR’s new partnerships with Verizon and its betting partners also demonstrate a change in how the sponsorship industry will look at integrated partnerships. More specifically, NASCAR, Verizon, and sports betting companies can all maximize their individual outcomes by working together.
Verizon shows the power of its new network technology using a tangible, real-world use case of sports betting. Penn National Gaming can generate more bets from NASCAR races and increase the likelihood of NASCAR fans attending one of its brick-and-mortar venues and drive online gaming. NASCAR can generate more money through partnerships by better helping partners generate incremental revenue growth through collaboration.
One question B6A frequently receives is how we can help properties and partners identify new partnership opportunities. NASCAR, Verizon, and Penn National Gaming highlight a new way for companies in different categories to work together to maximize their individual revenue and brand goals. This integrated partnership model is an opportunity to identify new opportunities and / or activate current partnerships in novel ways that drive value.