The American Dream

Making money, that is.

For a long time, sponsored content on Twitter has often been reserved for some of the most powerful sports leagues and media companies in America.

Promoted video tweets from the likes of the NFL, PGA Tour and ESPN conveniently find their way onto a user’s timeline featuring pre-roll advertisements that Twitterers must watch to access the content. The revenue from those ads is then shared by both Twitter and the publishing companies in a money-making venture that produces upward of seven-figure campaigns.

Soon, college athletes can access this cash cow.

The social media company is partnering with Opendorse in a revenue-sharing venture to allow college athletes to monetize their content through Twitter’s video sponsorship platform Amplify.

Here’s an example of how that might work:

The deal between Twitter and Opendorse, a sports content publisher, will allow brands, such as Nike, Adidas and Coke, to pitch ideas and compensate athletes for participating in Twitter video campaigns built around a selected theme and geared toward fans of a specific audience.

For instance, Nike may propose a $100,000 ad campaign about workout training tips from Division I basketball players. Using Opendorse Deals—the company’s compliant marketplace—college basketball players who choose to opt into the campaign would create short video clips about their training, post them on their timeline and then, depending on the clip’s viewership, would each receive a cut of the ad budget, sharing the money with other athletes, Opendorse and Twitter.

Athletes will retain the majority of generated revenue, officials from Twitter and Opendorse say.

Many people worrying about the unseen consequences stemming from allowing NIL compensation aren’t seeing the value coming out of social media promotion, for whatever reason.  It’s going to be a bigger part of the equation than you think.

In simple terms, Lawrence says, the larger an athlete’s following and the more quality content they produce, the more likely they are to earn more revenue. The number of athletes participating in a specific deal also impacts an athlete’s revenue cut.

14 Comments

Filed under It's Just Bidness

14 responses to “The American Dream

  1. Russ

    Senator, are the athletes able to consult lawyers before signing any of these deals? I sure hope so. Seems like the sharks are starting to circle.

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  2. rigger92

    So, If I am JT Daniels, I secure a social media content manager asap. (If it were really me it would most likely be my girlfriend). It would surprise me if the P5 athletes have the ability to generate consistent quality posts during a season.

    I am a little concerned that the big money will be focused on less than 100 players across the P5, curious to see how that shakes out.

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    • hialtdawg

      “It would surprise me if the P5 athletes have the ability to generate consistent quality posts during a season.”

      Figure the top schools (including UGA) end up with a video staff that does it. Figure the hype videos we see highlight individuals with a clip some intern posts for the players

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  3. groo

    “It’s going to be a bigger part of the equation than you think.”
    This is especially true for female student-athletes who might not have as much access to what we think of as traditional endorsement deals. Simply being able to monetize large social media followings like any other person will be a big benefit, and I think we’ll be surprised at some of the money flowing to female student-athletes.

    Liked by 3 people

    • miltondawg

      Agreed. I think that this is the way that athletes in the smaller non-revenue sports can get into the mix, especially women.

      Liked by 2 people

    • Russ

      I agree with you, but I sort of worry that the corporate-fueled media accounts of the top athletes might suck some of the air out of the sails of those other athletes. I hope not.

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  4. Sweet D

    “ Athletes will retain the majority of generated revenue, officials from Twitter and Opendorse say.”

    Why do I get the feeling this feel good statement means exactly 51%?

    Liked by 1 person

  5. spur21

    This may open the door for nonathletes to make some coin. I can see students in a business degree – particularly in digital marketing – soliciting athletes for a cut of the action. Hey JT I’ll make you video super star for say 5%.

    Liked by 1 person

  6. 69Dawg

    I just see it as more noise in the system. Once the athletes start paying more attention to their social media and less to practice, tutoring etc. it’s going to be a really big coaching headache. I know the coaches are getting paid the big bucks but they are going to earn it going forward.

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  7. Nike puts up $100,000 and signs 10 bb stars. Less 20% commission and players walk with $8,000 each. No bad, hardly Armageddon, but some sweet tats and weed for the weekend.

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  8. BuffaloSpringfield

    But…but I still can go do a sandwich, get 2 beers and talk to friends while the commercials and hard drive replays of all I have already seen in the first three quarters plus scores from all the soccer leagues, baseball scores ( Braves not included ) run amuck, plus the frickin’ announcers don’t know their butt’s from well the director in the video truck sending statements about Bama. Really, I am good with 1980.’ Everything I can watch from here on is a bonus. Probably give up 4K for radio cause at least I can walk away from the commercials easier than I can that 80” HD 4K where they ain’t doing crap with that. Perhaps I’ll get a part time at Arby’s. With the extra benefits of gettin’ $12.50 a hour and say workin’ a 24 hour week I could donate ehhh that’s $300 a week after taxes and there’s car payment, rent, food and how much does you gotta do to Butts-Mehre to even get tickets.

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