Buy low, sell high. Everyone in business knows and understands this principle. However, many miss the opportunity to buy low while they sit on the sidelines and wait to see if that risky opening will turn into anything. Well, now is that golden moment to invest in esports if you are a brand marketer. The business environment in esports has developed to a point of stability while the cost of sponsorship investment is still relatively low, especially when compared to traditional sports.
Here’s the situation. Esports looks at lot like traditional sports right now, with professional athletes, teams, official leagues, and sponsorships.
There are a few key differences that make esports perhaps even more appealing than traditional sports for consumer brands.
- The audience of esports is younger than traditional sports.
- The platforms are all digital, which means measuring the impact and ROI of esports sponsorship doesn’t involve any assumptive models.
- The cost to sponsor is still low.
Why do these matter? If you are a consumer brand and want to be relevant to the younger audience (those aged 18 to 35), esports has that audience in the millions. Compare that to traditional sports. The average age of an MLB fan is 57. For the NFL, it’s 50 years old. The MLS has the youngest audience of the major sports at 40 years old.
With all the fan engagement happening online for esports, tracking and measuring ROI and ROO for that sponsorship investment is easy. Want website traffic? Measurable. Want online sales from that traffic? Measurable. Want to understand the full scope of your brand exposure and engagement with fans? Measurable.
You can’t manage what you don’t measure, and, in esports, everything related to your sponsorship is measurable with the right sponsorship technology tools.
Let’s look at an example. State Farm, a long-time sports sponsor, has invested in Riot’s League of Legends NA LCS. Its primary motive? Be top of mind with people aged 22 to 26 who are making their first insurance purchasing decisions. Its investment is paying off—check out the guide to see the stats on State Farm’s sponsorship for the NA LCS Championship Weekend.
Here’s what you’ll find in the guide:
- Executive Summary
- Esports – Why Is It Interesting For Brand Marketers
- Sponsorships in Esports
- Social Media and Esports
- Measuring Esports Investments
- What Does The Data Say?
- Key Takeaways
About the author: Roger A. Breum is the Director of Marketing at Hookit where he leads the marketing team, partnerships, and events. In this role, he is focused on bringing insights to the business of sponsorship. He has worked across the sports industry, including positions with BridgeAthletic, Repucom, Under Armour, and the World Surf League. He received his B.S. in Engineering (Mechanical) from Trinity College and his MBA from Stanford Graduate School of Business.
About Hookit: A pioneer in the spontech space, Hookit is the leading single source platform for quantifying sports sponsorship value across all forms of media. Hookit works with brands and rights holders to expand their sponsorship intelligence, allowing them to buy and sell sponsorships more effectively. Learn more at www.hookit.com.