Boost Fan Engagement and Drive Revenue with AI and AR Technologies in Sports and Entertainment

April 26, 2023
In the last months, we visited several events, met people from the sports and entertainment industry and did some research about the following question: Which impact do AR and AI have in sports and entertainment?

In today's digital age, companies in the sports and entertainment sector are always looking for ways to enhance fan experiences and engagement. Augmented Reality (AR) and Artificial Intelligence (AI) are two cutting-edge technologies that are revolutionising the way fans interact with their favourite teams, athletes, and artists. The benefits of these technologies are many, and they include creating emotional connections with fans, increasing sales and loyalty, and driving revenue and ROI for companies in the sports and entertainment industry.

According to a study by Accenture, fans who have an emotional connection with a club have a 306% higher lifetime value. This shows that emotional connections are key to creating loyal customers. AR can also be used to create immersive experiences, such as virtual tours or even letting fans who can't physically join the event "meet" their favourite athletes. Similarly, AI can help companies analyse fan behaviour, preferences, and feedback and tailor their marketing and communication strategies accordingly, leading to higher engagement and loyalty.

A study by Brandchannel found that product placement can increase sales by up to 20%. This is where AI can be particularly useful. By analysing fan data, AI can help companies to involve their partner and sponsors in their own customer journey in a smart way. Also, AI identifies trends and opportunities for cross-selling and upselling. This can lead to increased revenue and ROI for companies in the sports and entertainment industry.

AR technology has gained significant traction in recent years, offering fans new ways to interact with their favourite teams and brands. According to a report by MarketsandMarkets, the global AR market is projected to reach $60.55 billion by 2023, at a Compound Annual Growth Rate of 40.29% during the forecast period. This shows that sports companies recognise the potential of AR to enhance fan experiences and drive revenue growth. Similarly, a survey by Salesforce found that social media engagement increases the purchase of merchandise by 33%. This highlights the importance of engaging with fans on social media platforms and supporting them to shoot user-generated content.

Finally, according to a report by PwC, AR and VR technologies generated $1.5 billion in revenue for the sports industry in 2022. This revenue comes from various sources, such as ticket sales, merchandise, sponsorships, and advertising. This shows that AR and AI can also help companies optimise their operations and marketing strategies, leading to cost savings and revenue growth.

The sports and entertainment industry has much to gain from integrating AI and AR technologies. By leveraging these innovative tools, companies can boost fan engagement, foster emotional connections, and ultimately drive revenue and ROI. As a commercial director of Sensape, a leading AI and AR tech company in Europe, I encourage businesses within the sector to explore the potential of these technologies and witness the transformative impact on fan experiences and financial outcomes. Don't miss out on the opportunity to stay ahead of the game – reach out to us today to learn more.

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