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May 10, 201811:31 AM#SocialBiz

with Spencer X. Smith

Facebook is spending $25M to show you live baseball — here’s why

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On April 11 of this year, I turned on the Milwaukee Brewers game. Not on broadcast TV, not on cable TV, and not even on the radio. On Facebook. Yep, Facebook’s newest product (Facebook Watch) livestreamed my beloved Brewers against the St. Louis Cardinals.

Facebook is spending an estimated $25–30 million broadcasting 25 Major League Baseball games this year, and here's my hypothesis as to why: In listening to the announcers while watching the game, one thing instantly struck me — they were prompting the Facebook Watch livestreaming crowd with questions such as:

  • “If the Brewers are competitive in July, who would you like to see them trade for?”
  • “Will the Cardinals have a better or worse record than last year?”
  • “With Corey Knebel still out as the Brewers’ closer for several more weeks, do you suggest the Brewers use a designated closing pitcher or use a closer-by-committee approach?”

Since a chat window is automatically open alongside the video broadcast of the game, users began responding with their comments while signed in with their Facebook account.

The action in the chat window was both vast and varied. The announcers began mentioning (by name) some of the people commenting and said, “Interesting, Dan!” or “Great insight, Barbara!” Imagine, the announcers of a sporting event actually responding to your specific questions/comments directly on the air! How cool is that?

Wait, though. They also said this: “If you’d like to just see the comments from the fans of the team you’re rooting for, go to that team’s [Facebook] page and click ‘Watch Live’ from there.”

Why would the announcers say that? Going a step further, why would Facebook spend the money to not just license the broadcast of these games, but also pay for their own announcers?

Disclaimer: I don’t have a direct line into Facebook HQ. Facebook has, however, shown a distinct pattern of behavior when it comes to a cornerstone of its business: data collection. Facebook isn’t just dipping its toe into the live baseball broadcast business as a reason to spend its money. In this case, it’s not acting as a cash-rich tech company that is simply buying up complementary businesses, although it does participate in that market periodically with acquisitions such as Instagram, WhatsApp, and Oculus Rift. 

Like many strategic decisions Facebook makes, it’s buying eyeballs. It’s buying people’s attention, and with attention they’re gathering data — lots of it. Broadcasting live baseball on Facebook is a data-collection play.

Because those who watch games on Facebook Watch need to both login to Facebook and choose an entry “portal” (e.g., a team page) Facebook is actively gathering data on each decision you make as a viewer of that particular live event.

(Continued)

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About This Blog

Spencer Smith is the founder of spencerXsmith.com and co-founder of AmpliPhi, a Madison, WI-based digital marketing agency. He’s an instructor at the University of Wisconsin and adjunct faculty at Rutgers University, where he teaches classes on Social Media Strategy.

He’s been called a "Digital Marketing Expert" by Forbes and was the winner of the 2016 In Business magazine Executive Choice Award for Social Media Consulting Company. Spencer speaks at an average of 60 conferences and events per year and only teaches what he has first proven to work himself with his own business.

He has been featured and quoted in Money magazine, Entrepreneur, Inc. magazine, Costco Connection, and dozens of other publications. He also writes columns for IBMadison.com, The Huffington Post, The American Bar Association, and Law Journal Newsletters.

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