Esports has become a global phenomenon. Recent reports have valued the industry at more than $612 million, with reach extending from Europe and North America, and to the developing markets of Asia. It makes eSports an incredibly powerful marketing opportunity for brands. What are the best examples of eSports marketing, and do brands looking to venture into eSports need to know?
The fifth installment of the Dota2 International (or “TI5” as it is referred to within the Dota2 community), which took place during the first week of August, was the largest and most prestigious eSports tournament to date.
Evil Geniuses’ winnings of $6.6 million, from an overall prize pool of $18.4 million, was the biggest prize win in professional eSports history, putting all five members of EG’s Dota2 squad into the top six earning eSports athletes in the world (LGD stalwart xiao8 just takes the fifth spot). Their performance also made an overnight millionaire out of 16-year old “solo-mid” (think midfield tempo-control) Suma1L, who’s incredible performance at the tournament signaled an exciting new generation of eSports players.
How Big Is eSports?
For the uninitiated “eSports”, the practice of competitive video gaming, may be viewed as an eccentric niche – and as recently as a few years ago this may well have been the case. However, the sport has expanded rapidly into an otherwise untapped market, and the speed of growth has been phenomenal.
A 2015 report from Superdata valued the global eSports industry at $612 million. That figure takes into account the value of corporate sponsorships, prize pool contributions, merchandise, and ticket sales for eSports tournaments.
According to the report, $374 million of this figure comes from the Asian market, and $143 million from North America. The value of corporate sponsorships in North America is estimated to total $111 million. To put that into figure into context, the Wimbledon Championships were estimated to bring in around $65 million in revenue for sponsors.
The global reach and popularity of eSports means that it represents a huge marketing opportunity for brands. Each individual game; Dota2, League of Legends, Starcraft II, can attract can attract audiences of millions, and unite fans from Asia, Europe, and North America.
This is a crucial audience to target, especially for brands that want to reach millennials.
“It has become increasingly difficult for advertisers to reach this tech-savvy, affluent demographic via traditional marketing channels,” said Joost van Dreunen, CEO and co-founder of SuperData Research. “Not only does eSports allow to reconnect with this audience, but since the market is still at an early stage, brands can get a lot of bang for their buck.”
Why Is eSports A Massive Opportunity?
There are four key reasons why eSports is an incredible marketing opportunity.
1. Global Reach & Growth
The worldly draw of eSports can’t be underestimated. In Asia especially, where eSports pulls in revenues of $374 million, sponsorship can command incredible media value, and does so in key emerging markets such as China, and among a valuable youth demographic.
The Dota2 International draws audiences in excess of 27 million (according to SuperData), which is considerably more than the U.S. viewership for the 2015 Masters at 14 million, although still some way off the 114.4 million viewers who tuned into Super Bowl 49. (However, Dota2 is just one game; the global total for eSports audiences may well exceed those of the Super Bowl.)
As to how much more eSports can grow, one can look at the highly developed infrastructure in South Korea, where eSports enjoys immense popularity (The New York Times described it as a “national pastime”). It was revealed recently that there are plans to build a dedicated eSports stadium – a necessary upgrade considering that the 2014 League of Legends Championship sold out the 40,000 seater stadium of Seoul’s 2002 World Cup. Some have predicted that North American market will one day emulate the success eSports enjoys in South Korea.
North America is one territory where eSports has strong growth potential, but China, parts of Southeast Asia, and Europe are also showing signs of a flourishing eSports scene.
2. Powerful Stories
One of the lasting impressions that will be left by the Dota2 International will be the narratives and stories that were created around the event. Before being picked up by Valve, Dota was a game created and sustained by its own community. Many of the players competing at the International helped define what the game is today, and many have made considerable sacrifices to compete at the level at which they do.
Last year, Valve released “Free to Play”, a feature-length documentary following three professional Dota2 players from around the world.
This year Valve produced a series of moving player profiles; videos which explored player roots, their life journeys, and how they came to be eSports professionals.
rOtK is notorious for being one of the most passionate players in the scene.
To an extent, the current generation of eSports athletes are all pioneers, and there is something fascinating about eSports’ momentous growth and popularity.
From individual players, to developers, even fans themselves have their own unique stories, and combined with a committed content strategy such as that of Valve’s, eSports is a immensely rich source of stories.
3. Thriving Community
Community is one of the strongest assets of the eSports scene. Nurturing that community can be extremely rewarding – streaming provider Twitch for example, have put community at the center of their strategy.
When it comes to Dota2, Valve have also made significant steps to support community initiatives. The International’s prize pool for example, was directly funded by in-game purchases, and Dota2 also supports a diverse range of cosmetic items which can be traded on Steam.
Communities are built on shared values, and a strong one within eSports communities is a culture of learning (just look at the amount of gaming how-tos and play-throughs to get a sense of how important it is, and the opportunity is there for brands to find a niche in which they can engage and enhance the online experiences of those communities.
4. Access Developing Markets
As popular as eSports may already be, it’s still a young market. Brands who have acted as early adopters are building immensely valuable brand equity with highly devoted fanbases.
What’s more, there is evidence to suggest that the market is highly lucrative. One source described eSports as an advertising goldmine. Data suggests that eSports viewers spend about $200 a year more on computer hardware.
Who Is Already Investing In eSports Marketing?
A number of brands are beginning to invest in eSports marketing, and these early adopters may find that investing early was a smart strategy in years to come.
One of the most notable brands to invest in eSports marketing is Red Bull. The brand has a dedicated eSports category on redbull.com, publishing a mixture of eSports news, features, and guides around various games.
Content is consistent, frequent, and genuinely useful. Red Bull also sponsors events, which enables communities to grow. The brand are quickly carving out a niche for themselves as one of the foremost brand supporters amongst eSports communities.
Telecoms providers are beginning to recognize how eSports can fit into their marketing strategies. Verizon has announced their intentions to invest in eSports recognizing that “video games are one of the most engaging and utilized forms of content in the world today.”
T‑Mobile is also ramping up their efforts, and enjoyed some media exposure as one of the official sponsors of EG’s victorious Dota2 team.
We unlocked an exclusive wireless courier! @TMobile is EG’s official telecommunications provider at #TI5! #Uncarrier pic.twitter.com/sXqvulvw3C
— Evil Geniuses (@EvilGeniuses) August 5, 2015
Coke, Intel, and Nissan are also investing in eSports, for good reason according to Nissan’s Erich Marx, director of Interactive & Social Media Marketing at Nissan North America who said eSports “fits perfectly not only with Nissan products, but our marketing strategy.”
How Can Brands Add Value?
Brands looking to enter the eSports arena will need to do more than assess the value of corporate sponsorship. The eSports scene is one built on the strength of its own communities, and one that values this quality above all else. If brands want to engage these audiences, conventional advertising or sponsorship likely won’t thrill consumers.
As van Dreunen says “contemporary media audiences, like Millennials, do not relate to media in the same way that other audiences do. Competitive gaming is an emergent form of entertainment that presents an entirely new experience.”
Those who do manage to engage these audiences however, are likely to reap the rewards.
“Brands [who are] able to be part of that initial experience is incredibly valuable in establishing a long-term relationship with consumers.” van Dreunen said.
Brands looking to invest in eSports should look to add value to what is likely to still be a developing scene. It means becoming authentically immersed in the community, and engaging in innovative ways to add value. The eSports audience is essentially a millennial audience, rooted in community, and one that is often receptive to brands that engage with authenticity and value.
Are you considering investing in eSports marketing?