Let’s talk sport
Traditional business models have been transformed by the digitalisation of content, opening up opportunities for revenue generation. Subscription and pay-per-item models are two examples of how media platforms adjust to the needs of a changing digital environment (Ye et al., 2021). These platforms benefit from network effects, which raise total value as user bases grow. The “winner-takes-all” dynamic highlights the monopolistic tendencies that predominate in the platform economy (Srnicek, 2017).
Recent years have seen economic factors take centre stage in online engagement, influencing platform monetisation strategies as well as creators’ approaches (Rieder et al., 2023). Since audiences now prefer to access content through social media rather than traditional platforms, this shift has had a significant impact on the media industry (Majale, 2023). NBCUniversal embraced this change for the 2024 Summer Olympics, using digital creators to reach younger audiences, optimise sponsorship opportunities, and transform the revenue generation of sports coverage.
Sponsorship and Advertising Deals
In addition to changing its content strategy, NBCUniversal’s partnership with digital creators opened up new avenues for sponsorship and advertising. For instance, TikTok emerged as a crucial channel for reaching Gen Z and Millennials, whose usage of social media videos has increased dramatically in recent years (Reid, 2024). Through NBC’s social media platforms, creators like Simone Biles and Noah Lyles actively engaged viewers by fusing brand integrations with personal stories (Reid, 2024). By strengthening the connection between athletes and fans and advancing sponsor brands, these collaborations improved NBC’s ability to provide genuine content.
Impressively, NBC achieved remarkable results, breaking Olympic ad sales records and doubling digital revenues over the Tokyo Games (Clark, 2024). With the first introduction of programmatic ad buying, Olympic advertising became more accessible to all. While smaller brands—many of which were first-time Olympic advertisers—benefited from incremental reach, major brands like Nike saw a significant increase in spending (Clark, 2024). These developments show how NBC made the most of alliances to appeal to a wide range of advertisers, benefiting all parties involved.
New Revenue Streams Through Creator Partnerships
Additionally, NBCUniversal established completely new revenue streams through the use of digital creators. In order to capitalise on viewers’ increasing desire for engaging and genuine digital experiences, NBC broadened its offerings by working with athletes and influencers to include exclusive behind-the-scenes content and shoppable ad formats (Gardner & Lehnert, 2016). Particularly, Molly Carlson (@mollycarlson) partnered with Nudestix, blending her Olympics journey with sponsored product swaps in her content, showcasing how athletes can integrate personal storytelling with brand promotion (TikTok, 2024). Similar to this, Jasmine Nguyen acknowledged official Coca-Cola’s sponsorship of TeamUSA (TeamUSA, 2024) by emphasising products sold at the USA House in her Team USA content multiple times (TikTok, 2024). In addition to strengthening Coca-Cola’s connection with the Olympics, this strategic partnership gave Nguyen’s content a more genuine feel as she recapped her Olympic experience. However, Kristy Scott posted sponsored pre-recorded content that had nothing to do with the Olympics, demonstrating the variety of strategies used by creators to make money off of their platforms during the event (TikTok, 2024).
The examples above show how NBCUniversal made the most of influencer relationships to generate profitable advertising opportunities. Together with its One Platform Total Audience (OPTA) solution, which used AI-driven segmentation to streamline audience targeting, NBC was able to convert creator-driven engagement into long-term revenue (Kelly, 2024). NBCUniversal demonstrated the effectiveness of incorporating sponsorships into genuine content by capitalising on the confidence that viewers have in digital creators, thereby establishing an innovative standard for media monetisation tactics in the future (Gardner & Lehnert, 2016).
Strategy through niche influencers
In order to effectively improve their advertising strategies, NBC’s monetisation strategy for the 2024 Paris Olympics took advantage of niche influencers’ distinct engagement rates and niche audiences. Because of their targeted and devoted fan bases, niche influencers gave brands a direct line of communication with particular audiences (Sruthi, 2024). By providing authentic and tailored content, these creators helped advertisers connect with hard-to-reach audiences like Gen Z and Millennials (Razak, 2024).
This strategy is best demonstrated by niche influencers such as Clarke (@claaaarke), who share her life from New York and Chicago, focusing on causual content such as outfit and makeup checks and daily vlogs from her life (TikTok, 2024). Despite having a smaller following than other invited influencers with millions of followers (roughly 700K), Clarke’s content struck a deep connection with her devoted fan base. By fusing her genuine story with clever brand promotion, her partnership to promote official Olympic merchandise—including Ralph Lauren’s collection—showcased the effectiveness of niche marketing. Clarke influenced consumers’ purchasing decisions by encouraging them to examine the whole Olympic collection as well as to think about buying the individual unique pieces for the upcoming Olympics Games in LA.
In contrast to mass-market campaigns, NBC was able to leverage Clarke’s genuine connection with her audience by using this “big fish in a small pond” strategy, which increased engagement and trust (Razak, 2024). NBC grew its revenue streams and satisfied audience demands for relatable, personalised content by integrating influencers like Clarke into larger campaigns. This focused strategy demonstrates how well niche influencers work to increase conversions, which makes them a crucial part of NBC’s overall monetisation plan (Sruthi, 2024).
Overall, digital creators can successfully drive commercial success, as demonstrated by NBC’s monetisation strategy during the 2024 Summer Olympics in Paris. NBC took advantage of the trust and genuineness that these creators grow with their followers by partnering with influencers who have highly engaged and niche audiences. Artists like Clarke (@claaaarke) or Jasmine (@jasminenguyen), who combined brand promotion with personal stories illustrated the power of targeted advertising. In addition to increasing merchandise sales, this strategy increased fan interaction and established a new standard for digital marketing in sports. Alongside, by breaking ad-sales records and attracting both well-known and growing brands, NBC further diversified its revenue streams with cutting-edge platforms like Peacock and programmatic ad buying (Kelly, 2024). These initiatives demonstrate how crucial strategic partnerships and tailored marketing are to optimising profits. Therefore, organisations can learn from NBC’s approach as the media landscape changes by embracing digital creators to better suit audience preferences, encourage engagement, and open up new revenue streams.
Leave a comment