How Do Esports Sponsorships Work?

Esports sponsorships are a big business. But how do they work? We talked to some experts to find out.

What are esports?

In the most general sense, esports can be described as a form of sport that is conducted through video games. More specifically, esports are organized, competitive video gaming events between professional gamers, that is often broadcasted online for an audience to watch. And like any other sport, there are teams, tournaments, and leagues – making it a fully-fledged industry with a growing global fanbase.

A brief history of esports

Esports – also known as electronic sports, competitive (video) gaming, professional (video) gaming, or pro gaming – is a form of sport where players compete in video games. The first esports tournaments were held in the late 1970s and early 1980s, but esports has only recently begun to gain mainstream popularity.

Early esports tournaments were mostly small-scale affairs, hosted by video game developers or sponsored by PC game magazines. The World Cyber Games, founded in 2000, was the first large-scale international esports tournament, with participants from all over the world competing in multiplayer games such as Starcraft and Counter-Strike.

Since then, the popularity of esports has grown tremendously. In 2013, the League of Legends World Championship had 32 million unique viewers – more than that year’s National Basketball Association Finals or Major League Baseball World Series. And in 2018, the International Olympic Committee recognized esports as a sports activity.

The growth of esports has been driven in part by the massive popularity of online multiplayer games and the rise of live-streaming platforms like Twitch and YouTube Gaming. But it has also been fueled by the increasing amount of money that is being poured into the scene by sponsors and investors. Esports is now a multi-million dollar industry, with global revenues expected to reach $1.65 billion by 2021.

That money is being used to fund everything from large-scale tournaments to player salaries to new stadiums built specifically for esports competitions. And it’s not just coming from traditional sports brands – companies like Coca-Cola, Ford, Intel, and Nissan are all getting involved in sponsoring esport events and teams.

If you’re interested in getting involved in esports – either as a player or a spectator – there are plenty of ways to do so. You can watch live streams of matches on Twitch or YouTube Gaming, tune into broadcasts on ESPN or TBS (in the US), or follow along with coverage on dedicated esports websites like Dot Esports or Slasher. You can also attend live events – many major cities now have stadiums that host regular esport tournaments.

The rise of esports

The global esports market is expected to grow to $1.65 billion by 2021, up from $696 million in 2017, according to a report from Newzoo.

Esports are a form of competitive video gaming that has grown in popularity in recent years. Many top athletes and celebrities have invested in esports, and the industry is now one of the most lucrative in the world.

There are many different types of esports, but the most popular ones are first-person shooters (FPS), multiplayer online battle arenas (MOBA), and real-time strategy (RTS) games. The most popular esport in the world is League of Legends, which is a MOBA game.

The rise of esports has been driven by the growth of online streaming platforms like Twitch and YouTube, which have made it easy for gamers to watch and follow their favorite players and teams.

The popularity of esports has also led to the development of professional leagues and tournaments with millions of dollars in prize money up for grabs. The biggest tournament in the world is the annual League of Legends World Championship, which had a prize pool of $5 million in 2018.

Esports sponsorships are a big business, with companies like Coca-Cola, Red Bull, Fiat Chrysler, and Samsung all investing millions of dollars into the industry. These sponsorships typically take the form of product placement deals, where brands have their products featured prominently in tournaments or on teams’ jerseys.

Many brands see esports as a way to reach young consumers who are difficult to reach through traditional advertising channels. And with more people watching esports than ever before, there’s no doubt that sponsoring an esport team or tournament can be a lucrative investment.

How do esports sponsorships work?

process of Esports sponsorships is a bit more complicated than traditional sports sponsorships. In traditional sports, there is a governing body that controls the rules and regulations of the sport. This is not the case with esports. There are multiple governing bodies, each with their own rules and regulations.

Types of esports sponsorships

There are a few different types of esports sponsorships that companies can choose from, and the type of sponsorship will usually depend on the company’s goals and objectives.

1. direct sponsorships: A direct sponsorship is when a company pays an esports organization or team to have their brand name, logos, or products prominently displayed on the team’s uniforms or in their playing area. This is a great way for companies to get their name out there and to reach the large audience that watches esports competitions.

2. product sponsorships: A product sponsorship is when a company provides products or services to an esports team or organization in exchange for the team using or promoting their products. This can be anything from energy drinks to gaming equipment. Product sponsorships are a great way for companies to get their products in front of potential customers who are interested in esports.

3. event sponsorships: An event sponsorship is when a company pays to have their name associated with an esports event, such as sponsoring a particular tournament or competition. This is a great way for companies to reach the large audiences that watch these events online or in person.

4. content sponsorships: A content sponsorship is when a company pays an esports organization or team to create content that promotes their brand name or products. This can be anything from video blogs (vlogs) to social media posts. Content sponsorships are a great way for companies to reach Esports fans who consume a lot of content about gaming and Esports.

How to get an esports sponsorship

Just like traditional sports, there are a few key ways to get involved with esports sponsorships. The most common route is through endemic brands, which are companies that have products or services that are related to gaming or esports. For example, many esports teams are sponsored by energy drink brands, gaming hardware brands, and gaming headset brands.

Another way to get involved with esports sponsorships is through non-endemic brands. These are companies that do not have a product or service that is related to gaming or esports, but see the value in sponsoring teams and events in order to reach the valuable esports demographic. For example, many car brands sponsor professional racing teams even though their product is not directly related to racing.

There are a few key things to keep in mind when pursuing an esports sponsorship. First, it’s important to have a strong social media presence and be able to show that you have a large and engaged following. Second, you need to be able to prove your worth as an investment by demonstrating your past successes and showing how you can help grow the brand’s visibility in the esports space. And finally, it’s always helpful to have connections within the industry who can introduce you to potential sponsors or help you navigate the sponsorship process.

Why do brands sponsor esports?

There are a few reasons why brands sponsor esports. The first reason is that it gives them a way to reach out to a new audience that they might not be able to reach otherwise. Esports fans are typically young, male, and have a lot of disposable income. This is a key demographic for many brands. The second reason is that it helps brands build goodwill. When a brand sponsors an esports team, the team’s fans will often view the brand more favorably.

The benefits of sponsoring esports

Esports sponsorships are becoming more and more common, as brands look to target the lucrative Millennial and Gen Z demographic.

There are numerous benefits to sponsoring esports events and teams, including:

-Increased brand awareness and exposure
-An engaged and passionate audience
-Opportunities for content marketing and influencer marketing
-A chance to align your brand with a growing industry

For many brands, sponsoring esports is an effective way to reach a young, tech-savvy audience that is increasingly difficult to reach through traditional marketing channels.

The future of esports sponsorships

While it’s still early days for esports, the industry is growing rapidly and attracting increasing amounts of investment. According to Newzoo, global esports revenues are expected to reach $1.1 billion by 2019, up from $865 million in 2018.

With such rapid growth, it’s no wonder that brands are starting to take notice of esports and its potential as a marketing platform. In fact, according to a 2018 report from Activate, 89% of brand marketers see sponsorship as a “powerful marketing tool” and 77% believe that sponsorship is “more effective than any other marketing discipline, including TV advertising.”

So why are brands so interested in sponsoring esports? And how do these sponsorships work? Let’s take a look.

There are a number of reasons why brands might want to sponsor an esports event or team. For one, sponsorship can help brands reach a young, engaged and notoriously difficult-to-reach demographic. According to Activate, 78% of esports fans are aged 18-34 and 70% have full-time jobs. What’s more, they are passionate about gaming and consume esports content on a regular basis: 87% watch live broadcasts at least occasionally and 60% follow specific teams or players.

Sponsoring an esports event or team can also help boost brand awareness and create positive associations with the gaming community. In fact, according to the same Activate report, 68% of consumers say they would be more likely to buy products from companies that support the gaming community. Given the current size and growth trajectory of the esports industry, investing in sponsorships now could help brands position themselves as leaders in the space and pave the way for long-term success.

There are a few different ways that brands can sponsor an esports event or team. The most common sponsorships take the form of advertising (either through in-game placements or digital banners), product placement (featuring products in broadcasted matches) or sponsoring an entire event or tournament.
Brands can also choose to sponsor specific teams or players; this type of sponsorship generally takes the form of financial support or giving players access to exclusive products or services. For example, Red Bull has sponsored some of the world’s most famous Counter-Strike: Global Offensive teams, including FaZe Clan and Astralis.

Ultimately, there is no one-size-fits-all solution when it comes tosponsoring an esports event or team. It depends on the brand’s objectives and there are a variety of factors to consider, such as the size of the audience, type of sponsorship (event vs team vs player), length of commitment and budget.

Working with an experienced marketing partner like SportsNation can help you navigate these complexities and make sure your sponsorship achieves its intended results. We have a deep understanding of both traditional sports sponsorships and emerging opportunities like esports – contact us today to learn more about how we can help you reach your goals