Table of Contents
- Introduction
- The Emergence of Esports World Cup as a Prestigious Event
- Sponsors’ Perspectives on Esports World Cup
- Long-Term Strategic Investments
- Potential Challenges and Future Outlook
- Conclusion
- FAQ
Introduction
Do you know why major brands like PepsiCo and Mastercard sponsor the Esports World Cup? While it might seem like they’re chasing high viewership, the true motives often run deeper. With esports booming and boasting a $60 million prize pool, sponsors find value beyond just the number of eyes on the screen. So why do they choose to invest? This blog breaks down the nuanced strategies behind these sponsorships and explores how brands leverage these partnerships to create long-term value.
The Emergence of Esports World Cup as a Prestigious Event
A Grand Beginning
The Esports World Cup launched on July 3 in Riyadh, Saudi Arabia, featuring major titles like "League of Legends" and "Counter-Strike.” With a record-smashing $60 million prize pool, the event quickly captured global attention. Initial viewership figures reveal a mixed response; the event performed better than its predecessor, Gamers8, with an uptick of nearly 8% in average viewership. However, its numbers still trailed behind some prominent gaming events like the League of Legends World Championship.
Mixed Viewership Metrics
Despite the substantial investment and hype, viewership has been a topic of debate. While the Esports World Cup did attract a larger audience compared to its forerunners, the numbers did not always meet the sky-high expectations set by similar events. Nonetheless, the sentiment among sponsors remains positive. Mastercard, for instance, noted that their initial broadcast week saw peak viewership of 2.4 million fans and amassed 36 million viewing hours, which is impressive but requires context to fully appreciate.
Sponsors’ Perspectives on Esports World Cup
Beyond Viewership Numbers
Contrary to what one might think, sponsors like PepsiCo and Mastercard are not just chasing the highest viewership metrics. They see sponsorship as a strategic investment for long-term engagement. According to Karim El Fiqi, PepsiCo’s Senior Vice President and CMO of AMESA, metrics like on-ground consumer engagement and brand positioning within the gaming community hold more significance. This shift highlights a broader, more inclusive approach to measuring ROI from these sponsorship deals.
Engagement Over Exposure
Mastercard highlights a similar sentiment. The brand’s EVP of global sponsorships, Pernilla Winberg Baptist, noted that the peak engagement numbers and total viewing hours are incredible yet not the only decisive factors. Mastercard, as well as other elite sponsors such as Unilever, Amazon, and Adidas, have focused on the more intangible benefits of their participation, including enhanced consumer loyalty and elevated brand equity among gaming enthusiasts.
Long-Term Strategic Investments
Drilling Down on Saudi Vision 2030
The Esports World Cup aligns perfectly with Saudi Vision 2030, a comprehensive plan aimed at diversifying Saudi Arabia’s economy and promoting cultural advancements. By sponsoring the event, PepsiCo not only gains immediate consumer engagement but also plants roots for future collaborations in upcoming Saudi esports ventures, including those managed by ESL/FACEIT Group and the gaming city in Qiddiya.
Expanding Presence in Middle Eastern Markets
For Mastercard, strengthening its ties in the rapidly expanding Middle Eastern gaming market is a core objective. By participating in the Esports World Cup, Mastercard positions itself as a forward-thinking brand willing to meet its global consumers where they are. This sponsorship also creates opportunities for future ventures and brand loyalty in this burgeoning market.
Navigating Government Relations
Esports in Saudi Arabia is deeply entwined with governmental initiatives, making partnerships like these beneficial for brands wishing to maintain favorable relationships with state entities. Malph Minns, Managing Director of Strive Sponsorship, notes that aligning with government-backed events can simplify dealings in the region and foster beneficial outcomes across other business areas. This tangential benefit is often overlooked but remains crucial for brands operating in politically nuanced territories.
Potential Challenges and Future Outlook
Tactical Imperfections
The mixed viewership metrics highlight potential areas for improvement in event execution, marketing strategy, and perhaps even choice of gaming titles. Event organizers need to refine their tactics to make future editions of the Esports World Cup more universally appealing.
Adapting to Market Evolution
Brands sponsoring the Esports World Cup must remain agile, adjusting their strategies in response to emerging trends and consumer behaviors. The esports landscape is dynamic, and what works today may need refinement tomorrow. Flexible engagement strategies will be key to remaining competitive and relevant.
Sustained Engagement and ROI
While each sponsor aims to drive immediate consumer interactions, the real challenge lies in maintaining long-term engagement and translating it into sustained ROI. Effective use of consumer data and advanced marketing analytics will be crucial for brands in making the most of their sponsorship deals.
Conclusion
Sponsoring the Esports World Cup is much more than a play for high viewership figures. Brands like PepsiCo and Mastercard are investing in long-term strategies aimed at deepening consumer engagement, supporting national economic ambitions, and maintaining favorable relationships with governmental entities. While viewership numbers provide a snapshot of immediate success, it’s the broader, more nuanced benefits that make these sponsorships invaluable.
Sponsorship in esports isn’t just about being seen; it’s about being remembered, respected, and relevant in a rapidly evolving market. As the Esports World Cup matures, so too will the strategies employed by its sponsors, continuously refining their approach to capture both hearts and minds.
FAQ
1. Why do brands sponsor events like the Esports World Cup?
Brands sponsor events like the Esports World Cup to enhance long-term consumer engagement, improve brand positioning, and strengthen ties with emerging markets rather than merely aiming for high viewership numbers.
2. How do sponsors measure ROI from these investments?
Sponsors look at various metrics, including on-ground consumer engagement, brand loyalty, and long-term brand equity in the gaming community. Immediate viewership numbers are just one part of the equation.
3. How do these sponsorships align with Saudi Vision 2030?
By sponsoring events like the Esports World Cup, brands support Saudi Vision 2030’s objective to diversify the economy and foster cultural growth. This alignment ensures long-term benefits and collaborative opportunities in future Saudi projects.
4. What are the potential challenges for these sponsorships?
Challenges include mixed event viewership metrics, the need for tactical refinements, and ensuring sustained consumer engagement over long periods. Brands must stay adaptable and innovative to remain competitive.
5. What intangible benefits do sponsors gain?
Intangible benefits include enhanced relationships with governmental entities, elevated brand equity among local and global audiences, and favorable positioning in rapidly growing markets.
