Spotlight On Esports
Spotlight On Esports
Spotlight On Esports
August 2016
A primer on the hot spectator sport making headlines this
INTRODUCTION
yearesports
ABOUT ESPORTS & THE A look at the history, the terminology, genres and the rise
RISE OF GAMING in popularity of esports
BRANDS GET IN THE GAME How brands can and should get involved
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INTRODUCTION
There is a hot spectator sport making news this year and it is on its
way to becoming a billion dollar industry. It has professional
competitors, millions of fans, enviable viewership, millions of dollars
in championship prizes and regularly sells out arenas. It is more
watched than the World Series and the NCAA Final Four. We are not
talking about the NFLwe are talking about electronic sports, also
known as esports.
The popularity of video game spectating first arose in the arcades of the 70s and 80s - think Pac-Man and
Space Invaders. Over the decades, games have become more sophisticated and accessible to a wider
audience, with 80% of U.S. households owning a gaming device, according to the Entertainment Software
Association.
Today, global esports fandom is a natural extension of that uncanny pleasure, with esports fans watching as
experts tackle popular games. Online platforms, such as Twitch, and connected consoles link competitors
across geographies to play mega hit titles, and spectating has blossomed online to support them. Now,
communities of players and fans (and brands) spend hours a day streaming game content and posting
comments during live gameplay. According to industry analysts at SuperData Research, 214M people
worldwide are watching esports1; with its growth rooted in social media and driven by a market of
blockbuster titles.
For those new to gaming, the marketplace and culture can be daunting. There is no shortage of specific
terminology and technical jargon to learn about the space, making the opportunity hard to grasp but still
very real. Lets start at the beginning with a brief history
4 1. "Esports market goes mainstream as viewership reaches 214M" SuperData Research. July 2016.
ABOUT ESPORTS &
THE RISE OF GAMING
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GAMERS &
SPECTATORS
While 1 in 2 esports
viewers have a smart TV,
6 1-2. MEC Consumer Pulse. July 2016.
traditional sports viewers
GAMERS &
SPECTATORS
About MEC Consumer Pulse: MEC Consumer Pulse is our agency-driven A&I initiative that gives real insights and data on consumers and
beyond. Sourced from MECs proprietary survey, among 2500 respondents in the U.S., fielded between July 4th through July 10th.
GAMERS &
SPECTATORS
PC
Game Console
Smartphone
Wireless Device
Dedicated
Handheld System
Like most sports, leagues are useful for helping sponsors connect to viewership at scale, especially
considering the diffuse and fragmented landscape. Each game title or genre has its own universe of
players and fans, with less overlap than you might expect. The star athletes of DOTA and
CounterStrike could be as different and have as little fan overlap as Messi and Brady; they are playing
on completely different fields. Leagues can sit atop these disparate gamer sub-groups, foster
awareness and up the stakes of play.
1. "Turner set to unveil televised esports league featuring CS:GO" Daily Dot, September 2015.
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BRANDS GET IN
THE GAME
As with traditional sports, an esports strategy can accomplish three brand goals: awareness, affinity
and acquisition
The esports audience is hard to reach for many brands. There is opportunity to engage them by placement
within gaming properties, borrowing equity from popular titles and players and activations. A brand may
not be an obvious fit for esports like hardware peripherals and energy drinks. If the pace of growth
continues, we are not far from an insurance or beauty brand joining the sponsor ranks, just as State Farm
and Cover Girl have found success with the NFL.
How, where and when to pursue an esports strategy will vary significantly by brand and category. Not
enough research has been done to identify true best practices that are specific to esports, which is why we
use experience from traditional sports as a guiding light into this new landscape. Over the last year and a
half, some big names have begun to experiment. We outline a few models and examples below.
EXAMPLE: DURACELL
In January 2015, three NFL players, nine pro-gamers and over a million fans
came together on Twitch to test a battery. Recognizing that gaming is a
key market for rechargeable batteries, Duracell created its own event, a
twenty-six hour Longest Lasting Tournament for Madden NFL 15, hosted
in partnership with Twitch. Duracell challenged gamers across the country
to beat teams of gaming legends and NFL pros. For the entire 26 hours,
Team Duracell would play with only one set of batteries in their XBOX
controllers. The results of this campaign, as reported by Anthology, were
60,000 Facebook impressions, 262,000 Twitter engagements and a total of
33.3 million social impressions.
EXAMPLE: COKE
A sponsor of League of Legends since 2013, Coke played a
major part in getting fans closer to the action. They
sponsored live viewing parties in movie theatres across the
U.S. for the 2015 League of Legends Championship, held in
South Korea. Every theatre sold out, despite middle-of-the-
night screening times. The tournament lasted 15 days and
brought in a record number of fans.
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BRANDS GET IN
THE GAME
EXAMPLE: SNICKERS
Snickers delighted Twitch viewers with a prolonged
stunt wherein a popular gamer play-acted extreme
spaceyness while livestreaming. Eventually, he
was not himself, replaced by an actor who
doubled down on the spaced-out shtick. Ultimately,
eating a Snickers bar rescued the gamer and
restored him to his usual, energized self, similar to
the television spots featuring Marilyn Monroe and
Willem Dafoe. Commenters were confused at first,
but the payoff delivered big LOLs and many
impressions for Snickers.
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CONSIDERATIONS:
HOW TO DO ESPORTS RIGHT
With a huge audience and growing awareness, the opportunity for brands to enter esports is significant,
and, as with any new category, some caution is warranted. Thanks to its passionate audience, many esports
properties enjoy a high level of regard and influence in the minds of consumers, and this esteem must be
leveraged carefully. Brands must understand what fans expect from an esports experience and how brand
messaging can add value rather than irritation.
More so than traditional sports and star athletes, esports allows for a peer-to-peer connection among fan
and pro. The best players look a lot like their audience, and while their skill and accomplishments are
impressive, the esports culture encourages a laid back attitude to fame. Matching this grounded attitude is
important for brands to understand when they design an esports strategy. Below, we discuss a few other
considerations to keep in mind.
BEWARE OF INCUMBENTS
Gaming may not be the best environment for more conservative brands
Some riskier categories are represented among early entrants to gaming advertising. A new sponsor might
hesitate to place their brand next to partners like YouPorn or more juvenile brands that got into gaming
early in order to communicate in the language of adolescent males. Like any valuable partnership, it can not
be the right fit for everyone. The mainstream acceptance of esports, and expansion in market size is
happening so rapidly, however, that brand safety is less and less of a concern.
CONTENT CAN BE CONTROVERSIAL
On a related note, video games can be intensely violent and gory, and sometimes the optics just are
not right for branding
Science has proven no link between violent videogames and violent behavior, but those FPS games can
make people uncomfortable with the implications nonetheless. Chat rooms can get raunchy, too. In the
worst cases, gamer comment forums and social media can host truly unsavory content, with a sometimes
hostile treatment of women. On the upside, gamers know this worlds reputation is mixed, and not always
fairly understood, and may be more likely to view the brands who participate as comrades who get it.
Therefore, embracing gamer culture is a great opportunity to build generate goodwill.
While these considerations are important, they need not be prohibitivewhatever your level of
skepticism toward esports, the reality is that it is very popular and it is only going to get bigger.
As the consumer base for video games has broadened over the years, so will the esports audience.
Already out-selling the music industry by some metrics, the world of esports is on pace to be a dominant
mainstream entertainment category. The good news is that engaging in esports does not require a
reinvented marketing approach; in fact, there are clear parallels between esports brand opportunities
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and those for other major sports. Follow your target audience to esports and join them as fellow fans in
appreciating the fun, excitement and community engagement of players and viewers.
THE AUDIENCE IS THERE The 214m esports viewers around the world tend to be young,
male and deeply engaged with the sport an attractive target for
advertisers, and one that cannot be ignored for brands that want to
reach Millennial and Gen Z men. Awareness among the general
public is growing, but still relatively low, representing significant
room for growth in the future.
THE AVERAGE GAMER Data shows that gamers are both older and earn a greater HHI than
DOES NOT FIT THE the teen in moms basement stereotype you might have in mind.
STEREOTYPE Gamers are often Millennial cord cutters with healthy incomes who
are hard to reach through linear means. Think twice before
discounting the value of connecting with these consumers.
ESPORTS HAS YET TO BE Unlike most traditional sports, there are few established
BRAND-SATURATED incumbents or long-standing brand partnerships in esports. There
is still much untapped potential for brands to align with esports
equities, create value for consumers, and be early movers within
major categories.
AUTHENTICITY AND The culture of esports is driven by shared passions and places a
VALUE EXCHANGE IS premium on genuineness and authenticity. These digital natives
VITAL are naturally skeptical toward brand messaging, but are willing to
interact with brands within esports when they get real value from
that relationship, such as relevant giveaways, in-stream assets or
access to gaming events.
THE GAMING Leagues and acquisitions are beginning to consolidate the diverse
LANDSCAPE IS MORE array of genres, games, playing platforms and viewing experiences.
FRAGMENTED THAN Today, fans of one game title might never pay attention to even
ANY OTHER SPORT the highest-profile events and stars of other titles. Brands need to
think carefully about reaching fans of multiple titles or they may
miss out on large chunks of the market.
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