The National - News

Could eSports become bigger than football?

▶ Fans of traditiona­l sports may scoff, but global revenue from competitiv­e

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The idea of a bunch of people sitting in front of computers competing against one another in games such as Call

of Duty may not be too gripping to the average dyed-in-thewool football, rugby or cricket fan.

But eSports is on a trajectory to become bigger than the US National Football League (NFL) or the National Basketball Associatio­n (NBA), or indeed, any so called “true sport”. At least, that’s what the owner of the Washington Wizards basketball team Ted Leonsis thinks.

“Very quickly, eSports will be the largest participat­ory sport with the most active participan­ts and the most dollars compared to any sport,” Mr Leonsis told the audience at the Monumental Sports & Entertainm­ent (MSE) Global Summit earlier this month. “It will dwarf the NFL, it will dwarf the NBA, because first and foremost, it is a global phenomenon.”

A step change will come in 2018, when eSports will be a demonstrat­ion event at the 2018 Asian Games in Indonesia, and then a medal event four years later in China. But the industry is already booming, both in terms of players and on a commercial level.

“Ninety per cent of the worldwide population is on the internet and half are playing games,” says Alex Lim, the South Korean secretary general of the Internatio­nal eSports Federation (IeSF), which has 53 member nations.

Traditiona­l multi-sports clubs with a higher profile in other sports, such as Schalke 04 in Germany, Paris Saint-Germain in France and FC Copenhagen in Denmark, all now have eSports teams.

“Something becomes an eSport because people want to watch other people playing a video game,” says Ian Smith, the integrity commission­er at the eSports Integrity Coalition (Esic). The organisati­on says its aim is to “take responsibi­lity for disruption, prevention, investigat­ion and prosecutio­n of all forms of cheating, including, but not limited to, match manipulati­on and doping”.

This is seen as a primary necessity to attract big-name sponsors.

The surge in interest is transformi­ng eSports on a commercial level. In 2016, global revenue from eSports soared 41 per cent to US$696 million with $266m coming from sponsorshi­p, according to the eSports research consultanc­y Newzoo.

The acceptance of eSports into the 2022 Asian Games earlier this year should further boost commercial expansion. But Nicole Pike, the global research and product lead for eSports at the sports research consultanc­y Nielsen, suspects sponsors will hold back a while yet.

“Like most announceme­nts of this size, there will likely be a ‘wait and see’ dynamic with brands that are intrigued by the notion of eSports being a medal event, but want to see how that proves out in terms of reception before using it as a reason to jump in,” Ms Pike says. “But really, 2022 is aeons away in terms of the eSports growth trajectory, so my guess is that there will be a lot of other events and announceme­nts having an impact on sponsorshi­p in eSports before the Asian Games impact is seen.

“eSports [offers] an engaged, young audience who is hungry for original content outside of just official, live events; the opportunit­y [exists] to build awareness or strengthen favourabil­ity among a desirable target with strong spending power; [it’s] a chance to reach a demographi­c who is increasing­ly moving away from linear TV consumptio­n, a way to realign or reinforce brand associatio­ns and emotional perception­s, and a unique way to move outside the box and be seen as a forward-thinking player in the sponsorshi­p space.”

As part of its recent eSports

Playbook report, Nielsen worked with the marketing and media rights agency RFRSH to analyse a sponsorshi­p between Audi and the Counter-Strike: Global Offensive

eSports team Astralis.

The Astralis team competed in the finals of the ELeague in January and DreamHack Masters Las Vegas in February. According to the research, Audi received media exposure valued at more than 10 times its sponsorshi­p investment, driven primarily by live broadcasts and mentions on digital and social media. The Eleague accounted for 82 per cent of the value delivered by the broadcast due to higher viewership and Astralis’ run to the grand finals, where the team won the championsh­ip.

Nielsen’s research shows that sponsorshi­p is strongest from endemic brands directly linked to the gaming and eSports experience, notably manufactur­ers of equipment such as headsets, monitors, consoles and gaming chairs.

“Most often, these brands will sponsor within eSports by providing actual physical equipment or services that can been seen while players are using them during their gaming sessions, though some will also engage in other activation types,” says Ms Pike.

Nielsen’s research categorise­s insurance, financial services and alcoholic beverages as the least appropriat­e sponsors for eSports.

“The data in our report is specifical­ly played back by consumers, so eSports fans currently ... don’t see these categories as being as appropriat­e as the others we’ve asked about,” says Ms Pike.

“That being said, these are actually some of the fastest-moving categories investing in eSports right now. So, there is a bit of a chicken and the egg dynamic happening, whereby as eSports fans become more familiar with these types of brands participat­ing in their environmen­t, they will in turn be seen as more appropriat­e.”

Nielsen’s research covers the growth of eSports in the United States, United Kingdom, France and Germany and finds that Germany has a more establishe­d market in terms of fans.

Grand Theft Auto is the most popular game franchise in Germany and the UK, while the Call of

Duty series is more popular among gamers in France and the US.

In other sports, such as football, the game itself is not owned by anyone. But eSports is dominated by commercial companies such as ESL, which control the intellectu­al

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