Exploring the Business Strategies of Successful Esports Organizations

As a longtime gamer, I’ve watched the esports industry explode from a niche passion project into a headline-grabbing global phenomenon seemingly overnight. Total audiences are predicted to surpass 550 million in 2024 as revenue projections climb north of $1.5 billion, according to Newzoo.

Everyone, it seems, wants part of this hyper-competitive arena. From new startups to Fortune 500 corporations, the world’s biggest brands are clamoring to dive into the esports rush.

But in a complex ecosystem still establishing itself, how are winning esports companies turning hype into dollars? What exactly is the secret sauce fuelling this bandwagon? I decided to call the game on the smartest operators to uncover their play-by-play business blueprints.

Audience Targeting

To assume that gamers belong in one category is absurd. It’s like saying all athletes do one sport. Like conventional sports, esports is divided into various gaming genres across a multitude of betting websites such as Boylesports.com.

Finding the right esports audience lets you communicate with them the right way. As a result, esports teams can sort out the brands they can relate to, and both will have a higher chance of lasting partnerships.

Aside from that, you can also look at demographics to know your audience better. While the esports industry is a male-dominated one, 20-30% of fans are female. Plus, most of their viewers are from the 18 to 35 demographics.

Identify the Right Channels

Once you know your customers, you have to find out where they are spending most of their gaming time. Then, you can scout for esports teams that are popular and offer sponsorship opportunities for marketing

Often, gamers prefer to spend time on video game streaming platforms. You can compare the subscription plans and user counts of these platforms. Target the platforms where your target customers are active and where your competitors aren’t.

Partner with eSports Influencers

Influencers can help you improve the reach and penetration of your eSports events and campaigns. But you need to find influencers that have the same audience as yours and are active on your chosen platforms.

Many influencer marketing tools can help you narrow down your search by identifying influencers with the right specs. Influencers can help boost your content’s visibility quickly and often cheaply. You can feature your partner influencers in ads and live chat sessions. 

Launch an eSports Team

Contrary to popular belief, starting an eSports team is well within the reach of small brands. Many great eSports teams haven’t got their due in terms of sponsorship. They will gladly work for you if you can agree to some reasonable terms.

Whenever these teams stream content, you will get premium advertising spots in their stream. Similarly, when they engage with fans, you get first dibs. You can call the shots and steer campaigns in your direction. 

Diversified Revenue Streams

An eSports team can make money in a variety of ways, including broadcast revenue, sponsorships, merchandise sales, and subscriptions. The sources of revenue are detailed below.

• Sponsorships: The novelty of eSports has attracted many well-known sponsors; however, teams have struggled to make sponsorships a sustainable source of revenue.
• Broadcast Revenue: eSports broadcasting on TV is still in its infancy as broadcasters look for eSports content that will appeal to their target demographics.
• Merchandise Sales: eSports teams offer apparel, accessories, and gaming equipment through their team websites. From a valuation perspective, it can be a source of supplemental income.
• Prize Money: Prize money typically does not go to eSports teams but rather to members who are competing. While the team does not receive the money, being successful in tournaments is a good way to generate brand awareness.
• Subscriptions: On Twitch, streamers net $3.50 per subscription, which costs subscribers $5.00 per month, which is another source of recurring revenue for a team.