BY Kathy Crosett
Consumers are ready to spend on amusements and local sporting events as spring approaches. How can your accounts in this vertical attract their target audiences? They must advertise what consumers are looking for and appeal to their aspirations.
Consumers Like Local Sporting Events
The latest White Hutchinson research shows what U.S consumers are doing with their leisure time. They are spending more time attending sporting events since 2019. This is true for all age groups, except busy 35–44-year-olds.
Playing Sports
On any given day, 21.1% of consumers participate in playing sports, up from 19.2% in 2019. Age groups with the highest participation rates include 15–24-year-olds (25.9%) and 25–34-year-olds (21.1%). This data makes sense, especially for the youngest age groups. Those consumers may be involved in high-school and college sports. However, local sports instruction and training organizations may want to target all consumers with an interest in specific activities.
For example, they can advertise pickleball training and court space to consumers. Pickleball has a growing number of participants. Over 40% of these fans have been influenced by linear and streaming TV ads in the past 30 days, according to AudienceSCAN data. And 28% have purchased a product as a result of ad or other information they’ve seen.
Entertainment Centers and Other Amusements
Consumers have no shortage of location-based entertainment options beyond local sporting events. From family entertainment centers to museums to zoos, consumers can take their pick. For adults, specialized centers such as ax-throwing and escape rooms are a draw.
In addition, many parents do not focus on kid-specific centers. They bring their children with them to activities they are interested in. Adults now are more interested in socializing and not in the entertainment aspect.
The family entertainment center sector of this vertical may continue to face challenge because of the lower birth rate in the U.S. This trend started in 2007 and has not reversed. As a result, these attractions will have to work harder to attract visitors.
Consumer Spending
But it’s the spending that accounts care about. Who spends the most on community leisure? Who spends the most on community leisure? White Hutchinson analyzed the outlay by generation.
In terms of share of each generation's spending for entertainment in their local communities, millennials account for 40.2%, followed very closely by Gen Xers at 35.8%. Baby boomers are next at 21.3%. And Gen Zers are fourth.
Premiumization
White Hutchinson analysts, reporting on out-of-home entertainment, underscore the trend of premiumization we see across the economy in general. In their most recent analysis, they point out that college-educated households now account for 80% of local entertainment and arts spending. That’s up from 52% in 2010.
The biggest concern is that lower-income households have pulled back as a percentage of the total business at LBEs and museums. In 2019, they accounted for 11.9% of spending at the venues. Now, they account for only 8.3%.
Despite economic pressure, analysts do not see a trend of trading down when paying for experiences. Instead, consumers want premium experiences. Lower-income households may not purchase tickets as often, but when they do, they buy premium.
This trend holds important clues for your accounts. Advertising premium seating in stadiums for local sporting events will attract fans’ attention and money. Behind-the-scenes tours of dressing rooms and meet-and-greet at concerts appeal to consumers who want experiences.
Competing for Consumer Leisure Time
We may have more entertainment options than ever before. But consumers are spending more time at home. The trend started during the COVID-19 pandemic and hasn’t reversed, except for local sporting events.
For example, in 2005, consumers over age 15 spent an average of 7.34 hours a day away from home. Today, that number stands at 5.76 hours.
White Hutchinson data indicates that the drop in consumer time away from home has been most acute for the 20–24 year old age group. These consumers came of age during the pandemic. In 2020, they were spending 8 hours a day away from home. Since then, they’ve dropped to spending only a little less than 7 hours a day somewhere else.
Digital Entertainment
Some analysts have asked whether digital entertainment is to blame for consumers not leaving home. Digital entertainment doesn’t account for all of the shift. In some age groups, such as the 25–34-year-old group, consumers have moved from TV time to “other screens.”
Targeted Advertising
As with local sporting events, family entertainment and other amusement venues must have a digital presence to attract business. They need to lure consumers out of the house by promising premium experiences.
Over 74% of Gen Zers and 40% of boomers have visited these destinations at least once in the past year. The 2024 Leisure Consumer Trends Report by LT (formerly LaneTerralever) shows consumers access the following resources before deciding whether to visit:
- Online reviews/rating 50%
- Website 48%
- YouTube review videos 32%
To convince target audience members to make a first visit, help your accounts improve their advertising. When considering local sporting events and other entertainment options, 52% of Gen Zers like to see a social media influencer post. However, well over 20% of all generations say a TV ad matters too.
Image by Franco Monsalvo on Pexels.
