Connect with us

Esports

Why Actionable Data Matters More Than Ever For Brands Entering Esports

The right data is crucial to success when looking to dive into esports.

Front Office Sports

Published

on

Having the right data is crucial for success in esports. (Photo via HYPEBEAST)

*This is a guest post from Johannes Waldstein, Founder and CEO of FanAI

As esports expands, major brands are evaluating sponsorship opportunities with leagues, teams, and players with an eye on the sizable audience this sport offers. When deciding to focus on a specific title or specific team, decision makers rely on data to guide them. Thanks to the large digital fingerprint they leave behind, the esports audience is among the most quantifiable humans on the planet. When collected accurately and analyzed effectively, this information can translate into engagement and, ultimately, revenue.

In esports, brands have a unique opportunity to leverage data to craft authentic approaches for the desired target audience. Properly used data can yield buyer personas, customer profiles, and if employed correctly, highly specific campaigns to make brands as relevant as possible to their target audience.

Accuracy is critical. If brands are making their sponsorship decision makes on inaccurate or incomplete data they’ll see diminished returns and decide to withdraw from the expanding industry. Measuring data and providing actionable insights builds trust within the ecosystem. Best practices must be followed for meaningful results. Below are a few common errors we see at FanAI from across the esports data landscape:

The Importance of Sample Size

The sample size is critical. The sheer size of the esports audience, and its global reach raises the sample threshold to historic levels. The total esports audience (all people who watch professional esports regardless of frequency) will hit 380 million people this year.

It’s important to remember that that number represents esports from all genres and all communities – not one homogenous group. Each genre and game captures an individualized audience, which signifies a unique opportunity for brands to connect. A one-size-fits-all approach does not work for esports brand partnerships – and data collection should reflect this.

Get the FOS Daily Newsletter! Subscribe today!

For instance: A survey of 1,000 fans reports that 20% are Dota enthusiasts. Does that indicate that 20% of the global esports audience are Dota fans? Not necessarily. The sample size will affect findings based on where the fans come from, their ages and multiple other factors. Further, the information is not actionable, or truly valuable for sponsors and partners, without identifying which fans are likely to belong to the target group.

Understanding Browsing Affinities vs What People Really Purchase

When surveyed, people often misstate their intent. For instance, the average Southern California shopper is likely to mark ”I always buy organic” on a survey, but when they gets to Whole Foods and realizes organic apples are 3x the price, their principles shift.  There’s a disconnect between the pre-purchase thought process and the real-time purchasing process.

If brands want to know consumer behavior, they must start by understanding how consumers actually spend their cash. Analyzing online interests or expressed interest won’t necessarily reflect where purchases are being made. When the brand concentrates on the tangible product in the shopping cart or online cart – where consumers are actually putting their dollars, regardless of what they may say – a more significant evaluation of purchasing behavior can occur.

Instead of focusing on browsing behavior and purchase intent, which really only account for good intentions, brands should narrow down on actual purchasing behavior in order to identify those who have already purchased a particular brand or item, and are likely to do so again. This help sponsors deeply understand their actual audience.

Reduction in Double Counting Audience Members

Major reports on esports often include surprising discrepancies when it comes to size of fan base and overall revenue. One reason for inflated esports numbers is the practice of double counting audience members across multiple channels.

When a sponsor decides on what team to sponsor, one of the metrics they review is social media following of players and teams. If a brand was to look at the reach of a team on Twitter, they might combine the number of followers the team and individual players have. However, one individual fan is likely to follow several, if not all, of his favorite team’s pros – plus the team’s official account. This means, if one fan follows all five members of a League of Legends (LOL) team, plus the team handle itself, that fan would be counted six times.

As a real world example, FanAI pulled the data for TSM’s League of Legend players during the first week of April. At the time, the total combined followers of all TSM LoL players was 1.797M followers. However, when you only count fans who follow multiple players as one individual, you get a total follower count of 1.493M for TSM LoL players. As a brand looking to invest in esports, you would want the exact fan count, rather than a number that is 16% inflated.

Conclusion

Duplicated data sends a skewed picture to brands and inaccurately represents the esports audience. The number of followers don’t always tell the whole story. This surface-level data must be replaced with data that accurately addresses the number of unique people and a picture of the real reach. With accurate data, sponsors can reduce the chances of talking to audiences that aren’t really listening and can guarantee their message connects with an actively engaged audience.

Johannes Waldstein Bio

Johannes Waldstein is the Founder and CEO of FanAI, the leading esports audience monetization platform. FanAI increases franchise and sponsorship revenues by analyzing in-depth audience data that enables brands to gain a fuller picture of their esports target audience. The platform is used by top teams and leagues including Cloud9, OpTic Gaming, Overwatch League’s LA Valiant, NY Excelsior, and Cav’s Legion GC – the Cleveland Cavaliers’ NBA2K League team. Being a big data expert and a lifelong fan of competitive sports and esports, FanAI is the culmination of twin passions for Johannes. A serial entrepreneur, he founded four other startups rooted in data, mobile payments, and sports tech. As a Product Manager at dunnhumby, the world’s largest Loyalty Data Sciences company, Johannes helped build data platforms providing insight from some of the world’s largest retail chains including Tesco, Best Buy, Home Depot, and Macy’s to global brands and agencies.

Esports

How Players Associations Could Help Improve Esports’ Infrastructure

As players associations start to form within esports leagues, leaders are hopeful they can start to help solve the issues facing players in the industry.

Avatar

Published

on

players-associations-esports-infrastructure

Photo credit: Pixabay

As the esports industry continues its ascent into big business, the players are beginning to realize the importance in the growth.

Multiple esports leagues have started to form players associations, most notably a global Counter-Strike union and League of Legends Players Association. The associations are forming in large part to fight for player rights and establish uniformity in the sport.

“At a 20,000-foot level, most player and team contracts are team-sided in all things,” said Scott Smith, who spearheaded the Counter-Strike association and is a longtime esports figure. “These young athletes sign away all their rights for a paycheck, X-amount to play a game.

“Players are starting to realize there’s money out there and they’re not replaceable. There’s a skill gap in these games.”

Counterstrike players formed its players association internationally, and thus won’t have the same leverage as a legalized labor union like the NFLPA, Smith said. Its main mission, at least currently, is to leverage the players’ voices and form some standardized tournament specifications.

“The business side is growing up,” Smith said. “We all figured out how to make it entertaining like a sport, but behind the scenes, infrastructure is playing catchup.”

READ MORE: The Boom of Implementing Esports Classes in College Has Begun

Unlike the Counter-Strike association, Riot Games brought in Hal Biagas to help lead a union of its League of Legends players. Biagas, the executive director of the NA LCS Players Association, has more than 21 years in sports industry experience, including 12 years working with the NBA Players Association as the assistant general counsel.

While doubts have been cast about the ability for the union to operate independently from the business. Smith, for one, believes associations should be started by angsty players looking for outside help to spark change. Smith pointed to Overwatch selling broadcast rights to Twitch for $90 million, with players getting no cut as a situation that could spur a union.

“It might just take some guys getting burned to get them truly activated,” Scott said.

Biagas seems optimistic Riot’s connection is not an issue.

“[Riot’s move] is very progressive and in some ways altruistic of Riot to suggest and advocate for it,” Biagas said. “It’s an interesting dynamic. I think from Riot’s perspective, they felt for the healthiest ecosystem, all the parties should have, maybe not equality, but there should at least be a level playing field.”

He also said he believes the company might have felt it would be beneficial to be ahead of the curve with the association model, with so many other esports leagues potentially set to follow suit in the future. For now, Biagas will focus on leading the association in growth and player involvement for when issues to present themselves to press the league on with a “unified voice.” A potential early issue will be moving the league’s teams toward a more uniform contract, he said.

For the four major sports leagues in the U.S., it took decades for player associations to form, but the cycle has accelerated in the recent past, with WNBA and MLS associations forming almost immediately in the 1990s.

Smith equated the esports industry MLB in 1900 when players were just excited to get paid to swing a bat.

The historic formation and power of some major sports player associations do provide a good framework, said Robert Rippee, executive director of the hospitality lab at the International Gaming Institute at UNLV.

“They have the ability. To look at plenty of case studies and learn from those and, potentially, do it better and faster,” Rippee said.

The relative delay of the creation of esports player associations against those two new sports leagues might be in part due to people not considering esports traditional sports, Biagas said.

Also involved is the youth of players, and a six-figure salary to play a video game rather than playing recreationally can be enticing. The youth and ability to play for money also could make selling the appeal of a union more difficult, even if they’re to the benefit of the players.

But selling away their rights poses one of the largest issues Biagas has seen and said it will be an issue he examines more thoroughly in the near future and is high on the list. Those lack of rights can be limiting in individual endorsement and sponsorship deals. Biagas said the youth of the sport and players, as well as inexperienced agents in the space, are the main reasons those rights were initially negotiated away.

“Most of the players rights are controlled by the teams,” he said. “Contracts are very limiting in what players are able to do with their images and other marks.”

From the team side of the players rights deals, Smith, who once owned a team, said he understands the early practice as the teams and leagues needed the control as they needed more revenue streams. Now as the industry as matured and more and more lucrative revenue streams have opened up, it’s less vital to the teams and leagues.

Smith said now he believes teams aren’t activating individual players enough and there’s an avenue to give players their rights back, pay them less and, ultimately, make more money. There are also plenty of verticals teams have no interest in selling, like socks, watches and shoes.

“No one uses them, let a kid try to go out and sell them,” he said. “Not every kid will be an entrepreneur, but there are quite a few who could activate that stuff. Teams wouldn’t lose money, they’d make money.”

READ MORE: Looking Into the Crystal Ball: 3 Esports Predictions for 2019

A major challenge within the esports industry is the vast amount of leagues across the globe and differences among the genres of game and demographics interested in those specific games.

“The issue is we use the term esports like sports. Sports is a huge word,” Smith said. “Counter-Strike and its ecosystem is way different than Rainbow Six and Rocket League and League of Legends.”

The idea of a standardized players associations bridging those gaps seems unlikely, Rippee said, but he believes the idea of the community will string through whenever esports players form associations.

“It’s a sign of maturation in the industry,” Rippee said. “But it’s not the peak. If you look at the history of esports, it began as a community construct, people playing together, and competition formed organically. These associations are an extension of those roots, they want to retain their input, involvement and control within the community.”

Continue Reading

Esports

New Sponsorship Maintains Trend of Quality Over Quantity for Riot Games

For Riot Games, the sponsorship strategy isn’t about stacking up sponsorship partners, but rather finding companies with aligned philosophical values.

Avatar

Published

on

riot-games-alienware

Photo via LOL Esports

A recent partnership between League of Legends Esports and Dell Alienware launches the new year for Riot Games with another quality sponsor.

For Riot Games, the sponsorship strategy isn’t about stacking up sponsorship partners, but rather finding companies with aligned philosophical values, said Naz Aletaha, head of esports partnerships at Riot Games. Aletaha oversees League of Legends global sponsorships, strategic partnerships, business development, and media rights.

Along with Dell Alienware, Aletaha mentioned the Mastercard sponsorship launched at the League of Legends World Championship last year as the two prime examples of quality over quantity.

“Ultimately, we focus on finding partners who can do right by our fans and our sport — partners who share our fan-first philosophy and who want to stand side-by-side with us for the long term to deliver meaningful and authentic experiences to the entire ecosystem,” Aletaha said.

READ MORE: Inside Riot Games’ Partnership with Mastercard and What It Means for the Future of the Publisher

“Both are world-class brands who prioritize their customers and celebrate their passions. They both recognize by combining our efforts, we can take League of Legends Esports — which has scaled to a global, premier sport — to new heights.”

The multi-year partnership with Dell Alienware makes the computer manufacturer the “Official Competition PC and display partner” for the two leagues: League of Legends Championship Series and League of Legends European Championship. The partnership gives Dell Alienware the same title for four other international competitions, including the League of Legends World Championship.

The World Championship had 99.8 million unique viewers for the World Finals, showcasing the potential brand value with the esports league.

The deal will bring League of Legends a fleet of hundreds of Alienware Aurora R8 desktop computers with cutting-edge gaming monitors. Along with the computers will be Dell’s SupportAssist diagnostic, helping detect and prevent technical issues before they impact a match.

The computers will be deployed across the globe and “establishes a consistently high-performance standard, much like traditional sports have done in the past across a range of equipment such as game balls, bats, sticks and pucks,” Aletaha said.

“We are thrilled to be able to tap into Alienware and Dell’s unmatched expertise in hardware and technology services to set the gold standard for the official equipment that will power our sport,” she said.

Mastercard has a long history of sponsoring traditional sports, like Major League Baseball, PGA Tour, Rugby World Cup, and UEFA Champions League, among others.

“Esports is a phenomenon that continues to grow in popularity, with fans that can rival those at any major sporting event in their enthusiasm and energy,” Mastercard Chief Marketing and Communications Officer Raja Rajamannar said at the time of the 2018 Mastercard announcement. “Our Priceless platform is built around connecting with people through their passions.”

Like Mastercard, Dell Alienware will also work with Riot Games for onsite fan activations at all the major League of Legends Esports events to help further the fan attraction of the events.

Along with Alienware and Mastercard, Riot Games is bringing a similar approach to sponsors at a regional level across the globe. In the U.S., the regional sponsorship is State Farm.

Riot Games also has partnerships with Kia in Europe, Mercedes-Benz, and KFC in China, and Gillette in Brazil. The major brands have recognized the growth and significance of esports across the globe and are buying into the industry and its potential opportunities.

READ MORE: Looking Into the Crystal Ball: 3 Esports Predictions for 2019

“The growth of the business of esports overall is incredibly exciting,” Aletaha said. “We’re very encouraged by the meaningful commitment that such respected and recognized brands are making in the space.”

Aletaha said the partnership has roots dating back to CES 2018, when she met key decision makers from the company for the first time. She said major industry conventions are invaluable to her job.

“We very quickly realized as that first meeting that we are both relentlessly committed to elevating the gaming experience for our audience and to the continued technological innovation and overall growth of esports.

“We knew right then and there that partnership was a no-brainer.”

Continue Reading

Esports

Looking Into the Crystal Ball: 3 Esports Predictions for 2019

We figured out what fans and gamers can expect from the world of competitive video games in 2019 with the help of a few industry professionals.

Avatar

Published

on

esports - business - sports

Photo via pixabay

In 2018, fans worldwide watched 6.6 billion hours of esports. With the ability to stream competitions becoming easier to access, the rise of newer games like “Fortnite,” and more fans coming on board, that number will most likely rise once again.

With the new year upon us, we took a look at what else fans and gamers can expect from the world of competitive video games in 2019 with the help of a few industry professionals.

Player welfare will take on more importance

In the past decade or so, the world of esports developed some habits that would probably be considered unhealthy. Players would all live and train together in a single facility. Not many resources were made available to players in terms of mental or physical wellness. Esports organizations also rarely made it a point to help players transition into a different career once their playing days were over.

Now, large organizations like Gen.G are changing the conversation.

At its newest facility in Seoul, Gen.G offers players access to resources like a nutritionist, a psychologist, a full gym, and streaming resources once players are done playing competitively. Players also work in this facility while commuting from their homes around the city in an effort to avoid mental burnout.

READ MORE: Gen.G Is Leading the Highly Competitive Esports Arms Race

In a recent interview, Gen.G Chief Growth Officer Arnold Hur spoke to the importance of his company dedicating resources to improve player welfare.

“I really don’t understand it when I see other organizations that aren’t as focused on player welfare,” Hur said. “It’s our top priority to make sure that a player can be more successful with us than with any other organization. In any sport, your number-one cost is going to be your talent, your players. Making sure that they’re able to perform at their best should be your biggest investment. Since they are our most important investment, we’re going to give it our best shot, so that our athletes can be the best that they can be.”

More non-endemic brands will come on as sponsors and investors

Brands like Alienware and Razer are deeply embedded in the sponsorship space of esports due to their long-established credibility with gamers.

Thanks to esports continuing to dominate the attention spans of the highly coveted 18-35 demographic worldwide, brands that offer products or services that aren’t specifically tied to gaming will likely be moving into esports at a quickened pace. Nike, for example, signed Chinese League of Legends player Jian Zihao to an endorser contract early in the year.

Based on this and other similar deals, fans can especially expect this in esports leagues adjacent to traditional sports like the NBA 2K League.

“We’ve seen a number of large, non-endemic brands and investors come into the space over the past few years, but most recently in 2018,” said Grant Paranjape, director of esports business and team operations for Monumental Sports & Entertainment. “For those who have entered with a thoughtful approach and an ability to integrate endemic esports knowledge into their organizations, I think they’ve been well rewarded by the reception from a very difficult to reach audience. During 2019, I would expect more brands to investigate the space, learn from the mistakes and successes of others, and bring a level of investment into the industry that further professionalizes every aspect, from organizations to individual teams and players.”

READ MORE: Study Confirms Esports Has Graduated to the Big Leagues

Chris “Chopper” Hopper, Riot’s North American head of esports, echoed this sentiment.

“There was a lot of discussion in 2018 with non-endemic brands in terms of sponsorship. That will turn into more closures in 2019. There’s a lot of value here in esports, and brands are aware of that,” Hopper said.

Riot has names like State Farm Insurance and Mastercard sponsoring its major competitions. Expect more larger brands to follow suit in the new year.

Esports will gain more traction in traditional athletic competitions

The 2019 Southeast Asian Games will take place from November 30 to December 11 this year. For the first time in its history, esports will be a part of the competition alongside 55 other athletic events. Games included are “Dota 2,” “Starcraft II,” “Tekken 7,” “Arena of Valor,” “Mobile Legends: Bang Bang,” and one yet to be announced.

The Southeast Asia Games are sanctioned by the International Olympic Committee (IOC). This competition will mark the first time that esports is a medaled event in a competition sanctioned by the IOC.

Does this mean that we will see video games make their debut in the next Olympics? Not necessarily, but the IOC is opening the door here for other regional athletic competition to include video games in the program, which means the process is underway for esports to be an Olympic competition at some point in the next few years.

Continue Reading

Trending