The closure of HT&E’s esports division Gfinity isn’t a sign of a weak sector, says Publicis Sport and Entertainment (PSE) head Ashley O’Rourke who adds that brands need to better understand how to utilise advertising opportunities around esports and gaming.
O’Rourke told AdNews that while the Australian market is smaller than markets overseas, such as Europe or Asia, it’s not less mature.
PSE opened its Australian office this July, along with three others internationally throughout the year, as a result of increasing appetite for insight into the growing sector.
According to this year’s Australian Entertainment and Media Outlook report by PwC, the gaming and esports sector is forecast to more than double to $7.1 billion in 2023 from $3.45 billion in 2018.
However, earlier this month, HT&E revealed it will be shutting Gfinity after two years of operation, citing an “unsustainable market”.
“It's really disappointing to hear the news about Ginfinity in particular because of the excitement that surrounded the proposition in the first place,” O’Rourke says.
“However, I don't agree with HT&E's stance that the esports space is too immature to see success in this market yet.”
While O’Rourke acknowledges the excitement around esports means some figures can be “pumped up”, there’s a strong audience of both passive and active gamers from brands to tap into. Brands wishing to engage in the space need to have clear objectives and better manage expectations.
PSE has already partnered with Dare Iced Coffee to improve the brand’s gaming and esports strategy. This included the local sponsorship of the world’s largest esports platform ESL, as well as using gaming influencers.
“There's probably a fear that there's one or two brands entering into the esports space hoping for massive returns overnight but with no real clear strategy of how they're going to do that,” O’Rourke says.
“Because of that they’re probably getting their fingers burnt a little bit. It’s an emerging platform in this market and it’s something that a lot of thought has to go into before going headfirst.
“That just means you have to engage with the right people and make sure your media, your creative and your specialist agencies are working hand in hand.”
While the motive for every sponsorship is different, O’Rourke says using it to purely shift product isn’t effective. “There's not going to be any longevity to that and the audience in that space aren't going to receive you well if they just feel like they're being advertised to,” he says.
Many brands see gaming and esports as a way to connect with hard-to-reach teenage boys, however its audience is increasingly diversifying – as shown by the American gaming grandmother with more than 715,000 subscribers on YouTube and more than 2,900 on Twitch.
“The engagement level is incredibly high,” O’Rourke says.
“This is another sport and another form of entertainment. The audience has their heroes and their teams they follow religiously, just like you might follow a NRL team or AFLW team.
“There are still people who don't consider esports a sport but if you look at the way it's managed and you look at the audience and their behaviour, I don't know how much more like a sport it could be.”
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