The internet has spawned new opportunities and offered a platform for innovation that has included online social and sporting activities.
Electronic gaming is giving rise to eSports, a new phenomenon that is taking the world by storm and the business community along with it. From its humble beginnings about five years ago, eSports has steadily grown its following, especially in viewership numbers at a rate that has moved major brands to take notice.
Ready and captive audience
With more people gaining internet access worldwide, eSports awareness has equally spread, increasing its popularity as an alternative recreation activity.
The tremendous growth has seen numbers rise from about 800,000 people in 2015 to a projected 250 million enthusiasts and about 307 million casual viewers by 2021, according to Newzoo. This trend has the potential for sustainability if the rise in active streaming numbers on YouTube and Twitch at a combined total of nearly 1.5 million is an indication.
Naturally, this dedicated viewership presents a captive market for brands to leverage profitably. The fact that eSports have organized structures that include teams, leagues, tournament organizers, viewers, streaming platforms, and game developers makes it a viable avenue for brand marketing.
Brands that have invested previously in traditional sports are seeing a lucrative opportunity, although eSports gaming fraud is a big problem. The bright spot is that Seon.io and some other startups are providing effective and innovative solutions to manage this problem.
Why brands leverage eSports
Esports games are gaining as much popularity as basketball, football, baseball, or soccer has worldwide. The big clincher for eSport is its global appeal that transcends cultures and opens up a diverse platform for brand marketing.
Tournaments like the League of Legends average about 3.9 million viewers, Fortnite has 2.3 million, Dota 2, and Free Fire at 2 million each. The prize money in these tournaments is equally impressive, topping $46 million for Dota 2.
Gamers spend over 100 minutes watching streams amounting to well over 260 million hours of esports viewership on Twitch and YouTube gaming platforms per quarter. This is as big a platform as any is for brand marketers to leverage and grow their profiles online. Esports presents a market with inbuilt metrics to help brands assess the impact of their marketing and returns on investment.
Another key aspect of eSports for brand marketing is the spending power of gamers. Besides subscriptions and tickets, they are enthusiastic spenders on merchandise that brands can leverage for income and awareness campaigns. This awesome spending power is revealed in a survey on 1000 self-identified eSports fans in 2018.
How brands collaborate with eSports
ESports attracts one of the most sought-after demographic groups for brands that comprise the age group 18 – 35 years. Consumers in this age bracket are hard to reach through conventional advertising channels like television. Esports has changed this with a dedicated viewership ready to spend on branded merchandise that brand marketers can leverage.
Franchising is emerging as one of the strongest medium of collaboration between brands and esports, especially for long-term benefits. Twitch moved in 2018 to leverage this collaboration by paying $90 million for exclusive distribution rights for
The Overwatch League. Redbull has long been in the industry hosting tournaments, partnering with teams, and sponsoring top players for a chance to leverage accelerated brand marketing.
Major brands like Coca-Cola and McDonald’s leverage advertising on live game sessions for improved sales. Lucrative sponsorship deals is another avenue that brands from multiple sectors are taking advantage of to increase their footprint in the market. As the awareness and popularity of eSports continue to rise, so will the number of gamers that, in turn, provide a limitless audience for brands.