Marketing In The News: NBA x Stellar Algo Partnership
When I was looking for an article to write about, I thought about things I was interested in. Basketball was one of the first things to pop in my head, and what better to write about than basketball's biggest and most popular association, the NBA. I've been watching a lot of basketball since I was a little kid, but as I've grown older and moved out of my dad's house, I stopped watching it as much because I don't have cable. The only time I get to see games are on YouTube or while I'm at work and they're playing the games on the TV's. I was surprised by what the NBA announced less than a week ago.
The National Basketball Association (NBA) has announced their partnership with The Stellar Algo platform in a multi-year deal. Stellar Algo is a platform which takes data on fan engagement and helps with different approaches to allow fans to interact with their favorite teams/organizations. The NBA described the partnership as an opportunity to efficiently interact with the fanbase across the nation. This deal will consist of the NBA becoming a "meaningful equity holder" to Stellar Algo. The CEO of Stellar Algo, Vincent Ircandia points out that being a fan will be easier due to the expansion of media, advertising, and merchandise. The NBA insists on their fans coming first and making it easier for them will only bring passion to the sport and all the teams involved.
The NBA decided to partner up with Stellar Algo because of the relationships between four of the professional teams (Portland Trailblazers, Milwaukee Bucks, Brooklyn Nets, and Sacramento Kings). This is relevant because after the relationships between these teams and the platform were forged, the deal between the league and Calgary-based company was made. Now that the agreement has been put into place, all 30 NBA teams will have access to the Stellar Algo platform fan data services. This will provide a lot of exposure for Stellar Algo as a company and give the NBA a chance to have direct relationship with its biggest fans.
The challenge the NBA is facing is the in-person attendance to it's sporting events. Since 2018-2019 when covid hit, the league has seen a decline in game attendance which correlates with fan engagement. The problem is that arenas are feeling more empty and ticket sales are low. They're trying to overcome this challenge by providing fans with other ways to interact with games and teams through media, brand partners, streaming, and sports betting. When I think of the NBA trying to attack the media head on and drive engagement rates up, I think of a younger target audience that is all over the media across different platforms who can't always attend games themselves or don't have the means to do so. Instead of focusing on just the arena-based merchandising, expanding online and allowing the younger population to purchase gear and merchandise can help with the engagement decline they're seeing.
I believe both the NBA and Stellar Algo have a lot to provide for each other, which makes this a successful solution. If I was in a position like the NBA trying to further engagement, I would make an even bigger presence on social media platforms like Instagram, Snapchat, and Facebook. The NBA has a significant number of followers as an organization but the players themselves also have diehard fans that look up to them and interact with things they do. If there was more interaction with players and the fans on social platforms, I believe it would drive the fanbase even higher. Richard Jefferson is a former NBA player and can still be seen speaking on the game and even on Tiktok. Jefferson brings a lot of joy to the game by relating to the fans and making jokes which everyone loves. Fans go crazy when they see funny moments by the players and can be seen all over the media which improves engagement.
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