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Marketer's Guide to Esports

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Marketer's Guide to Esports MARKETER’S GUIDE TO ESPORTS: HOW TO GET IN THE GAME Esports is organized competitive video gaming. It is not ESPORTS synonymous with gaming and does not refer to gaming influencers MODELS that simply stream on Twitch or multiplayer gaming played in a casual environment. There are two different models for esports organizations: • Franchise model: Each franchise within the organization GROWTH OF ESPORTS pays to have a persistent spot. • In 2018, the global esports audience will reach 380.2 million. That number is expected This is similar to the structure of to increase by nearly half in 2021 to reach 557 million. traditional sports leagues. • Global esports revenue is significant with PwC placing it in the high $500 millions and • Non-franchise model: Teams are Newzoo placing it at $906 million for 2018. PwC and Newzoo estimate growth of transient. They can compete around 50-80% by 2021. their way into the organization (Source: PwC, Global entertainment and media outlook, 2017 to 2021). and can also lose their spot. • The largest component of revenue is sponsorship followed by advertising and media rights. Source: Overwatchleague.com, Robert Paul for Blizzard Entertainment Stats sourced from Newzoo, 2018 Global Esports Market Report unless otherwise noted. BENEFITS • The esports audience is: ◆ Young: In the U.S., 75% are between the ages of 18 to 34 – with an average age of 25 (Source: Nielsen Esports Fan Insights) ◆ Diverse: 16% are female, 15% are Hispanic, and 9% are African American (Source: Interpret’s New Media Measure Survey, Q2 2015 to Q2 2017) ◆ Affluent: 43% of esports enthusiasts have an annual household income of $75,000 per year or higher (Source: Mindshare, Esports Fans: What Marketers Should Know, June 2016) ◆ Passionate: 49% of esports enthusiasts spend most of their free time around esports. (Source: Mindshare, Esports Fans: What Marketers Should Know, June 2016) • Esports, with its predominantly digital distribution, provides a way for marketers to reach an audience that is increasingly comprised of cord-cutters and cord-nevers. 38% of US esports fans do not spend money on a monthly standard TV package (Source: Nielsen Esports Fan Insights). • 58% of esports fans in the US have positive attitudes toward brand involvement in esports. (Source: Nielsen Esports Playbook, 2017). BEST PRACTICES: CHALLENGES • Don’t overcomplicate it. Just as with traditional sports, there are many different • Ad blocking: There is a higher incidence of ad blocking among the esports audience. 63% of esports fans report marketing opportunities. Marketers can select to partner with a league, team, player, using ad blockers. Server side ad insertion is one solution to this. etc. Then typical decisions need to be made such as campaign size, length, etc. (Source: Nielsen Esports Fan Insights). • Identify ways to reach and engage with the esports audience authentically. For example, • Measurement: There is no standard audience measurement for esports. a brand can create custom branded content with esports players to give the audience • Brand safety: As marketers determine what type of content they want to be associated with, brand safety can be tips about a game. This creates a value exchange. a concern. iab.com/esports MARKETER’S GUIDE TO ESPORTS: HOW TO GET IN THE GAME LEAGUES, STRATEGY, ORGANIZATIONS/ TALENT/ MEDIA/ PUBLISHERS TOURNAMENTS, VENUES PLANNING, TEAMS TALENT AGENCIES ORGANIZERS PLATFORMS MEASUREMENT Publishers develop games and Leagues and tournaments are Esports orgs are formed Esport players can play in a team These platforms stream Competitions can be held at Ad agencies and research control all related intellectual organized by the publisher or an separately from the league (often or independently depending or broadcast esport leagues, physical venues. These venues companies are assisting with property, allowing their games independent production studio having teams in multiple games on the game. Both players tournaments, and events. bring esport fans together to audience, viewing, and spon- to be played competitively, (where the publisher has sold like Cloud9) or as a franchise and broadcast hosts can have watch players/teams compete sorship research to help with streamed, or recorded. the right to organize the event). as part of a specific league like active social followings and be in tournaments. esports strategy, planning and Leagues and tournaments span Overwatch. (Some games aren’t seen as “influencers”. Most are post campaign reporting. from collegiate to pro level. team based and these players represented by agencies and usually don’t operate as part of a have signed contracts to specific larger team). teams/leagues. MOBILE FOCUSED • CSL (Collegiate ENDEMIC ESPORTS TALENT MOBILE ENDEMIC VENUES AD AGENCIES • Gameloft Starleague) ORGS/TEAMS (BORN • Auguste “Semmler” • Mirrativ (PURPOSE BUILT FOR • Mindshare • King • DreamHack AND BRED IN ESPORTS) Massonnat, Overwatch • Mobcrush ESPORTS) • Scout Sports & • Super Evil Megacorp • ELEAGUE • Cloud9 broadcaster • Blizzard Arena (CA) Entertainment (part of • Supercell • ESL • Counter Logic Gaming • Brandon “Seagull” ONLINE STREAMING • Esports Arena (Vegas) Horizon) • Evolution Championship • Digital Chaos Larned, Dallas Fuel • Facebook • MLG.tv Columbus Arena • Zero Code (part of PC/CONSOLE FOCUSED Series (Evo) • Evil Geniuses • Seth “Scump” Abnet, • Mixer (OH) OMD) • 2K Games • FIFA Interactive World • OpTic Gaming OpTic • MLG • Riot Battle Arena and • Activision/Blizzard Cup • Team EnVyUS • Tarik Celik, Cloud9 • Twitch Battle Theater (CA) MEASUREMENT/ • Capcom • Hearthstone • Twitter RESEARCH • Electronic Arts Championship Series NON-ENDEMIC ESPORT TALENT AGENCIES • YouTube NON-ENDEMIC VENUES COMPANIES • Epic Games • Heroes of the Storm ORGS/TEAMS (DO NOT While the major talent (TRADITIONAL VENUES • ComScore • Hi-Rez Studios Global Games HAVE ITS ORIGIN IN agencies are not involved TELEVISION THAT HOST ESPORTS • FanAI • Nintendo • League of Legends ESPORTS) in a huge way today, they • CW EVENTS) • GumGum Sports • Psyonix (franchise model) • Cleveland Cavaliers, are exploring esports and • ESPN • Key Arena (WA) • Interpret (New Media • Riot Games • Madden NFL Club Matthew Haag (team: many small agencies are • NFL • Madison Square Measure survey) • Valve Championship League of Legends - 100 popping up. • Turner Garden (NY) • Newzoo • Warner Bros. Interactive • NBA 2K League Thieves) • Staples Center (CA) • Nielsen Entertainment (franchise model) • Golden State Warriors, • SuperData • Overwatch League Joe and Kirk Lacob (franchise model) (team: NBA 2K - Golden • Rocket League State Warriors) • TESPA • Mets, Jeff Wilpon (team: • World of Warcraft Overwatch - New York Mythic Dungeon Excelsior) MARKETER PARTNERSHIP OPPORTUNITIES Include logos on player Event appearances, talent Digital advertising, Branded signage, Utilize audience data jerseys, sponsor products endorsements for products commercials within linear branded merchandise like to determine which in team’s social channels through branded signage broadcast of esports clothing or keychains team, distributor, and player streams, create content (done with etc. is best match for League naming rights, branded content, sponsored or audible shout out during custom branded content publisher/ league), campaign goals; use segments, incorporate directly into game IP rights, live stream and can leverage team sponsored broadcasts, ads post campaign study in-broadcast advertising to bypass ad-blocks the media members’ popularity on website homepage to understand value of player may be prone to. across social channels sponsorship iab.com/esports.
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