Seamus McDermott, ONSIDE Research Executive
Is esports any different from traditional sports properties?
Esports - competitive video gaming played at a professional level – depends on many of the same income streams as traditional sports. Sponsorship, media rights and attendance are all important contributors. This means that, just like traditional sports, some esports properties have suffered during the pandemic.
At the same time, with so much traditional sport on hold, the spotlight has shone brighter than ever on esports. Rights holders such as Formula 1 and football clubs have seen it as a way to retain relevance by hosting and taking part in competitions and several brands have jumped on board for the first time.
What are brands buying into?
Early esports sponsorship deals typically mirrored those in traditional sports and entertainment – title sponsorship, player jerseys and brand exposure around the venue.
Deeper integration is possible and has the potential to offer a really immersive opportunity for brands. Where the game publisher is involved in the competition – not always the case – brands can get inside the games. The highest profile recent example of this is Mastercard’s sponsorship of in-game digital banners within a League of Legends competition and this feels like the tip of the iceberg.
Why has Ireland & the UK been lagging behind?
Esports is beginning to live up to its growth potential but has been slow to take off in Ireland compared to other markets. The UK too has lagged behind America, Asia and other European countries when it comes to commercialisation but the pandemic and absence of live sport has helped bring esports coverage closer to the mainstream.
Ireland suffers from a lack of exposure and while there are plenty of gamers, the local esports market has received little investment. The risk for a small population market with no established reputation for hosting major esports events is that current and future fans will follow high profile teams and players based in other countries.
It’s possible to see a scenario similar to football where Irish consumers are avid consumers of international leagues and locally-based players have to move overseas to realise their commercial potential.
There is, however, appetite for esports in Ireland from both rights holders in traditional sports and brands.
According to the ONSIDE COVID-19 Sports Impact Monitor, 55% of organisations believe esports is an opportunity they could use to help reduce the impact COVID-19 has had on them.
Munster Rugby recently became one of the first rugby teams to create an esports division, partnering with esports team Phelan Gaming, which has been renamed Munster Rugby Gaming. The club is seeking to broaden the reach of its brand and access new audiences. This broader platform also adds versatility to the activation platform it can offer partners.
The team’s first foray into the world of esports has started in a successful fashion reaching the play-offs of both leagues entered, securing their place in both competitions again for 2021.
Munster Rugby partnered with esports team Phelan Gaming to create esports team - Munster Rugby Gaming. (Image Credit: Munster Rugby Gaming)
The pandemic has accelerated a trend
There was growing interest and appetite from sponsors and rights holders for esports at the start of 2020, the pandemic simply accelerated this.
The ONSIDE Irish Sponsorship Industry Survey 2020 which was released prior to the Covid-19 outbreak, showed that:
1 in 5 Irish sponsors and rights holders see esports as a strong growth opportunity in the future, in line with GAA and cause related opportunities. Only sustainability/environment and community opportunities ranked higher.
To add to the industry interest, pre- pandemic, ONSIDE research showed that more than 3 in 10 18-34 year olds are likely to play video games daily within the next 12 months and nearly 2 in 10 of males in the same age bracket are likely to watch an esports tournament within the next 12 months.
At the beginning of lockdown around Europe, LaLiga and Formula 1 were some of the first rights holders to launch virtual competitions of their respective sports. UK based Wolverhampton Wanderers (Wolves) football club launched its own platform to host esports tournaments. The club has continued its push into esports during lockdown by sponsoring a car in the virtual Le Mans 24-hour race and is considering more ventures into different games.
Wolves FC sponsored a car in the Le Mans 24-hour race (Image Credit: Wolves FC)
Top brands beginning to realise esports potential
Esports is no longer just a sector for endemic brands such HyperX and Logitech to sponsor. All types of brands are now considering and acquiring sponsorship assets within the industry.
Levi’s, Kit Kat, Barclays, Tag Heuer and Harvey Norman are all active sponsors and BMW, one of several high profile automotive companies involved, has recently signed sponsorship agreements with 5 of the biggest global esports teams.
Creative example of how brands can make the most of their esports sponsorships
Brands have created interesting and stand out activations with esports rights holders, with one of the best on show from Danish blood bank Sanquin and the European League of Legends Championship Series encouraging players to give blood donations. The blood bank sponsored the “first blood” of each game which is a term for the first kill of a match.
Danish blood bank Sanquin and the European League of Legends Championship Series teamed up to encourage blood donations with a creative in game sponsorship (Image Credit: Riot Games)
Sanquin encouraged real life blood donations by offering first-time blood donors an in-game reward which when redeemed, changed the look of a player’s character. This activation encouraged around 5,500 new donor registrations and just over 3,500 actual ‘first bloods’ showing how engaged esports audiences are with brand messages.
What is next for esports?
Esports have certainly benefited from the spotlight and more brands have been encouraged to enter the market during the pandemic. It’s a growing sector and the number of opportunities to work with teams and tournaments will continue to increase.
The recent play from esports and gaming federation of Ireland in becoming a member of the Global Esports Federation (GEF) will boost the Irish esports sector immensely.
The next challenge as more non-endemic brands enter the sector will be for the esports teams and competitions to be able to demonstrate that they are able to deliver outstanding value to their partners.
ABOUT ONSIDE
ONSIDE is a leading specialist in marketing and sponsorship consulting and research services – With a proven track record and strong industry experience in a cross section of sectors, ONSIDE is currently feeding into the marketing and sponsorship decision making of circa €50m+ of Irish spend – working on many of Ireland’s premier sponsorships – on sporting, music, cause-related, broadcast and other platforms.
Feel free to drop us a line if you would like to discuss esports further or any of your sponsorship needs!
