As brands continue to grapple with the challenges of connecting to millennials and their Generation Z cohorts, eSports has emerged as a global phenomenon. Yet, the common knowledge that competitive video gaming is wildly popular with hard-to-reach demographics has done little to illuminate how to capture that opportunity. As a result, only a handful of brands, outside the video game industry, have successfully ventured into the eSports domain. One such brand is Coca Cola; where the global behemoth has effectively captured the unique marketing opportunity eSports represents and, by relation, connected with the ever valuable 25-and-under demographic.
Reaching the unreachable
As the 21st century media consumption patterns have shown, gaming has been steadily eroding traditional media. Add the explosion of mobile devices (and mobile gaming) to the mix and the challenge is even more complex. This reality leaves brands, not already involved with the video game industry, on the outside of a rapidly expanding activity space. In turn, eSports has helped bring a form of media (professional video game competitions) that’s friendly for non-endemic brands. In other words, the explosion of watching others play video games has created a channel, for companies like Coke to leverage. SuperData Research has estimated this worldwide market at $612 million in 2015; with Colin Sebastian, analyst at R.W. Baird, estimating that eSports will generate more than $1.8 billion in annual revenue by 2020.
Figure 1 Courtesy of SuperData Research
Coke’s recipe for eSports success
In October 2013, Coke announced a partnership with Riot Games, publisher of the world’s most popular eSport title – League of Legends. Coke Zero was tabbed as title sponsor of a new minor league series for teams attempting to go pro in 2014. Outside the eSports community, this announcement drew more attention for Coke’s interest in eSports more than anything else. However, the newly formed Challenger Series was a key property within Riot’s eSports ecosystem. As proving grounds for competitive play and the only path into the professional League of Legends play, the Challenger Series gave Coke prime activation and set a strong foundation for the brand’s association with eSports.
After sponsoring the Challenger Series for the duration of last year and establishing presence at the 2014 World Championship, Coke renewed its relationship with Riot in 2015. The stated goal was to increase the breadth of activation through live events and on social media. A key element of Coke’s strategy is positioning its brand as a conduit for fans to consume new forms of eSports-related entertainment; including livestreaming events to the big screen in 15 Cinemark theaters in three U.S. cities: Chicago, Seattle, and Dallas.
The results have been palpable. According to an article by John Gaudiosi of Fortune.com:
“Coca-Cola’s eSports partnership with Riot Games has paid off quite well for the soft drink maker in just a short time. According to internal Coke research, after one year of the partnership, Coca-Cola was the #1 non-video game brand associated with League of Legends, the most popular eSports game in the world with over 85 million players worldwide. Most importantly, this research showed that 70% of gamers believe this brand sponsorship is positive, and 97% of gamers have either a positive or neutral response.”
Those figures portray a brand that prior to 2013 was an unknown within the eSports world, but today is firmly entrenched as an authentic presence. Additionally, Coke has gained access to considerable audiences of passionate, engaged fans and gamers, in a cost-effective method unmatched by traditional channels. By staying connected to the pulse of competitive gaming, Coke has opened a world of possibilities for continued engagement of everyone from teen millennials to 30-somethings.
How brands can win in eSports
Close analysis of Coke’s investment in eSports reveals key factors for success that all brands must adapt.
- Establish a marketing strategy – Understand that eSports is an overarching label. Today it refers to entire competitive gaming landscape. In reality, there are multiple segments in the eSports space, defined by different video game titles. Everything from the profile of fans, players and dynamics of professional play differ across these segments. As a result, a successful marketing strategy must take this segmentation into account. Coke identified the League of Legends segment and built a bridge into competitive gaming world therein. Any brand seeking to penetrate the eSports marketplace must identify the appropriate vertical and its unique characteristics.
Figure 2 Courtesy of EEDAR eSports Consumer Analysis Whitepaper, 2015
- Prioritize community – An eSport, at its core, is structured around a community of video game enthusiasts. These communities, as a whole, maintain a very strong sense of passion as a characterizing feature. Competition, socialization and engagement are facilitated organically; and unlike traditional sports there are far fewer outlets of commercial activity. Brands must frame penetration into the eSports marketplace along the lines of the needs and wants of the community. Efforts that don’t align with the community will inevitably fail.
- Merge analog with digital – Competitive gaming is an evolving, digital domain. However, traditional approaches still have their place. For example, Coke sponsors viewing parties, which are gatherings where fans can gather to watch various eSports events. These in-person events have been a hit with League of Legends fans, despite not being sponsored by Riot Games. There is significant room for similar efforts by other brands seeking to carve out a presence in the eSports domain.
The rules of engagement for eSports are still being written. For brands, this means now is the time to establish an early mover advantage. Those that do will be well-positioned to connect with the younger audiences who are defining their entertainment experiences around the internet and video gaming.
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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed