GenAI is reshaping sports industry advertising—adapt or get left behind

Generative AI (GenAI) is creating a new standard for advertising in the sports sector, forcing CMOs to make difficult decisions. As AI and GenAI transform human-to-brand interactions, many companies struggle with implementation due to the challenge of blending GenAI capabilities with proven fan engagement strategies. CMOs must navigate how to enhance their marketing approaches with GenAI while maintaining authentic connections with fans. The window for gaining a competitive advantage is closing rapidly.

The dawn of GenAI-driven interactions is transforming traditional marketing approaches

Traditional sports marketing has long relied on creating emotional connections through carefully crafted narratives and broad-based campaigns. Historically, these campaigns reached new audiences through print, billboard, TV, or radio ads. While this approach has evolved since the birth of social media, traditional methods no longer capture the full potential of today’s technological capabilities. Organizations can maintain a consistent core marketing philosophy while using GenAI to maximize outreach and engagement to marketing campaigns, creating personalized advertising through data analytics.

This GenAI transformation isn’t only enhancing marketing—it’s redefining it. Although the personal and psychological aspects of marketing remain crucial, the shift toward AI-driven strategies is becoming increasingly dominant. The numbers also tell a compelling story: Prior research from HFS reveals that nearly half of all enterprise GenAI case studies are concentrated in marketing, sales, and customer service functions—far outpacing areas such as software development and finance. This concentration of GenAI adoption isn’t coincidental; it’s where companies are finding the most immediate competitive advantage (see Exhibit 1).

Exhibit 1: Sales, marketing, and customer service case studies are the first step in almost half of enterprise case studies shared by service providers to date

Sample: N= 78 case studies shared by service providers, Q3 2023
Source: HFS Research, 2023

In practice, GenAI is transforming marketing through powerful segmentation and real-time personalization. Sports organizations are leveraging GenAI to analyze fan behavior and interactions, generate email campaigns that factor in attendance history, deliver dynamic website content, and provide automated support through chatbots—all driving higher conversion rates and customer satisfaction.

Real-world applications in sports reveal both the potential and pitfalls of GenAI in advertising campaigns

GenAI holds great promise for transforming sports advertising, but it is not without challenges. From breakthrough campaigns to high-profile failures, GenAI’s impact on sports marketing is becoming clear. While the technology is still evolving, it presents notable opportunities—and risks if misapplied.

At the Generative AI World 2024 conference, Liz Vanzura, cofounder of GAI Insights, highlighted the positives and negatives of GenAI in marketing. A standout example was the French telecom company Orange during the 2023 FIFA Women’s World Cup, where AI was used to reshape perceptions and amplify the visibility of female athletes. In its ad, Orange showcased what appeared to be a famous male soccer player performing with impressive skill. However, halfway through the video, it was revealed that the footage had been altered and that these actual athletes were top female soccer players from the French women’s national team. This powerful message challenged perceptions in the sports world and successfully encouraged audiences to watch the Women’s World Cup.

The 2023 Wimbledon Championship offers another powerful example of AI in sports marketing. The AELTC partnered with IBM’s watsonx platform to revolutionize its digital presence. Through its app and website, the AELTC delivered AI-generated highlights, real-time commentary, and match analysis, significantly enhancing fan engagement throughout the two-week tournament.

Vanzura pointed out that not all AI-powered campaigns have hit the mark. During the 2024 Olympics, Google released an advertisement to show off its new Gemini AI technology. This marketing campaign featured a young girl attempting to reach out to her hero, who was competing in the games. A brief note was put into Gemini AI, creating an elaborate message for the girl to send. While successfully displaying a feature on the AI platform, Google sent the wrong message to the world by removing the little girl’s voice and the human interaction behind reaching out to someone you may look up to. Due to the backlash, Google pulled the advertisement after spending $2.7M on production and TV time.

GenAI is here to stay, and you can’t sit on the sidelines,

— Liz Vanzura, cofounder of GAI Insights.

Addressing the readiness gap is crucial for the widespread adoption of GenAI in marketing

Despite recognizing GenAI’s transformative potential in marketing, many organizations struggle to use it. The challenge isn’t about resistance to change but about how to implement this powerful technology effectively. Marketing teams deeply understand their fans and traditional engagement strategies, but integrating GenAI requires new technical capabilities and strategic approaches. With high-profile examples of successes and failures (such as Google’s $2.7M Olympics campaign misstep), organizations should focus on getting implementation right rather than getting it done quickly.

Overcoming these challenges requires:

• Building internal capabilities: Invest in training programs focusing on GenAI’s sports marketing applications. You can create an in-house plan or subscribe to various training plans to educate your team on the technology and its potential. Ensure the team understands the technology’s capabilities and limitations for maintaining authentic fan engagement.
• Starting with fan-first evaluation: Assess GenAI technologies specifically through the lens of fan engagement and revenue opportunities. Determine which solutions best align with your existing fan touchpoints—ticket sales, game-day experience, or content creation. Begin with areas where you already have robust fan data and clear engagement metrics.
• Learning from industry success: Study implementations such as Orange’s campaign demonstrated how GenAI can amplify traditional marketing messages while maintaining authentic human connections.
• Building on early wins: Begin with low-risk projects that leverage existing strengths, such as Wimbledon’s successful partnership with IBM. Focus initial efforts on enhancing existing fan touchpoints rather than creating new ones.

The Bottom Line: Generative AI-powered marketing provides an undeniable return. CMOs must educate themselves to take advantage of this innovation with every campaign.

GenAI-driven marketing is becoming the playbook for sports marketing, with industry leaders already demonstrating remarkable success. While some organizations have hit home runs with personalized fan experiences, others have struck out due to rushed implementation and poor strategy. The glaring issue isn’t resistance to change; it’s finding the right balance between automation and authentic fan connections. CMOs must invest in training and start with existing fan touchpoints before expanding to more sophisticated applications.

GenAI-powered marketing is the future. CMOs must adapt before their brand strikes out.