The Evolution of Esports Sponsorship and Branding

Where once Esports was a rarer breed, both in terms of viewership and investment, it has blossomed into a global phenomenon and is on par with traditional sports in that regard. Esports sponsorship and branding has changed immensely from grassroots beginnings to major corporate partnerships. This article charts that journey, exploring the journey in esports sponsorship from humble beginnings to a fundamental source of brand engagement, sponsorship, and partnership in the world of today.

Early Days of Esports Sponsorship:

A Niche Hobby

While esports began to be rooted in competitive gaming roots such as Space Invaders and Pac-Man in the 1970s and 80s, really gaining legitimacy and being able to form a part of the gamer’s life really started in the 1990s with things like Quake and Counter-Strike. But the sponsorship landscape was nearly empty—tournaments were little local get togethers with tiny prize pools. Brands had no incentives to invest without mainstream visibility. The spotlight on esports did not appear until the late 90s when PC gaming was becoming competitive and tournaments like Starcraft and Counterstrike were starting to really become something.”

During this time, gaming hardware companies like Intel, AMD, and Nvidia lent themselves as the first consistent sponsors, identifying a launch pad to reach the tech-savvy, young audience. Early esports events were fueled by these brands, which provided the needed resources: computers, prize pools and venues, and soon to follow that was sponsorship in esports.

The 2000s to Early 2010s:

Organized Leagues and New Sponsors

Esports’ popularity grew however, and many organizations formed professional teams, as leagues rose to tackling the competitive landscape. As a result of this, in 2002, one of the first steps towards organised esports in North America was formed in the name of Major League Gaming (MLG). Demands for brand visibility and esports fans engagement in StarCraft also spurred brand salience in the Korean scene.

Around this time, brands (like Red Bull and Coca-Cola) started sponsoring esports tournaments and teams based on their popularity in titles like League of Legends and Dota 2. It wasn’t until 2013, when League of Legends developer Riot Games introduced the League of Legends Championship Series (LCS) with a fully professional structure, salaries, and sponsorship opportunities, that the laser cutouts saw that esports wasn’t some niche industry.

Late 2010s:

Mainstream Brands Show Up

No surprise:
The International (Dota 2) and the League of Legends World Championship, among others, are frequently viewed by millions of users. During this time, there also was an increase in streaming platforms, Twitch being the most dominant of those, allowing fans to be a part of their favorite player or team’s lives in much greater detail. By 2020, the global audience of esports was forecast to grow beyond 450 million, and local clients to sponsor the sport presented a huge opportunity.

Mercedes-Benz, Louis Vuitton, and even the U.S. Army began to sponsor esports events, becoming mainstream brands. For instance, in 2019, when they started designing the trophy case for the League of Legends World Championship, the high fashion meets gaming. It represented a new era in esports sponsorship, when the industry lured a number of new brands looking to connect with increasingly digitally native audiences.

Sponsorship models got more sophisticated, and brands started ... Unlike most, they didn’t just slap logos onto jerseys or event banners, they came up with fan-centric interactive campaigns. By getting involved with the League of Legends Pro League (LPL) in China via Buy a Mate apparel distribution, Nike joined a heightened headscarf campaign from their partner Red Bull whose introduction of LPL training facilities strengthened their bond to high effectiveness and vitality.

Social Media and Digital Content:

Their Role

However, social media has been a key partner in the growth of esports sponsorships, as Twitter, Instagram, and YouTube are important for getting access to the esports fans of brands. And gaming influencers on Twitch and YouTube have millions of followers, who brands sponsor to make authentic content resonate with their audiences.

Through collaborations with streamers and influencers, HyperX, Alienware, and even a food delivery service are all leveraging highly targeted sponsorship strategies. For one, Chipotle's partnership with big streamer Tyler 'Ninja' Blevins allowed Chipotle to reach out to esports and young demographic, all the while providing an appealing, culturally relevant way to market the brand.

The Present and Future:

The Power of Community, Integrated Sponsorships

With esports booming, so too is the desire by brands to build real connections with their fans. Multidimensional esports league partnerships are being launched by companies such as Mastercard and Spotify. Take the League of Legends Championship Series, for example, which Mastercard is a key sponsor of, and the sponsorship has manifested into “Priceless Experiences” for fans where you’re given the opportunity to meet and greet your favorite players. As mentioned above, being a partner of both Riot Games and Spotify means you are a natural part of the esports community, and this ensures that their brand is a part of their fan experience.

Conclusion:

Esports sponsorship and branding are evolving in their own right, along with the growth of the esports industry from a niche hobby into a global entertainment powerhouse. For brands across virtually every industry, esports has become a means to connect to this audience of the young and passionate. As a result, the community has become more diverse and vibrant, and Brand isn’t just looking to be exposed, but is the active generation of content within the community. Esports is serving as a blueprint for what the next generation of sponsorship and branding could look like in its dynamic fanbase and digital-first nature.