Another quarter has come to an end and we are excited to announce the Q2 Proxbook Report. This time focusing on Proximity Marketing in Sports & Events and revealing the latest trends, facts and figures from more than 330 Proximity Solution Providers.
Key insights from the Report include:
Proximity sensors deployed globally continue to grow fast
- The amount of proximity sensors sees a large uptake in Q2 with an increase of 2,072,500 proximity sensors.
- There are now 8,273,500 proximity sensors deployed globally registered by Proxbook members as of Q2 2016.
- 6,061,500 of these sensors are beacons. 2,099,000 are NFC sensors and 113,000 WiFi points. Since Q1 2016, there has been an impressive 33% increase in global sensors
- The 6,061,500 beacons deployed by members of Proxbook, are aligned with ABI Research’s forecast of 8 million beacons by the end of 2016 and 400 million beacons deployed by 2020.
Google invests heavily into proximity
- Google bets big on proximity and wants the ecosystem to succeed. Eddystone adoption continues to grow as half of the proximity industry supports the newest beacon format from Google up from 45% since Q1, 2016; Apple is yet to answer
Sports teams and Venues increases revenue with proximity tech
- Sports teams that have deployed beacons and proximity technologies are seeing a return on investment (ROI) as big as 40x from incremental merchant revenues alone within the first year
- NBA teams such as the Orlando Magic, Cleveland Cavaliers, Golden State Warriors, and the Milwaukee Bucks have opened up an entirely new revenue streams for their teams by monetizing proximity solutions through sponsored content
- Proximity technologies see widespread adoption in the North American sports market as 47% of NFL stadiums, 93% of MLB stadiums, 53% of NBA stadiums, and 47% of NHL stadiums have already started to leverage the technology
How sports teams and venues are reclaiming over 1 billion dollars in lost ticket sales
Unsold tickets for professional sports games accounted for $184 million in lost revenue for the NBA, NHL and NFL combined in 2015. For MLB, it’s even worse, as $955 million was lost in 2015 from unsold tickets alone.
“Proximity technologies and beacons in particular are not only helping to sell more tickets, they are also redefining how sports teams communicate with fans, increasing revenue from merchant sales as well as seat upgrades,” said Thomas Walle, co-founder & CEO of Unacast. “Proximity technologies open up brand new revenue streams by enabling sponsors to interact with fans and monetize hyper-accurate visitor segments through advertising. We also expect a number of NBA teams to leverage retargeting as an additional solution in the 2016-2017 season.”
The Orlando Magic saw over $1 million in increased ticket sales, 30% app adoption compared to industry standard of 5%, and a 233% increase in Fast Break Pass sales from last season. More than 80% of season ticket holders have accessed and used the app.
“We attribute the use of proximity technologies to our dramatic increase in fan engagement, ticket sales and season ticket holder renewal rates,” said Alex Martins, CEO at Orlando Magic. “The biggest complaints in our businesscentered around the long lines at the concessions and the fact that you had to miss a good portion of games because you were in that line. Now, we were able to eliminate that problem and look forward to utilizing the enormous amount of data to provide the best possible fan experience in our venue for our customers.”