BRANDS CONNECT WITH DIGITAL NATIVES

THE PUBLISHER – RIOT GAMES

The brands that initially allied themselves with esports were primarily endemic, namely from the equipment genre, but the sector has subsequently attracted FMCGs and sportswear firms, and increasingly high-end brands such as cars and luxury goods.

Alban Dechelotte, head of sponsorship and business development EU Esport at leading video games publisher Riot Games, tells Sportcal Insight: “Ten years ago we had brands coming on stage that were the performance brands, the equivalent of Adidas and Nike in football. We had computers, screens, keyboards, mice and headsets as they talked to the players – if a pro uses us, you should use us if you want to perform.

“Then we had the second generation that probably started with Coke. I was very close to that. It was the first time brands like that started to go in, to talk to the audience. They identified that, beyond performance, there are consumers, and if they created a meaningful connection with this ecosystem, they could engage with the audience in a powerful way.”

Riot Games, owned by Chinese internet giant Tencent, is the developer behind the popular League of Legends title and competitions.

Dechelotte, a former executive at Coca-Cola and Havas, the French advertising agency, detects a sea change with companies like Beko and Louis Vuitton branching out in becoming sponsors of the LoL European and World Championships, respectively, in the past year.

“We are entering the third generation now. They [brands] want to build a collaboration with us to tell a story to the world,” he says. “I’m going to use Beko [as an example]. They have a commitment that is ‘eat like a pro if you want to play like a pro’, and they use us and FC Barcelona and Fenerbahce, the leading basketball club, to tell the story.

“It’s a model in which they don’t just talk to League of Legends fans, they talk to the world, and the same thing for Louis Vuitton. Louis Vuitton is not only targeting players of League of Legends, but I think it [esports] is also something that builds equity for brands because it’s a message that you are open to the world of the digital native.

“It’s the sport of the digital native. We play online, we work online, we talk online. That is how the sport is played and shared, and I think brands associating their DNA and heritage, and celebrating this youth, is powerful not only for a transactional relationship with the existing community of League of Legends fans, but to talk to the world.”

The LoL European Championship (LEC) evolved from the World Championship, taking on its current name in 2019, and the esteem in which it is held is shown by the fact that prominent agency Lagardère Sports signed a multi-year deal to act as its exclusive sponsorship agency, and partners include familiar brands such as Kia, Shell, Red Bull and Pringles.

Sponsorship accounts for 80 per cent of LEC commercial revenue, far outstripping broadcasting on 15 per cent and gameday on 5 per cent.

THE TEAM – DIGNITAS

In the same way that brands have embraced sports simulations, so sports organisations have taken to esports, including the more endemic games.

Dignitas, the US esports team, was acquired by the NBA’s Philadelphia 76ers in 2016, and now forms part of Harris Blitzer Sports & Entertainment, the holding company that oversees the various franchises and properties of US financiers Josh Harris and David Blitzer.

Dignitas, which is based in New Jersey, recently secured a major sponsorship deal with telecoms giant Verizon, which will pave the way for a new 5G training facility at the latter’s headquarters in Los Angeles, making it the first North American team to have a dedicated presence on both coasts.

It is Verizon’s first serious venture into esports, and the company will make available its 5G Ultra Wideband network, ensuring fast connectivity and low latency that is intended to aid player performance and engagement with fans among various benefits.

Michael Prindiville, the chief executive of New Meta Entertainment, the new parent firm of Dignitas, describes the latest sponsorship deal as “the most exciting partnership we’ve seen in the space” because of the technologies it comes with, and a “match made in heaven.”

He recognises the trends in the esports sponsorship market, saying: “The non-endemics are coming into the space in a clip, and we’re seeing the smarter non-endemics like Verizon and Louis Vuitton. You might say, ‘why is a brand like that [Louis Vuitton] getting involved?’ But not when you see how engaged and authentic it is, and the online and digital opportunities there are.”

Under its sponsorship of the LoL World Championship, Louis Vuitton has designed a trophy travel case to hold the Summoner’s Cup, which is awarded to the champions, and outfits for playable characters within the game.

Dignitas, which last year merged with another esports team Clutch Gaming, competes in games including LoL, Rocket League and Counter Strike: Global Offensive, and Prindiville claims that these are ultimately the best platforms for attracting sponsors.

“When a non-endemic brand is looking to enter the space, there’s an education, and that can start with a sports simulation,” he says. “These games have large audiences, but when you dig into the data, they are underdeveloped, and your true scale comes from the endemic esports games like League of Legends and CS:GO. If you want that 18-to-34 demographic then the games with scale are the endemic ones.”

HBS&E’s level of commitment is demonstrated by the fact that it led the $30-million funding round for Dignitas that concluded last September, and coincided with the launch of NME, a company that oversees three verticals in esports teams, content and marketing, and investments.

There is also a distinctive element in Dig Fe, the two-time world champion female CS:GO team, which can attract different types of sponsors to the esports table.

Heather Garozzo, vice-president of marketing at Dignitas and herself a former top player, says: “There are lots of opportunities for female-focused brands who appreciate these women are big influencers on social media and live streaming.”