As the global esports market reaches a revenue of $1.1bn in 2020, brands are finding ways to enter this lucrative industry. Sponsorship, advertising, influencer marketing and merchandising are just a few ways companies are getting involved in esports. Some brands have signed multi-year sponsorship deals with specific teams or events while others use advertising, similar to traditional sports broadcasts. Fans can also show support for their favourite teams and players through purchasing merchandise, giving companies the opportunity to partner with teams to create co-branded merchandise or develop their own products inspired by the esports industry.

The Business of Esports: How Brands are Getting Involved

Introduction

Esports, or electronic sports, is a rapidly growing industry that involves competitive video gaming. The global esports market saw a revenue of $1.1 billion in 2020, and is projected to reach a revenue of $1.6 billion in 2023. With the increasing popularity of esports, brands are taking notice and finding ways to get involved in this lucrative industry.

Esports Sponsorship

One way brands are getting involved in esports is through sponsorship. Esports competitions are often live-streamed to a global audience, opening up opportunities for brands to reach a large and diverse audience. Sponsorship deals can be made for specific teams or events, allowing brands to have their logo displayed prominently during streams or at in-person events.

For example, in 2019, Coca-Cola signed a multi-year deal with the Overwatch League, becoming its official beverage sponsor. Coca-Cola products were sold at Overwatch League events and the brand’s logo was prominently displayed during livestreams. This partnership allowed Coca-Cola to tap into the young and tech-savvy audience that is attracted to esports.

Esports Advertising

In addition to sponsorship, brands are also getting involved in esports through advertising. Esports matches often include ads during breaks, similar to traditional sports broadcasts. These ads can include anything from the latest gaming gear to energy drinks, catering to the interests of the esports audience.

One example of advertising in esports is Red Bull’s partnership with esports organization Cloud9. Red Bull created a video series featuring Cloud9 players that was broadcasted during the 2021 League of Legends World Championship. The series showcased the players’ preparation and offered insights into their strategies, while also featuring product shots of Red Bull energy drinks.

Esports Influencer Marketing

Another way brands are getting involved in esports is through influencer marketing. Esports players are often well-known and have large followings on social media, making them ideal for promoting products and services to their fans.

For example, gaming peripheral company Logitech G partnered with professional esports player and streamer Shroud. Shroud’s social media and Twitch channels promoted Logitech G gaming products, while Logitech G sponsored Shroud’s livestreams and events.

Esports Merchandising

Esports teams and organizations also offer merchandise, such as jerseys, hoodies, and mouse pads, allowing fans to show support for their favorite teams and players. Brands can get involved in esports merchandising by partnering with teams to create co-branded merchandise or developing their own merchandise inspired by the esports industry.

For example, in 2020, streetwear brand Anti Social Social Club launched a collection in collaboration with 100 Thieves, an esports and lifestyle organization. The collection featured a range of co-branded merchandise, including hoodies, t-shirts, and accessories.

Conclusion

Esports is a booming industry, and brands are taking notice. Sponsorship, advertising, influencer marketing, and merchandising are just a few ways that brands are getting involved in esports. As the popularity of esports continues to grow, we can expect to see even more brands looking to tap into this lucrative market.