Why do companies and schools invest in eSports?

You may have seen it before. A gaming tournament sponsored by a company like Ford or BMW. Universities also invest in eSports or participate in tournaments designed specifically for students. For example, PXL University of Applied Sciences designed a postgraduate course that focuses on eSports. In the past, companies mainly related to gaming invested in these kinds of events, but nowadays the whole world is looking forward to this form of marketing. Why are they doing it now?

What is eSports?

EsportTypes
Figure 1: types of eSports

eSports has grown into a multimillion-dollar industry in which the most famous games such as Counterstrike: Global Offensive, League of Legends, Call of Duty, Valorant and Fortnite have found a place in the hearts of many gamers. But what exactly is eSports? Electronic Sports is a term used for playing games in a competitive way. Although there are different tournament structures, a comparison can already be made with, for example, football. Teams and players can compete in seasons where they play for the league title, but they can also try qualifying at world level. Teams and players from different countries and continents can then compete for the world title and may call themselves the best team or the best player in the world in that specific game for a short period of time.

Although there are 1000's of games, these games can be divided into different categories. (figure 1)

The Pioneers

Sven Mayné

To formulate an answer to the issue of companies and eSports, I met Sven Mayné, owner of For The Wings. He started the first fashion brand for gamers and he is also a man with a real passion for eSports. It is also one of his missions to create a real community in Belgium. With For The Wings, Sven wants to connect gamers by means of high-quality and stylish clothing. He then invests the funds that come in from this in eSports Belgium. “Gaming has become extremely popular. The taboo that you would never find a lover or that gamers never came outside has long been outdated. With this clothing I want to create a landmark in everyday life that stimulates friendships even more.” According to Sven Mayne.

According to Sven, the question why companies are increasingly investing in eSports is quite simple: “It is a booming business. Advertising is also cheaper and nowadays you can reach a lot more people with it. More and more people are watching recorded content, so that advertisements can be fast-forwarded. Young people also make less use of cable television and opt for a streaming platform such as Netlix, Disney+, Twitch …”

Nowadays you can find advertisements about games on all social media channels, but even more striking is the fact that companies organize tournaments for a certain game. Take a look at BMW. In partnership with Psyonix (the developers of the popular Rocket League game), they organized two tournaments "BMW Rocket league open" and "BMW Freestyle Tournament". They also invest, for example, in teams and popular streamers who in turn publish advertisements for the brand. With the publicity and brand awareness that is generated among young people and young adults, they hope to make a lasting impression in the short and long term.

AlexanderDumonA second viewpoint comes from the interview with Alexander Dumon. Owner of Adumon and Esports Coordinator at PXL Hogeschool. It is Alexander's goal to support young people as best as possible in their passion. “A lot of talent is lost among student entrepreneurs and gamers. If we can ensure that they can develop themselves, then the mission has been accomplished.” A good example of this support comes from the Red Bull Campus Clutch Cup last summer. PXL won thanks to their hard training, but also thanks to the good support that the school offered and in particular the help of Alexander. For this reason, their team was allowed to represent Belgium and their school in the finals in Spain.

Of course, the student comes first for him, but for PXL there is some marketing associated with this. A university of applied sciences that supports their students well and that manages to belong to the top 10 in the world as students, naturally ensures a certain brand awareness. In addition, the strong guidance and opportunities that this school offers ensures word-of-mouth advertising among the students.

What can you do as a company?

Esports is an important part of the future. More and more companies are realizing the potential of this, but how can this actually be done. As a company, you should not assume that an investment will deliver a strong return on investment in the short term. It is therefore important to find out how you can correctly profile yourself as a company in order to reach and trigger your target groups in the right way. Working with professional consultants and a long-term strategy are key here.

Sources:

https://www.motorbiscuit.com/bmw-sinks-millions-into-esports-to-market-to-future-car-buyers/

https://en.wikipedia.org/wiki/Esports