Sponsorship plays a particularly important role in eSports, as generating revenue from media rights in the sport remains in its infancy. With player wages rising and with ambitions to expand, the introduction of new sponsors and sponsorship sectors is critical for the future commercial success of eSports.
Newzoo, the market intelligence group, estimates that sponsorship and advertising presently makes up around 75 per cent ($517 million) of the sport’s total revenue, compared to 14 per cent ($95.2 million) from media rights, and will continue to drive revenue growth until at least 2020.
Endemic sponsors, brands that create products that are used in the production or playing of eSports, such as software and computer component manufacturers and energy drinks, are the most regular sponsors of eSports.
When analysing the sectors that sponsor the top 20 eSports teams by prize money won, and 19 of the biggest eSports events in the world by viewership, sponsorship and prize money, over 88 per cent of all team deals and 65 per cent of all event deals analysed are with endemic brands. Non-endemic sponsors, brands that create products that are not vital to the production or playing of eSports, such as Coca-Cola or Geico, play a secondary role to these endemic sponsors.
This article has been supplied by ESA member Sportcal www.sportcal.com