All Insights
05

Insight

The Network Effect of Community

Why Niche Platforms Will Win

Highly engaged communities on specialized platforms will eventually dilute the giants' reach.

Google and Meta absorb over 56% of global digital ad spend. That number keeps growing. In 2026, the average annual digital ad spend per U.S. internet user is projected to hit $1,081—tripled from $319 in 2017.

So what would it take for that to change?

When I asked this question seriously, I kept coming back to one thing: niche community fragmentation. A rise in numerous, smaller, highly engaged communities on diverse platforms could dilute Meta's mass appeal. Hyper-local or highly specific advertising becomes more effective than broad campaigns. Nextdoor. Specific subreddits. Specialized platforms for specific interests.

This is exactly what The Jump was designed to do at scale. And it's the bigger vision that Team Scout fulfills—just with a more focused entry point.

Here's how I think about it:

Phase 1: Sell websites

Good ones. Modern ones. Ones that coaches can actually update. This creates revenue to fund development.

Phase 2: Build the platform

Registrations, volunteer coordination, merch stores, team communications. Modules that create a comprehensive single source of truth for sports programs. This generates SaaS revenue—MRR, ARR.

Phase 3: Build the user base

As coaches, players, and parents join the platform, you're building proprietary distribution. Millions of engaged users who chose to be there.

Phase 4: Connect brands to communities

Once you have that user base, you can facilitate NIL deals—connecting brands with athletes, creators, influencers. Sports-specific content that appeals to active, engaged people who invest money in certain categories.

Phase 5: The Invitational Marketing Model at scale

Brands don't buy interruptions. They compete by creating authentic, valuable content for people. They earn the right to people's attention by making content worth their time.

The mountain is steeper when you're trying to build a general social platform. But youth sports is a focused entry point with a clear path to the same destination—a platform where brands earn attention through quality, not extraction.

It's a longer wave. But the slope isn't as steep. And every step builds on the last.