In today’s marketing landscape, investments are often seen to yield substantial returns from the very first day. Major brands can no longer ignore popular trends, including esports. This raises the question of why companies are pouring significant amounts of money into what might appear to be a financially unrewarding virtual sport. Let’s explore the relevance and reasons behind sponsorship investments in esports. What drives such an affinity towards this realm?
The interconnection between esports and other business sectors
It is fair to observe that the esports audience is predominantly young and often financially dependent. However, prominent brands are making long-term bets in this field. The youthful age of the viewers allows companies to establish a foundation of potentially loyal customers in advance. As these individuals become financially independent in a few years, they will already hold a positive opinion of the brand’s products.
This is precisely why businesses unrelated to esports are venturing into the industry. For instance, automotive conglomerates, clothing brands, beverage manufacturers, and various other companies are getting involved. Many of these sponsors are visible at major tournaments.
Esports has given rise to new business sectors
Not only do companies from diverse industries enter the world of esports, but the industry itself creates new avenues. Streaming stands out as one of the most significant developments. Game broadcasts have transformed from mere entertainment into a distinct and substantial niche. With the emergence of numerous platforms dedicated to such content, renowned brands actively pursue influential streamers, offering them lucrative contracts.
For advertisers, the esports industry offers a straightforward and convenient arena. Advancements in technology make it easier to track the number of viewers engaging in sponsored activities. Data analysis enables better integration within this realm. Esports is often at the forefront of adopting new technologies, which further attracts sponsors. Many hardware manufacturers utilize esports as a means of advertising and testing their products.
Key investment areas
Investments in esports can be categorized into several areas:
- Direct investments: Funding esports organizations or tournaments.
- Advertising investments: Sponsoring organizations, individual players, or tournaments.
- Indirect investments: Backing gaming equipment or technology manufacturers.
Major esports sponsors
The most significant esports sponsors can be classified into the following categories:
- Intel – Powering Esports with Innovation
- Coca-Cola – Refreshing the Esports Scene
- T-Mobile – Connecting Gamers Everywhere
- Nike – Elevating Esports Athletes
- Gaming equipment: BenQ, HyperX, DXRacer.
- Energy drinks: Monster, Adrenaline, Red Bull, Tornado.
- Prominent brands: Visa, Mercedes, Audi, LG, Samsung.
- Bookmakers.
Conclusion
Sponsors make long-term investments in esports, recognizing that even if their expenses do not yield immediate returns, they are cultivating a base of potentially loyal customers for the future.