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Esports sponsorship: end of year report
This time last year, UKSA looked at the state of play in the esports sponsorship sector. Our conclusion was that some of the heat had gone out of the market post-Covid 19, but that it still represented an exciting opportunity for mainstream sponsors.
Since then, it’s fair to say that all things digital have been on an upward trajectory. Social media advertising has bounced back and AI-powered businesses have seen huge investment. There’s been a significant growth in ad-funded streaming and a recovery at Netflix. Even the metaverse and cryptocurrency have regained some of their cache.
So what has happened to esports sponsorship in the intervening period? Here are just a few recent developments that suggest this fast-evolving sector is still going strong:
The Esports World Cup: The first ever Esports World Cup took place in Saudi Arabia this summer, with tournaments taking place across 22 gaming franchises. From a commercial perspective, the big news was that a total of 27 sponsors decided to partner the event. Of particular significance for the sector, several of them were non-endemic brands, i.e., brands that don’t have an inherent connection with esports. These included adidas, Pepsi, KitKat. TikTok, Amazon and Sony. Pepsi signed an agreement to support festival activations including the Rockstar Bar. It also deepened its association with the event by sponsoring the Saudi Arabia-based Falcon Esports HQ.
Esports team deal renewals & extensions: 2023 was not a great year for esports teams, with many losing sponsors and having to cut costs. 2024 has been better, with several examples of brands reconfirming their support for esports teams/organisations. Team Vitality, to cite one example, renewed partnerships with GG.BET, ALDI, Crédit Agricole, and JBL Quantum. Overall, it retained all 14 of its 2023 commercial partners. Other teams to secure renewals in 2024 included FaZe Clan.
The rise of the gaming influencer: One explanation for the problems experienced by esports organisations has been the rise of content creators and individual esports players. As this dynamic cohort grows its fanbase, some sponsors have decided to switch their investment (an example being AimLab’s relationship with Ten Z). While this isn’t good news for esports teams, it does mean sponsors have a new gateway into the sector.
Marriott Bonvoy and League of Legends: One of 2024’s most interesting developments was Marriott Bonvoy’s decision to partner the League of Legends EMEA Championship Summer Finals in Munich (a franchise controlled by Riot Games). As Official Hotel Partner, the international hotel group featured during the broadcast of the Finals in late August/early September. It also created a series of exclusive rewards for LEC fans that signed up to its loyalty programme. For fans attending the Finals in Munich, there was an exclusive hotel package with merchandise. It’s worth noting that Uber Eats and Kia have also partnered with Riot around League of Legends.
The emergence of ancillary opportunities: As it matures, the esports sector is presenting brands with more ways of connecting with fans. For example, Lexus renewed as title sponsor of The Esports Awards for the sixth year running. The event, held on November 21st, saw Lexus present the winners for Esports Content Creator and Esports Organisation of Year. The live broadcast of the ceremony also featured Lexus vehicles.
Monster maintains commitment: Monster Energy has several esports partnerships, which makes it something of a bell weather when it comes to esports sponsorship trends. So it’s good news for the industry that the company has continued investing in 2024. In June, for example, it announced a sponsorship agreement with the professional gaming team Riddle Order. Prior to that, it renewed its partnership with National Student Esports (NSE). This partnership, launched in 2019, makes Monster Energy the official energy drink partner of the British University Esports Championship (BUEC).
UK Sponsorship Awards dedicated category: For the last few years, UKSA has had a dedicated Gaming & Esports category – and it will be included in the line up again this year. Last year’s finalists included an entry by Sky Broadband & David Beckham-backed Guild Esports. As explained in UKSA’s Book of the Night, “this game-changing collaboration has proven highly beneficial to both organisations. Sky was seeking a partner that would enable it to reach a younger audience and gaming demographic, and Guild needed a sponsor that would elevate its ‘Path to Pro’ grassroots programme. Both sides garnered heightened awareness and yielded strong results.”
Interested in entering the UK Sponsorship Awards? The 2025 edition of this prestigious annual event is open for entries until January 23rd 2025.
