The Bundesliga is pioneering the use of virtual advertising technology, allowing different regions to see tailored ads during matches. This strategy aims to increase engagement and revenue significantly. The technology has potential applications in other sports leagues and could revolutionize how ads are targeted to individual viewers, leveraging their online behavior for more effective advertising.
This season, U.S. soccer fans watching Germany’s Bundesliga will experience a unique viewing experience compared to their German counterparts. Fans from various global regions, including China and Australia, will also see tailored advertising when watching the same match. The Bundesliga is now leading the European leagues by fully implementing virtual advertising technology on LED perimeter boards, allowing customized ads for different international audiences.
The virtual advertising method enhances viewer experience by digitally replacing physical advertisements based on regional demographics without altering the actual game content. This targeted advertising strategy enables clubs to connect with fans in places like Los Angeles, Beijing, and Sydney, offering messages more relevant to each audience. An analysis by Nielsen Sports indicates that Bundesliga clubs could increase their advertising revenue by up to 7%, or €60 million ($69.7 million), through this initiative.
Developed by Supponor, this augmented reality technology is incorporated into ‘Virtual Hybrid’ LED systems from ADI. Recently, at the German Supercup, these systems functioned to provide regional ads to viewers across multiple territories, including North Asia, the Americas, and the Middle East. “The sports advertising/sponsorship market has matured…Clubs need ways to deliver greater value for partners,” stated ADI CEO Geraint Williams.
Other major sports leagues, such as the NFL, NHL, and NBA, are exploring similar technologies as the Bundesliga. The English Football Association has already utilized this technology, inserting region-specific messages during England’s World Cup warm-up match. The Premier League may also leverage this opportunity to enhance its advertising approach, which currently features multinational brands alongside localized partners.
“Each club attracts significant investment from international partners…perimeter media space is full of adverts…which are wasted on the vast majority of the viewing audience,” said Williams. There is growing demand for these systems, with approximately 25% of clubs now having either functioning or upgradable virtual advertising systems.
As consumer habits shift towards personalized and on-demand content, the potential for targeted virtual advertisements in sports increases. Supponor is working on technology to insert digital ads tailored to individual viewers based on their IP addresses. “We see a day when virtual advertising…will reach viewers with tailored content,” Williams noted, suggesting a future where advertisements could be as specific as online consumer behavior.
Original Source: www.forbes.com
