ESports Sponsorships: The New Frontier for Brand Marketing

eSports has grown into a phenomenal industry worth over 1.45 billion US dollars. It involves teams and individuals competing against each other in video games for a chance to win cash and bragging rights. It works the same as sports, though it doesn’t involve sportsmen or women. Instead, it is a competition of individuals sitting behind screens. The origin of these events dates back to the 1970s and is currently approaching its peak. Millions of people worldwide watch the competitions on Twitch or YouTube. The tournaments are also huge, and soon it may make an Olympic debut.

The love for these games has made it ripe for sponsorships. All the top teams have millions worth of sponsorships from reputable brands. Since these events attract millions of people, brands have found a classic opportunity for publicity and marketing. The popularity has also extended to the online gambling industry. Hence, you can go to trusted casinos like Ice Casino online to bet on your favorite eSports teams.

Due to their demanding nature and allure, esports need sponsorships just like regular sports. The teams must meet their logistical costs and other needs to remain competitive. Players also have salaries since most of them have taken it up as a full-time profession. The teams usually prepare rigorously before competitions. They often have establishments with video games where their players meet to practice and get other wellness programs. Also, the tournaments are held in diverse locations across the globe, so travel and accommodation costs must be covered.

The main sources of money for these teams include sponsorships, cash prizes from victories, league payments, and merchandising. However, the bulk of the money comes from sponsorships. It is a consistent source of cash that can be reliable for teams.

Different Types of eSports Partnerships

This new frontier for brand marketing can occur in different formats. The choice of partnerships usually depends on performance, visibility, and fans. However, the contracts typically run for a specified period and undergo regular reviews to assess the ROI. If there is a dip in performance, uncertainty, or a change of regulations, the sponsors may withdraw their cash. Let us take a look at the different types of sponsorships.

Player Sponsorships

Just like normal sports, eSports have star players with great accolades and a huge following. A brand can partner with a gamer to be marketed on their streaming platforms. They could receive promo codes to share on their feeds and earn money depending on the conversion rates.

Team Sponsorship

This is the most popular kind of partnership in the entire sports world. Brands can decide to be the official sponsor of a team. Hence, they don uniforms that promote the brand. The team’s merchandise will also market the sponsor, increasing visibility. Most brands choose to sponsor a team for a defined period instead of a single tourney.

League Sponsorships

Big brands can afford to sponsor an entire eSports tournament. They get visibility from the media coverage, live performances, and on-air broadcasters. Since they usually attract millions of people, including the fans of all the participating teams, this could be a profitable initiative for most businesses.

Key eSports Sponsorships of 2024

The year 2024 has resulted in the start and renewal of spectacular sponsorships worldwide. Some of these multimillion-dollar initiatives have set precedence that will encourage more of them to take up the venture. Here are key eSports sponsorships of 2024:

• NRG eSports team sponsorship with Panda Express focused on Rocket League;
• Uber Eats sponsorship of LEC;
• Continuation of the partnership between GIANTX and MAGGI FUSIAN;
• Rainbow Six Siege Six Invitational 2024 partnership with JBL, Lenovo, CTRL, Aura, Kingston Technology, Intel, and Eureka Ergonomics;
• VALORANT Challengers DACH partnership with HanseMerkur.

These are the remarkable partnerships that have hit the headlines in 2024. To obtain them, brands require teams and tournaments to show how much value they will add. You should know your audience and approach brands that focus on them. Then, proceed to settle on the size of support, the contract length, and the exit clause.

Which Are the Most Popular eSports?

The most popular eSports games include League of Legends, CS:GO, Overwatch, Dota 2, Fortnite, and PUBG. They are ranked according to the number of viewers, the size of prize money, and the number of competitors. The top teams, such as Team Liquid, Vici Gaming, and Invictus Gaming, compete in these games. The growth of this industry will lead to the emergence of other games and more formidable teams to compete for incredible prizes.

ESports sponsorships have redefined this industry by providing the much-needed resources required for growth. Brands are approaching this new frontier with enthusiasm because of the potential to reach millions of viewers. The most popular sponsorships are team sponsorships, though tournament sponsorships are becoming more common. We look forward to more of them as the industry continues to grow.