Table of Contents
- Introduction
- The Launch of the Esports World Cup
- Sponsors’ Perspective
- The Importance of Government Ties
- Broader Implications for Sponsorship in Esports
- Conclusion
- Frequently Asked Questions (FAQ)
Introduction
Imagine a massive stadium, filled to the brim with electrified fans, not for a traditional sport, but for an esports competition. That’s the scene at the Esports World Cup (EWC), which kicked off on July 3, 2023, in Riyadh, Saudi Arabia, on a grand scale with competitions in "League of Legends" and "Counter-Strike," and boasting a record-breaking $60 million prize pool. Three weeks into its inaugural run, industry chatter buzzes about its viewership metrics and overall performance. However, for sponsors such as PepsiCo and Mastercard, the value derived from the EWC extends beyond mere viewership numbers. This blog delves into why sponsors are investing in the EWC, highlighting the multifaceted perks beyond traditional metrics.
The Launch of the Esports World Cup
Historical Context
The EWC debuted as a successor to Gamers8, a previous esports event, aiming to elevate the global perception and reach of competitive gaming. With a staggering prize fund and high-profile games, expectations were inevitably high. In its initial weeks, it showcased significant participation and engagement levels, even clocking at over 50% more hours watched than the previous year.
Viewership Metrics
Despite exceeding Gamers8's viewership by nearly 8%, some critics argue that EWC's numbers fall short when compared to major esports events such as the League of Legends World Championship. The peak viewership of 2.4 million is impressive, but it's not setting unprecedented records in the esports ecosystem.
Sponsors’ Perspective
Beyond the Numbers
When evaluating the success of a sponsorship, companies traditionally look at viewership metrics—more eyes mean more potential customers. However, the EWC's sponsors have adopted a broader perspective. Mastercard and PepsiCo, alongside other giants like Unilever, Amazon, and Adidas, place greater emphasis on long-term engagement and brand positioning within the esports community.
Direct Engagement
On-ground consumer engagement is a critical metric for these sponsors. Events like the EWC provide a unique opportunity to interact with a highly engaged and passionate audience. PepsiCo’s Karim El Fiqi notes the intrinsic value in the equity built with gamers on-site and the long-term positioning within this thriving community.
Strategic Positioning in the Middle East
Sponsorship of the EWC also serves a strategic purpose. For these global brands, strengthening their foothold in the Middle East is essential. The region's gaming market is rapidly growing, presenting abundant opportunities for brands to connect with a young, tech-savvy audience. Mastercard’s Pernilla Winberg Baptist emphasizes the importance of meeting consumers where they are, and in this case, it’s within the gaming space.
The Importance of Government Ties
Saudi Vision 2030
Saudi Arabia’s Vision 2030 plays a pivotal role in the appeal of the EWC. This ambitious plan aims to diversify the economy and expand public service sectors such as health, education, infrastructure, recreation, and tourism. For PepsiCo, which has operated in Saudi for years, aligning with Vision 2030 is a natural progression. Sponsoring the EWC underscores their ongoing commitment to the region’s development.
Enhanced Brand Presence
Engagement with government-backed initiatives like the EWC provides brands with intangible benefits. Aligning with such high-profile projects can enhance brand reputation and foster goodwill with local authorities, which can be invaluable for companies planning long-term operations in the region. As Malph Minns from Strive Sponsorship points out, this strategy can be more cost-effective and yield better goodwill than traditional sponsorships, such as those of football leagues.
Broader Implications for Sponsorship in Esports
Beyond Immediate Returns
For brands entering the esports space, the return is not purely measured in immediate sales or viewership numbers. The youth demographic, with its high digital engagement and brand loyalty, represents a fertile ground for long-term brand building. Engaging with them through events like the EWC helps brands establish a tangible presence within a community that heavily influences future consumer trends.
Building Brand Loyalty
Brand loyalty among gamers tends to be profound, given their dedication and emotional investment in gaming communities. Sponsors that effectively tap into this fervor can develop lasting relationships. This is particularly true for non-endemic brands like Mastercard and PepsiCo, which are not inherently part of the gaming ecosystem but recognize the immense potential it offers.
Evolution of Sponsorship Metrics
The approach taken by EWC’s sponsors signals a shift in how sponsorship success is measured within the esports industry. Traditional metrics like viewership numbers are now considered alongside more nuanced indicators of success, such as engagement quality, community positioning, and strategic alignment with broader market trends.
Conclusion
The inaugural Esports World Cup has been a significant event in the world of competitive gaming, gaining notable traction and engagement. However, for sponsors, the allure of the EWC is not confined to viewership metrics. The real value lies in the deeper, more strategic benefits—building long-term relationships with a dedicated audience, enhancing local presence in line with visionary economic plans, and engaging directly with consumers in meaningful ways.
As the esports industry continues to evolve, so too will the metrics by which sponsorship success is measured. Companies like PepsiCo and Mastercard are leading the way, demonstrating that in esports, the game is played well beyond the screen.
Frequently Asked Questions (FAQ)
What is the Esports World Cup?
The Esports World Cup is a major esports event that launched in Riyadh, Saudi Arabia, featuring competitive gaming in titles like "League of Legends" and "Counter-Strike," with a record $60 million prize pool.
Why aren’t sponsors focused solely on viewership metrics?
Sponsors such as PepsiCo and Mastercard value long-term engagement, community presence, and strategic market positioning, which they believe offer greater benefits than immediate viewership numbers.
How does the EWC align with Saudi Vision 2030?
Sponsoring the EWC allows brands to support Saudi Arabia's economic diversification and development goals outlined in Vision 2030, enhancing their presence and influence in the region.
What are the broader benefits for brands sponsoring esports events?
Beyond viewership, brands benefit from direct engagement with a passionate audience, building brand loyalty, and establishing a strategic foothold in growing markets like the Middle East.
