Navigating the eSports Sponsorship Market

Market research and insight firm SuperData Research estimates the worldwide viewing audience for eSports at over 134 millionamp160Similarly the 2015 North America market is projected to generate 143 million in terms of revenue 81 of which is indirect That is revenue from corporate sponsorsFigure above courtesy of eSports Market Brief 2015 SuperData ResearchYet the eSports marketplace is only at the beginning of its initial growth phase Research from Newzoo and Repucom shows that eSports fans currently generate an average of 22 per person per year without game revenues taken into account Comparatively there are 22 billion traditional sports fans that generate an average of 56 per year per person There is significant room to stimulate the spend levels for eSports fans but a lack of according best practices and strategiesOutside of the prize pool contributions and merchandise sales the reality is that eSports enthusiasts do not associate involvement with competitive gaming along lines of consumer activity Sponsors must frame their involvement with eSports around this distinct reality Regardless the purpose of sponsoring an eSport property is to drive a return whether itamp8217s traffic sales or increased brand awareness To achieve these ends there are several channels through which eSports sponsorship can flowPlatformlevel Large tournament series with qualifying events held as lead up to a grand finale Sponsorships of this nature yield access to a stable portfolio of events through a single vehicle An example is the Intel Extreme Masters Worldwide Tournament IEM The series is a product of ESL but in 2006 Intel saw room for expansion outside of Europe especially in North America and provided funds for a worldwide tournament acquiring full naming rights IEM is one of the longest running and most successful eSports tournament series with 2015 marking the ninth season Platformlevel opportunities will become more prevalent as the eSports ecosystem matures and stabilizesEventlevel Live events are the holy grail of the eSports experience The global Internetconnected competitive gaming community is not defined by locality Regions which play a crucial role in traditional sports are not a defining factor within eSports Live events however are in great demand Sponsorship involvement can include customized banners to video series to more engaged endeavors like Blizzard Entertainmentamp8217s Membership Milestone Programme An Eventbrite survey of 1500 video game enthusiasts worldwide showed 38 of respondents are willing to travel internationally for an eSports tournament Once at the event there are a number of outlets that sponsors can leverage for reaching attendeesamp160Competitive gaming also has a significant overlap with the wider video gaming scene As a result there is already a healthy set of events conferences and even local events that may not be eSports focused but provide opportunities for involvement For example the Intel Extreme Masters IEM grand final was held at CeBIT the largest and most internationally represented computer expo up until 2013Teamlevel In the eSports world teams are supported by organizations and unlike traditional sports an organization can house multiple teams across different eSport titles Organizations provide financial support coaching and business infrastructure for one or more teams Sponsorships can apply to the entire organization any one team or to individual teams Examples include Nissan sponsorship of Team Liquid and Coke Zero sponsorship of Riot Gameamp8217s quotLeague of Legendsquot player development circuit Challenger SeriesAt the team level eSports sponsorship requires due diligence in uncovering the stability and business readiness of a supporting organization Unlike in traditional sports where financial and organization solvency is mostly guaranteed eSports lacks the protections against the risks of investing at the team level Accordingly itamp8217s imperative for most brands to engage a capable strategic partner to help guide navigation through the eSports landscapeMedialevel Brands are beginning to partner with competitive gaming leagues and streaming channels to tap into the purchasing power of their audiences HBO partnered with Riot Games and effectively promoted the launch of amp8220Game of Thronesamp8221 Season 4 to its amp8220League of Legendsamp8221 tournament audience CocaCola was charged with building credibility amongst the eSports community before engaging this new audience and even launched the Twitter account cokeesports to engage fans and represent investment in the culture of competitive gaming In return the eSports communityamp8217s reaction was overwhelmingly positive further proving that sponsors can effectively launch campaigns that leverage eSport properties Other brands like Pizza Hut and Red Bull have also forged paths as curators for eSportsrelated news and contentIndividuallevel Consists of brands connecting with the individual eSports players andor personalities as they develop their capacities sponsoring their efforts and providing resources Worldwide competitive gaming has given birth to a class of influencers who are capable of reaching a substantial number of fans through streaming platforms like Twitchtv or Azubu However thereamp8217s been a minimal amount of talent management across the eSports scene This is an untapped resource for sponsors as these influencers are a source of tremendous source of fandom and compelling media within the eSports milieuThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillageMyersBizNet management or associated bloggers

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Navigating the eSports Sponsorship Market

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