What should you consider when choosing an esports team sponsor?

Before you reach out to potential sponsors, it's crucial to have a deep understanding of your organization's culture. Consider the specific game titles you want to concentrate on and the audience you aim to engage with through those games. Decide whether your team will solely focus on competitive gaming or if you also plan to establish a brand presence via influencers. By considering these factors and understanding your audience, you can develop a strategy to authentically attract sponsors that are the best fit for your organization.

Muchas de las marcas generalmente las NO-ENDEMICAS no saben como ingresas en nuestro mercado. Ya de por si su decisión es más difícil principalmente por el desconocimiento que tienen para con nosotros y cada uno de los actores. Conozcamos que necesitan. Sepamos cuales son sus necesidades y objetivos y afiancemos la relación para que vean posibilidades a mediano y largo plazo.

Think about the particular games you intend to focus on and the target demographic you wish to connect with via those titles. Then determine whether you want to expand the brand visibility through creators. Will it be a mix of competitive gaming and gaming related content production? Through this reflection and knowledge of your audience, you can formulate a plan to genuinely appeal to sponsors that align perfectly with your organization's needs.

The sponsors a brand aligns with can send such a strong signal for better or for worse for both the sponsor and the team. Don't just chase the easy money, find the pairing that makes sense or there will usually be repercussions down the line!

My advice would be to sit down as a team, internally, identify some categories, then create a scorecard system. The scorecard system helps you figure out what values are important to your team and align the most with you. Identify brands through research that fit the category and values scorecard. But understand that scale is also important. The perfect brand partner, values wise, might not always be the most lucrative from the get go. But if there's a plan to scale the partner long term then there should be great value in that. A long term partner that's aligned in goals/vision/identity/values speaks volumes.

Gaining a full picture of how the brand operates is important. Who are the key players? Who could be an internal champion? How do you get access to the decision maker/influencer/signatories? Then understand the market forces at play in which they live in. Where are the opportunities for growth? Where are the challenges? How do you help solve those challenges and assist with their growth? Zoom out and see what their competitors are doing and how you can do better, together. The more informed you are about how the brand operates, the better chance you have of showing them you understand them. If a brand knows you understand them, they're more likely to trust you with their business.

En mi experiencia toda investigación es buena, ya que nos proporciona de información. Pero al final del día lo importante es poder conocer y darle a nuestros socios lo que estan esperando, pensando siempre a mediano y largo plazo. Pensando siempre tambien en generar relaciones solidas y con verdades a la vista de todos. Para de esta forma poder tomar buenos caminos.

My approach to this is quite simple - list down categories you want to tackle. List down brands from each category. Mark the brands where you see the biggest fit, make a business case. Only then approach them, once you really know what the partnership looks like, and what problem you can solve for them. Do your research, understand which markets and demographics they are targeting. Is there an overlap with your audience? Great. Now prepare an example of how you would engage the audience and integrate the partner in an authentic way. Make it easy for them to say yes.

Research: Conducting thorough research to identify potential esports team sponsors and gathering information about their brand values, target audience, and marketing goals.

In selecting an esports team sponsor, market research is key. Identify brands within your geographic and demographic scope, focusing on those targeting your fans' specific interests. It's also wise to consider the industries of potential sponsors, as those with higher margins may have more to invest in marketing. While fit is important, economic viability shouldn't be overlooked. Brands with esports marketing experience can offer smoother collaborations. Review sponsors of other esports entities to find brands already engaged in the space, streamlining your search for a compatible sponsor with the necessary marketing budget.

One tip - deliverables via esports are still a novelty for many marketing departments. Make it easy for them to understand what the esports campaign actually looks like, and what it can bring. Types of content, calendar, what social media platforms do you work with etc. This will also help you in the negotiations about price and deliverables. As for the head of terms, you really need good legal support, don't do things just in good faith. I know you want to have the deal done, but if you underestimate this, things can bite you back later on.

Siempre es bueno y satisfactorio poder llegar al momento de una negociación, ya que dicho momento implica interes por todas las partes. Lo que nunca debemos hacer es subestimar varios factores como los valores de mercado, realidades presupuestarias de las marcas o mismo los valores que proponemos que inviertan en el producto que tenemos. Seamos sensatos y busquemos relaciones a largo plazo. Nada sirve ganar una oportunidad y que solo sea una oportunidad solamente.

It is important to focus on the terms as well as the exclusivity provisions. While not intended as legal advice, how an agreement impacts a sponsored party's ability to work after the agreement ends via non-compete clauses as well as which territory or regions the agreement applies to are crucial to be aware of.

Think about scenarios and how those scenarios play out in the future when it comes to negotiation. You're negotiating on behalf of an employer where in e.g. 3 years you may not be there anymore. There's a responsibility that comes with that and many moving parts. Internally, bring together a 'dream team' of people from a number of departments, who are able to contribute to the success of the package/terms. Understand from them which are 'non-negotiables' to determine the levers you have to pull and leverage you can gain. Focus on; framework, process and empathy. Negotiating the Impossible by Deepak Malhotra is a great read. Getting legal support throughout is mandatory. Without, you will fail yourself, the company and the brand.

Business Acumen: Understanding the financial and business aspects of esports and sponsorship agreements, including budgeting, revenue streams, and ROI calculations.

This is the biggest area for failure imo. But the easiest to resolve. Once a deal is complete, ensure the handover process to a partner success team (if you have one) is fully complete and to a sufficient standard. Simple things like calendar invites for weekly/monthly/quarterly calls should be set up. Signing the partner up to e.g. the company newsletter are simple but high effective wins. Ensure, internally, that colleagues know their roles in communicating with the partner and are confident in the process when it comes to access to them. Each person in the team has a key role in communicating with the client but there needs to be structure on how people communicate.

Communication: Communicating effectively with sponsors to negotiate terms and conditions of the sponsorship agreement, as well as conveying the needs and goals of the esports team.

Effective communication revolves around regular updates & reporting. For example, proactively provide post-mortems of events highlighting sponsor visibility and audience reach, along with sponsor integration in your social media content. Even if not explicitly requested, this initiative demonstrates the value you’re delivering. Your contact at the sponsoring organization needs to justify the partnership's success to their superiors. Consistently reporting your successes makes their job easier and reinforce the value of the sponsorship. Ensure your promotions adhere to the sponsor’s branding guidelines. Double-check even if guidelines are outlined in the contract.

Evaluate what is important to the brand. It's pointless measuring something the brand partner doesn't find valuable. Invest in the best analytics tools that help demonstrate value and show the partner what's important to them. Do it with clear visuals. Easy to digest information and a contextual summary so the brand partner can process that information and communicate it clearly internally to showcase the success. Remember that this evaluation data will need to be shared with people who may not be involved in the day-to-day of the partnership, but might be paying for it out of their budget. So put together analysis that speaks to them. But always report on what's important to the brand.

Creative Thinking: Developing unique and innovative ideas for sponsorship activations and campaigns that will benefit both the esports team and the sponsor.

Evaluating the outcomes of your sponsorship is as vital as celebrating your achievements. It's important to actively monitor performance and address areas of underperformance proactively. If certain initiatives aren't delivering as expected, being transparent with your sponsor is crucial. Marketing efforts often require adjustments, and acknowledging this shows professionalism. Should promotional activities fall short of goals, communicate openly with your sponsor about these challenges. Adjusting strategies or deliverables mid-contract can be necessary and demonstrates your commitment to the partnership's success. This proactive approach not only builds trust but also emphasizes your dedication to being a valuable and flexible partner.

When navigating esports sponsorships, it's crucial to be mindful of potential conflicts. Competing companies typically avoid being promoted together, but conflicts aren't always straightforward. Always clarify with sponsors about any competing interests to avoid issues. Consider how sponsorships reflect on your team, including the perception among fans, staff, and players. Ethical considerations are paramount, especially with sponsors from sensitive industries like gambling and alcohol. For emerging esports orgs, look beyond financial gains from sponsorships. Seek out value-in-kind opportunities that can propel your organization forward, such as equipment, services, or promotion.

There are some brands that really don't like each other and you should be aware of that when picking a sponsor sometimes. I've learned this the hard way sometimes in my career, especially in a category with limited choice. For example, a certain energy drink company has a policy that they don't partner with organisations that are associated or have worked with another certain energy company (their competitor) for a period of time. So be aware that once you partner with a brand that sends a message to the industry that might come back to bite you in the future. So choose wisely.