ECONOMICS OF ENTERPRISES: ISSN 2664-9969

ECONOMICS AND MANAGEMENT OF ENTERPRISE

UDC 316.776.32
JEL Classification: M31, L83
DOI: 10.15587/2706-5448.2022.261877
Article type «Original research»

Kateryna Kalynets, MARKETING SOLUTIONS TO PROMOTE

Viktor Krykavskyy
BRANDING IN ESPORTS
This study aims to identify marketing solutions that contribute to the improvement of brand image as a result
of sponsorship participation in eSports. Since eSports is an activity that attracts millions of viewers worldwide, its
development involves attracting sponsors and donors for its development. That is why marketing is a special tool
that can promote this sport’s endemic and non-endemic goods and services. The research aims to determine the
special importance of eSports for promoting and selling goods and services advertised on virtual sports grounds. The
object of the study is the influence of the brand’s sponsorship participation in eSports tournaments on its image.
A conceptual framework for the study was created and then refined with empirical data. This quantitative
study analyzed 110 eSports fans who were selected using a non-probability heterogeneous method. Empirical data
were collected through an online and closed-ended survey. Thus, more accurate and updated empirical data were
collected to increase the conceptual framework’s quality, reliability, and detail. In particular, special attention was
paid to determining the subtleties that contribute to the improvement of the sponsors’ brand image by the above-
mentioned elements.
The data showed that eSports sponsorship provides several main elements that enhance the sponsor’s brand
image. These elements include brand recognition, brand trust, building loyalty, referrals, willingness to try a new
product, association with famous athletes. The field of eSports sponsorship is largely ignored by academia. As
such, this study is first step in better understanding the benefits of eSports sponsorship and lays the groundwork
for future research. Knowing the main brand image benefits of eSports sponsorship will help build confidence for
brands that are still reluctant to enter this new market.
Research has shown that the use of marketing strategy in eSports for brands of any scale corresponds to the
stages of marketing strategy in traditional sports, in particular defining the target audience, and searching for
channels of communication with the target audience, collaborating with celebrities, team sponsorship, holding an
event with a white label.
Keywords: eSports marketing, endemic goods, non-endemic goods, followers, streaming, audience engagement.

Received date: 31.03.2022 © The Author(s) 2022

Accepted date: 21.05.2022 This is an open access article
Published date: 30.06.2022 under the Creative Commons CC BY license

How to cite
Kalynets, K., Krykavskyy, V. (2022). Marketing solutions to promote branding in eSports. Technology Audit and Production Reserves, 3 (4 (65)), 20–25.
doi: http://doi.org/10.15587/2706-5448.2022.261877

1. Introduction of eSports. As a result, competing computer games are

attracting more and more attention, which cannot escape
Markets are plagued with so many similar brands that it the scientific community. Computer games, or eSports,
is difficult for companies to find main selling point. Here, are a phenomenon that has become one of the elements
it is common for brand image to be the only, or main, of modern digital youth culture, but its study still faces
distinguishing element. Brands that build the best image several challenges.
will have the competitive edge and reap the most ROIs. First, the scientific community lacks an understanding
In this regard, one of the best tools for building a brand of the importance of eSports as a cultural phenomenon.
image is advertising, and of its various types, sponsorships Secondly, there is still a belief that computer games are
are the most effective as they seem far less commercial. intended exclusively for children and the unemployed. Third,
The process of informatization has also affected the eSports causes conservative rejection in many countries [1].
gaming industry because today video games are positioned Thus, eSports are a form of competitive activity based
as something more than just a component. Nowadays, on the use of computer games. It did not arise spontane-
eSports are becoming an opportunity to earn money, ously and today demonstrates a certain history of slow but
transforming your favourite hobby into a job. Its develop- confident movement toward global recognition. The sharp
ment is constantly in the direction of direct competition rise in the popularity of eSports could not fail to attract
with sports tournaments. This is facilitated not only by the attention of the business sector. Today it is one of the
the use of modern technology but also by the technique most promising investment areas in the domestic and global

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markets. The dynamics of eSports are constantly increas- ESports, defined as video game competitions involving
ing, which makes it interesting and relevant for research. consumers, companies and other stakeholders through mul-
tiple interactions, has experienced unprecedented growth
2. The object of research and its in recent years. A major reason for this worldwide growth
technological audit is the increased access to both technology and elite
competition by a large portion of the population. From
Research on the impact of sponsorship in virtual sports a scientific point of view, eSports is considered a field of
marketing on user preferences in combination with indirect sports activities in which people develop and train physi-
or direct marketing is important today. After all, a limited cal and mental skills with the help of information and
understanding of the importance of the latest trends in communication technologies [3]. Other definitions of the
the promotion of goods and services prevents us from concept perceive it as a form of sport, the main aspects
understanding how users’ evaluation of the experience of which are conducted in an electronic format through
can contribute to their study of sports brands. While organized gaming competitions in which players from all
eSports marketing can serve as a more powerful vehicle over the world compete for the ultimate prize [4].
for communicating sports brand details and experiences ESports has been criticized by society and some aca-
than traditional media, there are unique and distinctive demics for calling itself a sport. However, the recognition
characteristics that differentiate virtual sports experiences of eSports as a sport by some modern scholars is impor-
from indirect and direct sports experiences. The lack of tant, which is justified by the fact that it requires a set
research on the role of sponsorship in eSports on its im- of skills of a competitive nature, it has an increasingly
pact on consumer consciousness creates a conceptual void large organizational structure and is recognized by va­
in the consumer sports literature. That is why the object rious institutions [5].
of this study is the influence of the brand’s sponsorship The importance of eSports in the field of sports spon-
participation in eSports tournaments on its image. sorship has increased in recent years. One of the reasons
The characteristic disadvantages inherent in this object for this boom is that eSports now reach a huge part of the
in the existing operating conditions are: population, especially young people who participate in it
– underestimation of the importance of eSports in the and watch it through various social networks. According
modern conditions of digitalization of society; to data provided in the eSports document compiled by
– lack of understanding of opportunities to promote the Spanish Association of Video Games (AEVI, 2018),
one’s goods/services through sponsorship in eSports. in 2018 the audience of eSports enthusiasts worldwide
It is very difficult to convince people to accept adver- reached 165 million people, and by 2021, the number of
tising. In this sense, sponsorship always runs the risk of audiences is predicted to exceed 250 million. In Spain, the
the brand being perceived as too intrusive. However, the figure is 2.6 million, with an estimated total audience of
researchers found that eSports fans are very receptive to over 5.5 million. In 2018, more than 100 million people
sponsorship. This high recognition is because fans know watched the final match of the League of Legends World
that eSports cannot survive without sponsors, as most Championship, which was broadcast in 19 different lan-
of the revenue comes from them. Furthermore, studies guages on more than 30 platforms and TV channels [6].
have shown that between 58 % and 95 % of all eSports ESports is part of the communication strategies of brands.
sponsors are endemic brands [2], and one reason for this Communication with the youngest target audience of the
disparity is that non-endemic brands are unsure of how population with the help of mass media (television, radio,
well fans will accept them as eSports sponsors. What is press, etc.) is ineffective given the low penetration of «tra-
very important is that most fans also accept non-traditional ditional media» at this age. According to EGM (Electri-
sponsors in eSports. This is attracting more and more cal Grid Monitoring) data, television is the least effective
non-endemic companies such as PokerStars, Domino’s, communication medium when planning campaigns aimed
Coca-Cola, Audi, Visa and Gillette. at children or young people, as these groups have stopped
consuming content on television to enjoy it on other de-
3. The aim and objectives of research vices, prompting brands to look for territories related to
these targets to run your advertising messages.
The aim of this study is to identify marketing solu- Given the large audience of engaged fans in eSports,
tions that contribute to the improvement of brand image operators and broadcasters are firmly committed to the
as a result of sponsorship participation in eSports. The proliferation of video game leagues. An estimated 134 mil-
objectives of the research: lion people worldwide watched (but did not participate in)
1. To determine the importance of cybersports as an eSports events in 2014 (SuperData, 2015). In the same year,
economic component. Amazon acquired Twitch Tv, a video streaming service that
2. To identify the prospects of development of cybersports. broadcasts live video games on demand and is the number
one platform for eSports content on the planet. In 2017,
4. Research of existing solutions Movistar created Movistar eSport, a channel dedicated
to the problem exclusively to eSports that broadcasts both national and
international competitions, but closed in December 2018.
A relatively small number of scientific works scientists Other operators, such as Atresmedia, broadcast content
are devoted to the study of the phenomenon of eSports. from the Professional Video Games League, in this case in
The situation with a lack of scientific articles on the chosen a programmatic format (Neox Games). Public broadcaster
topic is explained by the fact that eSports have a fairly RTVE launched its league at the end of 2017 [7].
short history of development and ambiguous perception Due to the significant distribution and publicity, mar-
of certain segments of society. keting scientists cannot bypass the topics of eSports. From

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a marketing perspective, eSports is a sports entertainment The basis of variance analysis is the following prin-
product with significant growth potential that requires ciple (a fact from mathematical statistics): if independent
management expertise related to events, merchandise, spon- factors A, B, ... act together on a random variable, then
sorship, support, technology, human resources, social media, the total variance is equal to the sum of variances caused
governance, legal, celebrity culture and welfare of athletes. by the action of individual factors:
As a result, the phenomenon of eSports has reached such The frequency of buying was entered as a covariate
a scale that it has even affected sports firms [8]. At the into the analyses.
beginning of 2018, the Duet group created the first gym Thus, the assessment of criterion F, which reflects the
for eGamers in Duet Fit Glorias in Barcelona. Given the ratio of the variance estimate between groups (MSB) to
size of the eSports audience and the profile of their fol- the variance estimate in the middle of the group (MSW),
lowers, brands have begun to show interest in sponsoring makes it possible to assess the impact of brand touches
leagues, teams, and players. on its image among eSports participants.
The academic literature about this phenomenon is As expected, the results showed that the more often
currently very scarce. The aspects of eSports focused on the participants received new contacts with the brand,
are mainly psychology [9], definitions, and an approach the more positive their attitude towards this product
to what the sport refers to [10] issues about athletes was F(1.95) = 22.06 when levelling the value p < 0.01,
and gamers’ health and the marketing perspective [11]. sample effect coefficient b = 0.25, and the practical value
However, given the few previous studies on computer of the result 2 = 0.19 testify to the significant scale of
game consumption, no attempt has yet been made to under- this influence.
stand eSports sponsorship. An important issue in this area Results also showed the main effect of regulatory focus,
is the need to investigate the impact of eSports sponsorship F(1.95) = 4.43, p = 0.038, 2 = 0.05, whereby participants who
on the health of the sponsoring brand. In an environment were induced with promotion focus had more positive
where the effectiveness of mass media-based communication attitudes towards branding skills (M = 4.49) than partici-
strategies to reach the youngest segments of the population pants who were induced with prevention focus (M = 4.05).
is being questioned, the return of new strategies such as Additionally, there was a significant main effect of social
eSports league sponsorship must be able to be measured. norm, F(1.95) = 8.04, p = 0.06, 2 = 0.08, showing more posi-
This work is an analysis of the fields of business, sports tive attitudes in the injunctive norm condition (M = 4.58)
science and media studies and is based on the study of than in the descriptive norm condition (M = 3.96).
the definition and reasons for the consumption of eSports Importantly, results also showed a significant interaction
to determine effective sponsorship strategies for brands between regulatory focus and social norm, F(1.95) = 3.96,
that should be leaders in this field. p = 0.049, 2 = 0.04. As expected, the influence of descrip-
tive norms on attitudes was higher under promotion
5. Methods of research focus (M = 4.40) than under prevention focus (M = 3.52;
F(1.48) = 8.22, p = 0.006, 2 = 0.02). In contrast, the effect
Regarding the aim of research, let’s formulate the fol- of injunctive norms did not depend on regulatory focus,
lowing hypotheses: F(1.46) = 0.02, p = 0.96, 2 < 0.01.
H1 – eSports is extremely important for the modern Results for intentions to buy new branding skills re-
virtual development of society, as a capacious platform sembled those for attitudes. The more frequently partici-
for attracting new users to various types of goods and pants bought new branding skills, the more willing they
services and creating a loyal target audience. were to buy fair trade coffee in the future, F(1.95) = 57.75,
H2 – there are significant differences in the importance p < 0.001, b = 0.43, 2 = 0.38. There was a significant main
of marketing approaches between traditional marketing effect of regulatory focus, F(1.95) = 6.53, p = 0.01, 2 = 0.06,
strategies and eSports marketing strategies. showing higher intentions for promotion focus (M = 3.99)
H3 – there are no significant differences between than prevention focus (M = 3.40). The main effect of social
eSports enthusiasts and traditional sports enthusiasts in norms did not reach significance, F(1.95) = 2.63, p = 0.10,
terms of the importance of the information they refer to and 2 < 0.01, indicating that for intentions the difference bet­

their effectiveness in choosing different goods and services. ween the influence of the two types of norms was not
H4 – to attract loyalty to goods, there are significant as pronounced as it was for attitudes.
differences between sports and eSports fans in the sources Finally, results showed the expected significant interac-
and methods of brand promotion. tion between social norm and regulatory focus, F(1.95) = 3.86,
p = 0.05, 2 = 0.04. In line with expectations, the influence of
6. Research results descriptive norms on intentions was greater under promo-
tion focus (M = 4.04) than under prevention focus (M = 2.98;
The effects of the two experimental factors (regulatory F(1.48) = 11.12, p = 0.002, 2 = 0.02).
focus and social norm) as well as their interaction on Following the results for attitudes, the effect of in-
attitude and intention to buy new branding skills were junctive norm did not significantly differ under promotion
analysed using ANOVAs. versus prevention focus, F(1.46) = 0.12, p = 0.729, 2 < 0.01.
This method is a statistical method of analysing results To promote eSports as a «real» sport, the summit held by
that depend on qualitative characteristics. Each factor can the International Olympic Committee (IOC) in October 2017
be a discrete or continuous random change, which is dis- recognized the growing popularity of eSports (Fig. 1). After
tinguished at small constant levels (gradations, intervals). all, the eSports players involved prepare and train with an
If the number of measurements (samples, data) at all levels intensity that can be compared to athletes in traditional
of each of the factors is the same, then the variance analysis sports. As a result of long discussions on this topic, the
means uniform, otherwise – uneven. Asian Olympic Council allowed eight eSports games to make

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their official debut for medals at the 2022 Asian Games in the analytical agency Nielsen Sports [15], more than half
Hangzhou, China [12]. of the eSports audience is loyal to brands that invest in
eSports, and are willing to choose among others their
Streaming
25.1
products. Hence the high rates of return on investment:
for one dollar invested, sponsor brands receive three dollars
Digital in the form of media value, i. e. the aggregate indicator,
32.3
Mershandise & Tickets which includes tangible and intangible sponsorship assets.
66.6
500
Publisher fees
126.6 450
Media rights 400
192.6
350 240
Sponsorships 220.5
641 300 200.8
0 100 200 300 400 500 600 700 250
200
Million U.S. dollars
150
215.4 234
Fig. 1. ESport market revenue worldwide in 2021, by segments [12] 100 197
50
The largest share of eSports market revenue came from 0
2019 2020 2021
sponsorship and advertising in 2021. In total, the global
eSports market revenue from sponsorship and advertis- eSports enthusiasts Occasional viewers
ing amounted to 641 million USD in 2021, 192 million Fig. 3. ESport audience size worldwide from 2019 to 2021
USD (Fig. 2). by type of viewers [14]

1800 Another reason for the growing popularity of eSports

1600 marketing is the «long game». The relative youth of the
1400 audience allows brands to form a pool of loyal customers
1200 in advance, even before the peak of purchasing power in
1000 this audience. In a few years, they will become even more
800 1617.7
active and solvent and they will already have formed loyalty
to the brand. But it is very important to show that the
600
1084.1 brand listens to their needs. For example, a separate brand
957.5
400
of computers and accessories (up to special gaming chairs)
200
Omen has been created, created especially for eSportsmen
0
and gamers-enthusiasts – those who play for the result.
2019 2020 2021
millins U.S. dollars It is interesting to note that eSports fans are more
focused on the athlete’s face than the generation of foot-
Fig. 2. ESport market revenue worldwide from 2019 to 2021 [13] ball, baseball, and basketball fans who care about «form».
Social networks make them even more accessible to idols,
Professional gamers, or «pro gamers», are often associa­ and detailed broadcasts and analyses of matches allow fans
ted with gaming teams and/or broader gaming associations. to repeat the tricks seen. Popular brands are interested
They are equated in popularity with world-famous athletes in this target audience and are actively using eSports
in traditional sports. The eight largest eSports clubs in the marketing to promote their products among young people.
United States – Team Liquid, Cloud9, 100 Thieves, Fa Ze ESports have introduced a phenomenon such as stream-
Clan, Echo Fox, Team Solo Mid, and Immortals – have ing, which creates new opportunities for the development
raised more than 360 million USD in investment during of marketing. Today, streaming has become a separate area
this period. According to the New zoo Global Esports of the blogosphere with its stars and multimillion-dollar
Market Report, the monetization of global eSports in 2020 contracts, and content-based services are actively compet-
is 1.6 billion USD, which is 50 % more than in 2019 [13]. ing with each other. For example, the highlight of the
The largest eSports markets, in terms of popularity and summer was the transition of the world’s most popular
revenue, are Asia and North America (Fig. 3). gaming streamer Ninja from Twitch (a subsidiary of Ama-
Advertisers react differently when they learn that the zon) to Mixer (Microsoft). According to insider informa-
core of eSports viewers is a 450 million fan base, including tion, Mixer lured the blogger with a six-year contract
not only teenagers but also solvent adults. For American for 900 million USD. His first stream on Mixer gathered
and European brands, this is a strong signal that this is an 93,000 people – a record for the service. Ninja itself is an
audience that already has specific consumer habits, includ- absolute record holder in the number of viewers: up to
ing the habit of paying for digital content. Many Western 650,000 people watch its broadcasts at the same time [16].
eSports enthusiasts have subscriptions to Netflix or Apple «For advertisers, it’s a simple and easy-to-understand
Music, and they regularly send donations (donations) to tool for interacting with their audience: new, out-of-date
their favourite streamers on Twitch, YouTube, or other formats and open statistics with the number of unique
platforms [14]. This makes it possible to integrate a new viewers, their retention, engagement, and response times.
service or product into the habits of such an audience. The cost of one advertising contact is consistently lower
Audience loyalty to eSports partner brands is one of than traditional formats – contextual advertising, TV, radio,
the reasons for such rapid market growth. According to banners, BTL», – says streamer [17].

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For computer manufacturers, partnering with eSports mine your marketing strategy in eSports is to find a game
championships is also a great «testing ground» for new or tournament that has synergies with your product. For
products. It is possible to say that the development of exam­ple, Mobil1, a manufacturer of synthetic motor oil, did
eSports forces equipment manufacturers to compete with so when it sponsored the Rocket League Championship.
each other and stimulates the development of the market Search for channels of relationship with the target
as a whole. audience. This is another major marketing strategy. After
Today, eSports offers business integration scenarios that defining the target audience, the question arises: where and
are virtually unlimited in terms of creativity and budget: how can you contact them? Of course, digital marketing
from one-time streaming broadcasts and sponsorships of and social media marketing make this task much easier.
cyber tournaments to unique authoring integrations within In particular, Twitch and YouTube are popular platforms
specific computer games and books in the cyber industry for eSports fans. Let’s recommend that it is possible to
a whole class of activities for a specific brand. Big banks test different means of communication and choose the
issue their cards for gamers, IT companies announce va- best one for your brand.
cancies in video game reviews for highly specialized posi- Collaboration with influential people and eSports stars
tions, medical organizations are seriously discussing the is especially productive. A special feature of such coopera-
possibility of treating patients with brain disorders with tion is that it does not require significant financial costs.
the help of game mechanics, and educational startups are Therefore, it can allow both well-known popular brands
introducing gamification to improve information absorption. and microbrands.
Partnership and sponsorship in eSports can be divided Team sponsorship is a great way to attract a loyal
into two categories: cooperation with endemic brands and audience for a brand. ESports is developing at an ex-
cooperation with non-endemic brands. Endemic brands are tremely fast pace. Many niches in it are not yet filled.
perceived in eSports quite organically. These are categories It always releases new games (and current games may
of products related to gaming – laptops, computer mice, suddenly lose popularity). The most popular teams today
headphones, gadgets, and more. may disappear after the game of their choice goes out
But brands from other fields (non-endemic) are already of fashion. Every day new teams are created here and
confidently present in eSports. For example, Team Liquid new games are programmed. Therefore, your brand can be
has become a partner of the Tokidoki lifestyle brand. To- a sponsor for a team of different levels.
gether, they release a line of clothing and accessories with Organizing and hosting an event with a white label (cre-
the team’s mascot (mascot character) [18]. Other major ating a new event) is a great tool to draw the attention
sponsors/partners include Coca-Cola, BMW, Nike, IMAX, of the target audience to your brand. Small private events
and Spotify. An example of such cooperation in Ukraine can be a catalyst for attracting a new brand in eSports.
is the collaboration between the Hell Raisers eSports club It is possible to arrange a new event with a local sports
and the Mazda car brand. And these are not isolated cases. club, or join existing events. The cost of such advertising
It is worth mentioning that assistants, specialists, and varies from minimal contributions to significant investments.
marketing directors play an extremely important role in But the result does not depend on it. The main emphasis
the field of eSports. They perform the functions of es- should be on the interest of the target audience.
tablishing relationships with the target audience, planning Thus, it can now be argued that eSports is in a state
a strategy to strengthen the competitive position of the of active development, and there is no doubt that it will
organization, conducting research in focus groups, and continue to grow. Part of the reason for this is how ac-
determining the marketing strategy of loyal involvement cessible it is to players, fans, and brands. Virtually any
of the target audience and investors. avid gamer can join the team and become a star without
Research has shown that the use of marketing strategy the obstacles that professional athletes have. And eSports
in eSports for brands of any scale corresponds to the stages stars are much closer to fans, while influential people on
of marketing strategy in traditional sports, in particular: stage create loyalty through their streams and videos. And,
1. Defining the target audience. as we have seen, the dynamic nature of eSports, which
2. Search for channels of communication with the target is still in its infancy, leaves a lot of room for brands of
audience. almost any size to enter the game.
3. Collaboration with celebrities.
4. Team sponsorship. 7. SWOT analysis of research results
5. Holding an event with a white label.
Let’s briefly review each of these areas of marketing Strengths. The strengths of this study are that we found
strategy. a significant variance relationship between eSports sponsor-
Defining the target audience involves finding out the ship and audience engagement with the sponsoring brand.
segment of observers who can potentially be our clients. This allows companies to assess the extent of their in-
The problem with defining your audience, in this case, volvement in sponsoring eSports games and opportunities
is that eSports are a kind of generic term that does not to attract new users to the brand. It is also undeniable
specifically refer to a specific audience. If you are not very that the eSports audience is constantly growing, which is
well versed in the industry, you will be inclined to think important for spreading a positive brand image.
that «eSports fans» are a good demographic group for the Weaknesses. The weaknesses of the study are that it
target audience. But this is not the case. After all, fans is difficult to assess the degree of involvement of brands
of different professional sports have different preferences that produce non-endemic goods/services. After all, the
and habits. The situation is similar with eSports: someone audience involved in eSports may not understand their
who likes to watch World of Warcraft is not necessarily meaning. This can cause excessive costs for companies.
a Rocket League fan. Therefore, the best way to deter- Therefore, it is worth evaluating the attitude of the target

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promising markets in the world. Marketing and Logistics, Lviv Polytechnic National University, Lviv,
Ukraine, e-mail: [email protected], ORCID: https://
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