eSports at Asian Games 2023: Will Indian brands catapult it into the mainstream?

The inclusion of eSports in the 19th edition of the Asian Games, scheduled for September 23, 2023, in Hangzhou, China, has signalled a major shift in the sports landscape.

Alongside conventional disciplines like hockey, boxing, badminton, and swimming, eSports is set to make its debut on prestigious this stage, underscoring its emergence into the mainstream.

While this development may come as a surprise to some, particularly considering that eSports hail from the digital realm, which traditionally is not exclusive to sports, 2023 has witnessed a surge in the popularity of various sports in India, transcending the traditional dominance of cricket. 

Notable achievements, such as the remarkable rise of young chess prodigy R Praggnanandhaa, Neeraj Chopra's gold medal triumph at the World Athletics Championships (WAC), India's men’s badminton team clinching the Thomas Cup at the World Men's Team Championships, and boxer Nikhat Zareen securing her second world championship gold medal at the IBA Women's World Boxing Championships, have marked significant milestones in the Indian sports arena in 2023.

The rapid ascent of eSports is just the next exciting development on the horizon of this ever-evolving sporting landscape.

Outside of its first appearance in a multi-sports event, eSports in India has experienced steady growth in recent times.

Sumit Batheja, executive director and co-founder, Gamestack, a gaming focused marketing platform, estimates that viewership for eSports events in India, which once fluctuated between 17-20 million, now exceeds 50 million viewers.

Gautam Virk, co-founder and co-CEO of Nodwin Gaming, attributes this growth to several key factors, “The viewership interest in eSports has experienced significant growth over the years, transforming it from a niche activity to a mainstream phenomenon. The growth curve has been fostered by a host of key contributing factors, including the rise of online streaming platforms, professionalisation and organisation of eSports, the establishment of viable revenue streams, and global outreach.”

BGMI: The real game changer?

One of the key triggers behind the boost in the popularity of eSports in the country  has been the reinstatement of Battlegrounds Mobile India (BGMI). Initially launched as PUBG in 2017, BGMI faced intermittent bans due to government scrutiny.

However, its recent reinstatement has spurred a flurry of eSports events. Piyush Kumar, founder and CEO, Rooter, an Indian live game streaming platform, shares that the platform has streamed five IPs in the two months since BGMI was unbanned.

He asserts that this figure significantly surpasses the platform's usual tournament hosting frequency for the same time frame.

While tournaments have traditionally been streamed on dedicated platforms Rooter and Loco, mainstream platforms are also venturing into eSports streaming.

Nodwin Gaming’s BGMI Masters Series Season 2 (BGMS 2023) was telecasted on Star Sports in August, and Krafton’s Battlegrounds Mobile India Series (BGIS) 2023 tournament finals will be livestreamed on JioCinema in October.

Key stakeholders in the gaming ecosystem believe that these developments could propel eSports into a more mainstream recognition and benefit other platforms. Kumar from Rooter asserts that the platform has witnessed increased business as eSports tournaments reach a broader audience.

Decoding the evolution of brand interest

Kumar asserts that the growing interest of brands in gaming and eSports is evident in the fourfold increase in revenue for Rooter over the last year.

“This revenue is driven by brand advertising. We have worked with almost 100 plus brands in the last twelve months. Presently we have established brands, like OnePlus, Flipkart, KFC, Intel, Act, Fibernet, Lenskart, TVS and Creo, advertising on Rooter along with 50-60 smaller brands advertising on the platform.”

The inclusion of eSports in a prestigious event like the Asian Games is further legitimising it as a competitive and skilled activity on par with traditional sports.

Virk from Nodwin observes that, “This recognition can lead to a broader acceptance of eSports as a legitimate form of entertainment and competition. Amongst a multitude of other impacts, the rise in awareness and exposure will be a significant one.”

With the recent launch of popular mobile games like Garena's Free Fire in India, brand interest in eSports has intensified.

 Shiva Nandy, founder and CEO, Skyesports, shares that, “BGMI is the leading eSports title currently in India and has paved the way for esports going mainstream in the country. Video gamers and eSports viewers are deeply engaged, offering a prime advertising opportunity."

"Our Skyesports Champions Series (SCS) BGMI last month attracted a lot of brand interest including Tecno Pova, AMD, Flipkart, and Zebronics.”

The sentiment of eSports moving towards mainstream recognition is echoed by influencers and athletes associated with the gaming industry.

Animesh Agarwal, founder and CEO, 8Bit Creatives & S8UL, notes that the transformation of the ecosystem began when BGMS 2022 attracted over 36 million viewers and garnered 1.2 million impressions on its opening day, surpassing major sporting events like the UEFA Champions League finals. 

This escalated into a shift from online streaming platforms to established sports networks, indicating that eSports is now being treated in a manner more akin to traditional sports.

Agarwal adds that the influx of mainstream viewers, drawn by JioCinema and Star Sports, has drawn increased investments from advertisers, sponsors, and brands.

“The increasing popularity of eSports has captured the attention of brands and sponsors seeking to tap into the vibrant and engaged gaming community in the country. This influx of investment has further propelled eSports into the mainstream landscape, as an increasing number of brands recognize the lucrative opportunities to reach their target audience,” he explains.

While the viewership has surged, eSports in India still has a way to go before it commands the attention and sponsorship levels of cricket in the Indian market.

Speaking about this, Rohit Agarwal, founder and director, Alpha egus, a marketing agency specialising in gaming, acknowledges that it is reasonable to assert that eSports is moving towards the mainstream. However, he holds the view that it is still miles away from gaining the status of being considered fully mainstream.  

Traditional “mainstream” sports such as cricket and football receive more extensive coverage from the media, government, and brands, affording them a significantly larger spotlight.

Agarwal suggests that eSports has only recently begun to capture the attention of these three influential pillars, and it will still take some time for it to achieve mass-scale recognition.

He further adds, “Viewership has definitely increased (or rather returned to pre-BGMI ban era) ever since the ban was lifted. However, we have been noticing brands putting more focus on marketing innovations in gaming, rather than purely relying on views. They are finding ways to create products/services specific to gamers, working with influencers and tournament organisers, and also cross-collaborating their marketing efforts to tap into this massive GenZ base.”

Batheja from Gamestack notes that brand investments in eSports tend to be sporadic and although brand interest in eSports has accelerated, there are still gaps in how they invest in the ecosystem. He observes that brands which had invested in properties in 2022 before the BGMI ban, haven't delved into the ecosystem again. 

“I think eSports is still in a early stage. Hence, brand investments lean more towards being a one off. Non-endemic brands, essentially, don't normally tend to invest multiple times. These brands are testing the waters at the moment with this."

"They generally look at investing in the big IPs, as they can give them reach. However, brands whose business is endemic to gaming have been investing more consistently,” he elaborates.

He also observes that brands are increasingly investing resources into researching various aspects of the IPs. However, there are certain challenges that brands face in assessing eSport’s sustainability and long-term viability at the moment.

Bhateja highlights that these shortcomings include a lack of data points to evaluate return on investment and the absence of a supporting matrix that defines the overall incremental impact for the brand.