How Effective is eSports Sponsorship for Brands?

The world of eSports has taken the world by storm, with millions of fans tuning in to watch their favorite games and players. With such a massive audience, it’s no surprise that brands are jumping at the opportunity to sponsor eSports teams and events. But the question remains, how effective is eSports sponsorship for brands? In this article, we’ll dive into the world of eSports sponsorship and explore the pros and cons of this marketing strategy. We’ll look at the metrics that matter most, such as reach, engagement, and ROI, and see how brands can maximize their impact in the eSports space. So whether you’re a brand looking to break into eSports or a seasoned veteran, read on to find out how effective eSports sponsorship can be for your business.

The Growth of eSports Sponsorship

The Increasing Popularity of eSports

• Global eSports Audience

Esports has seen a dramatic increase in popularity over the past few years, with a growing global audience that is driving brands to take notice. According to a report by Newzoo, the global eSports audience reached 474 million in 2020, with an expected growth rate of 22.3% in 2021. This growth is driven by the increasing availability of high-speed internet, the rise of mobile gaming, and the growing interest in esports among younger audiences.

• Demographic Breakdown

The demographic breakdown of the esports audience is also noteworthy, with a large and growing audience of young adults. According to a study by SuperData Research, the average age of an esports viewer is 28 years old, with a strong male skew. However, the audience is becoming more diverse, with a growing number of female viewers and a greater representation of older audiences.

This growing audience of young adults represents a valuable market for brands, with a large and engaged group of consumers who are interested in gaming and esports. As a result, many brands are investing in esports sponsorships as a way to reach this audience and build brand awareness. However, the effectiveness of this strategy remains to be seen, and it is important for brands to carefully consider their approach to esports sponsorship in order to maximize their return on investment.

The Potential of eSports Sponsorship

eSports sponsorship is becoming increasingly popular among brands as it offers a unique opportunity to reach a new demographic and increase brand exposure.

Reaching a New Demographic

The eSports industry is rapidly growing, with millions of fans around the world. This presents a unique opportunity for brands to reach a new demographic that may not have been accessible through traditional sports sponsorship. eSports fans tend to be younger, tech-savvy, and highly engaged, making them an attractive target audience for many brands.

By sponsoring eSports teams or events, brands can tap into this growing market and build a strong connection with a younger audience. This can help to increase brand awareness and loyalty among this demographic, which can be crucial for long-term success.

Increased Brand Exposure

In addition to reaching a new demographic, eSports sponsorship also offers increased brand exposure. eSports events and competitions are often streamed online, reaching a global audience of millions of viewers. This provides brands with a unique opportunity to showcase their products or services to a large and engaged audience.

Furthermore, eSports sponsorship can also provide brands with exposure through social media and other digital channels. eSports teams and players often have large followings on platforms such as Twitch, YouTube, and Twitter, which can help to amplify brand messaging and increase reach.

Overall, the potential of eSports sponsorship for brands is significant. By tapping into the growing eSports market and leveraging the power of digital media, brands can reach new audiences and increase their exposure, ultimately driving business growth and success.

The Benefits of eSports Sponsorship for Brands

Increased Brand Awareness

eSports sponsorship can be a highly effective strategy for brands to increase their visibility and reach a wider audience. With the growing popularity of eSports, more and more people are becoming interested in this industry, providing brands with a unique opportunity to reach out to a new audience.

Exposure to a New Audience

One of the main benefits of eSports sponsorship is the exposure to a new audience. By sponsoring an eSports team or event, brands can gain access to a highly engaged and passionate community of gamers who are interested in their products or services. This can help brands to reach a younger demographic that may not have been previously accessible through traditional advertising methods.

Engagement with the eSports Community

In addition to exposure to a new audience, eSports sponsorship also provides brands with the opportunity to engage with the eSports community. By becoming involved in the industry, brands can build relationships with gamers and other stakeholders, creating a sense of loyalty and trust that can lead to long-term engagement and sales.

Moreover, eSports sponsorship allows brands to showcase their products or services in a unique and engaging way. By creating interactive experiences or incorporating their products into the gaming experience, brands can create a more immersive and memorable experience for the audience, increasing the likelihood of brand recall and repeat business.

Overall, eSports sponsorship can be a highly effective strategy for brands looking to increase their visibility and reach a new audience. By building relationships with the eSports community and creating engaging experiences, brands can leverage the power of eSports to drive brand awareness and build long-term engagement with their target audience.

Enhanced Brand Reputation

eSports sponsorship can provide brands with an opportunity to enhance their reputation by aligning themselves with a growing industry and supporting a positive social cause.

Aligning with a Growing Industry

eSports is a rapidly growing industry with a global market size that is projected to reach $1.6 billion by 2023. By sponsoring eSports events and teams, brands can align themselves with this growing industry and benefit from the positive associations that come with being associated with a successful and popular sector.

Supporting a Positive Social Cause

eSports sponsorship can also help brands support a positive social cause by promoting the growth and development of the industry. By sponsoring eSports events and teams, brands can contribute to the growth of the industry and help to create new opportunities for young people to pursue careers in eSports. This can help to enhance the brand’s reputation by demonstrating its commitment to supporting positive social causes and contributing to the growth of the industry.

Driving Sales and Revenue

Direct Sales from eSports Events

eSports events offer a unique opportunity for brands to generate direct sales. By sponsoring an eSports team or event, brands can leverage the popularity of eSports to drive ticket sales, merchandise sales, and even in-game purchases. For example, Coca-Cola’s sponsorship of the League of Legends World Championship resulted in a 16% increase in sales of its gaming line of energy drinks.

Indirect Sales from Increased Brand Awareness

In addition to direct sales, eSports sponsorship can also lead to increased brand awareness, which can result in indirect sales. eSports fans are known to be highly engaged and passionate about the games they play, and by sponsoring an eSports team or event, brands can tap into this engaged audience. This increased brand awareness can lead to increased website traffic, social media followers, and even word-of-mouth marketing. For example, Red Bull’s sponsorship of the North American eSports team, Cloud9, resulted in a 33% increase in brand awareness among eSports fans.

Challenges and Limitations of eSports Sponsorship

The Unpredictability of eSports

Variability in eSports Competitions

eSports competitions can be highly unpredictable due to the inherent variability of human performance. Factors such as player skill, team strategy, and even luck can greatly influence the outcome of a match. This unpredictability can make it difficult for brands to accurately predict the return on investment (ROI) of their eSports sponsorships.

Difficulty in Predicting Outcomes

Furthermore, the unpredictability of eSports can also make it challenging for brands to predict the long-term success of their sponsorships. The rapidly changing nature of the eSports landscape, including new game releases and shifts in player popularity, can make it difficult for brands to maintain a consistent and effective sponsorship strategy. This can result in wasted resources and missed opportunities for brands that fail to adapt to these changes.

Balancing Authenticity and Commercialization

Striking the Right Tone in Sponsorship Messaging

In the realm of eSports sponsorship, striking the right tone in sponsorship messaging is crucial for brands to maintain authenticity while commercializing their products or services. A misstep in messaging can result in alienating the target audience and diluting the brand’s image. Brands must be cautious not to appear as opportunistic or disingenuous in their sponsorship endeavors. They must strike a balance between showcasing their commitment to the eSports community and promoting their products or services.

Ensuring Relevance to the eSports Community

In addition to striking the right tone in sponsorship messaging, brands must also ensure relevance to the eSports community. eSports enthusiasts are a highly engaged and discerning audience, and they can quickly spot brands that are not genuine in their efforts to connect with the community. Brands must thoroughly understand the eSports landscape, including the games, teams, and players that resonate with the community, and tailor their sponsorship strategies accordingly. They must also consider the cultural nuances and preferences of the eSports community when crafting their sponsorship messages and activations. By doing so, brands can increase their chances of successfully connecting with the eSports community and achieving their sponsorship goals.

Measuring the Effectiveness of eSports Sponsorship

Key Performance Indicators (KPIs)

Audience Engagement Metrics

When measuring the effectiveness of eSports sponsorship, audience engagement metrics are a critical aspect to consider. These metrics help to determine the level of interest and interaction that the audience has with the brand. Some of the key audience engagement metrics include:

• Social media followers: This metric measures the number of followers a brand has on social media platforms such as Twitter, Facebook, and Instagram.
• Website traffic: This metric measures the number of visitors that a brand’s website receives as a result of the eSports sponsorship.
• Live event attendance: This metric measures the number of people who attend live eSports events that the brand sponsors.

Brand Exposure Metrics

Brand exposure metrics are also important when measuring the effectiveness of eSports sponsorship. These metrics help to determine the level of exposure that the brand receives as a result of the sponsorship. Some of the key brand exposure metrics include:

• Brand mentions: This metric measures the number of times the brand is mentioned during eSports events or on social media.
• Logo placement: This metric measures the number of times the brand’s logo is displayed during eSports events or on broadcasts.
• Broadcast impressions: This metric measures the number of people who see the brand’s advertisements during eSports events or on broadcasts.

Sales and Revenue Metrics

Finally, sales and revenue metrics are crucial when measuring the effectiveness of eSports sponsorship. These metrics help to determine the impact that the sponsorship has on the brand’s bottom line. Some of the key sales and revenue metrics include:

• Sales: This metric measures the increase in sales that the brand experiences as a result of the eSports sponsorship.
• Revenue: This metric measures the increase in revenue that the brand experiences as a result of the eSports sponsorship.
• Return on investment (ROI): This metric measures the return on investment that the brand receives as a result of the eSports sponsorship. It is calculated by dividing the revenue generated by the cost of the sponsorship.

Best Practices for eSports Sponsorship

Building Strong Partnerships

One of the most important aspects of eSports sponsorship for brands is building strong partnerships with eSports teams and organizations. Here are some best practices for building effective partnerships in eSports sponsorship:

Aligning Sponsorship with Brand Values

Before entering into an eSports sponsorship, it is important for brands to ensure that their values align with those of the eSports team or organization they are partnering with. This can help to create a more authentic and meaningful partnership that resonates with both the brand and the eSports audience. Brands should also consider how their sponsorship aligns with their overall marketing strategy and business goals.

Collaborating with eSports Teams and Organizations

To build a strong partnership with an eSports team or organization, brands should collaborate closely with them throughout the sponsorship process. This can include working together to develop creative content and activations that are unique to the team or organization, as well as leveraging their expertise in the eSports industry. Brands should also be open to feedback from the team or organization and be willing to adjust their strategy as needed to ensure the partnership is successful.

Another important aspect of building strong partnerships in eSports sponsorship is being transparent and open with the team or organization about the brand’s goals and expectations for the partnership. This can help to build trust and ensure that both parties are on the same page. Brands should also be willing to invest time and resources into the partnership to ensure its success, including providing support for the team or organization’s activities and events.

Finally, brands should be willing to take risks and try new things in their eSports sponsorship. This can include experimenting with new types of content or activations, as well as exploring new platforms and channels for reaching the eSports audience. By taking a creative and innovative approach to eSports sponsorship, brands can differentiate themselves from competitors and create more impactful partnerships with eSports teams and organizations.

Creating Authentic and Engaging Content

Developing Compelling Storylines

In order to create authentic and engaging content, one of the best practices for eSports sponsorship is to develop compelling storylines. These storylines should be designed to capture the attention of the target audience and to convey the brand’s message in a way that is both memorable and impactful. Some ways to develop compelling storylines include:

• Identifying the key themes and issues that are relevant to the target audience and the brand’s message
• Creating a narrative that is emotionally resonant and relatable to the target audience
• Incorporating the brand’s products or services into the storyline in a way that feels natural and authentic
• Using storytelling techniques such as character development, conflict, and resolution to create a compelling narrative

Utilizing eSports Platforms and Channels

Another best practice for creating authentic and engaging content is to utilize eSports platforms and channels. These platforms and channels offer a range of opportunities for brands to reach their target audience and to engage with them in meaningful ways. Some examples of eSports platforms and channels that brands can use include:

• Streaming platforms such as Twitch and YouTube
• Social media platforms such as Twitter and Facebook
• eSports tournaments and events
• eSports-focused websites and blogs

By utilizing these platforms and channels, brands can reach a large and engaged audience, and can create content that is tailored to the interests and preferences of that audience. This can help to increase the effectiveness of the brand’s sponsorship efforts and to build a stronger connection with the target audience.

Measuring and Adapting to Results

Regularly Tracking KPIs

To evaluate the effectiveness of eSports sponsorship, it is crucial for brands to establish key performance indicators (KPIs) and track them consistently. These KPIs should align with the brand’s objectives and may include metrics such as:

• Exposure: Measuring the reach and frequency of the brand’s presence within the eSports ecosystem.
• Engagement: Assessing the level of interaction and interest generated by the brand’s sponsorship activities.
• Return on Investment (ROI): Evaluating the financial benefits derived from the sponsorship, including increased sales, revenue, or brand value.
• Audience Demographics: Analyzing the demographic profile of the eSports audience to understand the brand’s target market.
• Brand Perception: Gauging the impact of the sponsorship on the brand’s image and reputation within the eSports community.

Adjusting Sponsorship Strategies Based on Results

Continuously monitoring and analyzing the data collected from KPI tracking enables brands to make informed decisions and adapt their eSports sponsorship strategies accordingly. Some key adjustments that brands may consider include:

• Allocating resources more effectively: Identifying which aspects of the sponsorship are generating the most significant impact and focusing resources on those areas.
• Enhancing fan engagement: Developing new initiatives or improving existing ones to increase fan engagement and interaction with the brand.
• Expanding target markets: If the data shows that the brand is reaching a broader audience than anticipated, it may be worth exploring new target markets or audiences.
• Modifying sponsorship properties: Brands may choose to shift their focus from one eSports property to another if they find that certain teams, leagues, or events are not delivering the desired results.
• Optimizing partnerships: Assessing the effectiveness of partnerships with eSports organizations, players, or influencers and making adjustments as needed to maximize the impact of the sponsorship.

By regularly measuring and adapting to results, brands can optimize their eSports sponsorship strategies and ensure that they are achieving their desired objectives. This iterative process allows brands to learn from their experiences, refine their approaches, and ultimately derive greater value from their investments in eSports sponsorship.

FAQs

1. What is eSports sponsorship?

eSports sponsorship refers to the partnership between a brand and an eSports team or event. It involves the brand providing financial support or other resources to the team or event in exchange for advertising and promotional opportunities.

2. Why do brands sponsor eSports?

Brands sponsor eSports for a variety of reasons. Firstly, eSports has a large and growing audience, with millions of fans worldwide. Secondly, eSports provides a unique opportunity for brands to reach a younger demographic, as many eSports fans are millennials and Gen Z. Finally, eSports is a rapidly growing industry with a lot of potential for growth and innovation.

3. Is eSports sponsorship effective for brands?

Yes, eSports sponsorship can be very effective for brands. It allows them to reach a highly engaged and passionate audience, and to associate their brand with the excitement and energy of eSports. In addition, eSports teams and events often have strong social media followings, which can amplify the reach of sponsored content. However, it’s important for brands to carefully consider their target audience and align their sponsorship with their brand values and messaging.

4. What are some examples of successful eSports sponsorship?

There are many examples of successful eSports sponsorship. For example, Red Bull has been a major sponsor of the eSports team Fnatic for several years, and has used its sponsorship to promote its energy drinks and other products to a young and engaged audience. Another example is the online retailer SteelSeries, which has sponsored numerous eSports teams and events, and has used its sponsorship to promote its gaming peripherals and accessories.

5. What are some challenges of eSports sponsorship for brands?

One challenge of eSports sponsorship for brands is the rapidly changing nature of the industry. eSports is still a relatively new industry, and it can be difficult for brands to keep up with the latest trends and developments. Another challenge is the potential for negative backlash from fans if the sponsorship is seen as inauthentic or disconnected from the eSports community. Brands need to be careful to ensure that their sponsorship is well-received by fans and aligns with the values of the eSports community.