How can you use data to negotiate eSports sponsorship and endorsement deals?

FaZe Clan, as a unicorn, captured the hearts and interests of many sponsors. They have lost significant sponsor deals recently. Gamers today like FaZe might fare better by approaching sports brands for endorsements. Traditional sports like football, baseball, basketball, soccer, golf and polo, can benefit from interaction with top eSports influencers. Think NBA2K24, Madden NFL, FIFA22, etc. These titles keep fan interest alive and offer hard core gaming competition off field. A gamer should be prepared to showcase, via data, its subscriber base, demographic reach and follower interaction. Importantly, gamers should suggest measurable ways they can increase sports brand sales revenue through culture via entertainment, IP and merchandise.

I think there are two aspects to this. The first is esports teams need to understand their fanbase and have clear evidence showing their affinity for categories and partners. As esports audiences mature, there will be a requirement for segmentation by groups. Esports teams need to start building CRM/databases to be able to do (loyalty programmes, merch and events/watch alongs) are a way to do this. The second element is measurement. The data that shows how impactful a partnership was from fan sentiment, to impressions to engagement to media value, depending on the brand and their KPIs, there is a measurement that can tick a box.

Things like watch time online will be important for potential sponsors, also information that shows the audience is diverse enough that it offers new opportunities for the sponsor. Bitcoin and Blockchain sponsors means that not only is Gen Z part of the audience supporting Esports but Millennials also are active in participating and attending events. Current data indicates that marketers are struggling to figure out how to attract and hold the attention of potential consumers of their products, so be innovative with potential sponsors who don't know your audience, but are willing to take a chance, the relationship will need to be a real partnership. After all you will or should know the audience better than the sponsor.

As we operate a data company specializing in esports and gaming sponsorships, we understand the critical importance of ROI (Return on Investment) and value for both negotiation processes and benchmarking against other stakeholders or platforms. Data not only offers insights into the value propositions for your partners but also fosters trust. By fully disclosing all information and figures, utilizing the most advanced AI tools, we ensure that our partners feel satisfied and recognize the extensive efforts made towards transparency. In summary, data not only cultivates trust but also clearly demonstrates the value provided. When executed correctly, this approach leads to more sustainable and mutually beneficial partnerships.

Overselling yourself can leave sponsors with buyers remorse. Underselling yourself can result in profitability challenges for esports teams. Understanding your optimum price is key for sustainable operations. To understand your market value, esports businesses should leverage data to justify their pricing strategy. There are reporting sites such as Esports Charts which publicly record and display viewership statistics for live broadcasts, and AI tools which can be used to track coverage and exposure time to calculate ROI. Both of these sources can be used to establish a price that is in-line with market rates and worth the return.