LIVE EVENTS FROM COMPETITIONS TO CONS, GAMERS CONVERGE

1 By Momentum Worldwide in partnership with A FANTASY WORLD LIVE

For one weekend, tens and sometimes hundreds of thousands of people descend into a large, multipurpose venue. During this weekend these people will get to meet old friends, friends they’ve met only in a virtual world, as well as make new friends who share a common passion—their love for video gaming.

Live events offer gamers the opportunity to briefly take their love of gaming into the physical world. For one weekend, an escape into a fantasy world, where fellow gamers are the stars, and where terms such as XP and power-ups are thrown around as often as touchdowns and home runs. Where Felicia Day and Ninja are as popular as Selena Gomez and Tom Brady and most of all, the chance to be among those who are as passionate about gaming LIVE EVENTS OFFER GAMERS as they are. Live events also offer THE OPPORTUNITY TO BRIEFLY brands the opportunity to enter and even influence this fantasy TAKE THEIR LOVE OF GAMING world and connect with a young, tech-savvy audience willing to INTO THE PHYSICAL WORLD open their pockets.

3 OUT OF THE BASEMENT Which of the following live gaming tournaments or events have you attended? AND INTO MSG

In previous reports we touched Other long-running events are Nearly half of US Attendees EVO 21% upon the social aspects of gaming finding demand already outgrowing (47%) are willing to spend and have come to understand its already substantial capacity. over $125 at a gaming event Major League Gaming Championship 25% that gaming is no longer limited compared to 39% willing to 2017 BlizzCon to singular interactions between a spend over $125 at a concert ESL One 20% person and a computer interface. = 25,000 Sold out in 1 hour (from our previous WE KNOW Gaming today is as much about 24% 2016 PaxWest research about Music Fans). World Championships community and friendships as it =70,000, Sold out in 2 hours is about diversion and entertainment. PAX East 26% Gaming communities are leaving 2017 PaxEast PAX West 25% the homes and shopping mall =80,000, Sold out in 16 days arcades and can now be seen 32% in iconic venues such as 2017 San Diego Comic Con Madison Square Garden and = 130,000, Sold out in 1 hour 39% Blizzcon 25% Staples Center. More than a third of gamers (39%) have attended And the list is growing. TwitchCon The International 19% a live gaming event—either an began two years ago with an expo or a gaming competition attendance of 20,000 and just New York Comic Con 30% —and nearly two-thirds (63%) a year later grew to 35,000. Other events such as Gam3rCon San Diego Comic Con 30% express interest in attending a More than a third of gamers in San Diego and IndieCade (39%) have attended a live gaming event in the future. IndieCade are receiving positive interest. gaming event—either an expo 20% Indeed, the attendance statistics These events are not limited to or a gaming competition MineCon 21% say it all. The semi-finals of the interested locals. Gamers travel League of Legends World far and wide, with some from Extreme Masters (IEM) 21% Championships were held in as far as Australia or Europe, Madison Square Garden, attracting and are willing to spend money COD XP 20% a crowd of 15,000 and the event on plane tickets, hotel rooms, sold out months in advance to as well as their event ticket, Other convention/event 3% an enthusiastic audience. merchandise and more. And that’s just for the event itself. None 34%

5 MAJOR GAMING EVENTS, SUCH AS ESL ONE AND THE THE MAIN EVENTS WORLD CHAMPIONSHIPS ARE BEING Live gaming events typically fall Super Bowl organizers host an into two categories: Competitions annual Madden competition the HELD IN ARENAS WHICH TYPICALLY and Expos. Although local night before the event featuring competitions are still held in top “Madden Pros” in addition to HOUSE NBA TEAMS hotels and retail fronts, major well-known “NFL Pros” like Cam competitions are increasingly Newton and LeShawn McCoy. being staged in large sports have also been included arenas. Besides the League of in the schedule for the 2022 Legends World Championships, Asian Games, with many seeing which has been held in Staples this as the next step to inclusion Center and Madison Square in the Olympics. The NBA has Garden, major gaming events, also invested in its own Esports such as ESL One (Barclay’s league, the first major sports Center and the Call of Duty league to officially promote Esports. World Championships (Amway Center) are being held in arenas The prize money? Pretty substantial which typically house NBA at major tournaments. Pools teams. Specialized arenas for can go as high as $24 million Esports are also popping up. (International 2), comparable Last year, the Millennial Esports to the men’s prize pool at this arena opened in Las Vegas year’s US Open for tennis. With and hosted the 2017 large audiences looking on, World Championships. They’ve major cash prizes at stake, and already had some significant involvement from influential events, including Ninja's Charity sports organizations, gaming tournament and the NHL competitions are no longer Gaming World Championship. weekend affairs hosted by the With the increasing acceptance local arcade, but serious events. of gaming as a sport (63% of gamers believe it should be a sport), traditional sports events are also integrating an Esports component in their offerings.

7 A GAMING FANTASY LAND

Expos are held in large hotel At these expos, you will frequently Pax West, the premier gaming ballrooms and convention find exhibitors such as or expo, brings in $35 million to the centers and focus more on and publishers such Seattle economy, accounting for promoting the gaming community as —who often host more than 10% of all revenue as a whole, rather than promoting tournaments for their titles. brought in by conventions. In any one particular game. The With an increasing number of comparison, direct spending content at these events is well-known personalities such during the NCAA Final Four is varied and can include competitions, as Samuel L. Jackson and at 40 million US dollars. but frequently features panels Terry Crews getting involved with publishers, talent and in gaming production, it is also industry experts, plus demos reasonable to hope that a of upcoming releases. More celebrity or two might even gaming-related companies appear at these events. are present and range from accessories to game-related Large expos can have a merchandise, to exclusive significant impact on the local merchandise such as action economy. During the four days figures or skins. Gaming is also of San Diego Comic Con, the premier gaming expo direct spending from attendees brings in 35 million to a large part of pop culture expos the Seattle economy such as San Diego Comic Con or is estimated at over 80 million Wizard World. US dollars. LARGE EXPOS CAN HAVE A SIGNIFICANT. THE CONTENT AT THESE EVENTS IS .IMPACT ON THE LOCAL ECONOMY.. VARIED AND CAN INCLUDE COMPETITIONS, .DURING THE FOUR DAYS OF SAN DIEGO. BUT FREQUENTLY FEATURES PANELS .COMIC CON, DIRECT SPENDING FROM. WITH PUBLISHERS, TALENT AND .ATTENDEES IS ESTIMATED AT OVER. INDUSTRY EXPERTS, PLUS DEMOS .80 MILLION US DOLLARS. OF UPCOMING RELEASES (Terry Crews promoting Crackdown 3 at San Diego Comic Con) 9 A “SAFE PLACE” FOR NERDS

To the outside observer, gaming Friendships are formed and “Nevermind that (PAX) takes events seem like walking into fans enjoy the opportunity to place in Downtown Seattle a fantasy world, with large be around others who are just which is amazingly close to all interactive displays featuring like them. In fact, 62% say sorts of fun stuff and delightful life-sized models of dragons, that gaming has helped them Yelpy places with amazing food people in costume, or cosplayers. connect with other people, 59% and beer. Forget that all kinds Approximately, 38% of those who say gaming brings them closer of game companies give away attend live gaming events cosplay. to people like them and 57% freebies, let you play their games see gaming as a cultural bridge. early, and you get to interact “For me it’s the feeling of being with developers. PAX is a place surrounded by people that For many, there is nothing like to meet unmet friends with accept me and are into the being in the room with fellow similar interests for a short same things as I am. It’s a gamers when a publisher time, in a distant land, before lonely place; going back home, debuts the trailer for the next you return to your real life and surrounded by people who just installment of their favorite mostly forget them.” – Yelp Poster don’t get me—or understand how gaming franchise, or having amazing it is—that I met Felicia thousands of other gamers Day (creator of popular web cheering wildly as a top player series about gaming). They performs a “special move.” don’t even know who they are.” – San Diego Comic Con Attendee “This is my 5th BlizzCon and I’m telling you, if you’ve never How exactly are attendees been there before...the feeling “geeking out”? 48% of attendees is like...you just belong there 48% say they go to watch a with the 30k other nerds. The competition, 44% visit a gaming excitement in the air during the sponsor/exhibit/experience, and opening ceremony is just OMG 40% say they buy video gaming and it doesn’t die down. The related products. However, the virtual ticket and goodie bag is of attendees say they go number one thing they do at nice, but it isn’t even close to to watch a competition FRIENDSHIPS ARE FORMED AND FANS these events is meet up with comparing being able to test friends (53%). Indeed, the events the new heroes, games, etc.” ENJOY THE OPPORTUNITY TO BE AROUND are really about community. – Reddit Poster OTHERS WHO ARE JUST LIKE THEM 11 THE AUDIENCE AT A LIVE EVENT

It is important to keep in mind When considering which events PROFILE OF THE that just as the gaming population to sponsor, one must consider FAVORITE GENRES MOBA SHOOTER LIVE ATTENDEE is diverse, so is the live event whether they are aiming for foot population. As Esports competitions traffic or to maximize impressions. Gender 66% Male/34% Female 72% Male/28% Female 61% Male / 38% Female focus on a specific game, it is The top expos, such as PAX or natural to see different audiences attract huge crowds 64% 25-44 at these events. The two most in the hundreds of thousands. Age 31% 18–24 30% 25–34 popular types of genres to find 84% Income Average at Esports events are Multiplayer If a brand’s goal is to…. 87% agree that they are 78% agree that they are or Higher Tech Savvy Online Battle Arena (MOBA) tech savvy tech savvy …generate foot traffic at a or Shooter. MOBA fans skew Median Round Trips specific activation, consider a younger (31% 18–24) and 43% approve completely 36% approve completely via Air per Year – 4 partnership with a major expo. spend the most time watching of free or branded of free or branded in-game content in-game content See themselves as: games (47% more than 20 If one is planning a more Branded Content Competitive, Passionate, hours a month), are tech savvy, comprehensive campaign… Motivated, Friendly extroverted and more receptive 21% approve completely of 32% approve completely to sponsors overall. …consider focusing on Esports, free or branded locations of free or branded locations which will generate more eyes/ Live events offer the opportunity Shooter genre fans are more impressions. While, due to Entertainment (52%) Entertainment (64%) to reach a young, high income likely to be in the 25–34 range venue limitations, the audiences Best things about gaming Challenge (49%) Challenge (47%) audience that is willing to spend (30%), prefer the console are small compared to expos, Escapism (32%) Competition (33%) money to travel to large cities to platform, are reserved about the streaming audience is attend. Although the audience sponsorship involvement (but Competitive (57%) Competitive (62%) substantial, in the tens of millions, How they would describe at live events skews male, there most receptive if there are Passionate (55%) Passionate (43%) and reaching audiences across a gamer is a contingent of female fans at branded locations), and more the globe. Geek (39%) Techy (36%) these events (1-out-of-3 are likely serious about the competition. to be female). Enjoy keeping in touch with Enjoy keeping touch with Social Attitudes friends (47% Strongly Agree) friends (37% Strongly Agree)

WHEN CONSIDERING WHICH EVENTS TO Change in attitude toward SPONSOR, ONE MUST CONSIDER WHETHER brand that sponsors 60% Favorable 48% Doesn’t Change THEY ARE AIMING FOR FOOT TRAFFIC gaming event OR TO MAXIMIZE IMPRESSIONS. 13 IMPROVING THE LIVE EVENT EXPERIENCE

As much as die-hard gamers enjoy the live events, there is room for improvement.

Issue #1 Issue #2 Issue #3 By comparison, the typical Despite all this, fans want these Issue #4 Difficulty to obtain tickets Waiting in Long Lines Live streaming access episode of Dancing with the events near them. Currently, Food Stars averages 10 million viewers. events are held in major cities Arenas have capacity limitations. Once a ticket holder makes it to The majority of gaming events Indeed, a segment of the gaming such as and Seattle Whether they are at competitions And, there’s likely no arena that an event, they discover there’s are currently located in major population prefers streaming or in far-off locales such as or expos, attendees typically will be able to meet the demand no guarantee of getting to see cities, making it difficult for in-person to live events because of the , or Katowice, spend entire days or weekends of interested attendees. With or buy what they want. Fans attendance. Fans want to be able comfort that streaming provides. Poland. While fans are willing to at the venue, and they naturally top events selling out well in often have to wait for hours to to stream the competition or 49% of those who are users of travel far and wide for premier want convenient access to food. advance, interested attendees be able to purchase exclusive panels, but unfortunately, the the Twitch livestreaming platform events, a small event nearby is However, they are often limited find it frustrating that many top merchandise from retailers, meet quality of live stream is varied prefer to watch the event on not unwelcome. to existing options at the venue, events sell out within hours, their favorite gamer, or attend (streams might buffer or, due to Twitch rather than attend the which they find overpriced, poor if not minutes. the panel they want to attend. the demands of rights holders, event live. Live streams offer the “I would like to see smaller, local quality, and lacking in variety and Veteran attendees of BlizzCon, some key content, such as trailers best views of the game, whereas events that more people can nutritional value. “Purchased every virtual ticket for example, have offered up or scenes, might not be available at live events, there are seats access. Every tournament or since it started because I have “It’s terrible at EVO. “pointers” to attendees, like to a live streaming audience). with partial obstruction. Live event I see is mostly big name always loved this company and Dry hamburgers for $15.” suggesting they line up at least streams also offer the analysis events in big name cities. Not their games. Never have been “Make the event more cohesive – Male, US 35–44 an hour in advance for the that the fans want—something everyone lives in San Francisco able to go to BlizzCon because of for the live streaming audience; Opening Ceremony, where that is missing at live events. or New York, so a series of financial issues. Never attempted all the major announcements most events just have smaller events for people to get to buy them before. So here I are made. livestreaming as a last minute “I’ve never been to a live event, a taste of it all would be great.” read the instructions, create an thing they throw in there. A so I can’t say much. Streamed – Female, US 25–35 account, get everything ready. schedule can sometimes help events are wonderful, though. Sit here at 8:45 central time and but more needs to be done.” They show the announcers and refresh until 8:59. I get ‘You’re – Male, US 18–21 everything going on, but I always in line.’ Literally and I timed it. appreciate that the game always The audience for livestreams is At 9:05, I get a message saying takes center stage. I think that huge. 43 million unique viewers ‘No tickets available’.” the game being the main focus logged on to the 2016 League is paramount.” – Male, US 25–34 of Legends World Championships and 14.7 million concurrent viewers.

15 BRANDS AT GAMING EVENTS

Brands are an integral part of the “I hate coupons. I put it in my live event experience for gamers. pocket, forget it’s there, then throw it away.” – San Diego 59% of attendees say they Comic Con attendee have interacted with a brand at a live gaming event, with 62% “Yeah, I’ll take the free [candy] 59% of those interactions resulting in but I’ll probably forget they were social media engagement, 56% even there.” – San Diego Comic involving further research, 53% Con Attendee advocacy and 59% resulting in direct purchase. And, a brand’s Brands can do well to mimic their counterparts at general pop of attendees say they have presence is welcome—68% of interacted with a brand gamers believe brands are good culture conventions, where there at a live gaming event for the gaming industry and half are unique activations tied to would like to see more brand major properties and where lines sponsorship in the gaming world. for these experiences, such as Johnnie Walker’s Blade Runner However, brand interactions activation, were long and formed can definitely be improved. Just hours in advance. one third (32%) are completely satisfied with the sponsorships 59% and advertising at live events, with attendees generally finding non-endemic brand booths basic and bland. With little effort made to integrate into the overall feeling of the experience and generic resulted in a direct purchase WITH LITTLE EFFORT MADE TO sampling and offerings, most miss the mark with attendees. Overall, INTEGRATE INTO THE OVERALL FEELING only 43% feel player and team OF THE EXPERIENCE AND GENERIC sponsorships are authentic. Clearly, SAMPLING AND OFFERINGS, MOST MISS there is opportunity to improve. THE MARK WITH ATTENDEES 17 A UNIQUE, INTERACTIVE EXPERIENCE HOW TO MAKE AN ENTRANCE WITH RELEVANT CONTENT IS There are strong opportunities to 3. One size does not fit all: “I want advertisers to give me GUARANTEED TO ATTRACT CROWDS. engage young consumers at live Fans of the different properties something as a sponsor. Meet events. However, as with all other are different from each other. my favorite team or players. partnerships, brands should be Activating around a MOBA Upgrade my seats. Give me a prepared and follow certain tips property (i.e., League of Legends) chance to compete on stage or and guidelines in order to maximize will be able to get creative around win prizes. I want to feel closer the full potential of the audience. the activations. A brand activating to the action because of ads Here are some things to think about: around a shooter event (e.g., instead of it just disrupting my ESL One) should focus more on viewing experience.” 1. A unique, interactive offering fans something that will – Male 25–34 experience with relevant help their own game play. content is guaranteed to “I mostly come for the community, attract crowds: Examples: VR experiences or the community-hosted events At San Diego Comic Con, lines Green Screens at a League of and the indie games. I’ve met for experiences tied to popular Legends tournament, free skins some amazing people, got some properties went out the door at a CS:GO tournament. interesting swag (even though and were hours long. Partnering there seems to be less available with a rights holder to generate 4. Don’t sell—let them engage: now) and tried some new games unique content can help create Fans don’t want to feel pressured (both console/PC and tabletop).” engagement with your brand. to buy something. Instead, let – Reddit Poster them understand your “brand Examples: Creating a pop-up experience” through unique Esports bar or a live action activations. Avoid simple sign ups. “Zelda” obstacle course. 5. Give fans what they want: 2. Do not rely on stereotypes: Fans accept advertisers as Gamers are a diverse demographic, necessary and even desireable ranging from young to old and in order to “legitimize” events. male to female—and nothing However, fans want something annoys gamers more than brands in return for their eyeballs. This who resort to old stereotypes of could be in the form of a unique who a gamer is. experience, making the event more comfortable for them, SWAG, pre-sales, or a financial commitment to their favorite players. 19 CONCLUSION

Gaming events offer a wealth of opportunities for brands to not only reach a young audience ready to spend money on the things they love, but to truly position themselves as being creative IT’S TIME TO PRESS and cutting edge. The good news is that brands are welcome in the space. However, brands have to try harder to truly make an impact on the audience. As the audience already spends a considerable amount of time in a cutting-edge virtual world with plenty of fantastical elements, PLAY AND JUMP IN. it is not enough for brands to offer the same old activations and partnerships. 21 APPENDIX: EVENT PRIMER

ESTIMATED EVENT LOCATION WHAT IT IS ATTENDANCE

E3 Los Angeles The premier gaming expo in North America, 68,400 top companies typically use this event to make major announcements. Previously open only to industry insiders, 2017 was the first year this event was open to the public. Gamescom Cologne, Germany Europe’s largest convention, attracting 345,000 both fans and industry insiders from 88 countries, with the 2017 show being opened by German Chancellor Angela Merkel. Intel Extreme Masters Various around the world A series of Esports tournaments around As high as 173,000 in 2017. the world focusing on a variety of games 46 Million unique viewers online including StarCraft, CS:GO, League of Legends and . The Global Challenge held in Katowice in 2017 was the largest Esports competition in terms of live attendance, with 173,000 attending. League of Legends Various around the world This top gaming event is consistently held 45,000 in 2014. World Championships in some of the world’s most iconic venues 43 Million unique live viewers in 2016 such as the Staples Center, Madison Square Garden, and Seoul’s Sangram Stadium (which also hosted the 2002 FIFA World Cup Final) and almost always sells out. PAX West Seattle This multi-day “gaming festival,” long the 70,000 top expo for fans, celebrates both video games and tabletop games and features panels on a variety of gaming topics. San Diego Comic Con San Diego The premier pop culture convention in 130,000 North America, gaming is an integral part, with panels featuring the top publishers and vocal talent as well as gaming-related media (e.g., the Guild and adaptations of popular games), exhibits and merchandise from gaming-related companies, and off-site activations promoting games and hardware. The International () Vancouver, Canada A major Dota 2 competition, this is the 17,000 live and over 40 million on Twitch largest Esports event in terms of prize money, with the latest edition offering over $24 million in prizes. Chiba, Japan The major expo in Japan, the 245,000 focus is primarily on Japanese games, but there is still a presence from international developers. Like Gamescom and now E3, this is an industry event, but the general © Momentum Worldwide 2018 public is allowed to attend. TwitchCon Long Beach, CA Now in its third year, this convention 35,000 focuses on gaming livestreamers, with All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical panels on topics such as effective ways (including photocopying, recording or storing it in any medium by electronic means and whether or not transiently or incidentally to monetize their streams, Q&As with top to some other use of this publication) without the prior written permission from the publishers. streaming personalities, and the state of streaming in general. The greatest care has been taken to ensure accuracy, but the publisher can accept no responsibility for errors or omissions, 23 nor for any liability occasioned by relying on its content. WANT TO KNOW MORE? EMAIL: [email protected]

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