Esports has become a global industry with a growing revenue of billions of dollars in recent years. With this explosive growth, brands from all industries—from energy drinks and tech companies to luxury apparel and automotive giants—are getting on board to invest in esports sponsorship. The real question for marketers and executives, however, is: What is the true effect of this sponsorship on brand visibility?
The Rise of Esports and Sponsorship Opportunities
On average, the Esports audience is diverse and highly engaged, with most of it being millennials and Gen Z. Newzoo reports that the global esports audience was over 500 million in 2023 and will continue to grow. This audience consumes content across platforms like Twitch, YouTube Gaming, and TikTok, enabling brands to get multiple points of touch.
Sponsorship opportunities include tournament title sponsorships, in-game branding, influencer partnerships with esports athletes, endorsements with an esports team, and branded content. Sponsorships give brands a way to touch viewers during emotionally charged and interactive periods, which tremendously improves brand memory.
How Esports Sponsorship Elevates Brands
Esports sponsorship elevates brands by enhancing visibility, engaging younger audiences, boosting credibility, and creating powerful, immersive marketing opportunities in dynamic digital arenas.
Enhanced Brand Recall and Recognition
Studies show that sponsorship in esports, particularly when integrated seamlessly, boosts brand recall unaided and aided. The perfect sponsorship is well executed like Logitech’s sponsorship of esports teams like G2 Esports or Red Bull’s incorporation into esports events, and the brand becomes part of the audience’s experience as a sounding and visual entity.
Increased Social Media Engagement
Social media is very effective for esports events and teams. Brands get large exposure through sponsored posts, behind-the-scenes videos, and, of course, collaborations with popular streamers. Platforming via Twitch makes the brand feel extremely close to the viewers as they can chat with them, provide giveaways, or send them emotional reactions through emotes at the interaction gap.
Long-Term Brand Loyalty
Unlike traditional advertising, esports sponsorship fosters a sense of authenticity. It is known that gamers will turn to the support of the brand that will help their community. Intel, which has been sponsoring esports for over a decade and is accustomed to serving as not just a sponsor but a contributor to the growth of the gaming ecosystem, is looked at differently. The longer you have been present, the more loyal your buyers and the greater preference you command.
Measurable ROI through Data Analytics
Data is wealth in modern esports sponsorship. Impressions, click-through rates, engagement metrics, and sentiment analysis across channels can be tracked. Real-time data helps brands evaluate how sponsorships are performing and how they can improve in the future, as platforms like Stream Hatchet and Esports Charts do.
Provision of Access to a Global and Diverse Audience
No geographic boundary exists here—esports provides brands with an audience truly from around the world. At the same time, viewers from North America, Europe, Asia, and Latin America come seeking coverage of the major tournaments. It helps companies market their brands worldwide without incurring the expensive costs of an international marketing campaign.
Event-Based Exposure and Experiential Marketing
Be it an online or physical esports event, esports events offer brands opportunities to reach consumers in a way that makes these moments come alive. Other ideas for extending visibility are booth activations, promotions such as giveaways, and brand challenges in live events, which provide memorable brand interactions that extend even beyond the event.
Integration with Emerging Technologies
Unlike football fans, the esports fan in us always wants to find the least convenient slot to watch a game. It could be on our bus, on a noisy French train, or a moving bike bus on biking day. AR overlays during matches, NFT-based rewards to fans, etc., are some of these integrations that help these brands accentuate their new and future-forward nature while attracting the attention of tech-savvy viewers.
Cost-Effective Compared to Traditional Sports Sponsorships
Despite the fact that top-tier esports sponsorships can be worth millions of dollars, there are quite a few opportunities (depending on the mid-tier team or regional tournament that you can partner with) that are less expensive than your average sports partnership. Esports is a cost-effective path for smaller brands or startups to gain huge exposure to engaged audiences.
Boost in Website Traffic and Conversions
Usually, strategic esports sponsorships include direct links or calls to action while streams and social posts are happening. This can significantly increase website traffic, product page visits, and even conversions. With promotions or exclusive offers, brands have seen their sales go up following major esports events, while specifically, there have been upticks in sales following sponsorship.
Conclusion
Esports sponsorship has become a powerful tool for enhancing brand visibility in the digital age. It can be executed with authenticity and strategic intent and has the potential to generate great returns, from increased brand awareness and loyalty to depth of community engagement. In recent years, esports has become such a large part of the market that brands investing there thoughtfully will also have their share of cards at the table to compete for the hearts and minds of younger, tech-savvy audiences.
