Esports has become a billion-dollar industry with a global audience of over 500 million people, attracting more brands to invest in the industry. Esports sponsorship has become a popular way for companies to reach out to the gaming community and promote their products. The number of non-endemic brands, not directly related to gaming, investing in esports has increased, accounting for 77% of all esports sponsorship deals in 2020. Esports sponsorship offers several advantages, including brand exposure, engagement, new revenue streams, and access to valuable data. The future of esports sponsorship will offer more immersive experiences for fans, making it accessible to a wider audience.

The Future of Esports Sponsorship: How Brands are Investing in the Fast-growing Industry

Esports has taken over the world by storm, becoming a billion-dollar industry with a global audience of over 500 million people. With the rise of gaming as a mainstream entertainment medium, more and more brands are investing in the industry. In this article, we will explore the future of esports sponsorship and how brands are leveraging opportunities in the fast-growing industry.

The Growth of Esports

Esports has come a long way since the early days when LAN parties were the only way to compete with other players. Today, esports is a lucrative industry with big-budget tournaments, professional teams, and celebrity gamers. With the rise of online gaming and streaming platforms, esports has become a global phenomenon with a massive audience.

According to Newzoo’s Global Esports Market Report, the esports industry is set to grow to $1.08 billion in 2021, with a global audience of 474 million people. The report also predicts that the industry will continue to grow at a compound annual growth rate of 14% between 2020 and 2023.

The Rise of Esports Sponsorship

As the esports industry grows, so does the number of brands looking to invest in it. Esports sponsorship has become a popular way for companies to reach out to the gaming community and promote their products. Unlike traditional advertising, esports sponsorship offers a unique opportunity for brand exposure and engagement.

Brands are sponsoring esports events, teams, and individual players, with some investing millions of dollars in the industry. According to Newzoo, global esports sponsorship spending is set to reach $584 million in 2022, a 9.9% increase from 2020. The report also revealed that non-endemic brands (brands not directly related to gaming) accounted for 77% of all esports sponsorship deals in 2020.

The Benefits of Esports Sponsorship

Esports sponsorship offers several benefits for brands looking to reach a younger, tech-savvy audience. Here are some of the advantages of esports sponsorship:

• Brand Exposure: Esports events and tournaments draw millions of viewers worldwide, offering brands a massive audience.
• Engagement: Esports fans are highly engaged with the gaming industry and are likely to respond positively to brands that support their favorite players or teams.
• New Revenue Streams: Esports sponsorship can open up new avenues for revenue and help brands diversify their marketing strategy.
• Access to Data: Esports sponsorship provides brands with valuable data on their target audience, including demographics, interests, and behavior patterns.

Examples of Esports Sponsorship

Several brands have successfully leveraged esports sponsorship to reach out to the gaming community. Here are some examples:

• Intel: Intel has been sponsoring esports events for over a decade and is one of the biggest supporters of the industry. The company sponsors several popular events, including the Intel Extreme Masters and the Intel Grand Slam.
• Coca-Cola: Coca-Cola became the official non-alcoholic beverage partner of the Overwatch League in 2019. The company also sponsors several other esports events, including the League of Legends World Championship and the eMLS Cup.
• Red Bull: Red Bull sponsors several esports teams, including Cloud9 and SoloMid. The company also hosts its own esports event, the Red Bull Gaming Sphere, which features gaming tournaments, workshops, and live streams.
• Mercedes-Benz: Mercedes-Benz partnered with ESL, the world’s largest esports company, to sponsor several major tournaments, including the ESL One and the Intel Extreme Masters.

The Future of Esports Sponsorship

Esports sponsorship is poised to become a vital part of the marketing landscape, with more brands investing in the industry every year. As the industry becomes more mainstream, we can expect to see more non-endemic brands entering the market and sponsoring events and players.

Esports sponsorship will likely evolve to offer more engaging and immersive experiences for fans. Brands may sponsor virtual reality tournaments, interactive social media campaigns, and even in-game content. With the rise of 5G technology and mobile gaming, esports sponsorship may also become more accessible to a wider audience.

Conclusion

Esports sponsorship is a growing trend that offers a unique marketing opportunity for businesses. With the massive audience and engagement potential of esports, brands can reach out to a younger, tech-savvy audience and diversify their marketing strategies. As the esports industry continues to grow, we can expect to see more brands investing in the industry, offering new and innovative ways to engage with the gaming community.