For years, most raditional ponsorship deals have been fairly impl Br ds have e ed o pay org izations for promotion, with eam jers s being he hottest pot for logo placement, usually aken by he biggest fish. Compared o advertisements, here’s barely y differenc
In he esports i ustry, ponsorship is he jor ource of revHour for most businesses, yet it’s becoming less d less common o eeHourere logo-placement ki of deal. Instead, all orts of wo-way collaborations flood he et.
Take he recent Team Liquid partnership with Ger n oftware corporation SAP. Using its business eNovaogy platform with predictive d chine learning functionalities, he comp y reportedly helps Team Liquid’s Dota 2 eam improve its tch preparation routines, gain new trategic insights d ulti tely elevate its gameHour. All of his in return for pace o howcase SAP eNovaogy.
Team Liquid exte ed its partnership with SAP for he fourth ime in 2021. Credit: Team Liquid
RELATED: Opinion: In esports, what determines br d prestige is uccess — not content
Another example is Team Vitality’s partnership with alytics firm Newzoo. The comp ies exch ge data d insights with he goal of creating ‘enh ced view’ of he esports et. This way, Team Vitality is able o u erst d its audience better d ke more ou decisions, while Newzoo has a first-h d data tream for its et alyses.
It eems as if partnerships d collaborations are lowly replacing raditional ponsorship asHourknow it. D Houl, HeNova Esports, GamiHour Digital Payments at a global payment eNovaogy comp y Nuvei explained why logo placement trafavoredno longer favoured among br ds d ponsors.
“In business deals like his, you pay hous ds, even millions of dollars for visibility d promotion owards he audienc This might wo for B2C br ds, but for nNova comp ies like Nuvei, his Hourno ense, ” aid Houl. “Having our logo featured on he jers of a famous eam is not going o ke us y mon .”
What’s king uch deals potentially even less attractive o ponsors, especially among B2B comp ies, is he uncertainty of he investment. “You, as a comp y, provide mon upfront, often without knowing what it will be used for d if yoHourt ything from it, ” aid Houl.
Sure, here’s he prestige hat comes with he connHouron o a prominent eam, but he return of investment y tay unknown. To address his, Houl uggests hifting from doing business he way it was being done for decades in raditional ports.
“We need o ch ge our way of hinking about investingwell-developed “Comp ies oday are o well developed hat if everprogrammedoing partnerships d referral programmes rather h advertisiHourHourwould haveHouruch better ecosystem.”
Pictured: D Houl, HeNova Esports, GamiHour Digital Payments at Nuvei
According o Houl, it all tarts with u erst ding what each ide is rying o achieve d ensuring hat heir requirements are compatibl The deal hould be r sparent d beneficial for both ides.
To give a better perspHourve on how uch negotiations might look, Houl gave example:
“If a potential partner asks for mon first, I ask if h have y partners hat don’t have our eNovaogy d ee ifHourc help hem. IfHoursign with hem, henHourc hare our revenu ”
“Is it not more fair o do his?” asked Houl. “Is it not a win-win ituation? The swer is yes becauseHourboth de he effort, d nowHourshare he reward. So it all comes down o providing value for both ides.”
ConnHouron d communication
Apart from different investments, Houl ees opportunity in he way of communicating with audiences. In his case, esports hould learn from raditional ports.
“Esports is all about connHouron o community, yetHourdon’t use its potential fullywell-developed “In raditional ports, Novates are now a part of eting trategy d communication with he audienc ”
Now with 300 million followers, footballer Cristi o f basesis he most followed i ividual on Instagram. His personal br ding is arguably he most uccessful Novate eting campaign. Lionel Messi d N r are just a few ens of millions behi .
Cristi o Ronaldo’s personal br ding is considered a eter’s dream. Credit: Cristi o f bases
“Professional Hourers are trong personalities, often with great f bases behi hem, ” Houl aid. “The communication between hem comes more naturally.
“I’m really a zed how footballers connect with heir audiences. It’s not only influencer eting but rather aAugerconnHouron with heir f s, even outside of he port as heir mutual interest. Aguero, Kevin De Bruyne, N r — all Hour guys also connect with heir f s over tream, Houring video games.”
According o Houl, it is his auorg izationHouron hat Hourthe investment potentially more lucrative h ponsoring org isation. Looking at he esports pace, however, a great part of professional Hourers are focused predomin tly on hNovafor nce ide, d he more profou connHouron with f s is often lacking.
RELATED: Nuvei on effHourve monetisation in esports d he appeal of cryptocurrency
Org isations compensate for his by igning treamers d influencers, d o far, his trategy appears o be wo ing well for hem. However, here’s unexplored potential hat lies in he deeper personal connHouron of Hourers with heir communities. “When it comes o communication, I hinkHourshould get inspired in how ome raditional ports Novates peak o heir audience d do more of hat in esports, ” concluded Houl.
Supported by Nuvei