Post on 14-Apr-2017
The Potential of eSportsBy Sean Desmond
What is Esports?
https://www.youtube.com/watch?v=3wNFG7uyOUIn
Esports Rapid Growth
● League of Legends is most popular game in the world
● 67 million unique users a month
● More than 32 million streamed World Championships in 2013
● Professional leagues in North America, Europe, Korea, China, and Southeast Asia
● Continues to expand globally
● So, why the $11M for Dota?
The Compendium● Players/Fans purchase a “share”
● 25% of purchases gets donated to prize pool
● When total prize pool meets certain benchmarks, each player with a share gets benefits
● Created revenue stream out of the appreciation for professionals
● Prize pool 4x bigger than prior year
Currently Two Major Sponsors
“Since Coke is a global brand, we see value in the global nature of eSports”-Coke Zero
“The fact that AmEx is getting involved in eSports could be a sign of better things to come”-New York Times
“Brands like Coca-Cola and American Express ‘have lined up as sponsors’ and prize money ‘has soared to the millions of dollars.’”-Sports Business Daily
“Riot’s ability to reach an elusive demographic will continue to attract investment.”-Matt Wolf, Coke’s global head of gaming
Potential ActivationsSimilar to the traditional sports industry, sponsors can sign on for more than signage and commercials on streams. @CokeEsports has a huge following that can be utilized for contests to earn backstage passes or caster meet-and-greets. Fans appreciating Coke Zero for allowing them to meet their favorite players or Rioters can be a worthwhile investment.
Sponsors for Teams
Professional League of Legends TeamsSponsors Cloud 9
Former sponsor of TSM
These are great examples of how sponsors will pay for an incredibly narrow demographic of predominantly young,
male, technology savvy people