Yura Lazebnikov, an investor, entrepreneur and expert in technology industries, IT and esports. The Managing Partner of TECHIIA Holding.
Let’s start with the facts everyone knows about esports. Esports are competitive video games where pro gamers face each other in organized tournaments and leagues. Formally, games can be classified into genres. For example, the MOBA (Multiplayer Online Battle Arena) genre includes games such as Dota 2 by Valve and League of Legends by Riot Games. Still, all these disciplines are part of the esports industry, and like hundreds of esports organizations, tournament operators and so on, they generate revenue.
These numbers draw attention to the industry, but let’s agree that this information is very little to decide whether to invest in it or not. If you are thinking about investing in esports, here are a few things to consider.
A Broad And Diverse Audience
There are tons of disciplines in esports, and each has its fans. At the same time, the general portrait of the viewer is somewhat similar. Based on my experience, esports fans are typically men aged 18 to 35 with middle to high incomes. The average age and other aspects vary not only by esports title but also by region. In Europe, fans are very fond of CS:GO, and in the USA and Asia, League of Legends is the preferred game. In addition, being different in terms of genre, every game has a different vibe, which usually affects tournament style. League of Legends is a fantasy MOBA game with a bunch of fictional heroes and fairy tale lore, while CS:GO is a realistic shooter.
For MOBA, tournament operators often try to emphasize the otherworldly and unreal nature of events with the help of AR. Fans in different regions react differently to tournaments: a competition in one and the same discipline can look like an enchanting show or be as minimalist as possible to emphasize the intensity of the moment.
Talking about fans’ hobbies, they do not limit themselves to video games only. As in sports, if your friend watches soccer, it does not mean that they necessarily want to become a soccer player. Some fans may limit themselves to just watching esports tournaments, while others polish their skills in the game every day to become true pros. The same applies to other areas of life, such as work. Esports can be a passion for a person from any field, such as IT, marketing or design.
This kind of digital-savvy audience is what brands are looking for in esports.
Esports Is Everywhere
Gaming and esports have reached many platforms. You can play mobile esports by choosing PUBG, Garena Free Fire or Mobile Legends: Bang Bang. If you have a PC, you may choose Dota 2 or VALORANT. There are Rocket League, Street Fighter or FIFA for console owners. This accessibility makes esports suit any budget, meaning more people can join esports. The same goes for watching esports tournaments: Smartphones, PCs and gaming consoles are all ways to watch esports championships from anywhere.
Fresh And Extraordinary
From what I’ve seen, esports fans are an active audience that wants live communication with zero boredom and no time-wasting content. So even pre-recorded content must fit into broadcasts—otherwise, viewers just switch off. Moreover, tournament operators care about show statistics and refuse to put on poor-quality or boring content to keep viewers interested, so the range of content is often up and beyond. Some tournament operators choose a one-of-a-kind theme, like anime, and a brand should consider it before preparing the marketing promo. No two esports events are alike, unlike soccer, where the time-tested approach works well.
Challenges To Overcome
It is worth going through the problems that exist in esports, just like in any field. Many who think about investing in esports compare it to traditional sports, and this is not the best comparison. Both esports and sports share a spirit of competition, but in terms of structure, they are entirely different industries. Baseball, for example, has no rights holder, which means that anyone could make a baseball tournament tomorrow, and there would be nothing unusual about it unless it’s a national tournament.
In esports, each discipline has a publisher whose goal is to promote their game. It’s up to the publisher to decide whether there will be a tournament, what style the tournament will be, who is not eligible to participate and so on. Such restrictions can prevent brands from implementing their esports promotion strategy.
Another fact that brands have to face is that esports is a very young industry. It isn’t just about the average age in esports—I mean the whole industry. The first esports tournament was held about 50 years ago, and it was only a local event. If you think things went differently after that, think again because the esports scene didn’t really change in terms of organization concept until 2011. Valve’s first Dota 2 world championship, The International, held only 12 years ago, provided a large prize pool and attracted many esports players, spectators and media. For comparison, the first NAIA men’s basketball championship was held in 1937, over 80 years ago. Several generations grew up watching it. Esports cannot boast the same statistics right now.
What’s Next
Esports has made a giant leap since 2011, as evidenced by viewership statistics and the industry’s overall revenue. However, the development of esports requires a more extensive strategy. Game publishers are already moving away from big prize money and focusing on the stability of esports leagues and the quality of shows to attract new audiences since esports works well as a game marketing tool.
All things considered, there’s no reason to worry that the total number of viewers will decrease. Competition is something that always evokes emotions, both in sports and esports. Even when there was no significant investment in esports, and the movement had not yet established itself as an industry in its own right, the habit of competing with each other in local clubs on gaming machines already existed. The desire to compete is still there; players still want to do something to make history, and esports provides the tools for this.
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