Understanding Esports: History, Motives, Branding and Impact on Traditional Sports, Study notes of Marketing

Download Understanding Esports: History, Motives, Branding and Impact on Traditional Sports and more Study notes Marketing in PDF only on Docsity! European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 08, Issue 03, 2021 506 IMPACT OF ESPORTS ON SPORTS BRANDING AND CUSTOMER AWARENESS Shivam Kailash 1, Dr.Vanishree Pabalkar 2 MBA Student, Department of Management, College- Symbiosis Institute of Management Studies, Symbiosis International University, Pune Asst. Professor, Department of Management, College- Symbiosis Institute of Management Studies, Symbiosis International University, Pune ABSTRACT: Accompanying the popularity of high-performance computers, the amount of scholarly study focused on organized, competitive gaming has steadily expanded. To date, user engagement analysis has primarily concentrated on in-game variables, but external influences, including game streams and game-centered communities, affect the intention to both play the game and make in-game transactions. In particular, a new medium for customer engagement is offered by the rise of professional gaming, known as esports. Many non-endemic conventional luxury companies have, however, avoided capitalizing on prospects for esports brand creation. This paper offers a literature analysis of the past and present literature on esports and sports marketing, resulting in the development of a figure representing the history of the esports endemic and non-endemic industry of esports brand use. This study examines the ability for esports to be a powerful element in recognizing both gaming intentions and spending money on games as well as brand development. I. INTRODUCTION The gaming industry is one of the biggest entertainment industries and its popularity keeps rising; sales was projected at $152 billion in 2019 [1], whilst new figures indicate that equivalent to 60% of population in US play video games on a regular basis [2]. The rise of the network economy and digital delivery [3] has encouraged, just like other kinds of digital goods, a move away from conventional consumer business strategies to company business practices as a method of both expanding the existence of smaller publishers and ensuring continued monetization [4-6]. Esports, otherwise referred to as electronic sports, professional gaming or organised play for video games, has gained significant global exposure and has attracted considerable interest from the sports, events and entertainment industries [7,8]. Education efforts have heavily focused on specifically delineating the distinctive aspects of esports from a few main disciplines [9-11]. In South Korea, professional video game cultures began and the emergence of FPS (First Person Shooter) games, RTS (Real Time Strategy) games European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 08, Issue 03, 2021 507 and MMORPGs (Massively Multiplayer Online Role-Playing Games) created a basis for developing tournaments not just in Asia, but also in Western nations and territories [12,13]. Millions of computer game enthusiasts worldwide today describe themselves as skilled gamers (i.e., so- called esport players and pro-gamers). The modern MOBA (Multiplayer Online Battle Arena) games are by far the most prominent theme of esports, even as the FPS as well as the RTS formats have maintained their prominence. The esport economy expanded 41.3 percent (up to $696 million) in 2017, as a growing world esport industry survey [14] noted, and revenue in the esport brand is projected to almost double 2020. The worldwide esport population is reported to have hit 385 million, and 45% of whom play esport sports, 23% watch esport streams, and 32% both play and view esport streams. Currently major esports games usually grouped into five categories that draw millions of teams around the globe and have contributed greatly to different promotional esports events: fighting games, first- person shooter games (FPS), real-time strategy games (RTS), sports video games (SVGs), and online multiplayer combat arena games (MOBA). The Free-to-Play (F2P) or Freemium [15] business plan and its association of sales or payment models is probably the most significant marketing strategy pushing the Games as a Service paradigm [16].More than 80% of the income in the video game industry is now generated by these premium services and game pieces [17]. Therefore, gaming companies are continually searching for new ways to improve customer satisfaction [18]. The game is already available for download and begin playing in the F2P format, with money created by in-app purchases called microtransactions. Players can compensate for in-game cash, virtual objects or eliminate playing constraints, such as time limits, in F2P games. The popularity of this technique has been such that several developers have now switched to the F2P model [19-21], although those now eligible for up-front purchases have implemented features of the F2P strategy, usually through use of micropayments in the procurement of virtual goods and in-game cosmetic products such as skins [22] Study on the consistent use of gaming in connection to esports is extremely restricted, given the need to recognize this rapidly expanding market, with previous research primarily addressing consumption motives. Literature has examined the conceptualization of esports as an activity in addition to the requirements underlying viewing esports [24,28], as well as the connections among esports and involvement in gambling practices [25,29]. In comparison, the number of experiments has concentrated on how to attract players with the mechanics within the game rather than dwelling on the world outside the game. The introduction of social game mechanics, emerging market models, virtual objects, user attributes and disruptive architecture has been explored in analysis, for example [29-31]. This is a vital difference since the decision to keep playing is often highly affected by influences outside the game, such as a game teaser or audience social events at game nights and get-togethers, which encourages individuals to build new kinds of social groups around the games. Similarly, spectator esports may act as an access point for a particular video game. This is evidenced by the fact that like most professional Sports, individuals are now watching sports [33]. Towards this point, we argue that spectating esports may be an important consideration for both gaming intentions and purchase intentions to be clarified. European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 08, Issue 03, 2021 510 An eGames Showcase [52], a 2-day celebration occurring at the British House in the Parque Lage mansion in August 2016, was also organised at the most recent 2016 Olympic Games. The first day comprised of players competing in multiple friendly matches in Brazil, while the next day featured top gamers from different countries in a Nintendo Super Smash Bros. double elimination competition. A gold medal was presented to the top gamer, with a silver medal being granted to the second-place finisher and a bronze medal to the last, mimicking conventional Olympic competitions. Before the games, eGames founder and Chief Executive Officer Chester King specifically stated that the eSports competitions were not designed to abolish the International Olympic Committee (IOC) or conventional athletics, but rather to acknowledge the 115 million people who play video games around the world [53]. King also added that the IOC allowed him to use the "eGames" moniker. ESports' dynamic essence also intertwines with usage and realistic applications. The spectacle of gaming competitions has raised the tradition of not only watching the games but also emphasizing the need to institutionalize procedures for the governance of eSports [54]. Rivalries between eSports teams are also forming, as in traditional sports, strengthening the competitiveness of these games. There is a larger need or peer pressure, for developers and players alike to learn stronger video gaming skills with the rise of rivalry. Brands, such as Red Bull, are now moving a step forward in reacting to this scenario by establishing professional training laboratories for eSports players to enhance their skills. III. DATA COLLECTION A. Impact of Esports: Esports has recently proved to be a booming industry with a relentless upward trajectory that many anticipate in the immediate future. In 2016, global esports revenue estimated by Bitkraft [55] reached $800 million and was projected to hit $1.23 billion by 2019, largely driven by ads and partnership. The final 2019 e-sports sales came close to the estimate of just under $1.2 billion [56]. Similarly, worldwide income from esports is predicted to rise from $1.23 billion in 2017 to $2.3 billion in 2022, coinciding with an estimated 12 percent annual increase in audience attendance [57]. In addition, the audience for esports is expected to grow from 214 million to over 303 million in 2019 [58]. The League of Legends video game featured 286 million unique viewers watching on Twitch.tv in October 2017 alone. In comparison, a new global poll of 4,000 people showed that men among 18 and 25 years of age consume more online video games and esports than traditional sports [59]. Inside intercollegiate athletics and the Olympic Games, this trend is also apparent. For example, with seven varsity esports teams, the National Association of Collegiate Esports [60] launched in 2016 and had ballooned to 90 member universities by 2018, several of which provided esports grants and were sponsored by the athletics departments. In addition, esports will be a medal event at the 2022 Asian Games in Hangzou, China, although not an official Olympic competition as of 2019 [61]. Counter-Strike (Valve Corp., Bellevue, WA) and Call of Duty are the first-person shooter video games that are most widely followed in the U.S. and Europe [62] Counter-Strike, as well as the multiplayer online battle arena (MOBA) games League of Legends (Riot Games, Los Angeles, CA) and StarCraft, are the most successful video game tournaments globally [63]. Similarly, the Intel Intense Masters Katowice 2017 held in Poland attracted 46 million unique viewers as of 2018, the most watched esports tournament. European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 08, Issue 03, 2021 511 One of the key factors of esports usage is social engagement, with escape, player visuals, and drama being the primary motivators for a live esports experience. These features of sports use are identical to typical sports activities. In comparison, the perspective of esports fans has been dramatically affected by the introduction of expert analysts who offer an analysis of in-game performance as well as adequate game timing and illustrating secret items or incidents specific to the video games used [64]. People still watch esports to develop an appreciation of the video games that are played and for the creativity of new teams and players, with violence by esports players favorably forecasting the level of esports spectating. Therefore, it is important to consider the players, spectators, and in-person fans or consumers to understand how branding affects consumption within esports. B. Demographics: 71 percent of respondents were male with a median age of 26 years, as shown in a Nielsen Company (2017) online poll comprised of 1,000 eSports enthusiasts between the ages of 13 and 40 years and living in either the U.S. or Europe. Moreover, more than half of the participants began watching esports around one to three years ago (Nielsen Company, 2017). In comparison, the typical American gamer is 36 years old and 46 percent of U.S. gamers are women, as stated by [65]. Statista [66] also states that 27% of video game players are between 18 and 35 years of age, and 42% of U.S. video game players are female. Esports customers worldwide play over eight hours of video games each week, most of them using a device relative to gaming consoles (Nielsen Company, 2017). However, 42 percent of eSports fans do not actively play the video game they watch, Newzoo [67] states. While players, video games and esports are not necessarily the same words or interactions, the terms refer to everyone and are used here to define the broader gaming context synonymous with esports. C. Impact of Esports on Branding: There are many avenues in which businesses are actually marketed by esports, both endemic and non- endemic. 42% of eSports backers were non-endemic in 2017. As with mainstream sports, businesses understand the importance of being connected to esports to target a significant segment, specifically one (males 16-24) that several traditional sports are battling to attain [68]. By engaging in numerous branding opportunities, firms have started to appeal to market elements of esports that have not historically been marketed, allowing new revenue sources for shareholders in esports. Any of these different means of branding possibilities are to jersey and gear by squad, league, or event sponsorship. In sectors such as IT/Computer (59 percent), retail (16 percent), online utilities (10 percent), non-alcoholic beverages (8 percent), and online media (7 percent), there were more than 600 esports sponsorship deals between 2016 and 2017. The rise of professional esports competitions and gamers has made substantial investments in professional tournaments, marketing attention (e.g., Twitch) and promotion [69]. In their acquisitions, many big market marketers are noticeable in linking focused audiences with the affiliation of esports brands such as Mountain Dew and Papa John's Pizza. With the professionalization of esports, communicating with fans of individual game franchises is getting easier. Similar to professional sports, brands will draw on identities and locations. More than half of eSports customers have a favorable outlook towards brand European Journal of Molecular & Clinical Medicine ISSN 2515-8260 Volume 08, Issue 03, 2021 512 participation, with just about 7% of fans interpreting external brand engagement. In comparison, esports fans choose endemic sponsors, claiming that technology firms and network operators are most suitable, while banking, financial institutions, and alcoholic beverages are the least suitable types of esports sponsor. However, conventional models of sports promotion, such as stadium ads, tv advertisements, and beer, do not align with esports. Instead, one-quarter of U.S. esports fans indicate interest in online following esports advertisers, demonstrating that digital and social media ads could be the perfect way to reach the esports audience. There are the options for labels which are endemic and non-endemic. Some brands have shied away from sponsoring teams due to potential ‘relegation’, which is where a team is dropped down to a lower level of competition [70]. In some esports leagues, this relegation model can lead some sponsors to hesitate to sponsor a team and to bind their brand to them. The paradigm of elimination and ever-rotating players on clubs without agreements leads to more sponsorship of competitions and venues than teams in esports to date [71]. As examples of how effectively to compete in these types of formats, some professional sports, particularly football leagues from around the globe, can be used. This dynamic is evolving, but big events, such as the 2016 Coca-Cola and League of Legends World Finals, Red Bull Fighting Grounds, Intel Extreme Masters, and McDonald's StarCraft World Championship Series, are developing into huge marketing platforms. Coca- Cola as the title sponsor for the 2016 League of Legends World Finals in Los Angeles, which had 15,000 venue viewers, viewing parties at over 200 cinemas in 16 countries, and 45 million people watching live worldwide, are some of the popular sponsored events [72]. Other corporations have joined this domain through different endorsements, such as Intel, Comcast Xfinity, Airbus, T-Mobile, Mobil 1, and Audi, in addition to these companies participating in marketing through esports. D. Implications: In the context of traditional athletics, a group of sports science scholars involved in the effects of competitive video games are categorizing esports. Many sports science journals are agenda setting, measuring the ability of esports to be deemed sports while using the model of conventional sports. Early debate on cybersport [73] identified the characteristics by which sports can be called competitive video games, including how computer games can imitate immersion and interactivity and involve professional physicality. As work continued to align esports with conventional sports, [74] integrated esports into [75] contemporary sports model. As demonstrated by Hallmann and Giel's (2018) overview of earlier work, this controversy continues in sports science, presenting the following conditions for esports to be classified as sports: physical exercise, recreation, competitive components, organizational structure, and general recognition of esports. In sports science, observational analyses in esports are mainly case studies using experimental approaches. For eg, [77] administered World Cyber Games (WCG) interactions with participants and explored crucial elements shaping and affecting competition at four analytical levels in Counter-Strike (Valve Corporation, 2000): (1) player actions during play, (2) relationships within and between teams, (3) Internet players and fans, and (4) Counter-Strike gaming. Such research experiments tend to concentrate more on how players compete in esports tournaments and less on whether it is possible to consider athletic activity in esports. 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