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Why the worlds top brands are pouring money into esports

[vc_row][vc_column][vc_column_text]In just a few years, esports has become one of the most popular activities in the world. Professional gamers are now treated like celebrities, and the top brands are beginning to pour money into the industry. So why is everyone so interested in esports? What is it about this activity that has caught on like wildfire? This article will give a brief overview of the largest companies sponsoring esports to comprehend how much money they are pouring in. We’ll also look at what effect this extra money is having on the industry and where it might be headed next.

How Do Companies Invest In Esports?

There are a few different ways that companies can invest in esports. They can sponsor tournaments, teams, or individual players. They can also create content around the sport or sell related products, but the most common way for companies to invest is through sponsorships. A sponsorship is a mutually beneficial agreement between two parties. The sponsor provides financial or other support to the sponsored party, and in return, the sponsored party promotes the sponsor’s products or services. Sponsoring an esports event is a great way to reach a large audience of gamers. Tournaments are often held in stadiums that can accommodate tens of thousands of people, and even more, people watch online. The League of Legends World Championship, for example, is held at the Staples Centre in Los Angeles and has attracted as many as 20,000 live spectators. That’s a sold-out stadium! Sponsoring an esports team also gives companies access to professional players who can promote their brands on social media and streamers (people who play video games while broadcasting their gameplay on the internet). Many of these players have millions of followers, and they can influence a lot of people. The Team Liquid website, for example, has over 8.4followers on Facebook.

Benefits Of Sponsorships for Companies

By sponsoring an esports team or event, brands can reach a very specific market of people. eSports fans are young, tech-savvy, and affluent. They’re also more likely to be early adopters of new technology, so sponsoring an eSports team or event is a great way to reach people who might be interested in your product. Sponsorships are also a great way to build brand awareness. When people see a company’s logo on a team’s jerseys or at an event, they’re reminded of that company and may begin to think more positively about it. In order to attract sponsors, players and teams go above and beyond what is necessary from a marketing point of view. They take promotional photos, record videos to promote their sponsors, create content on YouTube for free advertisements, attend sponsored events to help the company build brand awareness, and more. And it’s all worth it because the sponsorships allow players to continue playing competitively while bringing in money on the side. As you can see, there are many ways that brands can invest in eSports, and this is just a small sample of what’s possible. The sky’s the limit for companies looking to reach gamers, and the esports industry is only going to grow, so it’s a great time to get in on the action. Finally, sponsorships are also a great way to build relationships with gamers. As the industry grows, sponsorships will become more and more important to teams and players, so establishing a good relationship now will pay off in the future.

Biggest Sponsorships In Esports

There have been a number of big-name brands dipping their toes into the eSports industry, and others are diving in headfirst. Regardless of the investment size, these sponsorships are changing the industry for the better. Let’s take a look at some of the largest subsidiaries in esports history.

Red Bull

Red Bull is no stranger to sponsoring athletes and sporting events, so it’s no surprise that they’ve become a big player in the world of eSports. Red Bull has sponsored many tournaments and teams over the years and was one of the first companies to enter the industry with such significant capital. Red Bull also sponsors many individual players, including Daigo Umehara, one of the most successful competitive Street Fighter players in history. This year, Red Bull announced a sponsorship deal with Wave, one of the largest and most successful eSports brands globally, that developed the Valiant team. The deal was reportedly worth millions, making it one of the largest sponsorship deals in eSports history. Red Bull’s investment in eSports is not just about the money. They want to be involved in the industry because they see the potential for inspiring and entertaining millions of people worldwide. Although Red Bull’s budget is split between traditional marketing and eSports, they clearly believe that investing in the latter will help them reach their marketing goals. Red Bull also sponsors the League of Legends European Championship and teams like G2 Esports, Cloud9, and Vodafone Giants.

Coca-Cola

There have been rumors about Coca-Cola sponsoring eSports for a while, but there was finally some truth to these rumors in early 2018. The company partnered with the Overwatch League through a multi-year contract, which means that you can expect to see Coke ads through the entire Overwatch ecosystem, including live-streaming, in-game integration, and more. This sponsorship is a big deal for Coca-Cola because eSports are still growing and have a lot of potentials. The industry finally broke the $1 billion barriers in 2019, so it’s no wonder that major brands are starting to invest. Coca-Cola has been involved in other sports for a long time and sees the potential in eSports, which is why it’s one of their biggest sponsorships to date.

Nike

Perhaps no company in the world is better at marketing than Nike. Their name is synonymous with high-quality products, and athletes worldwide trust them to make equipment that improves their performance. So when they announced a sponsorship of the League of Legends Pro League (LPL) in China, it caused a lot of excitement. Next year, Nike Inc. will be the sole partner for official apparel and footwear for the Chinese pro esports league. This is a big deal because the LPL has hundreds of millions of viewers throughout the year, making it one of the largest leagues in the world. Nike’s investment in eSports is not just a one-time thing; they plan to be involved for many years to come. There are a few reasons why Nike decided to sponsor the LPL. First, they want to be involved in the industry while it’s still growing. Second, eSports offer a unique way to connect with potential customers, and third, they see the potential for Nike products to improve gamers’ performance.

Intel

Intel is a computer technology company that has been around since the 1970s. Since it’s one of the biggest players in the tech industry, it should come as no surprise that Intel is also heavily invested in eSports. Intel has sponsored major events like ESL One and DreamHack Masters for years now. They plan to continue sponsoring tournaments throughout 2022, but they are also planning to invest in more grassroots-level programs in the future. Intel’s sponsorship is one of the most significant investments in PC gaming ever made, which means they are very interested in seeing eSports succeed. They also help different events run by providing technology like PCs and processors for them to use during competitions. Intel already sponsors many teams, and they continue to do so because they believe in the potential of eSports.

BMW

The German automotive giant signed five major Esports teams last year:
  • Cloud9
  • Fnatic
  • FunPlus Phoenix
  • G2 Esports
  • T1 Entertainment & Sports
These five companies come from all over the world and compete in non0shooter games like League of Legends, DOTA 2, and Super Smash Bros. BMW’s investment is mostly about advertising for them. They believe that sponsoring teams that people want to watch is a great way for them to get their name out into the public eye. The famous BMW logo will be proudly displayed on team jerseys and other products during competitions.

Coinbase

Since Esports are looking to overtake traditional sports and cryptocurrency is looking to replace traditional banking, it’s only right that these two are teaming up. Coinbase is an exchange for cryptocurrencies and is one of the most well-known companies globally when it comes to that business. They are heavily invested in sports, even making it onto NBA courts this year! That’s why they inked a four-year contract with Team Liquid this year to become their official cryptocurrency partner. Coinbase isn’t just in it for the publicity; they want to help the industry grow and introduce esports fans to cryptocurrency. That’s why they plan to offer exclusive benefits to Team Liquid members and fans that exchange their fiat currency into crypto on the Coinbase platform.

Monster Energy

Another sponsor of Team Liquid, Monster Energy, is a popular energy drink. At one point, they were also the official beverage of NASCAR. They work closely with sports teams and athletes to get their names out there and reach new audiences. This includes esports teams like Team Liquid and others that compete in games like Fortnite. Monster supports all kinds of different gaming events, including tournaments and other show matches. ESL Gaming also added Monster as an official strategic partner to boost its brand and to follow, so this is a good move for both sides. Monster’s investment in esports has been growing steadily in recent years and seems likely to continue doing so in the future.

Mountain Dew

If you want an example of sponsorship that extends far beyond tournaments and players, look no further than Mountain Dew and the Call of Duty World League. Not only does Mountain Dew have its name plastered all over the league, but they also have a physical studio that’s dedicated to broadcasting the events. This isn’t just a one-time investment, either; Mountain Dew has been sponsoring Call of Duty for years now. They released limited-edition drinks to go along with the big events and even created a drink specifically for one of the players. This sponsorship is an example of how companies that traditionally aren’t involved in esports can carve out a corner of the market for themselves by putting their name on a specific event. The Call of Duty World League has been growing steadily over time, which means there will be plenty of opportunities for Mountain Dew to expand their investment.

The Future Of Streaming Platforms

Although thousands of dedicated fans make their way to the stadiums to watch tournaments live, there’s no denying that streaming is the future of Esports. That’s why some of the top sponsors are companies that specialize in streaming, like Twitch and YouTube. Twitch has been an official partner with ESL for a few years now and is responsible for broadcasting many of its events. They also have a close relationship with Riot Games, the developer of League of Legends. This includes the Legends Club, in which Twitch and Riot team up to bring fans and players closer together. YouTube is another company that’s been heavily invested in esports for a while now. There is a lot of content posted to the site related to gaming, including tournaments, highlights, and analysis. They have also been the home of many large-scale events, such as The International and the League of Legends World Championship. Both Twitch and YouTube are looking to solidify their positions in the esports industry, and this means that we can expect to see even more investment from these companies in the future. They may also work together to put on more streamable events and rake in the revenue.

The Rise of Esports Betting Sites

One of the biggest changes we’ve seen recently is the rise of esports betting sites. While these were once limited to fantasy leagues, now you can bet directly on tournament results and player performance with cash or cryptocurrency. Sites like Unikrn have been around for a while, but they’ve been getting more popular recently. This is in part due to the increasing legality of gambling in the United States. Esports betting is still a new and unregulated industry, so it’s ripe for investment. Unikrn has already raised over $7 million in venture capital, part of which came from none other than Mark Cuban, which they’re using to increase their odds of success.

Bottom Line

Esports is growing rapidly and attracting more and more investment from top brands. This investment is coming in the form of sponsorships, streaming platforms, and betting sites. These companies see esports as a way to connect with a new and growing audience. The future looks bright for esports, and we can expect to see even more brand involvement in the years to come. If you are interested in learning more on how to invest in this explosive space, please visit https://investorscene.com/company-profile/enthusiast-gaming-holdings/.  

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