Wednesday 22 January 2020

Digitally Enhanced Dasherboards

I don't normally write about advertising in rinks on the boards unless there's something crazy happening with them, but I was reading Elliotte Friedman's 31 Thoughts on Sportsnet.ca today, and Thought #23 caught my attention as Elliotte wrote about "Digitally Enhanced Dasherboards". I recall these from the World Cup of Hockey and didn't really give it much thought back in 2016 mainly because the World Cup of Hockey didn't really register on my radar, but the use of these digital ads on the boards at the NHL All-Star Game this weekend had me wanting more information about them.

According to the digging I did, this technology was created by a London, England-based company called Supponor. Supponor has used their augmented reality technology with a vast number of businesses all over the world with the NHL being a major client in North America. Seeing it live at the World Cup of Hockey was a different experience as the normal board ads would suddenly change from static ads for many companies to one ad that was digitally-superimposed over the static ads.

Here's a quick promotional video from Supponor explaining the technology of their digital advertising.
Kinda cool, right? It seems they already have the soccer world locked down with their technology - they are an English company, after all - and it looks like the NHL could be the next major professional league who brings this technology into their rinks and on to our TVs at home.

Supponor and the NHL went through a two-year process to get the technology in place and ready for prime time action in hockey rinks in 2016 at the World Cup of Hockey, but there were still complaints from fans as some complained they looked "glitchy". As with any new technology, there are likely to be some hiccups. It seems that the NHL and Supponor are ready to roll out a new, upgraded version of the technology in St. Louis this weekend.

You might be asking how this technology works. According to this article from The Globe and Mail, there is an infrared film that is installed over the boards and the static ads currently in place, and there is a sensor that is attached to television cameras around the rink that pick up the infrared film that is invisible to the naked eye. With the device on the camera and the film on the boards, a team behind the scenes can roll out all sorts of specific advertising based on location, time, and other potential demographics using this infrared technology.

Why did it take two years to put together something that seems to work so well in soccer stadiums across the globe? The film being used by the NHL had to be tested to ensure it could withstand the rigors of the game in terms of play along the boards along with ensuring that the ad images remained clean and sharp and didn't blend with the image of the game play. As we know, NHL players generally have solid scrums when they're along the boards, so making this film strong enough to withstand the abuse it may take had to be a priority.

The end result was that the NHL wasn't sold on the idea of the infrared film from a cost standpoint, but was willing to keep Supponor in the loop if a better solution could be found. This weekend, we'll see that new technology as Supponor will use infrared strips in the dasherboards that work with the same camera technology that will allow the digital advertising to be injected into the game. The changes have also seen the costs reduced for the technology as, according to Keith Wachtel, chief business officer of the NHL, "costs have been cut by 30% since the league first tested the technology at the 2016 World Cup of Hockey in Canada".

"It works flawlessly," Wachtel added in his discussion with SportsVideo.org, "but there are still some technological things we need to work through and perfect. Because our boards are rounded and also the camera is shooting through glass, we have challenges the other sports don't have. But we are confident that isn't going to be an issue or a problem. It's really more about showcasing, evaluating, and refining."

It seems the NHL and Supponor are going to be business partners for the foreseeable future if the technology and its far-reaching capabilities work as intended. Supponor has the ability to broadcast different ads to different audiences using the same video feed off the cameras, making this venture highly-customizable for advertisers who want to use different branding in different markets.

"We can't monetize anything of significance with our partners in other markets when we have an event in one market," Wachtel explained. "This game is a good example. Our US partners will be able to take advantage of very valuable camera-visible signage with our dasherboards. But, across Canada this weekend, we will have 4 million viewers, which is significant, and yet the likes of Scotiabank or Tim Hortons coffee and our Canadian-only partners are not able to take advantage of it. More important, we can't monetize it. One of the original thoughts is, wouldn't it be great if there was technology that could allow us to do that?"

By continuing to offer the static board ads inside the rink, the revenue generated by those ad sales would still benefit the team while the NHL would use its national broadcasts to sell the "Digitally Enhanced Dasherboards" to a number of national and international sponsors who want the isolation of having their logo and message as the only branding television viewers would see. There would be an increased cost for this, of course, but this opens up yet another avenue of revenue for the NHL that never existed before. Virtual static ads could still be used on the glass behind each net if the NHL chooses, but the "Digitally Enhanced Dasherboards" offer up a whole new opportunity for virtual advertising.

"The most interesting thing from a sponsor standpoint, and something that is immediately very popular, is the visually enhanced action boards — what we euphemistically call 'erase and replace' technology — which we haven't used in our game before," NHL deputy commissioner Bill Daly told MarketingMag.ca. "We have virtual ads that we've used on the boards before, but we've never replaced dasher boards, and we found that by creating the digital dasher boards you can actually create a cleaner look, a more distinct and unique look for a single advertiser, which has been very attractive to our corporate sponsors."

As a bit of a traditionalist about hockey, I feel that throwing virtual ads over static ads really doesn't take anything away from the integrity of the game, and the fact that we're seeing this technology become cheaper and more prevalent in other sports only means that we're not far from seeing it full-time in the NHL. And according to Watchel, if the NHL "can figure out the right business model, it could be deployed in the '21-22 or '22-23 season".

new technology is always fun to see, and I'm interested in seeing how far the NHL is willing to go with their technological advances when it comes to driving revenue. We already know they make a ton of money, but maybe they can shave off a portion of this new revenue source to possibly start a women's professional league? They would surely use the same technology there, so this revenue stream as the seed money for an investment where they can generate more revenue through advertising is the old "gotta spend money to make money" adage.

This is precisely what I believe technology should be used for: making the world better. Some will argue that it only makes the hockey world - specifically, the NHL's world - better, but if the end result is increased revenue leading to a professional women's league that pays livable wages while taking nothing away from what the NHL currently does? I'd say we're all a little better off because of it.

Until next time, keep your sticks on the ice!

No comments: