Why non-endemic brands need to leverage esports

The majority of the viewership of esports in India comes from Tier-II/III cities, and the industry has collectively acquired a viewership of over 12 million in certain events.

Currently platformed as one of the fastest-growing industries in the world, esports has been showcasing to the audiences that its potential is unlimited and the profits are massive. What makes the scope of growth in esports even more significant is that it doesn’t restrict itself to a niche or a particular set of audiences. The majority of the viewership of esports in India comes from Tier-II/III cities, and the industry has collectively acquired a viewership of over 12 million in certain events.

Like any other industry, sponsorship in esports is also divided into two types of brands: endemic and non-endemic. Endemic brands are the ones that are related to esports, such as Cybeart, which is a gaming chair company, or Logitech, which creates gaming peripherals. Non-endemic brands are the ones that are from industries outside esports, like Hyundai. So, let me explain why non-endemic brands need to leverage esports.

Brands can certainly expect a return on their investments, if they target the audience and the community esports caters to. Non-endemic brands, like Hyundai and Swiggy, have already tapped into the industry through events like the ‘BGMI Masters Series’, broadcasted on Star Sports 2, where they were the headline sponsors.

Hyundai used the series as a platform to advertise its cars to a new market of young people (ranging from ages 18-25), who could be investing in their first car, driving them towards buying a Hyundai model. On the top of that, the winning team even got the ‘Hyundai Venue’, which was the highlighted car of the event, as a reward.

Swiggy, on the other hand, placed its brand at the end of each game, where instead of the phrase ‘Winner Winner Chicken Dinner’, the screen used to show ‘Winner Winner Swiggy Dinner’. Such placements not only increase the brand’s recall value in the minds of the fans, but also establishes that particular brand’s faith in the industry.

Just the way traditional athletes are worshipped and the brands they advertise automatically get sales because the audience imbibes their personalities, esports athletes are also held in high regard due to their exceptional performances. Most of them have their individual fan bases and communities that loyally interact with everything the athlete says or does. In other words, the aspirational value created by these esports athletes is very high.

We, at Orangutan, have also been associated with non-endemic brands like ‘Sosyo Hajoori’, a 100-year-old beverage company from Gujarat that was looking to target the youth.

Our partnership with Sosyo was in the early stages of our growth, and by creating several campaigns for the brand and integrating Sosyo in our social media, we gave it visibility to over a lakh unique accounts.

However, there are multiple ways non-endemic brands can enter the esports industry. Some of the best ways are:

Partner with an esports organisation: esports sponsorship agreements have all the hallmarks of a traditional sports deal, including having a spot on the team’s jersey. It is so much more than just a logo on a T-shirt. Esports athletes wear these jerseys at events, tournaments and even when they are streaming. A title sponsor spot, if worn by all players at an organisation, which if we assume to be even 10 esports athletes, can give the brand visibility to millions of viewers across streams and events. It is more than what many traditional sports have to offer in India.

The (European Football) Champions League, hosted by UEFA, gauged a viewership of only five lakh viewers. The car company Kia has even partnered with the South Korean organisation Damwon to purchase the official naming rights for all their teams, where the team now goes by the name of ‘Damwon Kia’.

Partner with tournaments and intellectual properties of brands: esports tournaments offer brands a lot of visibility via digital boards, advertisements and on-site branding. By partnering with these organisers, any brand can be assured that their name will be visible to a massive chunk of extremely loyal customers, as Swiggy and Hyundai successfully witnessed.

Influencer marketing: unlike traditional sports athletes, esports athletes create content on their social media. Non-endemic brands can crack deals with these athletes to promote their products or service, as they host an audience that has been loyal to them for years.

Brand campaigns: many esports organisations also run individual campaigns with brands, where the entire campaign is focussed around the product or service that the brand hosts. At Orangutan, we recently partnered with the snacks company Too Yumm, to create a two-week-long campaign that revolved around the chips sold by it.

We created an ad with a professional crew, offered social media promotions to a potential audience of over two million people, and gave it visibility across all Orangutan social media platforms.

So, if the question: “Can non-endemic brands benefit from esports?” remains, let me answer that by saying that the global industry is now a billion-dollar one, and India is still at a growing stage. Esports is an excellent way for non-endemic brands to find a whole new untapped market. Capitalising on this opportunity can truly yield the profits a brand desires.

(The author, Jai Shah, is co-founder, Orangutan)