Esports Companies Are Landing Big Deals
In January 2023, esports powerhouse FaZe Clan announced a multi-year partnership with luxury car manufacturer, Porsche. The partnership, brokered by UTA, will see both partiers work together on original content, esports initiatives, consumer products, and digital goods in the Web3 space, set to launch later this year. In addition, Porsche will also be the official partner of all FaZe Clan esports teams.
This announcement in the esports industry is just one example of a series of monumental partnerships that are being built between digital entertainment and luxury brands. The idea behind these partnerships is that these established brands, like Porsche, can better reach the next generation of consumers by working with emerging forms of entertainment, like esports.
What Are Esports?
Esports, short for electronic sports, refers to the world of competitive video gaming. Esports tournaments and competitions are organized by game developers, publishers, and third-party organizations and they can be played online or offline. These tournaments can range from small, local competitions to large-scale international events with millions of dollars in prize money.
Esports teams like Faze Clan have transformed from groups of competitive gamers to full-fledged entertainment companies. They now have professional players, coaches, and even their own merchandise lines. And with their large followings on social media, these gaming organizations are becoming valuable marketing tools for brands looking to reach a younger, tech-savvy audience.
Are Other Brands Building Esports Partnerships?
Many brands have begun to recognize the potential in esports and the gaming industry as a whole.
For instance, Red Bull has been actively involved in the esports industry for a number of years. They have made significant investments in sponsoring teams and hosting events, as well as creating their own esports content including a dedicated esports website, a series of esports documentaries, and the Red Bull M.E.O. and Red Bull Racing Esports Pro Series tournaments.
Overall, Red Bull's involvement in esports has been driven by a desire to tap into the growing market of gaming and esports, as well as to connect with younger generations. Their esports marketing efforts have helped to promote the industry and bring it to mainstream attention.
What Do These Developments Mean for the Future and Sports Marketing in Denver?
New Markets This is the most obvious answer.The world of gaming presents a multitude of new and growing markets for brands and advertisers to reach consumers. Because esports competitions are so unique and there are different tournaments for different game types, marketers can really take advantage and market to niche audiences. As esports continues to grow in popularity, more and more brands are looking to invest in esports sponsorship and advertising opportunities. This can include sponsoring teams and events, developing branded content, and even creating their own esports teams.
- New Ways to Monetize Esports marketing opens the door to new opportunities for media companies to monetize content. As more and more people tune in to watch esports events and competitions, media companies can monetize this audience through advertising and sponsorship deals. Take the hit video game, Fortnite, for instance: many brands have found unique and creative ways to put themselves in front of a younger audience. They may add exclusive content like player skins or sponsor timed events to share key messaging with young audiences and make money at the same time. And the results are showing it works.
- Shift in Consumption The growth of esports also means a shift in the way fans consume and engage with sports content. Esports fans tend to be more digitally savvy and engage with content through streaming platforms and social media, as opposed to traditional methods. This means that sports marketers need to adapt to these new ways of consuming and engaging with content in order to effectively reach and connect with esports fans.
Some brands are already doing this, primarily in traditional American sports leagues. For example, several NBA teams have formed esports teams that compete in the NBA 2K League, such as the Boston Celtics, Cleveland Cavaliers, and Golden State Warriors.
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