Marketing Pittsburgh is happy to feature the following post from guest blogger Dwayne Waite, Jr. , senior marketing associate at Schell Games.
A rendering of the Fusion Arena, being built for Overwatch League team, the Philadelphia Fusion.
One billion dollars. One billion dollars is the amount of global revenues game industry research company, Newzoo, is suggesting the esports industry will collect by the end of 2019. And Newzoo’s number is quite conservative, because it leaves out amateur competitive gaming, and big influencers (i.e. Ninja) who stream gaming competitions, who do not compete professionally.
Let’s back up. First, we are going to discuss what esports actually are. Then, we are going to look at how esports has grown so quickly in the past couple of years, and finally we’ll look at why marketers should pay close attention to esports and determine if getting involved with the industry might work for your brand or clients’ brands.
What are ‘esports’?
Esports, formerly known as ‘Electronic sports, or E-sports’, are video games that enable players to compete either by themselves (solo), in a versus mode, multi-player, or more in a professional setting. The Associated Press (AP) settled the argument on how to write ‘esports’, and that is why you will see it all lowercase except when it is starting a sentence.
There are many games out there that professional esports gamers can play and compete. Madden and Halo tournaments were probably some of the mass-market ones people in the United States would recognize. But some of the biggest esports tournaments today involve League of Legends, Overwatch, Dota 2 (Dota’s tournament, ‘The International’, is one of the biggest esports tournaments in the world), PUBG, Fortnite, Counter Strike, Super Smash Bros, Call of Duty, Tekken, and many, many more. A game doesn’t have to have fighting in it to be considered an esport game, either. Just recently, the game Stardew Valley, which is more of a farming simulator, hosted an esports tournament, one which actually garnered a lot of favorable press.
Along with the games, there are teams that gather players who are really good at a particular game. These teams can house multiple player-teams for different games. Team Liquid, one of the most prolific esports teams in the world, fields fourteen teams all for different games. Some of those games even have Academy personnel and substitutes.
The Rise of Esports
How did esports get so popular, so quickly? The esports story is tied to another platform’s rise to fame- Twitch. When Justin tv turned its attention to video game streaming and pivoted to what we all now know as Twitch, the gaming community was just getting its foundation for building game-streaming communities. When Amazon bought Twitch, the world’s spotlight was shined on this highly engaged audience. As esports grew in other parts of the world, gaming enthusiasts had to find ways to watch their favorite players compete. Twitch filled that void.
As network stations and other content providers saw the potential of esports, more interest followed. YouTube started getting more proactive in the esports community. ESPN bought rights to some of the bigger esports tournaments of the year. Video game influencers and content creators started to play more of the games in the esports realm to attract and entertain their audiences.
Marketers: Do Not Ignore Esports
There are many reasons why marketing professionals should continue to watch esports and evaluate whether or not getting involved is a good idea. For example, Newzoo, an internationally known research firm that recording data on esports projects that 82 percent of esports revenues in 2019 will come from brands, amounting to a little over $897 million dollars. By 2022, Newzoo is projecting that revenue will rise to $1.5 billion.
Digital marketing insights company eMarketer came out with some interesting data about esports as well. Looking solely at esports ad revenues in the United States, the group suggests that 2019 will see ad revenues increase by 25 percent, and 20 percent in 2020.
Ways to Incorporate Brands into Esports
Sponsorship
One of the easier ways to get involved in esports is to be a sponsor of a team or an event. Because there are different esports leagues and tournaments out there, your marketing team will have to do the due diligence to make sure that your target audience will be among the spectators or players. There are several ways your brand can sponsor too. For example, Pittsburgh-based companies may want to consider affiliating themselves with the Pittsburgh Knights, an esports team that is bucking the trend and identifying themselves with a city. Or, brands may want to consider getting into the Overwatch League, where a lot of money is being spent and best practices for esports are being developed and examined.
Brands can also sponsor teams merchandise, travel, housing and everything in between. If your brand is looking to find partners, getting into the esports scene this early is a good idea.
Advertising
Both Newzoo and eMarketer agree that more money is going to be spent in esports as the years go on. Starting negotiations on advertising campaigns, contracts, and the like now is better than waiting. Digitally speaking, learning the right keywords and tournaments where your brand gets the biggest ROI will be ideal.
Partnering with Sports and Entertainment Companies
While a lot of brands can’t spend $50 million to build an esports arena, brands can get into the action with different naming rights and other partnerships. If your brand sees a lot of potential in the esports scene, a big investment like this may be worthwhile.
Conclusion
Esports will not be going away. And that’s a good thing. As media consumption continues to fragment, and consumers continue their transient habits, brands need to find other ways to find them. The esports industry is new, and growing fast. If your brand is looking for other ways to connect with their target audience, consider esports. Respect the game.
Author: Dwayne Waite Jr
Title: Senior Marketing Associate
Company: Schell Games
Company website: https://schell.games
personal website: http://about.me/dwaynewaitejr
LinkedIn: http://linkedin.com/in/dwaynewaitejr