ESPORTS MARKETER’S TRAINING MODE Understand the landscape Know the big names Find a place for your brand INTRODUCTION The esports scene is a marketer’s dream. Esports is a young industry, giving brands tons of opportunities to carve out a TABLE OF CONTENTS unique position. Esports fans are a tech-savvy demographic: young cord-cutters with lots of disposable income and high brand loyalty. Esports’ skyrocketing popularity means that an investment today can turn seri- 03 28 ous dividends by next month, much less next year. Landscapes Definitions Games Demographics Those strengths, however, are balanced by risk. Esports is a young industry, making it hard to navigate. Esports fans are a tech-savvy demographic: keyed in to the “tricks” brands use to sway them. 09 32 Streamers Conclusion Esports’ skyrocketing popularity is unstable, and a new Fortnite could be right Streamers around the corner. Channels Marketing Opportunities These complications make esports marketing look like a high-risk, high-reward proposition. But it doesn’t have to be. CHARGE is here to help you understand and navigate this young industry. Which games are the safest bets? Should you focus on live 18 Competitions events or streaming? What is casting, even? Competitions Teams Keep reading. Sponsors Marketing Opportunities 2 LANDSCAPE LANDSCAPE: GAMES To begin to understand esports, the tra- game Fortnite and first-person shooter Those gains are impressive, but all signs ditional sports industry is a great place game Call of Duty view themselves very point to the fact that esports will enjoy even to start. The sports industry covers a differently. Just like the sports world, the es- more growth. The worldwide sports econ- wide range of games, fans, cultures and ports word is full of many different sub-cul- omy stood at $90.9 billion in 2017, accord- sub-cultures. Fans of hockey are not often tures and groups. ing to Statista. If traditional sports are any fans of tennis, and the two groups view indication, esports have a strong few years, themselves as wholly different. Their The sports industry can also be a useful an- or even decades, of growth yet. games are a way to reflect their person- alog for how the esports economy will likely ality. Hockey fans take pride in being grow in the future. In order for you, a marketer, to get in on rough-and-tumble, where tennis fans’ the esports industry’s explosive growth, self-image is more refined. Esports as an industry is expanding - dra- you have to understand its basic building matically. According to NewZoo, the es- blocks. Games and gamers. Fans and spon- In the same way, esports is a broad world, ports economy will have reached $905.8 sorships. broken into genres, games and sub-cultures million by the end of 2018. That’s a 38% all their own. Though they may look the year-over-year growth compared to 2017’s Ready to learn your 2K from your Over- same to “noobs”, players of battle royale $655 million. watch? 4 LANDSCAPE: GAMES Any video game is not necessarily an Because each genre attracts different types of gamers, genres develop cultures and sub-cultures have esports game. Esport games must have their own personality. As we know from marketing as a whole, the more specific and targeted your cam- three characteristics: paign, the more likely you’ll have success. In esports, this means understanding your games sub-culture • Multiplayer- More than one player is and focusing your campaign on the advancements and in-jokes in that space. Study the most popular necessary to make the game function. streams or competitions in your space and learn from the most popular topics of discussion or emerg- • Competitive- Though there are often ing themes. This can give you insight into how your brand can support and add to that discussion in an teams in esports, there must also be a authentic way. winner and a loser. • For Spectators- Most esports games are played streaming, though competi- tions have become increasingly popular and have sold out large arenas. One of the most common traps marketers fall into is viewing esports as one, uniform group. Esports, again, is the digital version of the entire sports industry. And just like the sports industry, each genre and even game contains its own subculture. The most obvious dividing line in gaming is fantasy vs. realistic. While realistic games are rooted in real-world characters and sce- narios, fantasy games set out to build new worlds. In many other forms of media, this would be a huge dividing line. In movies and books, fantasy is a genre to itself, with rules and scenarios specific to that genre. 5 LANDSCAPE: GAMES In esports, however, the divide between fantasy and realistic games is far less dif- ferentiating. In games, fantasy is largely SOME COMMON GAME GENRES ARE: just a style choice; it doesn’t have nearly Battle Royale – A genre of game in which many players are all in competition with each as heavy an influence on how you’ll play. other, with one victor emerging. When looking for games they’ll enjoy, gamers look primarily to genre. Card Games (also called Collectible Card Games, or CCGs) – A genre of game based on collecting cards that give the user moves, powers, or other advantages, and playing In esports, genre defines how the game will them strategically. be played. Are you creating a strategy be- forehand, or do you have to make it up as Fighting Games – A genre of games based on one-on-one combat. Though typically you go along? Are you in a team setting, or this involved martial arts, games have expanded into armed combat. will you be competing solo? Genre will dic- tate your answer to these questions – and First-Person Shooter (FPS) – A genre of game that places the player “in the eyes” of whether this is “your type of game” or not. the character, which offers a more realistic, personal experience. This style of game often This is borne out by data. Esports gamers revolves around finding different types of weapons to defeat enemies. tend to play only 2-3 genres of games. Just like their counterparts in the tradition- Multiplayer Online Battle Arena (MOBA) – A genre of games based in real-time strat- al sports industry, esports gamers find the egy. The player is on a team competing against another team of players, with the goal, style that attracts their own sensibilities. typically, to destroy the other team’s structure or base. Because of this genre preference, it is Real-Time Strategy (RTS) – A genre of games based on using resources and units to important to understand the most popular defend yourself and/or defeat the other teams. As these games are played in real-time, genres and games. Just like players, your players must be able to adapt and make decisions on the fly. brand should have some that fit better than – A genre of games in which a player must assume a char- others. A good brand is specific, and, as Role-Playing Game (RPG) acter and interact with the game world with the assets of that character. Typically, these with any other marketing efforts, finding the games are cooperative, and players must work together to complete tasks or quests. matching audience is key. 6 LANDSCAPE: GAMES FANTASY GAMES KEY REALISTIC GAME NAME Year of Latest Release Average viewers (Twitch) SUPER SMASH BROS STREET FIGHTER Follower Gain-1 Year (Twitch) MADDEN 2014 2016 2017 3,840 3,218 1,129 FIFA 2017 712,385 327,059 312,094 4,344 FIGHTING TEKKEN 2,988,235 2017 ROCKET LEAGUE 2,074 2015 SPORTS 345,931 5,770 1,758,076 PLAYERUNKNOWN’S FORZA BATTLEGROUNDS NBA 2K 2017 2017 BATTLE ROYALE FORTNITE 365 2017 2017 49,397 3,121 91,146 12,543,442 162,916 66,990,452 1,184,545 COUNTER-STRIKE: GLOBAL OFFENSIVE CARD HEARTHSTONE OVERWATCH 2012 2014 2016 42,698 CALL OF DUTY 39,765 33,507 9,520,785 6,422,291 2017 2,883,234 17,531 WORLD OF WARCRAFT 3,626,786 2003 29,970 STARCRAFT II 3,904,725 RTS 2010 7,125 FPS 766,320 DOTA2 RAINBOW SIX: SIEGE 2013 LEAGUE OF LEGENDS MOBA 2009 2015 55,159 113,233 13,771 4,863,077 17,283,053 4,507,973 7 LANDSCAPE: DEMOGRAPHICS e ur tim $$ is e e ESPORTS FANS... of their l and money on esports. Spend 17% Spend more than 10 Like variety in their gaming. Titles Genres hours a week play- played played ing video games, 5.7 2.6 8.2hours publicly or video games Prefer internet privately Spend different amounts of time on videos to different games. 2.4hours traditional esports television or 4.5hours 4.3hours activities Internet videos television League streaming on a TV of Legends Actively follow esports personalities services. Overwatch 9.8 12.2 hours FIFA and/or teams. 5.3 34% 3.5hours Hours spent consuming Streaming or content per week digital content Counter 26% 25% Dota 2 Strike Live in 3+ person 11.5 11.7 households. Online Professional Professional Hours spent per game, monthly 61% personalities players/gamer team Are predominantly (though not only) male Esports Sports Overwatch Counter Strike Dota2 FIFA League of Legends Male 71 61 79 90 84 68 76 Female 29 39 21 10 16 32 24 Information provided by Nielsen Esports and The Esports Playbook 8 LANDSCAPE: SPONSORSHIP Brands are displayed in different ways in different genres of esports. Nielsen’s Esport24 Shooter titles: Sports titles: (An esports event average): EQUIPMENT EQUIPMENT BROADCASTER EQUIPMENT 7% IN-GAME 11% 16% 16% 18% APPAREL 42% IN-GAME 20% APPAREL 49% BROADCASTER 24% APPAREL 8% IN-VENUE 37% 16% 18% 18% IN-VENUE 0% - IN-GAME IN-VENUE BROADCASTER sponsorship agreements of esports fans are extremely or very interested in following esports sponsors 600+ from 2016 to mid-2017 25% on social media Esports fans’ attitudes toward brand Excluding endemics, esports fans find these Esports sponsorships per industry: involvement in esports: categories most and least appropriate: 40+ Online Media Most appropriate: 58%positive 50+ Non-Alcoholic Drinks 37% • Technology companies neutral • Energy drinks 60+ Online Services • Internet service providers • Carbonated beverages/snack foods 100+ Retail 350+ IT/Computer Least appropriate: negative5% • Insurance Audi received media exposure valued at more than 10x its investment during • Financial Services the ELEAGUE Finals in January & February 2018 at DreamHack Las Vegas.