How the FFA can make money by streaming A-League matches for free

By Nemesis / Roar Guru

Sport is one of the few forms of visual entertainment that people prefer to watch live, even though advertisements cannot be skipped past.

However, with free-to-air and pay television, advertisers can’t target their brands to maximise the efficiency of their advertising budget.

Hence, a 55-year-old man in Perth will be presented with the same advertisement as a 20-year-old female in Gosford, even though these two people will have completely different consumer profiles.

Online viewing is different. Every move you make online leaves digital tracks and creates a clear profile about who you are, what you enjoy, what you buy, where you buy, etc.

Smart brands are already using digital footprints to target people who are either active, or potential, consumers of their brand.

Basally, online viewing allows advertisers to efficiently allocate advertising budgets to improve the likelihood an advertisement will be converted into a sale.

So, if A-League matches were to be broadcast online for free, there are two types of affordable advertising that are likely to convert to sales: coupon and banner advertising.

Coupon advertising
To watch the A-League live, each viewer would register a profile. Registration would be free and open to every person on the planet.

When the viewer logs in to watch a match they would be asked to choose any five items they would like to buy within the next seven days.

Once the viewer watches at least 20 minutes of that A-League match online, they would receive five coupons (via email, SMS, what have you) that offer a special deal on the five items they are keen to buy.

This is a win-win approach to advertising.

The viewer is going to buy certain items and will now get a better deal for those items simply by watching A-League.

The advertising vendor wins because they have directly connected to a potential customer, whom they know is ready to make a purchase in the next week.

Advertising fee: $0.20 per coupon
Total advertising revenue generated per viewer: $1.00

Vendors can place a cap on how much they spend each match, or each round of matches, and set preferences so they only send coupons to people located within postcodes in proximity to their store.

For an investment of 20 cents, a vendor is almost guaranteed a sale.

This type of advertising is particularly useful to small businesses.

In the past, small businesses would advertise in the Yellow Pages and local newspapers, but both platforms are almost dead.

Online coupon advertising will be cheaper than any other form available to small businesses, and it is targeted, so an antique shop will not target people with no interest in buying antiques!

Banner advertising
Advertising is not limited to targeting people who are already aware of your brand, it’s also about exposing your brand to potential customers.

The A-League could offer banner ads to appear for 15 or so seconds during stoppages in play.

SBS is using this advertising during its current English Premier League broadcast. Seven did the same during live broadcasts of the 2016 Olympic Football tournament. The banners do not interrupt play and are much less obtrusive and annoying than 30-second ads.

Banner ads would also appear during pre-match, halftime and post-match analysis.

There would be five brands advertised (multiple times) per game and the brands appearing would vary depending on the viewer’s profile.

Advertising fee: $0.20 per brand (only payable if a viewer is logged in for at least 20 minutes and the ad played once)
Advertising revenue generated: $1.00 per viewer

How much revenue for the FFA?
Let’s assume the FFA partners with a company like Google to organise the advertising and all revenue is equally shared. This would result in the FFA receiving $1 clear profit from every viewer who watches an online match.

If the online platform is free, it will reach every person on the planet who has an internet viewing device. With two clicks of a mouse they’ll be watching A-League live.

Online advertising revenue has the potential to generate more cash for the FFA than all other broadcast rights combined.

The Crowd Says:

AUTHOR

2018-01-26T22:35:00+00:00

Nemesis

Roar Guru


Nearly 18 months ago, I speculated about potential strategies to raise money from Livestreaming via targeted ads & coupon promotions. Some of us understand how technology can reshape every business and we see early opportunities. Some are blind. Amazon could pull in nearly $US8 billion in ad revenue by 2019.. Instead of digital media spending, it is focused on promotions and couponing, effectively expanding the advertising market significantly Full story: https://www.businessinsider.com.au/amazons-ad-business-is-red-hot-but-no-threat-to-facebook-and-google-morgan-stanley-2018-1

2016-10-28T23:03:45+00:00

Mister Football

Roar Guru


The latest on the FFA TV negotiations: http://www.sportingnews.com/au/football/list/the-secret-agent-ffa-reject-fox-sports-tv-rights-offer-aleague/1vbb67xpwf2zt1vgwdi8y06670/slide/2 The FFA has knocked back an estimated $55 million per season offer from Fox Sports for the A-League TV rights. The offer, that was presented approximately three weeks ago, was an extra $15 million per season than the current $40 million package currently in place. The FFA claim the offer is not high enough but Fox Sports believe it's very generous considering the proposed $55 million offer is solely for A-League rights, while the previous $40 million per season deal also included the Socceroos' international matches. It looks like Optus can get the complete rights to the A-League for a mere $56 million per annum. Those who were wanting Optus to be the exclusive provider for soccer are about to have their wishes met. It could be a red letter day for the FFA.

AUTHOR

2016-10-27T01:33:10+00:00

Nemesis

Roar Guru


Interesting things are happening. Technology giants look to tap into Australian content: earlier this month, that Twitter signed a deal to live stream next month's Melbourne Cup, the company's first sports rights deal outside the United States, and flagged acquiring more content for its platform in Australia and around the world. It is understood Twitter has met with a number of sporting codes in Australia, including Football Federation Australia and Cricket Australia, as well as major publishers about potential tie-ups. http://www.afr.com/business/media-and-marketing/tv/technology-giants-look-to-tap-into-australian-content-20161020-gs6klv#ixzz4O2XY4Oz0

AUTHOR

2016-10-19T04:43:48+00:00

Nemesis

Roar Guru


Nope. I'm talking about digital streaming. The rights for broadcasting are sold according to the way the information is broadcast: satellite, cable (linear), FTA (linear), digital, online. Has nothing to do with the size of the screen. I stream Premier League via Optus 4G networks and watch it on a 60 inch LED TV via Chromecast.

AUTHOR

2016-10-19T04:38:58+00:00

Nemesis

Roar Guru


Big names in online streaming (Twitter, Facebook, Amazon, Verizon) have purchased Invitation to Tender documents for the next broadcast rights for Indian T20 cricket. http://www.espncricinfo.com/india/content/story/1062202.html But, some clueless Australians still think online LIVE streaming sport won't happen for the next 10 years.

2016-10-13T00:29:11+00:00

Steve

Guest


Online streaming on a mobile, sure that is not a substitute for PayTv of FTA. Online streaming on a laptop or big screen is a substitution though, and would 100% unequivocally impact rights deals.

2016-10-13T00:27:03+00:00

Steve

Guest


Unless you're suggestion is to limit the screen sizes ala the Telstra deals, then yes it would contravene existing (and likely new) deals.

2016-10-13T00:25:54+00:00

Steve

Guest


Not sure why I bother, but Telstra's AFL/NRL deals are limited to small screens, i.e not TVs or even laptops. You cannot watch a live game through Telstra of either on a big screen, which is what you are suggesting. If you could that would cannibalise other platforms and significantly depreciate value. The only one who is pretending to know what they are talking about is you.

2016-10-10T21:33:51+00:00

Doc Disnick

Roar Guru


I return a day later to your *own* article with no response to my simple question. That's a real shame Fuss. You know, your expertise in this area is about as sound as your knowledge in law. Perhaps another name change? BTW — if you do change your name again, try to style your writing slightly different. Writing in the same condescending manner (just with less paragraphs) really doesn't work for you.

2016-10-10T03:14:48+00:00

Doc Disnick

Roar Guru


"Your posts are just rambling nonsense" I tend to find people on this site default to this response when they aren't capable of justifying their own comments or are caught out in a contradiction. Let's keep it simple, before finalising this discussion. "If that shop were interested in making the deal they’ll send out a deal to that person." Why would the shop not be interested in making a deal? Answer just this one question for me please. It's actually quite important, because the way you answer significantly alters your marketing model — which I'm not entirely convinced you are sure of.

AUTHOR

2016-10-09T22:23:32+00:00

Nemesis

Roar Guru


Rick. You just don't get it and, judging by the fact you've written possibly 5,000 words on the subject, you never will get it. Your posts are just rambling nonsense where you have a thought bubble and just fixate on that idea. It was worth engaging with you initially since you seemed keen to learn, but it is now tiresome to read. Why you've latched on to an idea about UI and run with it is very strange but I've met many people in business who are pedantic about irrelevant micromanagement. Those people have a role to play at the design phase, where attention to detail is critical, but that Design Phase occurs well after the deal has been signed and such people are useless during strategic discussion. Just like strategic thinkers tend to be useless at fine detail and micromanagement. The fine details of the UI will be discussed at the design level and, even then, it will not be set in stone. The UI for eBay, Twitter, Facebook is constantly changing. I've worked on projects where the UI will change the week before going live because the client has a thought bubble moment! If a client put out an RFP asking strategic teams to come up with ideas for generating revenue from Free Online streaming and one team's whole proposal was dedicated to designing the UI, the client would put that proposal in the bin within a minute of reading.

2016-10-09T13:00:05+00:00

Doc Disnick

Roar Guru


"Introducing “what interface will you use” is just ridiculous micromanagement and completely irrelevant at this stage of the discussion." You want to know why Apple is the most valuable company in the world? Because they got the interface right more often than not on most of their products — Steve Jobs would fire any employee at Apple with a comment like that should he still be alive. You want to come up with an idea like this then you better get the interface right — even at this stage. The very fact you treat that comment with contempt should concern you (if indeed this is your area of expertise). My original points were two fold: 1. Live steaming limitations - which you have been wise to avoid further discussing. I can tell you are limited when it comes to IT expertise. 2. Interface The latter is precisely what we are discussing and I've finally got an answer from you. The interface is vitally important because if the product is unusable due to a sloppy annoying interface, it can do more harm than good. Facebook for years struggled to maximise its revenue, but avoided the temptation of spam advertising so it didn't disrupt its core idea. Despite it being free, they decided to not mess with the interface and provide spam advertising or choice marketing. I'm merely suggesting your idea might not be the wisest, especially if you overcomplicate things at the user interface by forcing consumers to input 5 pieces of data EVERY time they want to watch a game of football. As far as coupons go, I think my original points stand as to their value to consumers in the 21st century — but hey, you sound like you might be a bit older than the average so it might work for the older generation. Not sure this is the target market for the A-league though. Please don't confuse that for me not agreeing with target specify advertising, because I do. I just question whether having customers input 5 pieces of data for this process to arise would have any negative effects. I also question whether people would be enticed by coupons after filling out what is essentially an online shopping surgery before a football match. This idea is more like joining a club, where you pay a monthly subscription to qualify for discounts on certain products. Not entirely sure this is sound, because that's a bit like saying FFA will subsidise all the shops discounting their products being advertised in order to generate extra Tv viewers. Of course if all the advertisers are genuinely providing a discount via these digital vouchers, FFA is cutting off a large percentage of the market who just want to do target specific advertising without discounting their product. We could take it a step further too and suggest that FFA doesn't really care if the vendor provides a discount and just makes it up, but this would undermine the whole point of a voucher system, ultimately tarnishing the very product it's link to, the A-League. Did you ever think of that and the damage such an idea could do? FFA would need to weigh all these variables up and you are making the fatal mistake of thinking if something is free, it doesn't matter if its potentially bad. A sloppy interface, combined with potentially unethical discounting practices, acting as a gateway to watching A-League via a steaming service with Australia's infrastructure, probably has a view checks-and-balances to pass before this idea ever comes to fruition Nemesis. "why do you persist in trying to pretend you know what you’re talking about?" Keep to the discussion please.

AUTHOR

2016-10-09T11:46:25+00:00

Nemesis

Roar Guru


Rick why do you persist in trying to pretend you know what you're talking about? Once again, nothing you've said is relevant to the discussion. You clearly have never been involved in this level of e-Commerce. If you had you wouldn't be making absolutely ridiculous statements. What I'm describing currently exists. The UI we'd use for the A-League is not relevant to this discussion. This discussion is big picture strategy for how to generate advertising revenue. Introducing "what interface will you use" is just ridiculous micromanagement and completely irrelevant at this stage of the discussion. But, if you want my thoughts: yes, people could type a shop name in. If the shop were listed it would appear in a drop down box. If not, they'd type the product. Have you ever used eBay or other e-Commerce apps? In the 5 examples I've given, the shop is irrelevant. Why do I care which butcher, Thai restaurant, petrol retailer, etc. other than it be in proximity to my home address. I appreciate your attempt to add to this discussion but it's clear you've not had any experience in this field and your input is now just nonsensical. I think you'll agree I've spent a lot of time trying to explain things to you. I've used simple language and examples like I would to someone who has no business background. I'm afraid I can't make it any simpler. If you don't agree with what I've said that's not a problem since what I've said is already operating. It's just a question of whether the FFA wants to use this type of advertising model.

2016-10-09T11:16:51+00:00

Doc Disnick

Roar Guru


No I get it Nemesis. What I don't get is this statement from you: "People could post the name of the shop they wish to buy from. If that shop were interested in making the deal they’ll send out a deal to that person" So people aren't now choosing the shop they want to deal with, nor an item like originally suggested. What we now have is a collection of services/items on offer, providing the customer inputs their top 5 wish list categories. We don't have an interface with any options to choose from, and if we do, you haven't specified how many categories there are, who chooses these categories and how time-consuming it would be *each* and *every* time they login. I'm also not sure why the shops wouldn't be interested...unless of course they are allowed to show prejudice based on any personal or metadata collected. Highly illegal of course. More likely what has happened is you confused the two issues of business marketing and consumer interaction when you decided to change your business model mid-discussion — it's easy to do. What's clear though is despite your continuing appraisal of this being simple, it's not. I've highlighted just how difficult these types of business strategies can be and your disjointed and confused argument reinforces this notion.

AUTHOR

2016-10-09T08:24:45+00:00

Nemesis

Roar Guru


Rick, as I said this is basic e-Commerce. It's not complicated. I'll walk you through it step-by-step: 1) Nemesis decides to watch an A-League match online via YouTube. 2) Nemesis log in to my YouTube account. My gender, age, etc are already known; My location will be updated based on my IP address when I log in 3) YouTube asks me to choose 5 purchases I want to make within 7 days. 4) I insert: a) Petrol b) Groceries c) Thai fast food d) Office supplies e) Fresh meat 5) YouTube says: "thank you, enjoy the game" 6) I start watching the Melbourne Derby 7) Once YouTube registers that I've been connected to the A-League match for more than 20 minutes, I receive and e-mail/sms saying "Thank you for watching A-League on Youtube, we have located 5 merchants who want to help you save money next week. Hope your team wins". 8) In my email "inbox", I see 5 coupons: a) Caltex: 10% discount when you spend $50 or more on petrol at a Caltex outlet (Caltex is charged $0.20 for the coupon via Paypal: 10c goes to FFA, 10c to YouTube) b) Aldi: 10% discount when you spend $50 or more at Aldi (Aldi is charged $0.20 for the coupon via Paypal: 10c goes to FFA, 10c to YouTube) c) Pad Thai Restaurant: 10% discount when you spend $20 or more (Pad Thai Restaurant is charged $0.20 for the coupon via Paypal: 10c goes to FFA, 10c to YouTube) d) OfficeWorks: 10% discount when you spend $50 or more at Officeworks (Officeworks is charged $0.20 for the coupon coupon via Paypal: 10c goes to FFA, 10c to YouTube) e) Tom’s Butchers: 10% discount when you spend $50 or more at our shop on High Street, YourSuburb. (Tom’s Butchers are charged $0.20 for the coupon via Paypal: 10c goes to FFA, 10c to YouTube) 9) I print out the coupons & I present them at the outlets within 7 days 10) Result: FFA: receive $0.50 YouTube: receive $0.50 Nemesis: receives $22 (or more) discount because he watched an A-League match. He was going to have to buy these items anyway. But he now gets a discount if he buys from the vendors who gave him a coupon. Vendors: each receive $50 (or more) business ($20 or more for the takeaway food) from a “direct advertisement” that cost them each $0.20. I’ll leave you to do the maths for how much an Aleague fan would save over a whole season if they watched all 140 A-League matches; or just 1 match per round. That’s it. It’s not a complex business deal. It’s about as simple a deal that anyone who runs a small business would ever enter. The paperwork is zilch. Every step of this arrangement is e-Commerce.

2016-10-09T05:53:31+00:00

Doc Disnick

Roar Guru


"This is something I’m already involved with this type of marketing transaction, so I know exactly how it could work for the FFA." I consider myself a pretty intelligent person, so don't hold back if you need to explain your model in a more complex manner. Please explain how you have mixed business marketing strategies with the customer. It doesn't make any sense to me and I'd really appreciate you explaining it further.

AUTHOR

2016-10-09T05:43:03+00:00

Nemesis

Roar Guru


Thanks for the discussion, Rick but you clearly don't understand the model. That could be my fault for not explaining it well on this blog. Or it could be that you haven't been exposed to this type of commercial transaction. This is something I'm already involved with and have used this type of marketing transaction as a buyer and seller, so I know exactly how it could work for the FFA. You final few paragraphs clearly show you are not understanding this at all. Nothing in that post is relevant to what I'm discussing.

2016-10-09T05:30:33+00:00

Doc Disnick

Roar Guru


"Don’t over complicate it" I'm trying to simplify it for you. "This is just basic business advertising." Again, you are confusing two important issues here. We are talking about the front-end experience here, not the back-end business side of things. You have now changed your business model to something completely different to your original article after I have challenged some of your ideas. For example you initially proposed this: "When the viewer logs in to watch a match they would be asked to choose any five items they would like to buy within the next seven days. Once the viewer watches at least 20 minutes of that A-League match online, they would receive five coupons (via email, SMS, what have you) that offer a special deal on the five items they are keen to buy." You have now changed it to this: "Maybe I’m not explaining the system well enough. People could post the name of the shop they wish to buy from. If that shop were interested in making the deal they’ll send out a deal to that person." As you said, this is now like a brokerage service - not coupons being given to people watching the A-League after making an arbitrary selection on items they may or may not want. "This is just basic business advertising. IN the past if you had a small business you’d get dozens of intermediaries who want to sell you advertising space in local newspapers, magazines, calendars, yellow pages, etc." I totally agree, but you have somehow mixed the consumer with business advertising. See the weird link you have managed? What you are basically now saying to the customer (not business) is: If you watch the A-League you will be given a discount on brokering services. Why would a consumer want to nominate a product, that in all likely-hood will take days (especially on weekends) to find out if they are eligible for a discount ? What would lead them to make this nomination to begin and why on Earth would they want to do this before sitting down to watch a football match? Why not just phone the vendor themselves and cut the middle-person out? This is what you're saying with this model. You've somehow mixed business marketing strategies with the customer.

AUTHOR

2016-10-09T05:02:04+00:00

Nemesis

Roar Guru


"who decides if this shop is to be an affiliate of the A-League? Google? What is the cost involved with this middle person who decides this?" This is just basic business advertising. IN the past if you had a small business you'd get dozens of intermediaries who want to sell you advertising space in local newspapers, magazines, calendars, yellow pages, etc. Now Google is an advertising intermediary except it matches your business with potential customers that you want to target. It's happening right now. Anyone who uploads a YouTube video, can have ads running. There's no ALeague/FFA affiliation needed. It's just basic commerce. Sellers want to be matched to buyers. It's basic business advertising. Don't over complicate it. The middle person (Google) takes a cut. From memory, for ads that you allow to attach to your YouTube videos, Google's cut is around 35%. If you read my article I was willing to give Google 50% of the advertising revenue (so if a coupon costs 20c for the vendor, Google gets 10c and FFA gets 10c). Yes this is 15% more than Google is asking but I want a premium service and I want Google to have skin in the game to give them extra incentive to make this a winner. Everyone wins. The FFA wins. Google wins. The advertiser/vendor wins. The buyer wins.

2016-10-09T04:52:01+00:00

Doc Disnick

Roar Guru


My response didn't incorporate your last paragraph that was added later. Now we're talking about something completely different. "People could post the name of the shop they wish to buy from. If that shop were interested in making the deal they’ll send out a deal to that person." Okay, so who decides if this shop is to be an affiliate of the A-League? Google? What is the cost involved with this middle person who decides this? Secondly, companies like Google and Apple take extraordinary cuts on their service such as i-tunes and Android apps etc. Musicians for years have complained about the margins Apple make on every song sold, so I'm not entirely convinced I'm going to be getting a good deal through a coupon if Apple is acting on my behalf for example. I'm not saying this is a bad idea either, but this is more a business model from Google's end, not the A-League - well not to begin with anyway.

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