Table of Contents
- Introduction
- An Evolving Landscape for Esports Viewership
- Sponsorship Beyond Metrics
- Strategic Positioning in Emerging Markets
- Broad Marketing Advantages
- Conclusion
- Frequently Asked Questions (FAQ)
Introduction
What makes the sponsorship of the Esports World Cup so intriguing to major brands like PepsiCo and Mastercard? With the inaugural Esports World Cup in full swing, boasting a record-breaking $60 million prize pool and featuring popular games such as "League of Legends" and "Counter-Strike," one might assume that viewership metrics are the be-all and end-all of its sponsor’s interests. However, early into the tournament, it became evident that sponsors see far beyond mere viewership figures. This post delves into the strategic reasoning behind why major brands are investing in events like the Esports World Cup and how this aligns with their broader marketing objectives and future ambitions.
An Evolving Landscape for Esports Viewership
Growing Yet Competitive Metrics
The Esports World Cup has seen a notable rise in viewership, surpassing last year's Gamers8 event by nearly eight percent. Despite this growth, the event’s average viewership figures have not yet eclipsed those of other significant esports gatherings such as Games Done Quick or the League of Legends World Championship. This might initially appear as a drawback, but sponsors aren’t basing their conclusions on these metrics alone. Companies like PepsiCo and Mastercard appreciate the broader implications of engaging with an event set in a rapidly growing sector.
Deeper Engagement Over Sheer Numbers
Rather than dwelling on the direct viewership growth, brands are analyzing the level of engagement and the quality of interactions they are garnering during the broadcasts. For example, during the first week of the Esports World Cup, Mastercard's peak viewership of 2.4 million and 36 million watched hours highlighted significant audience involvement. Brands are also aware of the potential secondary benefits of being associated with an event deeply rooted in the fast-expanding Saudi Arabian esports and gaming market.
Sponsorship Beyond Metrics
Long-Term Engagement and Branding
Both PepsiCo and Mastercard have indicated that the primary value they find in sponsoring the Esports World Cup lies in long-term consumer engagement. According to PepsiCo's CMO for AMESA, Karim El Fiqi, on-ground interactions and brand equity among gaming enthusiasts offer an enduring connection that outstrips transient viewership spikes.
Companies use these events to cultivate meaningful relationships with fans, embedding themselves in the passionate culture surrounding esports. For Mastercard, the objective is clear—addressing the Middle Eastern market's burgeoning interest in gaming provides an opportunity to present itself as a forward-thinking, consumer-oriented brand.
Government Relations and Regional Objectives
Another layer to these sponsorships is the relationship with host nations and their broader strategic initiatives. Saudi Arabia’s Vision 2030 aims to diversify the country's economy by developing sectors like entertainment and tourism. Multinational corporations see supporting these government-backed initiatives as a gateway to strengthening their regional foothold and ensuring regulatory goodwill. For example, PepsiCo views its sponsorship as not just participation in the event but as part of a larger commitment to support Saudi Arabia’s national objectives.
Strategic Positioning in Emerging Markets
Enhancing Regional Presence
For brands aiming to expand their influence in the Middle East, being associated with high-profile events in the region can dramatically enhance their brand presence. The Middle Eastern gaming market is one of the fastest-growing globally, and brands recognize the long-term benefits of being early supporters in this space. This is a sentiment echoed by Pernilla Winberg Baptist of Mastercard, who understands that to reach global consumers effectively, the brand must meet them in their interests and passions.
Leveraging the Esports Infrastructure
PepsiCo’s investment in the Esports World Cup also provides access to a robust infrastructure of ongoing Saudi esports projects. This includes leagues managed by prominent entities like ESL/FACEIT Group and the emerging gaming city in Qiddiya. These opportunities present a comprehensive platform for long-term brand activation within the regional gaming community.
Broad Marketing Advantages
Unconventional Branding Tactics
Partnering with the Esports World Cup also introduces brands to unconventional, yet highly effective branding strategies. Rather than traditional billboard advertising, brands can engage esports fans through in-game advertisements, exclusive sponsorships of tournament segments, and dedicated fan experiences. These tailored interactions create memorable brand touchpoints that resonate far more deeply with the audience.
Proactive Consumer Engagement
Interactive campaigns during the tournament foster a more proactive form of consumer engagement. Whether it’s running contests, offering exclusive merchandise, or hosting live events and meet-ups, brands can harness the immersive nature of esports to build a stronger connection with their target demographic.
Conclusion
The strategic sponsorship of the Esports World Cup by major brands like PepsiCo and Mastercard highlights a nuanced approach to modern marketing. Rather than focusing solely on immediate viewership metrics, these companies are investing in long-term engagement, aligning with regional growth initiatives, and leveraging the expansive reach of esports. This multi-faceted engagement strategy not only positions these brands as integral parts of the esports ecosystem but also opens doors for future opportunities in emerging markets.
Frequently Asked Questions (FAQ)
Why are major brands interested in sponsoring esports events like the Esports World Cup?
Major brands are interested in sponsoring esports events because they see long-term value in engaging with a passionate and growing audience. Additionally, aligning with regional initiatives and government-backed projects can enhance their brand presence and open up new market opportunities.
How significant are viewership numbers for sponsors of the Esports World Cup?
While viewership numbers are important, they are not the sole determining factor for sponsors. Brands like PepsiCo and Mastercard focus more on deep engagement and the quality of interactions with consumers during the event.
What benefits do brands gain from sponsoring the Esports World Cup beyond exposure?
Beyond exposure, brands gain long-term engagement with the gaming community, support for regional development initiatives, and strategic positioning in emerging markets. These benefits contribute to stronger brand equity and more authentic connections with consumers.
How do brands engage with esports fans through sponsorships?
Brands engage with esports fans through interactive campaigns, in-game advertisements, exclusive sponsorships of tournament segments, and dedicated fan experiences. This fosters a more proactive and memorable engagement with the audience.
In what way does supporting Saudi Arabia's Vision 2030 benefit sponsors like PepsiCo and Mastercard?
Supporting Saudi Arabia's Vision 2030 helps sponsors strengthen their regional presence and regulatory goodwill. It aligns them with national development goals, creating broader opportunities for collaboration and growth in the region.
With these strategic insights and in-depth understanding, it’s evident that the sponsorship of the Esports World Cup is much more than a play for viewership—it’s an investment in the future of esports and brand-consumer relationships alike.
