More Than 600 Esports Sponsorships Secured Since Start Of 2016
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Hundreds of brands have decided to enter into esports sponsorship agreements, including those surrounding live events (Photo: KAZUHIRO NOGI/AFP/Getty Images)
Since the start of 2016, over 600 esports sponsorship agreements have been signed, with the majority of them coming from the IT/computer space. More than 360 IT/computer sponsorships have been secured, followed by retail with over 100 deals, online services (60+), non-alcoholic drinks (50+) and online media (40+), according to Nielsen NLSN +0.32% Market Intelligence.
The industry has come a long way since 2014, when big brands such as Red Bull and McDonald’s were first testing the water with esports competitions.
There are different forms of sponsorship in the space. Some brands choose to associate with esports teams while others are more interested in aligning with events and tournaments as well as broadcast platforms.
The sponsorship deals do not only involve endemic brands. Companies in categories such as automotive, food/beverage, personal care and finance, including the lending market, are more actively engaging in esports endorsement activity.
Interestingly, the general assumption is that esports fans abhor sponsors entering the space and that it is a major problem for the industry. However, the data suggests otherwise. 50-60% of respondents have favorable responses toward brand involvement in esports events and streams, with less than 10% providing a negative response to brand activity, per Nielsen Esports’ first fan report.
That said, there is an uptick in resistance to non-endemic brand activity particularly in France where 31% of esports fans feel that non-endemic brand activity is not at all appropriate. Yet, even though they are not truly endemic, brands in the sectors of technology, energy drinks and snack foods are most accepted as potential esports sponsors after endemic companies, likely because they are so ingrained in the esports experience.
Thus far in 2017, the top categories represented in terms of brands tracked with esports are energy drinks, fast food, headsets, PC tech, PC hardware, gaming PCs, gaming software, esports news and gaming chairs.
When it comes to sports titles, 49% of the sponsorship is in-game. This has helped sponsors get their logos incorporated into esports in as authentic a way as possible. Roughly 18% of brand exposure in sports titles comes from each broadcaster mentions and apparel.
In August, Nielson announced the launch of Nielsen Esports with the intention of providing sponsorship valuation, fan insights, custom industry research and consulting services to rights holders, media platforms and brands in the competitive video gaming space. It has now delivered on its promise to release fan insights at no cost with information spanning the U.S., U.K., Germany and France.
Source: Forbes