Esports sponsorship is booming, with the industry valued at $1.1 billion in 2019, as companies seek to access a young, tech-savvy audience, says HireVibes. Sponsorship is offering significant brand visibility, audience engagement and sales potential. In addition, there are cultural benefits from partnering with brands including energy drinks and gaming hardware, to financial services companies and automotive manufacturers. Esports is filling a void in the market while traditional sports leagues are postponed or cancelled due to Covid-19, with tournaments attracting large audiences. The sponsorship landscape is also evolving with teams more often operating as a full business and influencers becoming important targets.
The State of Esports Sponsorship and How It’s Changing the Game
Esports has exploded onto the world stage in recent years, with millions of fans tuning in to watch top gamers battle it out for glory. As the world of esports has grown, so too has the level of interest from sponsors looking to get in on the action. Here, we’ll take a look at the current state of esports sponsorship and explore how it’s changing the game.
The Growth of Esports Sponsorship
Over the past few years, we’ve seen an explosion in esports sponsorship as companies look to reach a young, tech-savvy audience. In 2019, the global esports market was valued at $1.1 billion, with sponsorships accounting for a significant portion of that figure. Brands such as Coca-Cola, Intel, and Mercedes-Benz have all thrown their weight behind esports events, while gaming companies such as Razer and Logitech have long been sponsors of individual teams and players.
The trend towards esports sponsorship shows no signs of slowing down, with the COVID-19 pandemic driving more interest in online gaming and providing a captive audience for esports events. The pandemic has also forced traditional sports leagues to postpone or cancel their seasons, leaving a gap in the market for live sports entertainment. Esports has stepped up to fill that gap, with tournaments such as the NBA 2K Players Tournament garnering huge audiences.
What Sponsors Look for in Esports Partnerships
As with any form of sponsorship, companies are looking for a good return on investment from their esports partnerships. This can involve various factors such as increased brand visibility, engagement with a new audience, and increased sales of products or services. One of the crucial benefits of esports sponsorship is that it provides an excellent opportunity to reach a young, engaged audience that might be difficult to reach through traditional marketing channels.
Companies are also looking for esports partnerships that are a good cultural fit. Brands that appeal to younger audiences such as energy drinks or gaming hardware make natural fits for esports sponsorships. However, even brands that might seem less immediately compatible such as financial services companies or automotive manufacturers have found success in this arena.
The Changing Face of Esports Sponsorship
Esports sponsorship has come a long way in recent years, moving from a niche interest to a global phenomenon. As the world of esports continues to grow and evolve, so too does the landscape of esports sponsorship. Here are some of the trends we’re seeing in this arena:
Esports Teams as Brands
In the past, esports teams were often little more than a collection of players. However, as the industry has grown, so too has the professionalism of these teams. Many top esports teams are now operated as full-fledged businesses, with sophisticated branding and marketing strategies. This has opened up new opportunities for sponsorship, with brands able to align themselves with a specific team and tap into their dedicated fan base.
The Rise of Influencers
As with many areas of media and marketing, we’re seeing a shift towards individual influencers in esports. These are players who have built up a significant following due to their skill or entertaining personalities. These influencers can be valuable targets for sponsorship, with brands able to tap into their dedicated follower base and piggyback on their online personas.
The Integration of Traditional and Digital Marketing
As esports has moved from a niche interest to the mainstream, the line between traditional and digital marketing has started to blur. Many top esports events are now broadcast on traditional television channels, providing a new audience for sponsors. At the same time, esports events are heavily reliant on digital channels such as social media and streaming services. Successful esports sponsorships will need to integrate both traditional and digital marketing elements in order to create the maximum impact.
Conclusion
Esports sponsorship is a rapidly evolving field, with new opportunities emerging all the time. Brands looking to succeed in this arena will need to stay attuned to the latest trends and be willing to experiment with new approaches. However, for companies looking to reach a young, tech-savvy audience, esports sponsorship offers a fantastic opportunity to forge meaningful connections and build long-term relationships.