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ESPORTS
                                                 DISCOVER + DESIGN

1 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
Market Gravity is Deloitte’s global proposition design consultancy.
       We work with companies around the world to design and launch new products and
       services, and build their innovation capabilities.

                                             DISCOVER                                           DESIGN                                      DEPLOY
                                             The ‘Vision’: an identification of the             The ‘Proposition’ including features,       The ‘Beta Build’: a minimally viable,
                                             customer and market needs, resulting               experience, and commercial impact.          lovable and profitable product,
                                             in a portfolio of creative and                     Brought to life and validated through       service or new venture that impacts
                                             commercial concepts validated by                   multiple rapid prototyping loops.           the lives of your customers.
                                             customers.

LONDON                       EDINBURGH                     NEWYORK                    TORONTO        VANCOUVER                    SYDNEY   AMSTERDAM                  LEEDS         SANTIAGO   OSLO

2 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
The D5 Methodology               The future. Designed and built by Market Gravity and
                                                 Deloitte.
                                                 D5 is Market Gravity’s open innovation effort. Together with our partners at
                                                 Deloitte, we explore interesting questions, emerging industries, or new markets
                                                 and uncover key insights that allow us to design solutions that will help business
                                                 thrive in these contexts.

                                                 Check out our other work at: www.d5project.com.

3 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
What is esports?

                 There exists many definitions of esports, but here is ours:

                 A form of competitive video games. Played in-venue at a professional level,
                 garnering a large and captive following.                                                                                                                      1
                                                                                                                                                                                                   2

                 •    Multiplayer component
                 •    Played competitively for prizes or money
                 •    Large online or offline audience
                 •    Active and involved community
                 •    Infrastructure supporting tournaments

                                                                                                                                                                                                       4

                                                                                                                                                                               3

                                                                                               1 www.weforum.org/agenda/2018/07/the-explosive-growth-of-esports/
                                                                                               2 Newzoo, 2018 Global Esports Market Report
4 | © 2019 Market Gravity, a Deloitte business                                                 3 www.cnn.com/2018/08/27/us/esports-what-is-video-game-professional-league-madden-trnd/index.html
                                                                                               4 www.espn.com/esports/story/_/id/20733853/the-average-age-esports-versus-nfl-nba-mlb-nhl
ESPORTS DISCOVER + DESIGN - Squarespace
Our D5 Mission

Design 5 concepts that will
capitalize on the most
significant opportunities for
sport organizations & their
partners in esports.
ESPORTS DISCOVER + DESIGN - Squarespace
Our Research
            It’s easy to get lost in trying to understand an
            industry from just the statistics. That is why
            user-centered design is important - it allows
            organizations to make sense of demographic
            information and de-risk decisions by
            understanding not only what works, but why it
            works, and the projected impact it will have.

            This process is useful for sport organizations
            and non-endemics to better understand the
            needs of the esport ecosystem.

                                                               Full persona descriptions at www.d5esports.com

6 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
16                   9
                                                            Professional Sport      Esport
                                                              Organizations      Organizations

            Our Research
            To achieve a holistic perspective on the
            future of esports for sport organizations and          6                 6
            their partners, we travelled across Canada
                                                              Non-Endemic          Provinces
            to chat with a diverse set of stakeholders.
                                                                Brands

7 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
Our Insights
& Concepts
ESPORTS DISCOVER + DESIGN - Squarespace
CONCEPT ANALYTICS - LEGEND

                                                                                          Sentiment Analytics
                                                                                          Measuring sentiment, live or retroactively, can help make informed

            Metrics for Success
                                                                                          decisions on changes to content, venue, or engagement channels.
                                                                                          Through the monitoring and tracking of facial expression, either
                                                                                          individually or en masse, there is an ability to adjust on the fly to
                                                                                          change the environment, or presented targeted offerings, and
                                                                                          compare reactions.

            As a unique platform that allows sport organizations and their partners to    (e.g. Live in-stadium expression analysis, player expression analysis,
            simultaneously build deeper fan relationships and become more insight-        social media and stream chat sentiment analysis)
            driven, esports is moving from neglected and ignored, to core.

            Now, the conversation is shifting from “What?” to “How?”:                     Conversion and Engagement Analytics
                                                                                          Measuring conversion and click-through can help gauge the
                 How can I effectively monetize this?                                     effectiveness of promotional offerings, influencers and streamers, as
                                                                                          well as the appeal of the event itself. Monitoring engagement
                 How do I identify relevant partners for the different engagement         through social media and streaming channels will help inform those
                 channels and activities?                                                 which are most effective, and provide valuable insight into
                                                                                          consumer behaviour.
                 How do I bring all this together in generating germane customer
                 insights, intentional engagement strategies, and ultimately recurring     (e.g. Quantifying shares, likes, and comments, click-through and
                 revenue?                                                                 sales conversion percentages, promotion code attribution)

            Therefore, for each of our five concepts we will provide a view on this
            triangulation of fan – data – revenue. We believe this context is essential   Viewership & Customer Analytics
            for continued learning and experimentation, codifying best practices,         By engaging with fans online, like through streaming sites,
            and transposition across your sport and entertainment assets – to             organizations can begin to understand their customers more
            enhance the fan experience and execute against your core business             deeply, both behaviorally and demographically. This can lead to an
                                                                                          understanding of average watch time, peak times of day, which type
            objectives.
                                                                                          of customer is watching, when, and for how long.

                                                                                          (e.g. demographic and customer segmentation, concurrent
                                                                                          viewership measures, average viewing time)

9 | © 2019 Market Gravity, a Deloitte business
ESPORTS DISCOVER + DESIGN - Squarespace
Concept Overview

   Number one                                     Number two                               Number three                                   Number four                                 Number five
   Tournament-in-a-box                            Player Branding                          Player Development                             Matchmaking.gg                              Sponsorship

   Outlining the elements of an esports           Building player personalities through    Building a competitive and sustainable         A platform to facilitate collaboration in   The next generation of sport requires the
   tournament through the lens of the             esports.                                 funnel for esport players to become pro.       hosting esport initiatives.                 next generation of sponsorship.
   player’s journey.
                                                  Leveraging existing video gaming         Establishing the infrastructure and            Bringing together all the necessary         Companies are presented with
                                                  behaviour amongst the players in your    programming to mirror the familiar             stakeholders to effectively organize and    sponsorship opportunities in esports to
   A tournament blueprint that allows any
                                                  sporting organization to create          structure of traditional sports is necessary   run a variety of esport events in a         connect with a young, engaged, and
   sport organization to run their own
                                                  marketable esports content, promote      to build the future of esport athletes,        collaborative, secure, and transparent      tech savvy consumer, but they must
   esports tournament. Designed to
                                                  their personalities, and support them    while de-stigmatizing the industry             manner.                                     activate their sponsorship authentically
   integrate seamlessly during game day,
                                                  in the development of their individual   through educational and wellness                                                           to reach this audience. This requires a
   the blueprint showcases:
                                                  brand.                                   initiatives. This provides an asset                                                        different approach in connecting with
                                                                                           extension and further opportunities for                                                    the audience, by having a firm
   •      The player and fan experience
                                                                                           partnership.                                                                               understanding of the need to be fulfilled
   •      Creative design and interactive
                                                                                                                                                                                      and integrating the activation
          considerations
                                                                                                                                                                                      intelligently within the appropriate
   •      Tangible metrics to measure
                                                                                                                                                                                      context.
          success

10 | © 2019 Market Gravity, a Deloitte business
number one

Tournament-
in-a-box
THE INSIGHT                                                             THE OPPORTUNITY

                                                                                          How can we create a
                  The fan landscape is                                                    differentiated experience to
                  changing.                                                               better acquire and engage the
                                                                                          next generation of fans?
                            Sport organizations are facing an inflection point. Their
                            current customer continues to skew older and with the
                            changing “state of play” they can no longer rely on an        Sport                Avg. age in 2000   Avg. age in 2006   Avg. age in 2016
                            assembly line of youth sport participants to form the next    PGA Tour                     N/A               59                 64
                            generation of fans. Shifting demographics and emerging
                                                                                          LPGA                         N/A               59                 63
                            modes of consumption have given rise to an increasingly
                                                                                          Horse Racing                  51               56                 63
                            diverse market with new customer preferences.
                                                                                          ATP tennis                    51               56                 61

                            These preferences are increasingly shifting to digital and    NASCAR                       N/A               49                 58
                            experiential. Therefore, sport organizations need to create   MLB                           52               52                 57
                            a communal and interactive in-venue experience that will      WNBA                          42               49                 55
                            reposition the venue and live-game experience as a            WTA Tennis                    58               63                 55
                            desirable destination.                                        Olympics                      45               50                 53
                                                                                          College football              47               48                 52
                                                                                          College basketball            44               48                 52
                                                                                          NFL                           44               46                 50
                                                                                          Boxing                        45               47                 49
                                                                                          NHL                           33               42                 49
                                                                                          NBA                           40               40                 42
                                                                                          MLS                          N/A               39                 40
                                                                                          Source: Sports Business Journal

12 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX
        Outlining the elements of an esports
        tournament through the lens of the player’s journey.

       A tournament blueprint that allows any sport organization to
       run their own esports tournament. Designed to integrate
       seamlessly during game day, the blueprint showcases:

       •      The player and fan experience
       •      Creative design and interactive considerations
       •      Tangible metrics to measure success

        TARGET AUDIENCE:

               SAM                  ALLEN           ERIN         NANCY
            THE SPORTS           THE ALL-SPORTS   THE ESPORTS   THE NON-FAN
               JUNKIE               ALL-STAR       ENTHUSIAST

13 | © 2019 Market Gravity, a Deloitte business                               Im age credit:
                                                                              https://www.foxsportsasia.com /esports/1008921/the-top-10-highest-earning-esports-athletes-of-2018/
TOURNAMENT-IN-A-BOX OVERVIEW

                   AWARENESS                                          SIGN UP                                     CHECK IN                                 PLAY & SPECTATE                                       FINALS                                    POST-TOURNAMENT

           Driving awareness for an esports               Whether it’s creating a microsite              For esport tournaments, it is                 Esport tournaments can be                    At this point, the best players will               Engagement with attendees from
           event is critical as the target                or adding the option to buy a                  common practice to reward those               lengthy depending on the                     be competing against each other                    the tournament should continue
           audience might not be following                ticket within your current portal,             who attend with a swag bag or                 number of players and the time               for both prizes and bragging rights.               after the event to ensure
           or even aware of the current                   signing up should be fast and                  free in-game activations (e.g.                allotted to each match. Therefore,           Therefore, the final matches                       continuity and success with further
           communication channels (e.g.                   easy. This also presents a unique              skins). This ensures a tangible               it’s important to effectively                shouldn’t be limited to only the                   initiatives. With a limited offering
           traditional media). This means                 opportunity to cross-promote the               benefit for attending the                     communicate when people are                  esport tournament attendees, but                   of local esport offerings, this is an
           employing a mix of traditional,                sports event happening on the                  tournament and something they                 playing and to provide                       should also be integrated into the                 engaged group who wants to see
           digital, and grassroots marketing              day of the tournament, enticing                can bring back home with them                 entertainment options when                   sporting match and showcased in                    the scene flourish and are keen to
           efforts to ensure that the                     an esport fan to also attend the               to commemorate the live                       players are in-between games.                between intermissions. Prizes can                  help in making that a reality.
           messaging is heard. This can take              sporting match and enjoy a                     experience. This can include:                                                              include:                                           Showcasing content could include
           shape in many different, yet                   complete day of entertainment.                                                                                                                                                               the following:
           intentional forms, such as:                                                                   •    Sport apparel &                                                                       •   Money
                                                                                                              memorabilia                                                                           •   Meet & greet with players                      •    Winners of the tournament
           •   Community outreach (e.g.                                                                  •    Venue specific incentives (e.g.                                                       •   Exclusive stadium tour                         •    Action shots of players
               Reddit, physical gaming                                                                        discount on food and                                                                  •   Signed sport                                        competing
               venues)                                                                                        beverage products                                                                         memorabilia                                    •    Attendees engaging with
           •   Meet your target customer                                                                 •    Sponsored products                                                                                                                            sponsorship products
               where they are (e.g. College
               and universities, electronic
               stores)
           •   Targeted ads (e.g. Twitch.tv,
               social media)

          *Disclaimer: Although this has been designed for the sport of Hockey, the outline of tournament in-a-box is applicable to any sport who is looking to run their own esport tournament as well as not necessarily having to be run on game day.

14 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    AWARENESS

      Driving awareness for an esports event is critical as the target audience
      might not be following or even aware of the current communication
      channels (e.g. traditional media). This means employing a mix of traditional
      and grassroots marketing efforts to ensure that the messaging is heard.
      This can take shape in many different, yet intentional, forms such as:

      •   Community outreach (e.g. Reddit, physical gaming venues)
      •   Meet your target customer where they are (e.g. College and universities,
          electronic stores)
      •   Targeted ads (e.g. Twitch.tv, social media)

      Key Consideration:

      Create marketing materials that showcase the players from your sports
      team playing the video game.

                                       MEASURE

                        Ask attendees how they heard about the event to gain a
                        deeper understanding of the most effective channels for
                        communication.

                        Create a promotion code to make channel conversion
                        quantifiable and attributable. These codes can also be
                        disseminated to streamers, and be tracked as a measure
                        of their effectiveness.

15 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    SIGN UP

      Whether it’s creating a microsite or adding the option to buy a ticket within
      your current portal, signing up should be fast and easy. This also presents a
      unique opportunity to cross-promote the sports event happening on the
      day of the tournament, enticing an esport fan to also attend the sporting
      match and enjoy a complete day of entertainment.

      Key Consideration:

      Promote the alternate event when a customer is buying a ticket (i.e. promote
      the esport event for those buying a ticket for the sporting match and
      promote the sporting match for those buying a ticket for the esport event)

                                       MEASURE

                        Capture net-new purchases that arise through the
                        esports tournament by reaching out to those who
                        purchase both tickets.

                        Using referral codes/promotions to determine the
                        propensity of sharing the event.

                        Capturing data through cross-promotion will help
                        identify effective to convert a sports fan to attend the
                        esports event, or vice versa.

16 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    CHECK IN

      For esport tournaments, it is common practice to reward those who attend
      with a swag bag. This ensures a tangible benefit for attending the
      tournament and something they can bring back home with them to
      commemorate the live experience. This can include:

      •     Sport apparel & memorabilia
      •     Venue specific incentives (e.g. discount on food and beverage)
      •     Sponsored products

      Key Consideration:

      Provide an incentive (e.g. entry into a draw to win a prize) for attendees to
      check into the event using social media.

                                       MEASURE

                        Measure redemptions of venue specific incentives to
                        understand pull through from the tournament to
                        concessions.

17 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    PLAY & SPECTATE

      Esport tournaments can be lengthy depending on the number of players
      and the time allotted to each match. Therefore, it’s important to effectively
      communicate when people are playing and to provide entertainment
      options when players are in-between games.

      Key Considerations:

      Provide a free-to-play area where attendees can play a multitude of different
      video gaming titles against each other.

      Stream the most entertaining matches both at the venue and through.
      Twitch.tv with live broadcasters!

                                       MEASURE

                        Promote the free-to-play area and the matches being
                        streamed to bring in additional spectators. Provide the
                        option for registering to the next esport tournament or
                        game and measure conversion rates.

                        Through Twitch.tv, you can also measure conversion
                        rates on pull through for ticket purchasing through
                        targeted ads and push notifications.

                        Sentiment analysis (through Twitch chat and social
                        media) can be used to monitor and track fan
                                                                                      Im age credit:
                        engagement throughout the course of the event.                https://www.foxsportsasia.com /esports/1008921/the-top-10-highest-earning-esports-athletes-of-2018/

18 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    FINALS

      At this point, the best players will be competing against each other for both prizes
      and bragging rights. Therefore, the final matches shouldn’t be limited to only the
      esport tournament attendees, but should also be showcased in between
      intermissions during the sporting match.

      Prizes can include:
      • Monetary
      • Meet & greet with players
      • Exclusive stadium tour
      • Signed sport memorabilia

      Key Consideration:
      When showcasing the final matches, broadcasters should be engaged to provide in-
      game live commentary.

                                       MEASURE

                        Utilizing sentiment analysis to determine the change in
                        behaviour of the fans when spotlighting esports content
                        vs. traditional programming to quantify impact.

                        Social media monitoring to determine online chatter
                        and hype ahead of the finals. Engagement can be
                        prompted and measured through live Twitter polls.

19 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                    POST-TOURNAMENT

      Engagement with attendees from the tournament should continue after the event
      to ensure continuity and success with further initiatives. With a limited offering of
      local esport offerings, this is an engaged group who wants to see the scene
      flourish and are keen to help in making that a reality. Showcasing content could
      include the following:

      •     Winners of the tournament
      •     Action shots of players competing
      •     Attendees engaging with sponsorship products

      Key Consideration:

      Rewarding those who attended the event with incentives (monetary or perks) to
      promote future tournaments through word-of-mouth.

                                       MEASURE

                        Deploy a survey to better understand what went well
                        and what could be improved for future tournaments.

                        Attendees can be given promotion codes for discounts
                        on future events – conversion from these would be
                        measurable.

                                                                                              Im age credits:
                        Wrap-up videos highlighting the event can be posted to                https://www.nhl.com /news/dim itri-bastounis-gam ing-world-cham pionship-bio/c-297874778?tid=297963536
                                                                                              https://www.nhl.com /news/nicola-bruna-gam ing-world-cham pionship-bio/c-298231466?tid=297963536
                        social media and measured for engagement.

20 | © 2019 Market Gravity, a Deloitte business
TOURNAMENT-IN-A-BOX

                 Let’s make this real.
                 Do you want to quantify learnings in terms of an esport activation and understand what that
                 means for your local and online market?

                                                         1                                               2                                   3
                 Next steps at a glance:          Find a tournament partner (e.g. club,          Test event, measure fan engagement,   Scale across multiple organizations.
                                                  arena, brand) – customize blueprint            media reach, commercial impact.
                                                  based on venue and constraints.

21 | © 2019 Market Gravity, a Deloitte business
number two

Player
Branding
THE INSIGHT                                                                    THE OPPORTUNITY

                                                                                                 How might we leverage existing
                  Players are king.                                                              esport avidity among players to
                                                                                                 promote their personal brand,
                            In esports you do not track a fly ball or follow a puck. The
                                                                                                 create new marketing initiatives,
                            focus is split between the game itself and the athlete, with great
                            attention given to their commentary and gameplay advice. As a
                                                                                                 and improve access and
                            result, affinity and loyalty to players can often trump those
                            towards a particular team. This has allowed esport athletes to
                                                                                                 engagement for fans?
                            amass large and loyal followings as they build out valuable
                            individual brands. This is not to say that teams cannot build
                            avidity with fans under their banner, but rather that they should
                            be aware of the valuable fan assets they have in-house, and
                            players’ value extends far beyond their influence on
                            “traditional” game outcomes. Players’ fanbases are increasingly
                            determining which team you follow, what games you watch,
                                                                                                            34%1
                            and what merchandise you purchase.                                              The percentage of esport fans2 who actively follow a certain
                                                                                                            online personality, Youtuber, vlogger, entertainer, streamer,
                                                                                                            etc. This is compared to the 25% who follow a certain pro team.
                            As a platform, esports provides fans with unparalleled access to
                            engage with athletes in meaningful interactions, and for athletes,
                            as individuals, to display their authentic personalities.            1   Nielsen (2017). Nielsen Esports Playbook
                                                                                                 2   From the United States

23 | © 2019 Market Gravity, a Deloitte business
PLAYER BRANDING
        Building player personalities through esports.

       Leveraging existing video gaming behaviour amongst the
       players in your sporting organization to create marketable
       esports content, promote their personalities, and support
       them in the development of their individual brand.

                                                                              Image credit:
                                                                              http://ljonessb.blogspot.com/2012/10/cfl-stadiums.html

        TARGET AUDIENCE:

               SAM                ALLEN             ERIN         NANCY
            THE SPORTS         THE ALL-SPORTS     THE ESPORTS   THE NON-FAN
               JUNKIE             ALL-STAR         ENTHUSIAST

24 | © 2019 Market Gravity, a Deloitte business
PLAYER BRANDING

          Streaming Players

          Chances are likely that players on your sports team are
          playing video games on the road during away games;
          finding out who the biggest gamer is shouldn’t be too
          difficult. A simple way to engage fans differently is to
          showcase their gameplay by having them stream live on
          Twitch.tv.

          Key Considerations:

          Candid commentary: Allow the players to express
          themselves freely. This is a great opportunity for those
          players who might not get a lot of exposure to fans, but
          have great personalities.

          Game day: Highlight when the next sporting match will
          take place and provide a link to buy tickets.

                                           MEASURE

                            Through Twitch.tv and supporting analytics tools,
                            engagement, concurrent viewers, and sentiment can be
                            monitored and gauged.

                            Click-through and conversion metrics can be quantified
                            from promotional codes and targeted ads are
                            measurable through view-time and chat engagement.

                            Gauge social media impact of activities through
                            monitoring of visits, new followers, and mentions.

                            Use facial analysis to be alerted when the streaming
                            player is stressed or agitated to adjust accordingly.

25 | © 2019 Market Gravity, a Deloitte business
PLAYER BRANDING

           Play the Scratch

           A key benefit of esports is the accessibility it provides in
           bridging the gap between professional sport players and the
           fans. Allowing the opportunity for spectators to play against a
           pro player – before, during, or after the event – creates a unique
           form of entertainment within the stadium. As the active players
           might be too busy playing in the actual game, have one of the
           healthy scratches or injured players play the fans – an alumni
           would be just as good! To further build excitement and
           awareness certain gamedays can be chosen and themed
           accordingly.

           Key Considerations:

           Live broadcasting: Have the broadcasters provide the same
           level of high-fidelity and exciting commentary to the esports
           match as they would with the sporting match.

           Monetization: Sell 50/50 tickets to select one lucky fan who can
           win the grand prize by beating the player.

                                          MEASURE

                            Utilizing sentiment analysis to determine the change in
                            behaviour of the fans when spotlighting esports content
                            vs. traditional programming to quantify impact.

                            Quantitative use of themed hashtag, live twitter and
                            Facebook polls, and other methods of incentivized
                            engagement during the match.

26 | © 2019 Market Gravity, a Deloitte business
PLAYER BRANDING

          Fortnite Dance Off

          Not all esports activations need to be specific to the sports
          title of your organization.

          Producing content that is relevant and entertaining can take
          shape across a wide range of video games, such as
          showcasing who has the best ‘Fortnite’ dance. Although this
          may not enthuse hardcore Fortnite fans, casual and non-
          fans alike will be entertained and exposed to the relevancy
          and popularity of esports in a manner in which their
          reactions and engagement can be measured and actioned
          upon.

          Key Consideration:

          Incentive: Reward fans for engaging and voting by giving
          the winners discounts on food, beverage, and merchandise.

                                          MEASURE

                            Use live stadium sentiment analysis to determine
                            engagement, enjoyment, and selection of the winner.

                            Engagement measured through social media
                            participation (Twitter/Facebook Polls, posts and
                            hashtags).

                                                                                  Image credit:
27 | © 2019 Market Gravity, a Deloitte business                                   http://ljonessb.blogspot.com/2012/10/cfl-stadiums.html
PLAYER BRANDING

                  Let’s make this real.
                  Do you want to showcase the personalities of your athletes and grow their
                  brand through creative esport activations?

                                                        1                                        2                                        3
                  Next steps at a glance:         Identify players with esports           Trial activations with clubs and arenas.   Measure fan engagement. Follow the
                                                  personalities and seek ways to engage   Host a test stream to gauge preliminary    social media impact on both your
                                                  them commercially.                      reactions, both from your audience and     organization and the streamer’s social
                                                                                          streamer.                                  media.

28 | © 2019 Market Gravity, a Deloitte business
number three

Player
Development
THE INSIGHT                                                                                 THE OPPORTUNITY

                  There is no holistic                                                                        How might we create an
                  development funnel for                                                                      effective pipeline for holistic
                                                                                                              esports athlete development?
                  esports athletes.
                            A traditional athlete’s competitive career is largely linear – it can be traced
                            through a clear set of steps often from school, through development
                            leagues, up to the top. This structured pathway is lacking when it comes to the
                            esports world.

                            Despite sharing uncanny parallels to traditional sports, many of the staple

                                                                                                                              53%1
                            support systems don’t exist for esports athletes. The result of this lack of a
                            support and development infrastructure extends beyond the in-game
                            performance, also impacting athlete nutrition, wellness and professionalism.
                                                                                                                              The percentage of fans2 that consider
                            Because of this, esports athletes can have very tumultuous careers,                               esports to be an actual sport.
                            jumping from team to team and sponsor to sponsor.

                            As esports continues to grow, and more players desire to reach the top and
                            have a sustainable career, it would behoove any esport team to surround
                            these athletes with a support infrastructure to ensure the success of both the     1

                                                                                                               2
                                                                                                                   Nielsen (2017). Nielsen Esports Playbook
                                                                                                                   Esport fans across markets – US, UK, France, Germany
                            professional and the person. This type of holistic support and its impact on
                            sustaining player performance could be a significant competitive advantage
                            for the esport team in question. Corporations, especially sport organizations,
                            are perfectly poised with their breadth of experience in employee and athlete
                            wellness and development, to aid in this process and, in turn, create affinity
                            for their own brands as well.

30 | © 2019 Market Gravity, a Deloitte business
PLAYER DEVELOPMENT
        Building a competitive and sustainable funnel for esport
        players to become pro.

       Establishing the infrastructure and programming to mirror
       the familiar structure of traditional sports is necessary to
       build the future of esport athletes, while de-stigmatizing the
       industry through educational and wellness initiatives. This
       provides an asset extension and further opportunities for
       partnership.

        TARGET AUDIENCE:

               SAM                ALLEN             ERIN         NANCY
            THE SPORTS         THE ALL-SPORTS     THE ESPORTS   THE NON-FAN
               JUNKIE             ALL-STAR         ENTHUSIAST

31 | © 2019 Market Gravity, a Deloitte business
PLAYER DEVELOPMENT

                                                                                                                                   MEASURE

                                                  TIER 3
                                                  CANADIAN JUNIOR ESPORT LEAGUE                                             Measure of participating clubs and
                                                                                                                            individuals, further segmented by
                                                                                                                            demographic and region.
                                                  In building out the future of player development in esports, it needs     Measure of viewership and continued
                                                  to start at the grassroots level.                                         engagement through social media
                                                                                                                            monitoring.
                                                  Establishing high school esports clubs and having them compete
                                                  against each other in a formalized league will be critical in building
                                                  a sustainable base of competitive players.

                                                                                                                                   MEASURE

                                                  TIER 2                                                                    Measure of composure and player
                                                                                                                            sentiment during play, as a way to
                                                  ESPORT ACADEMIES                                                          quantify training and inform coaching
                                                                                                                            decisions.

                                                  Academies will need to be constructed in major city centers to enable     Codify and share best practices for
                                                  recruitment of esport players from the surrounding area.                  development and learning. Transpose
                                                                                                                            these learnings back into traditional
                                                                                                                            sports activities.
                                                  These institutions will serve to vet a large swath of esport players to
                                                                                                                            Tracking the amount of players being
                                                  determine top talent and develop their skills through a rigorous and
                                                                                                                            signed to professional organizations
                                                  holistic training regimen.                                                and being sponsored by companies.

                                                                                                                                   MEASURE

                                                  TIER 1
                                                                                                                            Measure performance of professional
     LEGEND                                       PROFESSIONAL ESPORT ORGANIZATION                                          players as they begin to compete.

          Canadian Junior Esport League                                                                                     Quantify the contract values achieved
                                                  Professional sport and esport teams alike will be able to further         by signed players.
          Esport Academies
                                                  develop athletes and have them compete on the world stage by
                                                                                                                            Awareness gained from showcasing
                                                  elevating rising stars within the academy and signing them to their       signed alumni, as represented from an
                                                  professional organizations.                                               increase in engagement or
                                                                                                                            applications.

32 | © 2019 Market Gravity, a Deloitte business
PLAYER DEVELOPMENT

            Growing esports
            responsibly.
            At any given tier, it is critical to look at player development for esports holistically:

          Player Wellness                                        Training                                     Education                                       Community Events
          Ensuring that players are learning how                 Employing well rounded initiatives that      Especially relevant at the Canadian Junior      Integrating the community-at-large through
          to play video games sustainably and                    effectively train esport players above and   Esport League (CJEL), educating parents on      different forms of programming and
          being taught the fundamentals of                       beyond their abilities to play in-game to    the esport industry and the holistic approach   leveraging the inherent accessibility of
          nutrition, mental health, and exercise.                incorporate elements of reaction time,       for player development will be crucial in de-   video games by providing forms of non-
                                                                 endurance, and strategic decision            stigmatizing the career path in becoming a      competitive entertainment at events and
                                                                 making.                                      pro esport player.                              venues.

33 | © 2019 Market Gravity, a Deloitte business
PLAYER DEVELOPMENT

                 Let’s make this real.
                 Do you want to build a brand and performance advantage by establishing an
                 esports development funnel?

                                                         1                                   2                                   3
                 Next steps at a glance:          Create the proposition blueprint    Seek clubs/organisations willing      Test & learn through bespoke
                                                  and supporting infrastructure for   to collaborate with partners on       esport initiatives. Run a pilot
                                                  esport academies.                   growing esports and their             academy with selected partners to
                                                                                      respective video game sport titles.   test with players and fans alike.

34 | © 2019 Market Gravity, a Deloitte business
number four

Matchmaking.gg
THE INSIGHT                                                                            THE OPPORTUNITY

                  The ecosystem is                                                                       How do we connect stakeholders
                  disparate, and it takes a                                                              who want to grow and be
                  connected community                                                                    involved in esports, but can’t get
                                                                                                         their initiatives off the ground.
                  to scale an industry.
                            One of the biggest obstacles facing esports is the disparity that exists
                            within the ecosystem between stakeholders. This disparity leads to a
                            dearth of local activations, particularly at the grassroots level, as
                                                                                                                      50+
                            passion and expertise to often exist in isolation. There remains                          high profile esports events1
                            untapped opportunity to connect, launch, and scale.
                                                                                                                      With over 50 high profile esports events, even at an international level
                            This disconnectedness can take form in many different ways, such as                       staying on top of it all can be an overwhelming task for sponsors and
                            tournament organizers seeking funding, organizations not knowing                          organizers alike. In actuality, this number is quite low, and a result of the
                            how best to enter this space, or even sporting venues trying to fully                     difficulty of organizing and aggregating all the necessary pieces.
                            utilize their facilities in the offseason. These are but two examples that                Evidentially, this pales in comparison to the disparity at a local level:
                            highlight the opportunity to grow the scene by creating a platform to                     hundreds of regional Facebook groups exist as representation of the
                            facilitate dialogue and connections between different parties –                           various local scenes, with communication channels being informal and
                                                                                                                      sporadic.
                            collaborating and bringing together their resources and expertise to
                            launch exciting esports initiatives.

                                                                                                          1   www.theroar.com.au/esports/esports-tournament-schedule/

36 | © 2019 Market Gravity, a Deloitte business
MATCHMAKING.GG
        A platform to facilitate collaboration in hosting
        esport initiatives.

       Bringing together all the necessary stakeholders to
       effectively organize and run a variety of esport events in a
       collaborative, secure, and transparent manner.

        TARGET AUDIENCE:

               SAM                ALLEN             ERIN         NANCY
            THE SPORTS         THE ALL-SPORTS     THE ESPORTS   THE NON-FAN
               JUNKIE             ALL-STAR         ENTHUSIAST

37 | © 2019 Market Gravity, a Deloitte business
MATCHMAKING.GG

                                                         PROFILE & RATING

    Matchmaking.gg is a web platform that                A method for credentializing stakeholders within the
                                                         ecosystem and providing transparency through a
    centralizes all the planning and production          robust set of metrics and personal information. Such
    activities that are disparate, but necessary for     as:
    events. The platform allows users to
                                                         Profile: Gives a peek into the organizers’ passion,
    contribute in whatever capacity they can to          through a written bio, and links to relevant profiles
    help progress a tournament towards reality.          (such as Twitter, Twitch, etc.)

                                                         Rating & Reviews: Allowing users to be rated based
    Pictured is a tournament Gary is looking to          on their fulfillment of roles and contributions adds an
                                                         element of self-governance and assurance to the
    run across multiple days in the downtown             ecosystem.
    area of his hometown. Despite getting a
    venue on board, Gary needed a way to find            Badges: Recognizable accolades help gamify the
                                                         experience, highlighting those users that have made
    sponsors and staff, all while prompting              contributions to the ecosystem and the platform.
    people to register and attend.
                                                         PROGRESS BAR
    Matchmaking.gg allowed him to
    crowdsource the necessary equipment and              An overarching and up-to-date summary of the
                                                         event’s goals and progress.
    expertise, as well as dialogue with sponsors
    easily in one place.                                 Funding Goal: Matchmaking allows for monetary
                                                         goals to cover event expenditures, such as transport
                                                         costs, prize pools, and more. Funding goals can be
    Visualized here are the key features and tools       crafted as stretch goals to encourage further
                                                         contribution to liven and enhance engagement in-
    available to users that empower and enable           venue.
    the crowdsourcing and effective
    collaboration needed to run esports events.          Event Requirements: In addition to monetary
                                                         contributions, technical equipment and expertise is
                                                         also required. Individuals/organizations can
                                                         contribute consoles, production equipment,
                                                         expertise, and more to enhance event production
                         MEASURE                         quality.

                                                         SPONSORSHIP STRETCH GOALS / COMMITMENT
                     Measure of visits, sign-ups,        FLEXIBILITY
                     shares, and conversions on
                     sales and registration.             Different esports events vary widely in many aspects,
                                                         from type of venue, amount of games, and number of
                                                         attendees. Matchmaking.gg has features to facilitate
                     Number of successful events         transparent and flexible sponsor commitments.
                     hosted.                                                                                                                                                                                                          COMMUNITY BOARD
                                                                                                                   SHOP                                                     VENUE & CONTRIBUTORS
                                                         Flexible Commitments
                     Site surveys, comments, and         Sponsors can make tiered commitments, unlockable          As part of the crowdfunding process, organizers or       Contributors are able to post info on event pages,        Contributors, registrants, and sponsors can all
                     reviews to gauge feedback and       based on whatever parameters they set. (e.g. number       sponsors can add elements to the shop to help            describing the values and offerings of their              communicate in one place to discuss and build hype
                     sentiment.                          of attendees, certain engagement numbers met)             contribute to the funding of the event.                  organizations. This provides education and awareness      around events. Prospective attendees can post
                                                                                                                                                                            to both sponsors and grassroot organizations, by          questions and interact with organizers to provide
                                                         Open Communication                                        Branded Merchandise: Organizers or sponsors can          doing the following:                                      feedback or inquire further.
                     Monitoring of message boards        Sponsors can directly dialogue with other organizing      create event specific merchandise, in which the
                     to determine credibility of users   stakeholders to discuss involvement and engagement                                                                                                                           FAQ’s, rulesets, and considerations are made
                                                                                                                   proceeds can contribute to their stretch goals and       Sponsors can post promotional material highlighting
                     and sponsors.                       at the event. This allows sponsors to easily connect at   event fulfilment expenditures.                           their products and what they’ll bring to the              transparent and editable, such that it is created
                                                         all levels of involvement (e.g. grassroots, national,                                                              venue/entertainment experience.                           collaboratively.
                                                         international) and co-create along the way.               Sponsorship Discounts: Sponsors can attach
                                                                                                                   discount/referral codes to the event that are directly   Venues can highlight other events happening or            Important updates, promotions, and other materials
                                                         Multiple Outlets                                          attributable. This way, a portion of sales made          being hosted concurrently, to grow awareness, and         can be posted and pushed to users to keep the event
                                                         Sponsors are encouraged to contribute in diverse          through this channel can be funneled back into the       further establish legitimacy as a destination to visit.   top of mind (e.g. reaching a stretch goal, attaining a
                                                         ways. This can include in-venue entertainment or          event budget.                                                                                                      sponsor, etc.)
                                                         activations, promotional discounts, or in-kind
                                                         sponsorship (either product or prizing.)

38 | © 2019 Market Gravity, a Deloitte business
MATCHMAKING.GG

                 Let’s make this real.
                 Do you want to build the infrastructure and facilitate collaboration for your
                 local esports community?

                                                         1                                     2                               3
                 Next steps at a glance:          Build out blueprint with exhaustive   Create MVP for key use cases to   Scale with partners across venues
                                                  feature set.                          test, learn, and iterate.         and events. Invite prominent
                                                                                                                          tournament organizers to use the
                                                                                                                          platform to gain traction.

39 | © 2019 Market Gravity, a Deloitte business
number five

Sponsorship
THE INSIGHT                                                                   THE OPPORTUNITY

                  Fans are skeptical of passive                                                 How do we activate sponsorships
                  and uninformed brand plays                                                    within the esport community that
                                                                                                are genuine, impactful, and long-
                  within esports.
                                                                                                lasting?

                            Esport fans and players are passionate about their games
                            and about growing the scene. Most have grown up with the
                            dreams of their favorite pastime being legitimatized, along with                 600+
                            its required skill-set, much like the attitudes exuded
                            towards traditional sports counterparts.
                                                                                                             Esports sponsorship agreements since the start
                                                                                                             of 20161
                            Now that we are seeing these dreams come true with the
                            emergence of esports as an increasingly mainstream and even                      50% of esports fans have either a negative or neutral stance towards
                            popular activity among youth, big business interests are starting                sponsors entering the space. There is an immense opportunity for
                            to creep in. This makes sense as corporations see esports as a                   brands, but they must work to earn and win over the trust of half the
                            lever to capture an increasingly affluent and engaged                            industry.
                            demographic, however, the community is weary of passive and
                            uninformed outreach attempts. If you activate sponsorships or
                                                                                                     Nielsen (2017). Nielsen Esports Playbook.
                            partnerships incorrectly, you risk alienating your brand among
                                                                                                 1

                            an incredibly engaged and young audience.

41 | © 2019 Market Gravity, a Deloitte business
SPONSORSHIP
        The next generation of sport requires the next
        generation of sponsorship.

       Companies are presented with sponsorship opportunities in
       esports to connect with a young, engaged, and tech savvy
       consumer, but they must activate their sponsorship
       authentically to reach this audience. This requires a different
       approach in connecting with the audience, by having a firm             Im age credit:
                                                                              https://twitter.com /fortnite_br/status/998250738303275008

       understanding of the need to be fulfilled and integrating the
       activation intelligently within the appropriate context.

        TARGET AUDIENCE:

               SAM                ALLEN             ERIN         NANCY
            THE SPORTS         THE ALL-SPORTS     THE ESPORTS   THE NON-FAN
               JUNKIE             ALL-STAR         ENTHUSIAST

42 | © 2019 Market Gravity, a Deloitte business
                                                                              Im age credit:
                                                                              https://gam ebanana.com /guis/28834
IN-GAME SPONSORSHIP

                                                                                                                                                                   Identifying the Need:

                                                                                                                                                                   With consistent action and non-stop concentration being required, it’s
                                                                                                                                                                   understandable that some video game titles are hard to put down. However,
                                             The #1 provider of wellness products.                                                                                 consistent eye breaks, stretching, and exercise is necessary to avoid fatigue and
                                                                                                                                                                   even injury.

                                                                                                                                                                   Recognizing this, Wellness Inc. sees an opportunity to encourage healthy lifestyle
                                                                                                                                                                   choices in esports, and to become a trusted name for mental and physical wellness
                                                                                                                                                                   amongst the younger generation.

                                                                                                                                                                   Integrated Activation: “Reflex Fitness Challenge” Fortnite Emotes, by Wellness Inc.

                                                                                                                                                                   Capitalizing on the Fortnite dance and emote mimic craze, Wellness Inc. adds a
                                                                                                                                                                   branded Fortnite exercise and stretch emote. This limited edition emote appears
                                                                                                                                                                   during the pre-game lobby and encourages you to mimic the actions of your
                                                                                                                                                                   Fortnite character in-person. Not touching your controls for the duration of the
                                                                                                                                                                   stretches and exercises rewards you with a small amount of V-Bucks that can be put
                                                                                                                                                                   towards other purchases.

                                                                                                                                                                   Call to Action:

                                                                                                                                                                   Wellness Inc. also encourages you to link your Fortnite account to the platform to be
                                                                                                                                                                   further rewarded with limited edition emotes and more.

                                                                                                                                                                                                MEASURE

                                                                                                                                                                                 Measuring engagement levels through the amount of
                                                                                                                                                                                 successful exercise completions.

                                                                                                                                                                                 Conversion rates can be determined by the amount of
                                                                                                                                                                                 users who sync their Fortnite and Wellness Inc. profiles.

                                                                                                                                    Image credit:
43 | © 2019 Market Gravity, a Deloitte business                                      https://twitter.com/fortnite_br/status/998250738303275008
IN-GAME SPONSORSHIP

                                                                                                                                           Identifying the Need:

                                                                                                                                           Money management is an inherent part of video games, especially for titles that
                                                                                                                                           include purchasing items like weapons and armor.

                                                                                                                                           As such, there is an opportunity for Bank Inc. to encourage and educate players on
                                             The #1 provider of financial products.                                                        aspects of money management in the esports space. Through their activation, Bank
                                                                                                                                           Inc. is looking to grow an awareness of their service, teach players about the power
                                                                                                                                           of saving, and recruit a younger generation of customer.

                                                                                                                                           Integrated Activation: “Power of Saving” moment, brought to you by Bank Inc.

                                                                                                                                           Players earn money by getting kills and winning rounds, and can either save this
                                                                                                                                           money round-over-round, or use it to buy/upgrade weapons and armor. After losing
                                                                                                                                           multiple rounds in a row, teams are forced to play ‘eco rounds’ where they save
                                                                                                                                           money and are therefore at a disadvantage – but this doesn’t mean they should be
                                                                                                                                           completely written off! Bank Inc. can sponsor the exciting moments when a team
                                                                                                                                           plays an eco round but outclasses their opponents, despite being the financial
                                                                                                                                           underdog, and proving that sometimes it pays to save.

                                                                                                                                           Call to Action:

                                                                                                                                           Whenever a team beats the odds and wins an eco round, 100 random viewers live
                                                                                                                                           on Twitch who have typed “EZSAVE” into the chat during the round, will receive a
                                                                                                                                           $5.00 credit on the Steam Marketplace. Viewers can then be pushed to deposit
                                                                                                                                           $10.00 into their Bank Inc. savings account, and upon deposit and the submission of
                                                                                                                                           a unique code, earn another $5.00 credit on the Steam Marketplace.

                                                                                                                                                                       MEASURE

                                                                                                                                                         Sentiment Analysis, measured as the average number of
                                                                                                                                                         unique viewers who type “EZSAVE” for each eco round.

                                                                                                                                                         Conversion Rate, measured as the ratio of selected
                                                                                                                                                         viewers who deposit their money and enter the
                                                                                                                                                         confirmation code over total selected viewers.

44 | © 2019 Market Gravity, a Deloitte business                                                             Image credit:
                                                                                      https://gamebanana.com/guis/28834
OUT OF GAME SPONSORSHIP

                                                                                                    Identifying the Need:

                                                                                                    Esport gamers and streamers travel for a multitude of reasons, from esport
                                                                                                    competitions to meetings for their day-to-day jobs. However, it’s not always easy to
                                           The #1 provider of out-of-home comfort.                  hone your gaming skills or create content when travelling.

                                                                                                    That’s why Hotel Inc. is providing their patrons with the option to “Gamify” their
                                                                                                    Room; they understand that bringing your console or streaming equipment when
                                                                                                    travelling is too difficult for most.

                                                                                                    Integrated Activation: “Gamifying” your hotel room, by Hotel Inc.

                                                                                                    When booking your hotel room, Hotel Inc. provides you the option to “Gamify” the
                                                                                                    room by including your console of choice, headset, snacks & beverages, and a
                                                                                                    streaming set-up.

                                                                                                    Call to Action:

                                                                                                    Hotels Inc. might be a non-endemic brand when it comes to esports, but
                                                                                                    sponsoring events through celebrating a service they specifically curated for this
                                                                                                    audience will allow them to communicate their company in an authentic fashion.

                                                                                                                                 MEASURE

                                                                                                                  Survey to gauge guest experience after their stay as well
                                                                                                                  as determining if there stay was net-new or incremental.

                                                                                                                  Measure use of service by recording amount of time
                                                                                                                  spent using the console, or streaming platform from the
                                                                                                                  hotel room.

45 | © 2019 Market Gravity, a Deloitte business
OUT OF GAME SPONSORSHIP

                 Let’s make this real.
                 Do you want to understand how to effectively activate your brand and
                 engage customers in a new way?

                                                         1                                 2                             3
                 Next steps at a glance:          Test concepts and designs with     Measure engagement with both   Create MVP for key use cases.
                                                  brands and publishers as well as   players and fans.
                                                  with key gaming influencers and
                                                  streamers.

46 | © 2019 Market Gravity, a Deloitte business
Next
Steps
Iain Montgomery
                                          Senior Manager & Managing Director of MG Canada
                                          iain.montgomery@marketgravity.com

                                          Jeffrey Harris
                                          Senior Lead - Deloitte Canada Sport Business Advisory
                                          jeffharris@deloitte.ca

                                          Luc Ryu
                                          Senior Associate & Esports Specialist
                                          lryu@deloitte.ca

                                          Jeff Owen
                                          Senior Consultant & Project Lead
                                          jeff.owen@marketgravity.com

                                                                                                  Let’s chat.
                                          Emma Tanaka
                                          Consultant & Design Lead
                                          emma.tanaka@marketgravity.com

                                          Ben Blium
                                          Analyst & Insight Lead
                                          bblium@deloitte.ca

                                                                                                  WWW.D5ESPORTS.COM

48 | © 2019 Market Gravity, a Deloitte business
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