Brands Level Up: How Companies Are Conquering the Esports Arena

Esports: what started as a playground for gamers has now become a marketing battleground where brands have entered the landscape to gather the mass attention of a larger, engaged audience. Brands not only have to focus on traditional advertising; now savvy companies are diving headfirst into the digital arena, leveraging the power of esports to connect with a younger, tech-savvy audience.

But how exactly are they doing it? Let’s take a look at how brands are conquering the esports landscape:

1. From Sponsorships to Team Ownership

• Traditional Sponsorships: Like in traditional sports, brands sponsor teams, players, and tournaments, plastering their logos on jerseys, banners, and even in-game elements. Think Red Bull fueling gamers with energy drinks, or Intel powering high-performance gaming rigs.

• Team Ownership: Taking it a step further, some brands are investing in owning entire esports teams. For example, Mercedes-Benz owns multiple teams in the sim racing world called the Mercedes-AMG PETRONAS, showing a deep commitment to the scene and building brand loyalty among fans. The NBA 2K League also has NBA teams rivalling against each other in a tournament to win additional prize money and to be crowned the league champion.

2. Influencer Marketing: The Power of Personalities

• Streamer Collaborations: Twitch and YouTube Gaming are the colosseum of esports, and streamers are the gladiators. Brands are partnering with popular streamers to reach millions of viewers, integrating products into streams, sponsoring giveaways, and creating engaging content. Examples of this are gamers like Shroud who collaborates with Logitech to create his line of gaming gear. We also have streamers like Kai Cenat who is sponsored by Nike and Ninja who was sponsored by Adidas and had the opportunity to create a shoe with the brand.

• Player/Team Endorsements: Top esports athletes and teams have massive followings, and brands are tapping into their influence. For example, Nike’s partnership with League of Legends superstar Faker legitimizes its presence in the gaming world. We also have 100Thieves, a gaming organization that partnered with Gucci to showcase their introduction to esports through a collaboration with apparel.

3. In-Game Advertising: Reaching Players Where They Play

• Virtual Billboards and Product Placement: Imagine seeing a virtual Coca-Cola billboard in your favourite game, or your character sporting a pair of Adidas sneakers. In-game advertising seamlessly integrates brands into the gaming experience, offering a non-intrusive way to reach players.
• Branded In-Game Items: Exclusive skins, weapons, or accessories with brand logos offer players a way to express their fandom while providing valuable exposure for companies. Fortnite is a perfect example of this. Brands like Marvel would release in-game skins on Fortnite for players to advertise their upcoming movies. Fortnite also released collaborations with Polo Ralph Lauren and Moncler. This is a perfect way for brands to reach a wider audience. In-game items are the most common and effective way for brands to get their name out to the player base.

4. Experiential Marketing: Creating Unforgettable Moments

• Game Events and Festivals: Brands are creating immersive experiences in-game, at esports events, setting up gaming lounges, hosting meet-and-greets with pro players, and offering interactive demos. These activations create lasting memories and foster positive brand associations. Examples include the Esports World Cup, CDL, Fortnite World Cup, etc. Travis Scott, JuiceWrld and Ariana Grande would host virtual concerts in Fortnite to market their singles or album releases. Ariana Grande’s Fortnite feature amassed 9.9M YouTube Views on Ariana Grande’s channel and 2.8M on Fortnite’s channel. During the 2017 League of Legends Worlds Championship in Beijing at the opening ceremony, audiences were met with a CGI dragon that could be seen flying around the stadium. This garnered 21M YouTube views

5. Content is King

• Creating Engaging Content: Brands are starting to explore beyond traditional advertising by creating content that resonates with esports fans. This includes game guides, player interviews, tournament highlights, and behind-the-scenes documentaries, all designed to entertain and inform. For example, Honda and State Farm have partnered with Twitch to create Twitch Rivals, where the biggest streamers and esports personalities battle against each other in different games throughout the year. We also have BMW creating with eSports Team “FNATIC” a content series they call “Drive is the Difference”, to give fans a behind-the-scenes look into pro-gamer’s lives. Another content series is called When Ultimates Meet, where esports and motorsports collaborate to create content on their YouTube channel.

Why eSports?

The appeal of esports marketing is clear:

• Massive and Growing Audience: Esports boasts a global audience of millions, and it’s only getting bigger. A survey from Statista released in 2024 shows that the global eSports market revenues in 2022 were $1.64 billion USD and are forecasted to be $10.91 billion USD by 2032.
• Engaged and Influential Demographic: Esports fans are young, passionate, and highly active on social media, making them ideal brand advocates.
• Measurable Results: Brands can track the effectiveness of their esports marketing campaigns through metrics like website traffic, social media engagement, and sales.

2024 saw brands like Porsche partnering with Overwatch, Chipotle partnering with Disguised, Adidas with 100 Thieves, OpTic and Juventus, and many more. The list of brands entering eSports keeps growing and growing. As esports continues its meteoric rise, brands that embrace this dynamic landscape will be well-positioned to connect with a valuable and influential audience. The game is on!