Esports has become a global industry worth billions of dollars, attracting a younger and tech-savvy audience as well as traditional sports teams and celebrities. Sponsors and brands are leveraging its popularity to boost their own brand awareness, engagement and loyalty with younger consumers. Sponsorship is an important component of the esports industry, and can take many forms, from tournament, team and player sponsorships, to content sponsorships. However, the lack of standardisation in measuring sponsor return on investment, and backlash from fans over inauthentic partnerships, will need to be addressed if the industry is to continue to grow sustainably.

The Business of Esports: How Sponsors and Brands Are Leveraging the Industry

Esports, or competitive video gaming, has taken the world by storm in recent years. The industry has grown exponentially, attracting millions of fans and generating billions of dollars in revenue. This growth has led to increased interest from sponsors and brands looking to tap into this lucrative market. In this article, we explore how sponsors and brands are leveraging the esports industry to reach new audiences, boost brand awareness, and drive sales.

Understanding Esports

Esports involves professional video gamers competing in tournaments and leagues for prizes and prestige, similar to traditional sports. The games played in esports can vary widely, from first-person shooters like Call of Duty and Counter-Strike: Global Offensive to strategy games like League of Legends and Dota 2.

Esports has become so popular that it is now recognized as a legitimate industry, with professional gamers, teams, and organizations earning millions of dollars in sponsorships, partnerships, and tournament winnings. The industry has also attracted investment from traditional sports teams and celebrities.

The Power of Esports Sponsorships

Sponsorship is a vital component of the esports industry. Brands see esports as a way to connect with younger audiences who are more difficult to reach through traditional advertising methods. Sponsoring esports tournaments, teams, and players is a way for brands to associate themselves with the excitement and energy of the gaming world.

Esports sponsorships can take many forms, such as:

• Tournament sponsorships
• Team sponsorships
• Player sponsorships
• Content sponsorships

Sponsors can benefit from increased brand awareness, engagement, and loyalty. They can also drive sales by reaching new audiences who are passionate about gaming and technology.

Examples of Successful Esports Sponsorships

Here are some examples of successful esports sponsorships:

Coca-Cola and the Overwatch League

In 2019, Coca-Cola signed a multi-year deal to become the official non-alcoholic beverage of the Overwatch League, a popular esports league featuring the game Overwatch. Coca-Cola promoted the deal through various marketing campaigns, such as in-game advertisements, social media posts, and event sponsorships.

The partnership was a win-win for both Coca-Cola and the Overwatch League. Coca-Cola gained access to a younger, tech-savvy audience, while the Overwatch League received much-needed support from a major brand.

Red Bull and Esports

Red Bull is another brand that has successfully leveraged esports sponsorships. The energy drink company has sponsored dozens of esports tournaments, teams, and players over the years, including events like Red Bull Kumite and Red Bull Battle Grounds.

Red Bull’s partnership with the esports industry makes perfect sense. Esports athletes require intense focus, stamina, and energy to compete at the highest level, and Red Bull’s products can provide that needed boost. In addition to sponsoring events, Red Bull has also produced content related to the gaming world, such as the documentary series Level Grounds.

The Future of Esports Sponsorships

The esports industry shows no signs of slowing down, and neither do sponsorships. As more brands realize the potential of esports, they will continue to seek out partnerships with tournaments, teams, and players.

However, esports sponsorships are not without their challenges. One of the biggest issues facing the industry is the lack of standardization when it comes to measuring sponsor ROI. Brands are struggling to quantify the impact of their esports sponsorships, making it difficult to justify continued investment.

Another challenge is the potential for backlash from fans who feel that brands are not authentically connected to the esports world. While some partnerships can be successful, others can feel forced or opportunistic.

Conclusion

The esports industry presents a unique opportunity for brands to connect with a younger, tech-savvy audience. With the right approach, esports sponsorships can help brands boost brand awareness, drive sales, and increase customer loyalty.

However, brands must be careful to avoid coming across as inauthentic or disingenuous. They should also work towards standardizing the metrics used to measure sponsor ROI, so that both brands and esports organizations can benefit from these partnerships in the long term.