Live sports, particularly hockey, are a big draw in Canada but the jury is still out on whether TKO can ignite audience and advertiser interest in its wresting and mixed martial arts properties.
The bringing together of global sports and entertainment brands UFC and WWE under the umbrella of publicly traded TKO Group Holdings was finalized last month. Endeavor Group Holdings holds a 51% controlling interest in TKO, leaving existing WWE shareholders with 49%.
Jim Kozak, EVP GroupM Sports & Live, says that along with production and staffing synergies, the benefits of the merger are the amalgamation of media rights and the potential to evolve direct-to-consumer content streaming options.
Kozak says the interesting space to watch in Canada is which media partner the combined entity will line up for rights. “Right now, WWE is with Rogers Sports & Media. Will that continue from a linear broadcast perspective and also from a WWE Network carrier or will that change?”
He says that in Canada, the interest in these two entertainment/sports properties remains relatively flat. If TKO wants more Canadians to tune in, he suggests investing in more storylines with a Canadian thread, more in-country events and more homegrown athletes and talent. All of which matters to Canadian audiences, especially in Quebec where the audience likes to follow homegrown talent.
Historically, the audience for WWE and UFC skews mostly male (65%) in the A25 to 54 demo (50%), says Kozak. The respective properties do attract younger audiences but mostly when co-viewing with their parents.
From a sponsorship perspective, Kozak says there could be more scale opportunities for brands to sponsor both WWE and UFC as properties that brands can tie themselves to, whether as a Canada-only play or on a North American basis. He notes that Mars Wrigley and KFC invest in WWE in the U.S. but don’t partner with wrestling in Canada. “I don’t know the exact reason for that, but I would hypothesize that budget, audience target and brand strategy all come into play and they need to make important decisions on where they want to focus their investment for the greatest impact and return.”
Jeff Webb, VP Sports, Entertainment & Culture at EssenceMediacom Canada says that sport continues to drive appointment viewing and both UFC and WWE are in that category. “Both brands are niche in terms of who they connect with and there’s no doubt that both fan bases are highly dedicated and very aware of the brands that support the UFC and WWE. This is definitely an area meant for specific brands, but there are many of them, and both the UFC and WWE have shown they can be great partners.”
Webb says timing is key for UFC and WWE as they are built around marque events on the calendar. It’s not like the NHL and MLB where multiple games a week allow brands to adjust sponsorships on the fly. WrestleMania comes around once a year and sponsors must make it count.
This month Anheuser-Busch announced a multi-year partnership with UFC after taking a hiatus for a few years. “Bud Light is using the UFC to reconnect with a younger skewing demo and will use UFC’s many content streams and events to build that connection with fans. This is a significant play for Bud Light in the U.S. market,” says Webb. “Outside of malt-based beverages the UFC has also had success with the igaming, QSR, energy drink and supplement categories. The brand is much more mainstream than it was during the initial years and more brands will look to UFC as part of their marketing strategy.”
Webb says there are some limitations in terms of building a brand into the events in this country, but both UFC and WWE have plenty of streaming and content options that can work solely in Canada.
“Both the UFC and WWE have held major events in Canada and recognize the importance of the Canadian fan base. For brands that are North American, there are always opportunities for a partnership that works on both sides of the border.
Conagra for example can focus on Slim Jim in the U.S. and Orville Redenbacher here in Canada. Leverage the full brand to drive greater efficiency for the brand and create content that connects with consumers on either side of the border.”
According to TKO, together WWE and UFC reach more than one billion TV households in approximately 170 countries and organizes more than 350 live events year-round.
