Big brands seeing large ROI on esports sponsorships – Esports
Leading Brands Collaborate with Esports: A New Frontier in Sponsorship
By Josh Walfish
Introduction to Esports Sponsorship Trends
As the esports landscape gains tremendous traction globally, numerous prestigious brands are strategically entering this dynamic market through sponsorships. Industry giants such as Marvel, Mercedes-Benz, and BMW serve as prime examples of companies capitalizing on the burgeoning audience within esports. Despite their established brand recognition, these companies seek to re-establish relevance and engage with emerging demographics effectively.
The Growth Potential of Esports
The strategic pivot towards esports is largely motivated by the sector’s remarkable growth potential. A 2020 analysis from Hive highlighted that esports events featured significantly fewer brand sponsors compared to traditional sports broadcasts like the NBA, presenting an exceptional opportunity for brands to dominate sponsorship visibility. With the rapidly growing viewership, companies are keen to position themselves in a less saturated market.
Understanding Audience Engagement
While brand visibility is essential, authentic engagement with the esports community is equally crucial. A YouGov survey found that nearly 75% of esports fans are highly aware of event sponsors, with over half expressing enthusiasm when their favorite team collaborates with a “cool” sponsor. This data underscores the importance of brands providing value, rather than merely seeking it. Successful sponsorships in esports demand a shift in mindset: companies must understand the unique dynamics of this community to foster genuine connections.
Lessons from the Pandemic
The rapid evolution of esports since March 2020 has not gone unnoticed by major brands, especially as traditional marketing avenues faced significant challenges during the early pandemic phases. While other marketing sectors struggled, esports experienced exponential growth, prompting brands to execute thorough research and enhance their impact in this innovative space.
Authenticity and Industry Knowledge
A McKinsey & Company report from 2020 emphasized that non-endemic brands entering the esports arena must prioritize authenticity. The most successful brands adapt to the fluid nature of the industry, building essential knowledge to inform decisions and enhance credibility among esports enthusiasts. Such a commitment to understanding the community is vital for cultivating a robust brand reputation.
The Rise of Esports Betting Sponsorships
One of the most notable trends in esports sponsorships is the emergence of esports betting platforms. Companies like Betway have made significant strides by partnering with renowned teams such as Paris Saint-Germain, while 1xBet made headlines by securing exclusive rights with ESL. As the exclusive global betting partner for events like the ESL Pro Tour CS:GO and ESL One Summer/Winter Dota 2, 1xBet illustrates the growing synergy between esports and betting industries.
Positioning for Future Success
These pioneering betting operators recognize the critical value of early entry into the esports market. As esports betting continues to gain traction, those who strategically align their offerings with this emerging arena are likely to establish themselves as leading outlets for passionate fans. Betting operators like 1xBet, Betway, and Parimatch are keenly targeting the esports demographic, knowing that sponsorships are pivotal to brand visibility and loyalty within this evolving landscape.
Conclusion
With esports sponsorships progressing rapidly, brands must navigate this unique environment with a keen understanding of audience dynamics and engagement strategies. By prioritizing authenticity and value creation, companies can build meaningful connections with the esports community, ensuring long-term success in this exciting frontier.
