The esports industry has risen to become a multi-billion dollar industry that has attracted millions of viewers from around the world, with esports competitions being streamed online. The growth of esports has resulted from advancements in technology, the rise of streaming platforms like Twitch and YouTube Gaming and the increasing popularity of competitive gaming in mainstream culture. As esports continues to gain recognition, brands are finding ways to engage its growing audience through sponsorships and advertising, including team or event sponsorship and broadcast advertising. Brands are looking for ways to actively engage with esports audiences through brand activations and sponsorships of individual players.
The Business of Esports: How Sponsors and Advertisers are Getting Involved
The esports industry has exploded in popularity over the past few years, with millions of fans tuning in to watch their favorite players compete in video game tournaments. With a growing audience and lucrative prize pools, sponsors and advertisers are taking notice and finding unique ways to get involved.
The Growth of Esports
Esports has come a long way since its humble beginnings in the 1970s and 1980s with games like Space Invaders and Pac-Man. Today, esports has evolved into a multi-billion dollar industry that attracts millions of viewers from around the world.
According to Newzoo’s Global Esports Market Report, the global esports market was valued at $1.08 billion in 2020 and is expected to grow to $1.62 billion by 2024. The report also found that there were 495 million esports enthusiasts worldwide in 2020, with an additional 215 million occasional viewers.
The growth of esports is a result of several factors, including advancements in technology, the rise of streaming platforms like Twitch and YouTube Gaming, and the increasing popularity of competitive gaming in mainstream culture.
Sponsorship and Advertising Opportunities
As esports continues to grow in popularity, sponsors and advertisers are finding unique ways to get involved. Here are some of the most common ways that brands are leveraging esports:
Team Sponsorship
Brands can sponsor esports teams or organizations, providing funding for player salaries, tournament fees, and other expenses. In return, the brand’s logo is often featured on team jerseys and merchandise.
Event Sponsorship
Brands can sponsor esports events or tournaments, providing funding in exchange for branding and advertising opportunities. This can include everything from on-screen logos to product demonstrations and giveaways.
Broadcast Advertising
Esports tournaments are often streamed online, providing a unique opportunity for brands to advertise to a captive audience. Brands can feature pre-roll and mid-roll ads during tournament broadcasts, as well as banner ads and sponsored content on the streaming platform.
Product Placement
Brands can also feature their products within esports games themselves. For example, a car company might have their latest model featured in a racing game, or a snack brand might be featured in a game that focuses on player nutrition.
Successful Sponsorship and Advertising Campaigns
There have been several successful esports sponsorship and advertising campaigns over the years. Here are a few examples:
Red Bull and Esports
Red Bull has been involved in esports for several years, sponsoring teams and events across various games. One of their most successful campaigns was the Red Bull Battle Grounds tournament, which featured StarCraft II, a popular esports game. Red Bull promoted the event heavily on social media and provided a unique viewing experience for fans, including an immersive in-game camera angle.
Coca-Cola and League of Legends
Coca-Cola partnered with Riot Games, the developer of League of Legends, to sponsor the game’s most prestigious tournament, the World Championship. Coca-Cola’s branding was featured heavily throughout the tournament, including on-screen logos, product placements, and a Coca-Cola Lounge for VIP guests.
Intel and Counter-Strike: Global Offensive
Intel, a computer hardware company, has been a long-time sponsor of esports tournaments. Their most successful campaign was the Intel Extreme Masters tournament for Counter-Strike: Global Offensive. Intel provided cutting-edge computers for players and equipment for the production team, helping to ensure a smooth and professional tournament experience.
The Future of Esports Sponsorship and Advertising
The future of esports sponsorship and advertising is bright, with brands continuing to find new and innovative ways to get involved. Here are some trends to watch:
Brand Activations
Brands are increasingly looking for ways to engage with esports audiences beyond traditional advertising. This includes activations like product demos, interactive experiences, and sponsorships of community-focused initiatives like charity tournaments.
Esports Athlete Sponsorship
As esports continues to gain more mainstream recognition, brands are starting to sponsor individual players in the same way that they do with traditional athletes. This includes everything from athlete endorsements to personal branding deals.
Esports sponsorship at the Olympics
Esports gained official recognition from the International Olympic Committee in 2017 and was set to debut as a demonstration sport at the 2020 Summer Olympics in Tokyo. While the Olympics were postponed due to the COVID-19 pandemic, the inclusion of esports could provide even more opportunities for sponsorship and advertising within the industry.
Conclusion
Esports sponsorship and advertising provide unique opportunities for brands to engage with a growing audience of passionate fans. Whether it’s through team sponsorship, event advertising, or in-game product placements, there are countless ways for brands to get involved in esports. As the industry continues to grow, brands will undoubtedly continue to find new and innovative ways to connect with esports audiences.