Digital fan experience: From the stadium to your screen

Key takeaways:

• Digital technologies are revolutionizing the way fans engage with sports and interact with their favorite teams.
• Concepts including augmented reality (AR), immersive mobile apps, and smart stadiums are altering the way fans consume sports.
• Invesco QQQ ETF features exposure to leading sports tech innovators, including Amazon, Microsoft, Meta, and Electronic Arts.

Live games on linear television remain the primary avenue through which fans enjoy sports, but changing consumer behavior and increased digitization are altering sports consumption. These days, digital technology is crucial in keeping fans engaged not only while a sport is in season, but over the course of an entire year.

Sports technology is a high-growth market, expected to grow at a rapid pace in coming years. On a global basis, it could swell to $36.66 billion by 2027, notching a compound annual growth rate (CAGR) of 17.8%.¹

Social media platforms got the ball rolling, providing fans with avenues for connecting directly with teams and players. The intersection of social media and sports remains as vibrant as ever and it’s a critical avenue for brands, leagues, and teams when it comes to connecting with younger fans in particular.

Invesco QQQ ETF, which tracks the Nasdaq-100® Index, provides exposure to some of the companies leading the sports technology revolution, including Amazon Meta Platforms, Electronic Arts (EA), and Microsoft.

Amazon

Amazon’s Amazon Web Services (AWS) has ushered in a new era of consuming sports statistics with next gen stats (NGS). NGS provides value to fans and teams alike. For example, the NFL – the most popular North American sports league – uses NGS powered by AWS for a variety of purposes, including player health safety and building the league’s schedule.

NGS are also being used at a tactical level. The NFL points to improved player performance and the ability of coaches to make faster real-time decisions on teams using the AWS technology.

Other leagues are catching on as AWS NGS are also used by the NHL and the PGA Tour.

Meta Platforms

Social media, including Meta-owned platforms Facebook and Instagram, is integral in driving increased fan engagement, particularly among young people. More than half of Gen Zers follow at least one professional athlete online and 90% use social media to consume sports content, according to Deloitte.²

Social media plays another important role in sports digitization. It keeps fans engaged beyond a league’s traditional calendar. As one example, thanks to social media, NFL fans can maintain their interest after the playoffs, through the draft and training camp. That’s important because committed fans are likely to spend more.

Average frequency of off-season engagement by fan type

Microsoft

Microsoft Surface devices are common on NFL (and now college football) sidelines, but there’s more to its sports digitization exposure. The company’s Azure unit uses cloud computing for a range of sports-related functions, including predictive analytics.

When it comes to predictions, college hoops is prime territory. Microsoft has tapped artificial intelligence (AI) supporting the Dynamics 365 suite to make better college basketball picks. In 2022, it worked on the company’s bracket and was one of the top performers in a men’s tournament bracket challenge, outpacing more than 17 million competing entries.³

The company says those same predicative analytics are translatable to the business world and can be used for efforts such as figuring out what products and services a client wants and for how long a customer will be a customer.

Electronic Arts

Electric Arts (EA), a Nasdaq-100 member, owns some well-known sports video games franchises, representing soccer, football, golf and more, that already create immersive sports experiences for fans. EA is continually evolving with features that connect fans through digital and interactive formats, offering virtual sports experiences that mimic live engagement.

Game on for tech investors

The digital fan experience is rapidly transforming sports engagement, driven by advances in technology like AI, AR, and predictive analytics. As companies like Amazon, Meta, Microsoft, and EA continue to innovate, the future of sports consumption may increasingly revolve around immersive and interactive digital platforms, offering fans year-round connections to their favorite teams and athletes.