The rise of social media and social sharing has been so explosive in the past year that it’s hard to believe it hasn’t already started to take off on the NBA.
While the league’s share of total ad revenue has dropped, it’s still at or near the top of the pack in terms of the percentage of total revenue it spends on its digital channels, according to data compiled by The Sports Industry Research Center (SIRIC).
In 2017, NBA digital ad revenue was up 20.1 percent to $1.09 billion.
In 2016, NBA revenue dropped 10.1 percentage points to $8.6 billion.
NBA digital revenue has increased at a nearly unprecedented rate in the last five years, with total revenue of $1,539 million.
The NBA’s digital footprint has also grown faster than the league itself.
The average NBA fan watches 2.6 hours of video per month on NBA TV and NBA.com, compared to 3.5 hours in 2016.
The league’s digital platform now accounts for more than half of all the league ad revenue.
While the NBA’s growth has been fueled by the emergence of social platforms like Snapchat, Instagram, and Facebook, it hasn�t been without controversy.
Earlier this month, ESPN apologized for its comments on the NFL and the death of Dallas Cowboys running back Darren McFadden.
The network also apologized for an off-air interview with former New York Jets quarterback Tom Brady that was aired on a late-night talk show.
The remarks also drew criticism from some NBA players and owners.
In 2018, the NBA lost an estimated $1 billion to an estimated 8 billion dollars in revenue from advertising.
The loss to the league is primarily attributable to lower ticket sales, the decline of other key revenue streams, and lower revenue from the NBA�s TV network, the Sports Business Journal reported.
In 2020, the league lost $1 million to $2.5 million from ad revenue, while in 2019, the revenue dropped nearly $300 million to about $1 Billion.
The decline of the NBA has been accompanied by a steady decline in the amount of revenue the league gets from its online channels, as well.
NBA online advertising revenue fell $1 in 2018 to $5.7 million, while the same year, the network lost $200 million to the loss of $5 million to revenue from online video.
The decrease in revenue was due to the continued decline in revenue streams from the league�s broadcast rights and sponsorship deals.
Despite the decline in league revenues, NBA executives are trying to push forward with their plans to build a more profitable and scalable online business.
The owners recently released a report that outlined the league plans to grow its digital platform and the league will use its new digital platform to develop a new and improved NBA App, which would allow fans to engage with and interact with other fans on social platforms.
The NBA has also announced a partnership with Facebook and Google that would allow the league to bring its brand and game experiences to fans on more platforms including Android and Apple TV.
The deal would see the NBA combine Facebook�s social network with Google�s YouTube and Instagram to offer fans the ability to access games and live events across these platforms.
With all of the major players in the NBA and sports in general looking to make more money in the future, the stakes for the league and its brands have increased in the eyes of investors and fans alike.
The future of the league could depend on how the NBA handles its digital platforms and how quickly the NBA can regain its footing.