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Original Article Effect of Esport Sponsorship on Brands

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Original Article Effect of Esport Sponsorship on Brands Journal of Physical Education and Sport ® (JPES), Vol.20 (2), Art 122 pp. 852 - 861, 2020 online ISSN: 2247 - 806X; p-ISSN: 2247 – 8051; ISSN - L = 2247 - 8051 © JPES Original Article Effect of eSport sponsorship on brands: an empirical study applied to youth ELASRI-EJJABERI, AMAL 1; RODRIGUEZ-RODRIGUEZ, SERGIO 2; APARICIO-CHUECA, PILAR 3 1 Estudis d’Economia i Empresa, Universitat Oberta de Catalunya (UOC), SPAIN 2,3, Business and Economics Faculty, University of Barcelona, SPAIN Published online: March 31, 2020 (Accepted for publication: March 17, 2020) DOI:10.7752/jpes.2020.02122 Abstract : This paper contributes to the understanding of sponsorship in eSports, shedding light on an enormously important topic that has been little explored in academia. ESport is growing internationally, mainly due to the easy access to technology, but also as a response to access to different competitions on the part of the general public, and especially youth. The objective of this paper is to investigate the effect that eSport sponsorship has on the health of a brand sponsoring a competition. The field work was carried out by means of a questionnaire distributed among the Internet population, differentiating between children in the age bracket 8 and 14 years and youth between 15 and 25 years, with a total of 1,619 responses. The questionnaire measured the health of the brand through analysing the variables related to the purchase funnel and the brand’s advertising campaigns. The results suggest that sponsoring an eSports league has positive effects on the brand. The study also contributes some findings that are applicable to managers in the area of marketing, suggesting some future related lines of research. Key Words : eSport; sponsorship; brand; funnel; consumers Introduction eSport, understood as video game competitions in which consumers, businesses, and other stakeholders are involved through multiple interactions, has experienced unprecedented growth in recent years. The main reason for this worldwide growth is the increased access to both technology and elite competitions on the part of a large part of the population (Jenny, Manning, Keiper & Olrich, 2017). Wagner (2007, p.182) defines eSport as "an area of sports activities in which people develop and train physical and mental skills using information and communication technologies". Other definitions of the concept approach it as a form of sport, the main aspects of which are carried out in an electronic format (Hamari and Sjöblom, 2017) through organised gaming competitions in which players worldwide compete for a final prize (Himmelstein, Liu and Shapiro, 2017). eSport has come under criticism from part of society and some academics for calling itself a sport. However, authors such as Wagner (2007) and Cunningham et al. (2017) defend that eSport should be considered as a type of sport since it requires a set of skills of a competitive nature, it has an increasingly organizational structure, and is recognised by various institutions. The importance of eSport in the field of sports sponsorship has grown in recent years. One of the reasons for this boom is that eSports now reach a huge part of the population, especially youth, who take part in it and view it through the different social networks. According to the data provided by the white paper on eSport compiled by the Spanish Video Games Association (AEVI, 2018), the audience figure for eSport enthusiasts worldwide reached 165 million people in 2018, with a projection of more than 250 million by 2021. In Spain this figure stands at 2.6 million and it is estimated that the total audience exceeds 5.5 million individuals. In 2018, more than 100 million people watched the final showdown of the League of Legends World Championship, which was broadcast in 19 different languages across more than 30 platforms and TV channels. Large companies such as Microsoft, Samsung, and Red Bull have been attracted by the increasing professionalisation and international participation in eSport (Pizzo, Baker, Na, Lee, Kim & Funk, 2018). At the business level, in 2017 eSport generated revenues of 14.5 million euros in Spain (AEVI, 2018), with an estimated 5.5 million fans and spectators. Three-hundred professionals participate in the industry and there are 100 gamers professionally engaged in it. These data place this industry at an initial stage of economic development, and it is expected to experience a growth of up to 32.5% by 2021. ESports feature in brands’ communication strategies. Connecting with the youngest target audience in the population using mass media (television, radio, the press, and so on) is ineffective considering the little penetration of "traditional mass media" at these ages. According to EGM data, television is the least effective means of communication when planning campaigns for children or youth targets since these groups have stopped consuming content on television to 852----------------------------------------------------------------------------------------------------------------------------------- Corresponding Author: ELASRI-EJJABERI, AMAL, E-mail: [email protected] ELASRI-EJJABERI, AMAL; RODRIGUEZ-RODRIGUEZ, SERGIO; APARICIO-CHUECA, PILAR --------------------------------------------------------------------------------------------------------------------------------------- enjoy it on other devices, prompting brands to have to search for territories related to these targets to launch their advertising messages. Given these growth expectations, operators and broadcasters are firmly committed to disseminating video game leagues. An estimated 134 million people worldwide watched (but did not participate in) an eSport competition in 2014 (SuperData, 2015). In the same year, Amazon acquired Twitch Tv, a video streaming service that broadcasts live video games on demand and is the number one eSport content platform on the planet. In 2017, Movistar created Movistar eSport, a channel dedicated exclusively to eSport, broadcasting both national and international competitions, but closing in December 2018. Other operators such as Atresmedia have broadcast content from the Professional Video Games League, in this case in programme format (Neox Games). The public operator RTVE launched its own league at the end of 2017. Another element to consider is video game streaming. The launch of YouTube’s video streaming platform led to a proliferation of channels dedicated to Let's play content. While YouTube has become the best video game-related platform (Smith, Obrist, and Wright, 2013), Twitch.tv, a live video streaming platform specializing in video games, was created in 2011. Of all the content broadcast on Twich.tv, eSports attract most attention. For its part, in 2019 Apple presented its own mobile video game subscription service (Apple Arcade) with its unique selling proposition: more than 100 exclusive games and 300,000 games in the app store. Funk, Pizzo & Baker (2018) affirms that “eSports are a sports entertainment product with substantial growth potential, requiring management expertise related to events, merchandise, sponsorship, endorsements, marketing, technology, human resources, social media, governance, legal issues, celebrity culture, and athlete well-being.” To this effect, the phenomenon of eSport has reached such magnitude that it has even impacted on gym firms. In early 2018, the Duet group created the first gym for eGamers in Duet Fit Glorias in Barcelona. Given the volume of eSport audiences and the profile of their followers, brands have started to show an interested in sponsoring leagues, teams, and players. The academic literature about this phenomenon is currently very scarce. The aspects of eSports focused on are mainly psychology (Bányai, Griffiths, Király & Demetrovics, 2019), definitions and approaches to what the sport refers to (Funk, Pizzo & Baker, 2018; Hallmann & Giel, 2018; Hamari & Sjöblom, 2015; Jenny et al., 2016; Willimiczik, 2019), issues about athletes’ and gamers’ health (DiFrancisco-Donoghue, Balentine, Schmidt & Zwibel, 2019; Seo, 2013), and the marketing perspective (Pizzo et al., 2018). One of the works that has contributed most to the scientific literature in terms of concept and introduction to sports management is that of Cunningham et al. (2018) which, by means of an overview of the concept, sets out the reasons why the study of eSports should be understood as an especially relevant and leading issue. However, with few previous studies exploring computer game consumption (Seo, 2013), no attempt has yet been made to understand eSports sponsorship. This paper aims to investigate the effect that eSport sponsorship has on the health of the sponsoring brand. In an environment where the effectiveness of communication strategies based on mass media in reaching the youngest segments of the population is questioned, the return on new strategies such as eSport league sponsorship must be able to be measured. The first official eSport tournament was held in 1972 at Stanford University, with the game Spacewar (Brand, 1972). In 1980, the Atari Space Invaders Championship, the first major video game championship involving 10,000 competitors, was held in New York (Li, 2017). However, the real impact of eSport came about in 2016, with the US-based League of Legends World Final, involving more than 20,000 competitors and 43 million online views (Kennedy & Rozelle, 2016). At the academic level, one of the first published works was Bryce & Rutter’s (2002) genre analysis of computer games. According to
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