Category: Marketing

Reasons Behind Esports Success


Ease of watching 

“Esports is like watching a movie or TV. It requires less attention and you don’t need to be engaged that much to still know what is going on. When esports is being played, anyone can instantly pick up on what the main objective is, and what the players are trying to achieve.”

Bring value and knowledge 

“You read that a lot of non-gamers come in, but of course, the majority of viewers are gamers who enjoy playing the game in question. By watching professionals battle it out on the same battlefield you are playing on, it will be natural for you to pick up tips and tricks.”

Giveaways and sponsorships

“People like free stuff – this is no secret. The esports scene likes to give away things as a way of giving back to their community.”


FaZe Clan Go Public in a $1 Billion SPAC

Venture Beat: “FaZe Clan said it will go public via a special purpose acquisition company (SPAC) at a $1 billion valuation to grow its combination of esports, merchandise sales, and social content.”

“A SPAC is a shell firm that raises money and goes public on a stock exchange with the purpose of merging with a private company to take it public. That helps reduce the time it takes to go public, in comparison to an initial public offering.”

“Under the deal, FaZe Clan will raise about $118 million through a private investment in public equity, or PIPE. FaZe did not disclose who its PIPE investors are. Meanwhile, the SPAC itself has $170 million, and some of that money could increase what FaZe Clan takes in cash proceeds. FaZe estimated it will have $275 million in cash upon closing.”

Esports Betting Predicted to Reach $8 Billion in Total Wagers This Year

PR Newswire: “According to an article by Venture Beat, one of the fastest growing categories in online gambling, esports betting is on pace to reach up to $8 billion USD in total wagers this year, equating to $560 million in revenue at an industry average margin of 7%. Growth estimates point to more than $16 billion in annual wagers in coming years.”

“The recent investment wave in esports has been primarily focused on the most visible assets in the space being esports organizations, influencer agencies, and content/competition assets.”

Esports Stock Continues its Uphill Trajectory

Market Watch: “Shares of Esports Technologies Inc. ebet soared 36.5% in premarket trading Friday, adding to the 6-fold gain in the previous session, as investors continued to cheer the public debut of the Las Vegas-based online gambling company. The stock’s first trade Thursday morning was at $21.00, or 250% above the $6.00 a share initial public offering price, and it continued to climb in volatile trading to close at $36.42. At that closing price, the Esports’ market capitalization was about $460.7 million, compared with the market cap of $75.9 million at the IPO pricing.”Based on premarket trading Friday, the company is on track to open with a market cap above $600 million.”

“The frenzy for Esports shares occurred on a day that shares of Applovin Corp. app, with a valuation of $28.6 billion at the IPO price, closed 18.5% below its IPO price, and TuSimple Holdings Inc. tsp, valued at $8.5 billion at its IPO price, closed right at its IPO price. The Renaissance IPO ETF ipo rose 1.3% on Thursday while the S&P 500 spx gained 1.1%.”

Guild Esports Becomes First Public Esports Company in London IPO

CNN: “A company co-founded by David Beckham plans to become the first esports franchise to list on the London Stock Exchange, taking advantage of the growing popularity of online gaming.”

Guild Esports, a UK-based owner and developer of esports teams, confirmed plans for an initial public offering in a statement Wednesday. The company said it wants to build a global sports franchise modeled on the English Premier LeagueNBA and NFL. It will float 40% of its shares next month and hopes to raise £20 million ($25.9 million) to recruit new players and invest in the business.”

“A stock market listing will provide Guild Esports “with the caché, credibility and capital” to fulfill its ambition to become one of the world’s top 10 esports franchises within three years, executive chairman Carleton Curtis said in the statement.”

Twitch’s New Esports Directory Allows Easier Navigating For New Viewers

TechCrunch: “Twitch is doubling down on esports in this new era of social distancing as a number of traditional sporting events have been cancelled. The company this week introduced a new esports directory on its site that will make it easier for viewers to find live matches, information on players, games with active competition leagues, a directory of players and more.”

“The goal, Twitch says, is on making Twitch easier to navigate with regard to this sort of gaming content — particularly at a time when its site is seeing a surge of growth due to the COVID-19 lockdown. According to a recent report from Streamlabs, the pandemic has since pushed Twitch to reach all-time highs for hours watched, hours streamed and average concurrent viewership in the first quarter of 2020.”

“Notably, it surpassed 3 billion hours watched for the first time — a significant milestone.”

Does eSports Depend on Franchising?

As eSports leagues and teams look to grow, a central question becomes one around business models. Many participants are considering the pros and cons of franchising.

Esports Observer: “Franchising has been an important tool in getting traditional sports investors involved in esports in recent years, but the effectiveness of the system itself conversely remains a controversial and hotly debated topic within gaming.”

“Proponents of the move say that franchising has added investment, a more sophisticated business structure, stability, expertise, and enterprise value to esports. That’s because the ubiquity of the franchising model in traditional sports has helped make the structure of esports leagues more understandable and thus more alluring to prospective owners and advertisers.”

“But questions remain about whether some of the franchise fees were exorbitant, whether geo-location is the best way to unlock fandom for franchised leagues, and whether some games that are currently not franchised would be best served by staying that way.”

Merch Alert: Walmart Now Selling “Walmart is now hopping on board the esports merchandise train, stocking jerseys and accessories from some of the world’s most recognizable esports brands.”

“The Esports Fan Shop stocks items from the North American League of Legends Championship Series (LCS), the Overwatch League, the ESL Shop, and more. This means fans can pick up jerseys from Cloud 9, Ninjas in Pajamas, the San Francisco Shock, and over 40 more teams.”