Content is still king, but data is the game-changer

A couple of months ago I came across a quote by Geoffrey Moore that stuck with me, as someone who is working with data, day in and day out.

Without big data, you are blind and deaf, and in the middle of a freeway.

And this rings nowhere truer, than in esports and sponsorships. Even though sponsorships are a fixed pillar in the marketing strategy of all endemic brands in the esports ecosystem, sponsorship accountability – defined as measuring and growing the financial contribution of sponsorship investments and assets to a business-has become exponentially more important.

For esport organizations that means a paradigm shift. They often no longer have to explain why investing in esports, in general, is a good idea. Instead, they have to explain why investing in their particular organization the right choice – impossible without data.

Increased pressure to validate sponsorship initiatives

In a recent study by Forbes 78% of brands reported that there was an increase of pressure within the last two years to validate the financial results of sponsorship initiatives. 60% of CMOs responded that they were under increased pressure from the CEO to communicate, measure, and grow the financial impact of their sponsorship portfolio. And a whopping 96% of all marketeers, according to the Association of National Advertisers, feel it is important to have metrics that show their sponsorship performance in relation to other marketing expenditures.

A pressure, that in my experience, has been passed on directly to esport organizations. That includes household organizations, with a stable portfolio of partners, and newly established incumbents that are on their way to becoming the next big thing.

Good content is no longer enough

Having regular and high-quality content is no longer enough to satisfy brands. Questions like “Yes, great, that the tweet had 10 000 impressions. But what does that mean for us?” .“Cool that the stream, where our Logo would be displayed, had a reach of 23 000… but what is the ROI there for us?” are the ones organizations need to be able to answer, and it isn’t always that easy.

Start thinking about the ROI you create for brands

A media valuation tool enables esport organizations to answer the above questions for brands. It also serves as an important benchmark for themselves. An esport organization is not a hobby club asking for tax-deductible donations, but a valuable investment for brands to reach their business goals. By defining their value correctly, and utilizing their data right, organizations have a chance to beat their competition in the sponsorship game.

As the Account manager for Cavea I have noticed our partners can use the tool for more than just a benchmark for themselves, but as an active tool to grow their business, through the power of data. Not every esport organization follows the same strategies or same goals to continue to grow. What they all have in common is that growing their portfolio of partners and getting more, or better deals from their existing sponsors is what they need to do.