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ESPORTS
August 2016
ANEXPLORATIONOF THEGROWING
ESPORTSLANDSCAPEAND ITS
IMPLICATIONSFORMARKETERS
INTRODUCTION
A primer on the hot spectator sport making headlines this
year—esports
ABOUT ESPORTS & THE
RISE OF GAMING
A look at the history, the terminology, genres and the rise
in popularity of esports
GAMERS & SPECTATORS A deep dive on the esports consumer including
demographics, usage and brand preferences
COMMUNITIES & CULTURE
Understanding the esports ecosystem regarding
partnerships and platforms
BRANDS GET IN THE GAME How brands can and should get involved
CONSIDERATIONS: HOW
TO DO ESPORTS RIGHT
What marketers should keep in mind when considering
esports opportunities
KEY TAKEAWAYS
The most important points marketers should take with
them regarding esports
2
1. "Worldwideesportsmarket report,” SuperDataResearch, July 2016.
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 NFL—we are talking about electronic sports, also
known as esports.
Esports (defined as competitive online video gaming) has not only
become a cultural phenomenon, but also offers opportunities for
brands to reach a unique community of fans.
Like many popular sports, a tremendous business ecosystem has been
built around esports (a subset of gaming). Game publishers, hardware
manufacturers, formal leagues, tournaments, connected play and
streaming platforms serve a growing customer and viewership base of
millions. Analysts believe the total worldwide market for esports will
surpass $700 million in 2016,while viewership – at 214 million today –
will cross 303 million by 2019.1
From its roots in geek culture to its increasing mainstream popularity,
gamers and esports fans participate in a strong communitythat
despises inauthenticity and is quick to reject a relationship with
brands that do not deliver a clear value. This offers both opportunity
and challenges for advertisers to connect with esports’ young, tech-
savvy and mostly male audience, a demographic that is increasingly
avoiding brand messaging on many platforms. Establishing
relationships with major league sports have proven to be an effective
channel through which to attain reach and build equity, and esports is
no different with its vast and scalable universe of opportunity.
This Spotlight On Esports explores the rapidly evolving world of
gaming and esports, including how the landscape is primed for
growth, a deep dive into the esports audience and considerations for
how brands can get some gameplay!
INTRODUCTION
Atari holdstheSpace
InvadersTournament, the
first video game
competition. Attracting
10,000+ participants
worldwide, othersfollow
with similar events over the
coming years, sowing the
seeds of what would
eventually becomeesports.
The popularity of video game spectating first arose in the arcades of the 70sand 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. Let’s start at the beginning with a brief history…
ABOUT ESPORTS &
THE RISE OF GAMING
FROM THE ARCADE TOTHE ARENA
Considered thepioneer
of professional video
gametournaments, the
Cyberathlete
Professional League
(CPL) isfounded with
prizesworth $4K.
Blizzard releasesthefirst StarCraft.By
2004, it willsell 9.5M copies, with half
of salesin South Koreaalone.
XBOXLivelaunches, accelerating
multiplayer online gameplay
through aconnected consoleand
PC platform.
Intel sponsors theIntel ExtremeMasters
(IEM) in Seattle, WA, now thelongest-
running esportstournament.Red Bull
entersesports, working with pro gamers
likeHalo legend David “Walshy”Walsh.
Riot Gamesreleasesthe
multiplayer onlinearena
gameLeagueof Legends.
Within 5 years, LoL reaches
27M daily playersand 67M
playersmonthly.
Twitch, adedicated
gameplay
live-streaming
platform, launches
in public beta.
TheU.S. State
Department begins
granting visasto
professional gamersunder
thesame program used
by traditional athletes.
Amazon buysTwitch ina$970
million deal inAugust. By
December, Twitch isaveraging
100 million viewersper month
worldwide. TheLeagueof
LegendsWorld Championships
packsastadium in South Korea
with 40K fans, and attracts27M
liveviewersworldwide.
ESPN.com launchesesportsvertical.
Thefirst ELEAGUE TV broadcast beginson TBS.
At E3, Facebookand Activision Blizzardannouncea
partnership to stream league gameplay withinFacebook.
1. "Esports market goes mainstream as viewership reaches 214M" SuperData Research. July 2016.4
Despite the fact that esports does categorize as a sport,
esports gameplay is as unique as its fan base with
ambitious titles, creative storylines and realistic worlds.
Gaming titles fall in one of the below categories:
First Person Shooter (FPS) – In first-person perspective
[think of the player seeing digital versions of their hands
with a weapon] characters move through environments,
clearing them of enemies. Popular titles include the Call
of Dutyfranchise and CounterStrike. This is the most
popular genre for play, across ages, genders and self-
identified casual and hardcore gamers.
Real Time Strategy (RTS) – Characterized by continuous
play within a changing map, where players build unitsand
control territory while subverting the efforts of their
competitors to do the same. StarCraft, hugely popular in
Korea, is a defining example of the genre.
Multiplayer Online Battle Arena (MOBA) – A sub-genre
of RTS, MOBAgames take place between teams who
must defend territory and take out the home base of their
opponents within a set arena. These games are the
second most common format, and the most popular
among 18-24 year olds. MOBAis the only format more
watched than played. League of Legends and DOTA are
two hit titles.
Fighting – Head-to-head combat games like Mortal
Kombat and Street Fighter. As the name implies, they
tend to be violent, blood-splattered affairs, but can also
be cartoonish and comical, like Super Smash Bros.
POPULARESPORTS GAMINGGENRES
ARE ELECTRONICSPORTS REALLYASPORT?
A simple definition of esports is competitive video gameplay between internet-connected
players, and the fandom that cheers them on. Outside observers may debate if that meets
their definition of sport, but the market has clearly decided – the answer is yes!
Success as a gamer requires many of the same key qualities as “traditional” athletes: skill,
strategy and competence earned through practice and dedication. For the audience, the
drama of sport is all there—the excitement of watching elite players, the experience of
camaraderie in cheering along with a community of fans and the thrill of following the
competition live as it happens.
ABOUT ESPORTS &
THE RISE OF GAMING
5
An in-gamescreen captureofStarcraft,
areal timestrategy game
An in-gamescreen captureofCounterStrike:
Global Offensive, afirst personshootergame
GAMERS ARE ADIVERSE GROUP
“Gamer” is a general term; it can refer to people who play any and all video games, including mobile and
casual social games. Those who identify as gamers can be players and fans, or just people who feel at home
within gaming culture. When we talk specifically about the esports audience, we are usually talking about
the coveted Millennial male. However, despite the fact that they are young, they are not juvenile, rather
they are tech-savvy, educated and have a lot of spending power.
A recent U.S. study by research firm Newzoo found that 60% of esports fans are between the ages of 25
and 39. 1
Because of their similar nomenclature, it is inevitable that we compare esports and the traditional sport
landscape. While one might assume overlap in consumer audience, there are distinct characteristics of each
that are important for marketers to understand.
An MEC Consumer Pulse study found that esports viewers skew younger and male, in addition to being more
ethnically diverse and tech-savvy, however they are driven by emerging platforms and new tech, making
them an ideal candidate for the right brands to engage.
1-3. "Free Esports Report: The Valuable Esports Audience." Newzoo. March 2016.
6
of esports fans are Millennial
males, and have a higher
household income than the
U.S. average.2
of total esports fans are
women– equal to the share
of audience made up of
women of the NBA & MLB.3
ESPORTS VS.TRADITIONALSPORTSCONSUMERS
While 1 in 2 esports
viewers have a smart TV,
traditional sports viewers
Traditional sports viewers
are predominately 35+ and
have a larger female
population
Predominately male, 25-34
of age and more ethnically
diverse—in contrast to the
white male stereotype that
exists within traditional sports
SHARED TRAITS
Price conscious, despite
theirspending power
Brand loyal; stick to the
brands they like enjoying
brands that reward loyalty
Frequent users of sports
merchandise; having made
purchases in the past
6 months
While 1 in 2 esports
viewers have a smart TV,
traditional sports viewers
do not
While still skewing slightly
male, traditional sports
viewers are slightly older and
more evenly split across males
and females than esports
More tech-savvy, turning
to online reviews before
making purchases
Competitiveonlinevideo gaming Competitivesportssuch as
NFL, NBA and MLB
Plus there is reason to believe the esports community is an audience not reached through other sports. A
recent study from GroupM agency Mindshare suggests they are more likely to be cord cutters and to employ
ad-blockers.
of thosewho watch
traditional sportssay they
haveplayed esports
of thosewho watch esports
say they watch traditional
sportsonline
GAMERS &
SPECTATORS
MEC Consumer Pulse also looked at the psychographics of esports viewers and found that these
tech-savvy consumers are open to non-traditional brand experiences and interactions, offering
opportunities for marketers to leverage emerging platforms and technology to connect in
authentic, experience-driven ways.
of Millennials prefer brand
logos player uniforms and
gear in-game play
of Millennials do not enjoy brand
sponsored messages by
commentators in-game play
first to buy
the latest tech
are looking to
try new brands
like products
automatically
sent to them
willing to share
personal info
with brands
support companies
that support
their causes
ESPORTS CONSUMERSARE OPENTOBRANDS
About MEC ConsumerPulse: MEC Consumer Pulse is our agency-driven A&I initiative that gives real insights and data on consumers and
beyond. Sourced from MEC’s proprietary survey, among 2500 respondents inthe U.S., fieldedbetween July 4th
through July 10th
.
GAMERS &
SPECTATORS
GAMERS &
SPECTATORS
HOW AND WHERE ARE ESPORTS EXPERIENCED?
Despite the intricacies that differentiate gamers from traditional sports fans, the real difference is the ways
in which gamers engage with esports.
• Play: Gamers play most often on PCs and connected consoles.
• Watch: Most eyeballs follow esports through their laptop or desktop browser, or connected TV.
Digital platforms like Twitch – whether on a browser, console or connected TV app – host livestreams
where fans follow the gameplay of their favorite athletes, enjoying both the game action and the picture-
in-picture stream of the players’ reactions.
• Live: Major competitions are growing in popularity in both digital and live attendance, with 112 events
bringing in $20.6M in ticket sales and 25M peak online viewership in 2015, according to Newzoo.
8
TOP DEVICES MOSTFREQUENT GAMERS USE1
1. Entertainment SoftwareAssociation “EssentialFacts2016”
GAMERS &
SPECTATORS
PC
GameConsole
Smartphone
Wireless Device
Dedicated
Handheld System
COMMUNITIES &
CULTURE
ESPORTS VIEWERSHIPIS ANASPECTOF
GAMINGCULTURE
A FAMILIARSPORTS ECOSYSTEM
We approach both kinds of sports with an eye to leveraging powerful equities and opportunities for reach
and relationship-building with the audience. There are broadcasts, uniforms and gear on which to place
logos, and celebrity athletes to sign into endorsement deals.
Newzoo forecasts that the U.S. will generate $175 million in esports revenue in 2016 from online
advertising, sponsorships, media rights, merchandise, tickets and additional publisher investment.1 But
unlike traditional sports, esports is still fragmented across different leagues and titles, without an obvious
NFL or NBA heavyweight to be organizer or gatekeeper. In addition, the variety of popular games mean
there are essentially multiple sub-categories within esports. It is also inherently a digital experience; all
gaming is happening through a screen whether you are watching or playing, in an arena or at home.
Nonetheless, it is a helpful analogy to compare the brand opportunity within esports to traditional field
and court sports.
When it comes to fans, the key differentiator between esports and traditional sports is the crossover
between players and viewers. According to a Nielsen study in 2015, only 10% of esports fans did not
themselves play video games. Imagine if NFL fans hit the gridiron at home at that rate!
1 + 3 . "Esports Consumer Analysis White Paper,“ as reported in Polygon. 2015.
2. Free Esports Report: The Valuable Esports Audience." Newzoo. March 2016
4. Twitch internal reporting
5. Twitch comScore data, as reported in Tech Crunch, February 2016
6. “YouTube Gaming is a great reminder of everything YouTube already does.” The Verge, September 2016.
As reflected in our Consumer Pulse research,esports and traditional sports (e.g. NFL, NBA, MLB) have
more in common than one might think
Esports, as a subset of all gaming, is mostly concerned
with rapid-response, high action competitive games.
According to Newzoo, most esports viewers are
between 21 and 35, with a significant number being
Millennial dads. Additionally, while only 30% of esports
fans are female, they represent 52% of all video game
viewers.2 EEDAR’s survey last year found that the most
popular reason MOBAfans watched the games was
because they loved watching the world's best players
(70%), followed by a desire to improve their own game
(57%) with 55% saying they watch when they cannot
play. 3
Surrounding the high-action, competitive culture of
esports is the co-viewing and spectating aspect.
Spectating is centered around platforms like Twitch,
where viewers can subscribe to popular gamers’ feeds
and regularly participate in communitychats as they
follow the gameplay. In addition to itsentertainment
value, Twitch content is engaging because viewers look
to it to learn how professional gamer-influencers get
past tricky levels, and thereby increase their own skill
level. Twitch also hosts on demand content like new
game reviews and reveals, and engages 1.5 million
broadcasters.
9
Gamers report a preference for playing and
spectating with friends, either while in the
same room or online
It may not look like the gang on the couch or at
the bar for Sunday Night Football, but esports
livestreaming is inherently a shared social
experience for fans.
There are two major viewing platforms that
support co-viewing:
Twitch originally spun off from Justin.tv, an
early, general topic livestreaming site created
by Stanford graduates. Today, it is the number
one livestreaming destination for esports. In
2015, Twitch hit 100 million monthly views.4
Gamers view 421.6 minutes of programming
per month on Twitch.tv, which is far higher
than YouTube’s 291 monthly minutes. The
social engagement is extreme: Twitch reports
3.6 million average daily chat interactions in
the US alone. 5
YouTube Gaming launched Summer 2015, is a
slickly designed app and specialized version of
YouTube that has yet to reach Twitch’s
community size, but given parent Alphabet’s
giant reach, we expect big things.6
COMMUNITIES &
CULTURE
CROSS PLATFORMVIEWINGOFLEAGUEPLAY
The Wall Street Journal has dubbed 2016 a turning point for the industry as several high-profile
partnerships take shape, most notably the ELEAGUE and ESPN’s esports vertical. Both are attempts to
serve the growing fan base of esports with content that mirrors the institutionsof traditional sports.
Inevitably, the broad reach of television and mainstream media coverage will lead to an increase in
awareness of esports among the general population.
Major League Gaming, or MLG (now owned by
Activision Blizzard) and Electronic Sports League
(based in Europe) are two incumbent esports leagues,
notable for hosting tournaments in Call of Dutyand
League of Legends, respectively. They are joined in
2016 by the ELEAGUE, a partnership between Turner
Sports and WME-IMG that is regularly bringing live
gameplay to television. ELEAGUE and TBS together
host a CounterStrike: Global Offensive team
tournament, one of the most played first-person
shooter games in the world.1 The tournament streams
live Tuesday through Thursday digitally and on
Twitch.tv, and each week the action concludes with a
Friday night live television broadcast on TBS.
At their 2016 digital upfront presentation, Activision
Blizzard announced their own big move, as of June,
MLG game play is streamed live within Facebook and
fans can now find competitions like Call of Duty on the
MLG.tv Facebook account.
Arby’s, Buffalo Wild Wings, and Credit Karma have
joined as title sponsors for the ELEAGUE in its first
iteration. So far, buzz has been soft on the televised
segments and it has not yet been proven that the
digital audience for esports is looking for opportunities
to move to TV viewing. A second 10-week tournament
is planned for the Fall.
1. "Turner set to unveil televised esports league featuring CS:GO" Daily Dot, September 2015.10
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.
MEDIAAND EVENTS
Esports broadcasts feature many of the same advertising options as traditional sports: logos and
branding on set, commentator booths, commercial spots and product placement. Gameplay has few
natural breaks for sponsor messages, unlike the time outs and quarter breaks common to American
football, for example. Also unique is the extent to which spectators are also players themselves. Brand-
led experiences that help the audience connect, especially offline, can be powerful acquisition and
affinity-building activations. Tournaments, conventions and gaming events are growing in popularity,
and bringing in new audiences just as they create opportunities for brands to own a special occasion.
The variety of different popular games means there are several “Super Bowls” a year. Sponsoring a high-
profile annual event is a significant investment in this space and an opportunity to build brand affinity
with the audience.
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: 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 2015League 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.
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 itsown 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.
11
BRANDS GET IN
THE GAME
BRANDS GET IN
THE GAME
SPONSORATEAMORPLAYER
Superstar esports athletes are powerful brand ambassadors. According to GroupM agency research, 61% of
esports fans said that they see esports players and teams as "moderate" or “major“ celebrities wielding
influence. They may not seem flashy, but pro esports athletes are admired for their skill and for how they
connect with their fans as peers.
INTEGRATE INTOPOPULARPLATFORMS
Amazon purchased Twitch for nearly $1 billion with a clear sense of itspotential as a platform for
connecting brands to the growing esports audience. Twitch attracts millions of eyeballs, and unlike many of
the leagues and game-specific events, the platform draws fans of different games and different levels of
engagement, from casual to more intense or ‘hard-core.’ Because it is the most established and high profile
platform for esports, Twitch offers a variety of formats and scale for brands to engage the audience of
esports viewers. Opportunities to sponsor a livestream or popular gamer’s channel are fairly turnkey,
though some brands have gotten creative with product integrations as well. In the future, we expect
YouTube Gaming to offer similar brand opportunities.
EXAMPLE: RED BULL
Making its first steps into esports sponsorship in 2008, Red Bull played a key part in contributing to the
growth of esports in the subsequent years. Renowned for its marketing savvy, Red Bull helped spread the
word about esports and today hosts an online hub for esports news and media. Red Bull was one of the first
non-endemic brands to sponsor professional gamers, using this platform to build reputation and reach with
the audience of mostly young males worldwide.
One of the most biggest names in League of Legends is
Red Bull-sponsored Soren Bjerg, also known as Bjergsen
(his gaming handle), who currently plays for Team
SoloMid, an American LoL club. His influence reaches
300,000 fans on Facebook, and 633,000 Twitter
followers. The real impact is, unsurprisingly, on Twitch,
where his stream countsmore than 68 million views and
has more than one million subscribers.
12
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.
CONSIDERATIONS:
HOW TO DO ESPORTS RIGHT
BEWARE OFINCUMBENTS
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 itspassionate 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.
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 CANBE 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 world’s 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.
BETRAY THE CULTURE ANDGET FLAMED
A wrong-headed foray into esports canbe embarrassing if the hyper-social audience feels a brand
initiative has fallen flat, or worse,degraded their experience
It goes without saying that disruptive or interruptive advertising will be received negatively. Twitch
commenters, for example, are not shy about expressing skepticism toward commercial efforts and
anything that smells of “sell out.” Again, this can make an esports partnership even more powerful. If a
brand can avoid a “fail” and successfully align with the culture, as in the Snickers example, it will
be rewarded.
Whilethese considerations are important, they need not be prohibitive—whatever your level of
skepticism toward esports, the reality is that it is very popularand it is onlygoing 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
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.
13
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
DOES NOT FIT THE
STEREOTYPE
Data shows that gamers are both older and earn a greater HHI than
the “teen in mom’s basement” stereotype you might have in mind.
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
BRAND-SATURATED
Unlike most traditional sports, there are few established
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
VALUE EXCHANGE IS
VITAL
The culture of esports is driven by shared passions and places a
premium on genuineness and authenticity. These digital natives
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
LANDSCAPE IS MORE
FRAGMENTED THAN
ANY OTHER SPORT
Leagues and acquisitions are beginning to consolidate the diverse
array of genres, games, playing platforms and viewing experiences.
Today, fans of one game title might never pay attention to even
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.
For questions orto request more information, please contact
Catherine Halaby (Catherine.Halaby@mecglobal.com).
www.mecglobal.com

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Spotlight On_Esports

  • 2. INTRODUCTION A primer on the hot spectator sport making headlines this year—esports ABOUT ESPORTS & THE RISE OF GAMING A look at the history, the terminology, genres and the rise in popularity of esports GAMERS & SPECTATORS A deep dive on the esports consumer including demographics, usage and brand preferences COMMUNITIES & CULTURE Understanding the esports ecosystem regarding partnerships and platforms BRANDS GET IN THE GAME How brands can and should get involved CONSIDERATIONS: HOW TO DO ESPORTS RIGHT What marketers should keep in mind when considering esports opportunities KEY TAKEAWAYS The most important points marketers should take with them regarding esports 2
  • 3. 1. "Worldwideesportsmarket report,” SuperDataResearch, July 2016. 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 NFL—we are talking about electronic sports, also known as esports. Esports (defined as competitive online video gaming) has not only become a cultural phenomenon, but also offers opportunities for brands to reach a unique community of fans. Like many popular sports, a tremendous business ecosystem has been built around esports (a subset of gaming). Game publishers, hardware manufacturers, formal leagues, tournaments, connected play and streaming platforms serve a growing customer and viewership base of millions. Analysts believe the total worldwide market for esports will surpass $700 million in 2016,while viewership – at 214 million today – will cross 303 million by 2019.1 From its roots in geek culture to its increasing mainstream popularity, gamers and esports fans participate in a strong communitythat despises inauthenticity and is quick to reject a relationship with brands that do not deliver a clear value. This offers both opportunity and challenges for advertisers to connect with esports’ young, tech- savvy and mostly male audience, a demographic that is increasingly avoiding brand messaging on many platforms. Establishing relationships with major league sports have proven to be an effective channel through which to attain reach and build equity, and esports is no different with its vast and scalable universe of opportunity. This Spotlight On Esports explores the rapidly evolving world of gaming and esports, including how the landscape is primed for growth, a deep dive into the esports audience and considerations for how brands can get some gameplay! INTRODUCTION
  • 4. Atari holdstheSpace InvadersTournament, the first video game competition. Attracting 10,000+ participants worldwide, othersfollow with similar events over the coming years, sowing the seeds of what would eventually becomeesports. The popularity of video game spectating first arose in the arcades of the 70sand 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. Let’s start at the beginning with a brief history… ABOUT ESPORTS & THE RISE OF GAMING FROM THE ARCADE TOTHE ARENA Considered thepioneer of professional video gametournaments, the Cyberathlete Professional League (CPL) isfounded with prizesworth $4K. Blizzard releasesthefirst StarCraft.By 2004, it willsell 9.5M copies, with half of salesin South Koreaalone. XBOXLivelaunches, accelerating multiplayer online gameplay through aconnected consoleand PC platform. Intel sponsors theIntel ExtremeMasters (IEM) in Seattle, WA, now thelongest- running esportstournament.Red Bull entersesports, working with pro gamers likeHalo legend David “Walshy”Walsh. Riot Gamesreleasesthe multiplayer onlinearena gameLeagueof Legends. Within 5 years, LoL reaches 27M daily playersand 67M playersmonthly. Twitch, adedicated gameplay live-streaming platform, launches in public beta. TheU.S. State Department begins granting visasto professional gamersunder thesame program used by traditional athletes. Amazon buysTwitch ina$970 million deal inAugust. By December, Twitch isaveraging 100 million viewersper month worldwide. TheLeagueof LegendsWorld Championships packsastadium in South Korea with 40K fans, and attracts27M liveviewersworldwide. ESPN.com launchesesportsvertical. Thefirst ELEAGUE TV broadcast beginson TBS. At E3, Facebookand Activision Blizzardannouncea partnership to stream league gameplay withinFacebook. 1. "Esports market goes mainstream as viewership reaches 214M" SuperData Research. July 2016.4
  • 5. Despite the fact that esports does categorize as a sport, esports gameplay is as unique as its fan base with ambitious titles, creative storylines and realistic worlds. Gaming titles fall in one of the below categories: First Person Shooter (FPS) – In first-person perspective [think of the player seeing digital versions of their hands with a weapon] characters move through environments, clearing them of enemies. Popular titles include the Call of Dutyfranchise and CounterStrike. This is the most popular genre for play, across ages, genders and self- identified casual and hardcore gamers. Real Time Strategy (RTS) – Characterized by continuous play within a changing map, where players build unitsand control territory while subverting the efforts of their competitors to do the same. StarCraft, hugely popular in Korea, is a defining example of the genre. Multiplayer Online Battle Arena (MOBA) – A sub-genre of RTS, MOBAgames take place between teams who must defend territory and take out the home base of their opponents within a set arena. These games are the second most common format, and the most popular among 18-24 year olds. MOBAis the only format more watched than played. League of Legends and DOTA are two hit titles. Fighting – Head-to-head combat games like Mortal Kombat and Street Fighter. As the name implies, they tend to be violent, blood-splattered affairs, but can also be cartoonish and comical, like Super Smash Bros. POPULARESPORTS GAMINGGENRES ARE ELECTRONICSPORTS REALLYASPORT? A simple definition of esports is competitive video gameplay between internet-connected players, and the fandom that cheers them on. Outside observers may debate if that meets their definition of sport, but the market has clearly decided – the answer is yes! Success as a gamer requires many of the same key qualities as “traditional” athletes: skill, strategy and competence earned through practice and dedication. For the audience, the drama of sport is all there—the excitement of watching elite players, the experience of camaraderie in cheering along with a community of fans and the thrill of following the competition live as it happens. ABOUT ESPORTS & THE RISE OF GAMING 5 An in-gamescreen captureofStarcraft, areal timestrategy game An in-gamescreen captureofCounterStrike: Global Offensive, afirst personshootergame
  • 6. GAMERS ARE ADIVERSE GROUP “Gamer” is a general term; it can refer to people who play any and all video games, including mobile and casual social games. Those who identify as gamers can be players and fans, or just people who feel at home within gaming culture. When we talk specifically about the esports audience, we are usually talking about the coveted Millennial male. However, despite the fact that they are young, they are not juvenile, rather they are tech-savvy, educated and have a lot of spending power. A recent U.S. study by research firm Newzoo found that 60% of esports fans are between the ages of 25 and 39. 1 Because of their similar nomenclature, it is inevitable that we compare esports and the traditional sport landscape. While one might assume overlap in consumer audience, there are distinct characteristics of each that are important for marketers to understand. An MEC Consumer Pulse study found that esports viewers skew younger and male, in addition to being more ethnically diverse and tech-savvy, however they are driven by emerging platforms and new tech, making them an ideal candidate for the right brands to engage. 1-3. "Free Esports Report: The Valuable Esports Audience." Newzoo. March 2016. 6 of esports fans are Millennial males, and have a higher household income than the U.S. average.2 of total esports fans are women– equal to the share of audience made up of women of the NBA & MLB.3 ESPORTS VS.TRADITIONALSPORTSCONSUMERS While 1 in 2 esports viewers have a smart TV, traditional sports viewers Traditional sports viewers are predominately 35+ and have a larger female population Predominately male, 25-34 of age and more ethnically diverse—in contrast to the white male stereotype that exists within traditional sports SHARED TRAITS Price conscious, despite theirspending power Brand loyal; stick to the brands they like enjoying brands that reward loyalty Frequent users of sports merchandise; having made purchases in the past 6 months While 1 in 2 esports viewers have a smart TV, traditional sports viewers do not While still skewing slightly male, traditional sports viewers are slightly older and more evenly split across males and females than esports More tech-savvy, turning to online reviews before making purchases Competitiveonlinevideo gaming Competitivesportssuch as NFL, NBA and MLB Plus there is reason to believe the esports community is an audience not reached through other sports. A recent study from GroupM agency Mindshare suggests they are more likely to be cord cutters and to employ ad-blockers. of thosewho watch traditional sportssay they haveplayed esports of thosewho watch esports say they watch traditional sportsonline GAMERS & SPECTATORS
  • 7. MEC Consumer Pulse also looked at the psychographics of esports viewers and found that these tech-savvy consumers are open to non-traditional brand experiences and interactions, offering opportunities for marketers to leverage emerging platforms and technology to connect in authentic, experience-driven ways. of Millennials prefer brand logos player uniforms and gear in-game play of Millennials do not enjoy brand sponsored messages by commentators in-game play first to buy the latest tech are looking to try new brands like products automatically sent to them willing to share personal info with brands support companies that support their causes ESPORTS CONSUMERSARE OPENTOBRANDS About MEC ConsumerPulse: MEC Consumer Pulse is our agency-driven A&I initiative that gives real insights and data on consumers and beyond. Sourced from MEC’s proprietary survey, among 2500 respondents inthe U.S., fieldedbetween July 4th through July 10th . GAMERS & SPECTATORS GAMERS & SPECTATORS
  • 8. HOW AND WHERE ARE ESPORTS EXPERIENCED? Despite the intricacies that differentiate gamers from traditional sports fans, the real difference is the ways in which gamers engage with esports. • Play: Gamers play most often on PCs and connected consoles. • Watch: Most eyeballs follow esports through their laptop or desktop browser, or connected TV. Digital platforms like Twitch – whether on a browser, console or connected TV app – host livestreams where fans follow the gameplay of their favorite athletes, enjoying both the game action and the picture- in-picture stream of the players’ reactions. • Live: Major competitions are growing in popularity in both digital and live attendance, with 112 events bringing in $20.6M in ticket sales and 25M peak online viewership in 2015, according to Newzoo. 8 TOP DEVICES MOSTFREQUENT GAMERS USE1 1. Entertainment SoftwareAssociation “EssentialFacts2016” GAMERS & SPECTATORS PC GameConsole Smartphone Wireless Device Dedicated Handheld System
  • 9. COMMUNITIES & CULTURE ESPORTS VIEWERSHIPIS ANASPECTOF GAMINGCULTURE A FAMILIARSPORTS ECOSYSTEM We approach both kinds of sports with an eye to leveraging powerful equities and opportunities for reach and relationship-building with the audience. There are broadcasts, uniforms and gear on which to place logos, and celebrity athletes to sign into endorsement deals. Newzoo forecasts that the U.S. will generate $175 million in esports revenue in 2016 from online advertising, sponsorships, media rights, merchandise, tickets and additional publisher investment.1 But unlike traditional sports, esports is still fragmented across different leagues and titles, without an obvious NFL or NBA heavyweight to be organizer or gatekeeper. In addition, the variety of popular games mean there are essentially multiple sub-categories within esports. It is also inherently a digital experience; all gaming is happening through a screen whether you are watching or playing, in an arena or at home. Nonetheless, it is a helpful analogy to compare the brand opportunity within esports to traditional field and court sports. When it comes to fans, the key differentiator between esports and traditional sports is the crossover between players and viewers. According to a Nielsen study in 2015, only 10% of esports fans did not themselves play video games. Imagine if NFL fans hit the gridiron at home at that rate! 1 + 3 . "Esports Consumer Analysis White Paper,“ as reported in Polygon. 2015. 2. Free Esports Report: The Valuable Esports Audience." Newzoo. March 2016 4. Twitch internal reporting 5. Twitch comScore data, as reported in Tech Crunch, February 2016 6. “YouTube Gaming is a great reminder of everything YouTube already does.” The Verge, September 2016. As reflected in our Consumer Pulse research,esports and traditional sports (e.g. NFL, NBA, MLB) have more in common than one might think Esports, as a subset of all gaming, is mostly concerned with rapid-response, high action competitive games. According to Newzoo, most esports viewers are between 21 and 35, with a significant number being Millennial dads. Additionally, while only 30% of esports fans are female, they represent 52% of all video game viewers.2 EEDAR’s survey last year found that the most popular reason MOBAfans watched the games was because they loved watching the world's best players (70%), followed by a desire to improve their own game (57%) with 55% saying they watch when they cannot play. 3 Surrounding the high-action, competitive culture of esports is the co-viewing and spectating aspect. Spectating is centered around platforms like Twitch, where viewers can subscribe to popular gamers’ feeds and regularly participate in communitychats as they follow the gameplay. In addition to itsentertainment value, Twitch content is engaging because viewers look to it to learn how professional gamer-influencers get past tricky levels, and thereby increase their own skill level. Twitch also hosts on demand content like new game reviews and reveals, and engages 1.5 million broadcasters. 9 Gamers report a preference for playing and spectating with friends, either while in the same room or online It may not look like the gang on the couch or at the bar for Sunday Night Football, but esports livestreaming is inherently a shared social experience for fans. There are two major viewing platforms that support co-viewing: Twitch originally spun off from Justin.tv, an early, general topic livestreaming site created by Stanford graduates. Today, it is the number one livestreaming destination for esports. In 2015, Twitch hit 100 million monthly views.4 Gamers view 421.6 minutes of programming per month on Twitch.tv, which is far higher than YouTube’s 291 monthly minutes. The social engagement is extreme: Twitch reports 3.6 million average daily chat interactions in the US alone. 5 YouTube Gaming launched Summer 2015, is a slickly designed app and specialized version of YouTube that has yet to reach Twitch’s community size, but given parent Alphabet’s giant reach, we expect big things.6
  • 10. COMMUNITIES & CULTURE CROSS PLATFORMVIEWINGOFLEAGUEPLAY The Wall Street Journal has dubbed 2016 a turning point for the industry as several high-profile partnerships take shape, most notably the ELEAGUE and ESPN’s esports vertical. Both are attempts to serve the growing fan base of esports with content that mirrors the institutionsof traditional sports. Inevitably, the broad reach of television and mainstream media coverage will lead to an increase in awareness of esports among the general population. Major League Gaming, or MLG (now owned by Activision Blizzard) and Electronic Sports League (based in Europe) are two incumbent esports leagues, notable for hosting tournaments in Call of Dutyand League of Legends, respectively. They are joined in 2016 by the ELEAGUE, a partnership between Turner Sports and WME-IMG that is regularly bringing live gameplay to television. ELEAGUE and TBS together host a CounterStrike: Global Offensive team tournament, one of the most played first-person shooter games in the world.1 The tournament streams live Tuesday through Thursday digitally and on Twitch.tv, and each week the action concludes with a Friday night live television broadcast on TBS. At their 2016 digital upfront presentation, Activision Blizzard announced their own big move, as of June, MLG game play is streamed live within Facebook and fans can now find competitions like Call of Duty on the MLG.tv Facebook account. Arby’s, Buffalo Wild Wings, and Credit Karma have joined as title sponsors for the ELEAGUE in its first iteration. So far, buzz has been soft on the televised segments and it has not yet been proven that the digital audience for esports is looking for opportunities to move to TV viewing. A second 10-week tournament is planned for the Fall. 1. "Turner set to unveil televised esports league featuring CS:GO" Daily Dot, September 2015.10 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.
  • 11. MEDIAAND EVENTS Esports broadcasts feature many of the same advertising options as traditional sports: logos and branding on set, commentator booths, commercial spots and product placement. Gameplay has few natural breaks for sponsor messages, unlike the time outs and quarter breaks common to American football, for example. Also unique is the extent to which spectators are also players themselves. Brand- led experiences that help the audience connect, especially offline, can be powerful acquisition and affinity-building activations. Tournaments, conventions and gaming events are growing in popularity, and bringing in new audiences just as they create opportunities for brands to own a special occasion. The variety of different popular games means there are several “Super Bowls” a year. Sponsoring a high- profile annual event is a significant investment in this space and an opportunity to build brand affinity with the audience. 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: 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 2015League 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. 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 itsown 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. 11 BRANDS GET IN THE GAME
  • 12. BRANDS GET IN THE GAME SPONSORATEAMORPLAYER Superstar esports athletes are powerful brand ambassadors. According to GroupM agency research, 61% of esports fans said that they see esports players and teams as "moderate" or “major“ celebrities wielding influence. They may not seem flashy, but pro esports athletes are admired for their skill and for how they connect with their fans as peers. INTEGRATE INTOPOPULARPLATFORMS Amazon purchased Twitch for nearly $1 billion with a clear sense of itspotential as a platform for connecting brands to the growing esports audience. Twitch attracts millions of eyeballs, and unlike many of the leagues and game-specific events, the platform draws fans of different games and different levels of engagement, from casual to more intense or ‘hard-core.’ Because it is the most established and high profile platform for esports, Twitch offers a variety of formats and scale for brands to engage the audience of esports viewers. Opportunities to sponsor a livestream or popular gamer’s channel are fairly turnkey, though some brands have gotten creative with product integrations as well. In the future, we expect YouTube Gaming to offer similar brand opportunities. EXAMPLE: RED BULL Making its first steps into esports sponsorship in 2008, Red Bull played a key part in contributing to the growth of esports in the subsequent years. Renowned for its marketing savvy, Red Bull helped spread the word about esports and today hosts an online hub for esports news and media. Red Bull was one of the first non-endemic brands to sponsor professional gamers, using this platform to build reputation and reach with the audience of mostly young males worldwide. One of the most biggest names in League of Legends is Red Bull-sponsored Soren Bjerg, also known as Bjergsen (his gaming handle), who currently plays for Team SoloMid, an American LoL club. His influence reaches 300,000 fans on Facebook, and 633,000 Twitter followers. The real impact is, unsurprisingly, on Twitch, where his stream countsmore than 68 million views and has more than one million subscribers. 12 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.
  • 13. CONSIDERATIONS: HOW TO DO ESPORTS RIGHT BEWARE OFINCUMBENTS 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 itspassionate 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. 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 CANBE 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 world’s 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. BETRAY THE CULTURE ANDGET FLAMED A wrong-headed foray into esports canbe embarrassing if the hyper-social audience feels a brand initiative has fallen flat, or worse,degraded their experience It goes without saying that disruptive or interruptive advertising will be received negatively. Twitch commenters, for example, are not shy about expressing skepticism toward commercial efforts and anything that smells of “sell out.” Again, this can make an esports partnership even more powerful. If a brand can avoid a “fail” and successfully align with the culture, as in the Snickers example, it will be rewarded. Whilethese considerations are important, they need not be prohibitive—whatever your level of skepticism toward esports, the reality is that it is very popularand it is onlygoing 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 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. 13
  • 14. 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 DOES NOT FIT THE STEREOTYPE Data shows that gamers are both older and earn a greater HHI than the “teen in mom’s basement” stereotype you might have in mind. 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 BRAND-SATURATED Unlike most traditional sports, there are few established 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 VALUE EXCHANGE IS VITAL The culture of esports is driven by shared passions and places a premium on genuineness and authenticity. These digital natives 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 LANDSCAPE IS MORE FRAGMENTED THAN ANY OTHER SPORT Leagues and acquisitions are beginning to consolidate the diverse array of genres, games, playing platforms and viewing experiences. Today, fans of one game title might never pay attention to even 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. For questions orto request more information, please contact Catherine Halaby (Catherine.Halaby@mecglobal.com). www.mecglobal.com