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The Purpose Of A Measurement Framework For Marketers

David Alves, Business Director at Acceleration.

According to David Alves, Business Director at Acceleration, a measurement framework is a methodology and strategic business exercise to provide a standardised marketing measurement capability that is aligned to commercial and marketing objectives, and that enables a business to make marketing decisions based on data and insights.

We are often told that you cannot manage what you cannot measure, but it is equally important to remember that you cannot measure what you do not define. In marketing, however, marketing managers and strategists often lack a shared understanding of exactly what they are measuring – in turn, leading to a disconnect within different siloes in the business or between the business and its agencies and consulting providers. 

So, if strategists and marketing managers speak different languages, what could serve as a lingua franca? There is a simple, theoretical methodology that may be used to align siloed departments and their suppliers to business goals. Enter the measurement framework: one framework to rule them all.

To make the measurement framework tangible and accessible, the goal is to visualise the metrics from all marketing — and if required — operational channels. This involves gathering and integrating data from all channels and providing dashboards, which are relevant to various operational levels in the business.

Once finalised, the framework should provide a process through which a business can map data against specific channels and then relate these to commercial and marketing objectives. Special focus needs to be placed on all marketing and communication activities across all channels, and how a business measures activity in respective channels.

The purpose of a measurement framework is to provide standard metrics against which a business will be able to understand the value that each of the respective channels deliver against set objectives. To achieve this, a business needs to understand the data available, how it is created and the measurement that it ultimately enables.

How do we start?

A measurement framework consists of three main components: 

1. A key performance indicator (KPI) framework: this enables a business to take the day-to-day marketing KPIs and align them across the various departments with the overall business objectives. The KPI framework standardises the way a business defines a KPI in marketing and provides guiding principles on how the business should be setting campaign objectives that support the overall business objective.

2. A data and metric framework: this focuses on specifying the exact way one would typically gather, transform and store data that will serve as the backbone for reporting and ultimately visualisation. This will also define the exact way that data points must be used in calculating a KPI.

3. A reporting framework: this focuses on how a business ‘surfaces’ the insights and reports to its internal stakeholders. It is important to define who will be using the reports and for what purpose in order to provide the information in the right context. This component of the framework will also look at the tools used to surface the reports and insights.

The taxonomy

Taxonomy – also called ‘business vocabulary’ – for projects, departments and process is essential when referring to KPIs and metrics. A taxonomy allows the business to speak from the same cue cards and understand one another’s objectives, especially when it comes to measurement.

Invariably, a taxonomy is part of the foundation work done before a measurement framework exercise to align the business internally with objectives and KPIs. As this is being defined, a business will find that it begins to develop a better understanding around what qualifies as a metric and the difference between strategic and diagnostic KPIs.

Moving forward 

One of the most empowering aspects to adopting a measurement-first approach is getting it off the ground. Thankfully, you do not need to agonise over where to start. Simply starting is half of the work done. More often than not, organisations will execute a measurement framework within a department that tends to already imbue the notions of measurement already, which is also another great starting point. 

Within any cross-channel organisation, the digital marketing department is a logical place to start. Firstly, performance marketing within the digital environment can be singled out as the basis for a measurement framework. Due to the existing emphasis already placed on measurement in this department, it has the ability to provide the basis for the framework as a whole. From there, extending the framework into other areas such as sales, operations and even employee satisfaction can become a reality.

ACCELERATION
+27112670700
acceleration.biz

The Connection Between Cost And A Great Idea

Angelika Kempe, Executive Consultant at Ad Ops.

Angelika Kempe, Executive Consultant at Ad Ops, states that digital agencies lend themselves to an output-based or value-based compensation model more than traditional agencies. They have the tools to objectively measure results, which should, in theory, enable them to adjust their fees according to the value they create or their success in meeting the campaign objectives.

A rapid-fire tactical Kreepy Krauly campaign launched in response to the Netflix hit, My Octopus Teacher, is a perfect example of how a small budget can deliver results in a marketing landscape where speed, creativity and agility matter more than big, bold and expensive branding. It also raises the question of how agencies should be fairly remunerated in a shifting digital marketing landscape.  

The spoof film — created for Kreepy Krauly by Mike Sharman and Glen Biderman-Pam of Retroviral — is a fantastic, well-executed idea and the brand deserves kudos for signing off on the concept in record time. The client is no doubt thrilled with the awareness, recognition and social media buzz the campaign has generated. 

Nonetheless, one must ask how any agency can turn this sort of execution into revenue. As we all know, agencies usually get paid a fixed hourly rate and earn commission off media placements. However, many people in the industry are exploring whether there are not other remuneration models where agencies get paid for value rather than hours of work.

Three years ago, I interviewed a few agencies’ leads about whether they have come across or implemented any innovative approaches to client-agency remuneration. It seemed that only digital agencies were binding remuneration to results. Most media, creative and PR agencies did not seem to have a vision beyond today’s retainers and hourly fees. 

In my practice, I have continuously pushed for transparency, which is the way to go with most agency scope of work. However, when you come across a great idea such as this or Telkom’s ‘Free Me’ campaign by DDB, it does make you wonder whether the remuneration is fair for the massive value it creates.

This brings me to another relevant observation. Digital provides you with an ability to produce content cost effectively compared to any other broadcast medium with no media flighting costs. Plus, you can often get away with lower production costs. Once the video is on YouTube, people can view it at their leisure and share it with their friends. 

We also often find that when a brand is investing in a big broadcast campaign, it will demand bold branding and in-your-face use of the product in the creative. In the case of Kreepy Krauly, no big or crude branding was needed to ensure that the viewer had 100% product recall. This proves that if the idea is strong enough in linking with brand and product, there is less need to hammer it home. It is a fantastic showcase of how you can get away with understated branding — increasing viewer engagement.

With the My Octopus Teacher spoof, there had to be strong creativity and strategic acumen at work to make the connection with the brand and the movie’s emotional story. People in the industry used to say you can have great, cheap and fast but never all three at once. Well done to Retroviral and Kreepy Krauly for proving us wrong.

ADOPS
+27824988784
angelika@adopsvalue.co.za
adops.co.za

GroupM And Wavemaker Cultivating Upcoming Media Specialists

Wanita Berry, Wavemaker’s head of human resources.

At the beginning of 2020, Wavemaker South Africa and its sister agencies partnered with Sivuka Consulting to develop a graduate programme aimed at turning interns into well-rounded media specialists.

The 12 month programme involves experts from established agencies such as Wavemaker, GroupM, MediaCom and Mindshare teaching graduates useful, practical lessons. It also incorporates a work-readiness component.

The Graduate Programme nurtures the next generation of media specialists. If young graduates are given the opportunity to put their theoretical training into practice, and are equipped with skills that prepare them for the workplace, they are more likely to succeed professionally.

Recruiting for success

The first step was accurately connecting the selected graduates with the right agencies. ‘Sivuka Consulting worked with the agencies’ various human resources teams to ensure that the graduates fit their specific needs and culture,’ explained Wanita Berry, Wavemaker’s head of human resources. Misaligning the two often leads to avoidable dropouts, and we wanted to give our graduates every chance of success.’

The interview process was rigorous as agencies looked for analytical, creative and curious learners who were passionate about learning and growing. ‘Our aim is to develop media specialists who have what it takes to understand our work and contribute effectively to what we offer our clients,’ said Berry. ‘We want to ensure that they are work-ready and to cultivate a hardworking, ready-to-take-on-any-challenge and keen-to-learn attitude.’

Transitioning to the working world

One of the graduates, Carla Pretorius, said that the first few months of the programme have been deeply enriching. ‘The structure of the programme has made the transition into the working environment much easier and less intimidating,’ she said.

While the programme was run in-person during the first few months of the year, it was inevitably affected by Covid-19 and was forced to move online. ‘Fortunately, teaching our graduates to be agile is a critical part of the process. When Covid-19 hit, we simply adapted and continued remotely,’ Berry said. This move has not affected the impact of working as part of a team. Pretorius added, ‘Even though we’re not together physically, working with my colleagues on real-life projects is helping me to pull together everything I have learned throughout the programme.’

Putting theory into practice

Graduate Navir Papa has relished in the opportunities the programme has afforded him. ‘I have learnt so many new skills, and I am so grateful to the members of the Wavemaker team who have shared their experiences and knowledge with me,’ he said.

Papa particularly enjoyed visiting the various media owners at the start of the programme, which gave him a deeper understanding of the industry. He also loved working on a pitch with the Wavemaker team. ‘It was so exciting to be part of that process,’ he said. ‘Helping on real client work has been a blessing to me.’

Another graduate, Ayanda Masemola, has been working with Wavemaker’s digital team for part of the course of the programme. ‘Working with this team kept me on my toes and taught me how important it is to pay attention to detail,’ she said. ‘And because digital is always changing, there’s always room for learning and growth.’

Making a difference

‘Working with Wavemaker is always such an invigorating experience,’ said Ashalia Maharajh, the Founder and Director of Sivuka Consulting. ‘It was amazing to witness the level of investment and open-mindedness with which the team took on this project. Their dedication to youth development is so obvious. Companies that are committed to the growth of young minds is what this country needs to help alleviate unemployment and effect change.’

Looking ahead, the aim is to evolve the programme’s content so that it is also suitable for more senior levels of staff. ‘We all need to continue learning, no matter where we’re at in our career,’ Berry explained, ‘Providing the mechanisms and resources for this learning to take place is how we guarantee the ongoing success and relevance of our team members, our agencies and our industry.’

GROUPM AFRICA 
www.groupm.com/africa
WAVEMAKER
+27100360200
wavemakerglobal.com

FCB Joburg Launches Toyota Starlet With Through-The-Line Campaign

FCB Joburg has created a 360° through-the-line campaign for the Toyota Starlet, using television, radio, digital, social media, Out-of-Home, print and below-the-line print collateral in dealerships.  

According to Toyota SA’s Senior Advertising Manager, Tasneem Lorgat, the objectives of the campaign were to successfully launch Toyota’s brand new nameplate and establish the Starlet name in South Africa, while still acknowledging the country’s ‘new normal’ in a way that is humorous and appeals to a youthful consumer.

‘The small car category is saturated with many great value competitors, so it is really important for the Toyota Starlet to stand out. We needed to make sure our audience takes notice of the way we talk about it. Most of our competitors advertise functional specifications and value-adds, which make buying a small car feel like a compromise. We wanted to avoid them thinking about the Toyota Starlet in the same way,’ she said.

The creative team for the TVC included Tian Van Den Heever, Creative Director Julie Thorogood, Art Director Kursten Meyer and Copywriter Verona Meyer. Shot in one day at Maboneng in Johannesburg, it was directed by Kofi Zwana of Hungry Films with post-production by Fuelcontent.

‘With this campaign, I think that FCB Joburg has positioned the Toyota Starlet as helping South Africans make space for a little fun in their lives,’ added Toyota SA Advertising Manager, Lensha Dlamini. ‘It clearly demonstrates that, with loads of space and the best infotainment features, the Toyota Starlet can take you on a fun-filled adventure anytime, from exploring your city to just picking up groceries,’ said Dlamini. 

The agency’s response was to make buying a Toyota Starlet feel like an accomplishment through storytelling and some humour because, if you are going to drive, you might as well have fun. ‘One of the most exciting things about buying a new car is showing it off to your friends. But how do you do that when practising social distancing protocols? You’re not even allowed to be in the same car together?’ explained Executive Creative Director, Tian Van Den Heever. 

‘Our creative concept and execution is based on showing off all the main features of the Toyota Starlet in a way that is fun and acknowledges our new normal. So, we show a guy who has just collected his brand-new Toyota Starlet from the dealership showing off the car to his friends … by virtually having them in the car with him,’ said Van Den Heever.

FCB JOBURG 
+27115666000
www.fcb.co.za

Targeting And Engaging With Generation Alpha

Lead strategist at Eclipse Communications, Jacki McEwen, explains that the term Generation Alpha was coined by demographer and sociologist, Mark McCrindle, who estimated that 2.5 million Generation Alphas are born globally every week and will account for about two billion of the global population by 2025.

Born between 2010 and 2025, the successors of Generation Z are expected to be the wealthiest, longest living, highly-educated, technologically-connected and transformative generation to date. Engaging with them will require deep insight into what drives them.

Jacki McEwen, Lead strategist at Eclipse Communications.

While Generations X, Y and Z are firmly on the radar of marketers and communications experts in South Africa and globally, more consideration needs to be given to the next generation on the rise. 

Generation Alpha is the first group to be immersed in technology practically from birth. This means their interactions with technology will commence at a much younger age than any previous generation and digital disruption, the fourth industrial revolution, artificial intelligence and machine learning are their normal.

Recent research into Generation Alpha has revealed that they are concerned about global issues such as taking care of the environment, food security, fair treatment and safety at school far earlier than any generation before them. 

The emergence of an opinionated and highly socially conscious generation means brands will have to earn their social licence to operate more than ever before and transparency will be key. It is interesting that this generation also seems to be more defiant than earlier generations and does not like to play by the rules. This means communicating with them requires nimble footwork, and persuading them with authentic and convincing arguments.

Of course, Generation Alphas are expected to communicate almost exclusively via social media as they connect 24/7 across social, geographic and demographic territories and their choices are largely shaped by their peers and their mutually shared interests. 

Another exciting opportunity for marketers is that Generation Alphas are more culturally diverse, ‘gender blurred’ and open-minded than previous generations. This is a generation that is likely to experiment, embrace new ideas and express their individuality in interesting and unique ways. Marketers will need to understand each of their target audiences on a micro level to find innovative ways to draw them in.

Generation Alphas are also born influencers. Enter what Forbes calls ‘mommy and me’ influencers as well as some of the youngest influencers on the planet. Currently, the highest-paid YouTuber – with more than 25 million subscribers – is eight and already has a clothing and toy range to his name.

Communication strategies will need to be highly personalised for particular groups within the broader Generation Alpha category. A blanket or one size fits all approach will just not cut it. Generation Alpha will expect brands to embrace AR or AI for interactive and highly responsive experiences, whether they are purchasing food from a grocery store, investing in a car or buying insurance. 

It is also important for marketers to understand the implications of what holds the attention of Generation Alpha. They are more likely to watch a brief video on current global trends than read an article. This means brands need to become more visually appealing to this target audience. 

Ultimately, communication strategies for Generation Alpha should comprise ‘living’ tactics that can be adapted quickly where necessary, that are socially relevant, visually appealing and that optimise the technological preferences of this group.

ECLIPSE PR
eclipsepr.co.za

Industry Interview: Suhana Gordhan On Insights-Based Creativity

Suhana Gordan, ECD at the DUKE Group.

In our exclusive Modern Marketing Industry Interview series, Executive Creative Director at the Duke GroupSuhana Gordhan, discusses how her 16-year long career in advertising stems from her love of creativity, and that she had to be quite resilient to break into the industry – and fight to stay in.

Getting into advertising

Gordhan always loved being creative and grew up in a family that invited creativity and inspired it. They would all watch TV together and advertising was entertainment in some ways. ‘We would watch adverts, memorise them and say the words and sing along the next time the advertisement played. I think I started liking advertising back then, but didn’t know that I would necessarily pursue it as a career,’ she said.

She completed an Honours Degree in Drama at the University of Natal. ‘Then I wanted to find a way to create art – which is is not easy in South Africa. I wanted to still be a creative, but have a bit more stability.’ She then did a postgraduate diploma in copywriting at AAA, and went straight into an internship at Ogilvy, which she said is like the ‘University of advertising’.

‘I was quickly spat out, so I left advertising, went back to dancing and then returned to advertising. I had to take a breather from it and then come swimming back into it. It is not easy starting out in advertising as a young person – it can be very daunting. I did not survive the first try.’ Before her current position at Duke, Gordhan worked at King James, Black River and FCB Joburg.

What have you enjoyed most about working in this industry? 

‘The power of creativity and ability to make things is so rewarding. What gets me excited is getting to make my ideas grow into ‘big adult’ ideas that the world gets to see. When you get into the work and you get thrown into the production of a few ideas, it becomes really rewarding.’

Industry-related changes

When Gordhan first entered the industry, it was very male-dominated and she found that it was not an environment that nurtured and supported young women. This has changed over time, but she says transformation overall has not happened fast enough and that she would like to see women, especially women of colour, in creative leadership roles.

‘What has changed is the way we do advertising – the way we tell our stories – which is absolutely exciting to see. It is a journey of evolution. For example, the Loeries started as just a a TV awards show – it was all about TV. If you look at the work we used to make, it was all about print and TV. Then the digital storm happened and the media landscape opened up in such an exciting way. The ways you can now reach your audience are endless – you do not only have one form of storytelling. We have also moved rapidly in terms of how we produce things and how we create. Everything is much faster and the demand is greater.’

She said that relationships with clients have not changed for the better. ‘The relationships have kind of devolved – before the agency was your trusted partner but now the agency has become more of a supplier. The demand for the relationship and trust have been eroded.’ 

Watch the rest of of the interview below, where Gordhan discusses her hobbies and interests, executing a successful campaign and keys to being successful in the advertising industry. 

Gordhan’s favourite campaign is the Coca-Cola PHONETIC CAN. Her team tapped into a very big local insight, which is that even though we have 11 languages in South Africa and over 26 years into democracy, we still do not know how to pronounce other’s names. So the campaign takes people out of their comfort zone with the understanding that English is not the only language.

DUKE GROUP
duke.co.za

Creating Brand Value In The Digital Age

Kantar and IAB’s online insights in action series, held on 30 September 2020, featured Natalie Otte, Head of Kantar Insights Johannesburg, and Stina van Rooyen, Head of Brand at Kantar Insights Division. They shared learnings from BrandZ’s Top 30 Most Valuable South African Brands report 2020.

Top BrandZ is the largest brand-building platform in the world and their ranking methodology comprises of:

Step1: Financial value created.
Step 2: Brand contribution (%) – the proportion of financial value generated by the brand’s ability to increase purchase volume and charge a premium.
Step 3: Brand value.

Technology brands continued to grow brand value through the last recession and look set to continue this growth. Luxury brands were among the hardest hit through 2008-10, but have since recovered to deliver strong growth every year.

A closer look at the ranking and value:

– BrandZ SA represent brands born in South Africa and not the value of holding companies, and the financial value needs to be publicly available.

– Strong brands deliver superior shareholder returns. Even with market volatility in the current crisis, BrandZ’s portfolios dipped much less than the global average.

– Banks and beer top BrandZ’s most valuable South African brands 2020. Retail experienced the biggest value decline as two stalwarts dropped off the list. When combined, financial services make up 43% of the Top 30.

The key themes:

SA brands lack strong equity.

Most South African brands have grown as a result of expanding operations, not necessarily by building strong brands. A number of brands that score 4 or 5 in BrandZ Top 30 rankings are in developing markets.

Validated measures of equity continue to be stronger for the more resilient brands. The Top 30 South African brands rely heavily on salience and meaning, but there is a lack of strong differentiation. A shift to digital commerce means brand salience becomes more important. A brand must be salient if people are to search for it by name.

Difference is the key, especially for price/value equation

Perceptions of difference motivate people to pay more. Defend with difference. Difference provides a reason to choose at the time of purchase, helps justify paying the price asked and provides an easy justification for choice after purchase (higher satisfaction). Woolworths has the highest difference in the Top 30 and does well to justify its worth.

Purposeful brands grow in value at a faster rate.

They help makes people’s lives better. Responsibility is now three times more important to corporate reputation than 10 years ago. Purpose shows a strong relationship with responsibility. Responsibility accounts for 49% of corporate reputation. 90% of South Africans say brands should talk about how they can be helpful in everyday life.

KANTAR 
kantar.com

Modern Marketing Digital TrendCamp: Diversity In The Branding And Advertising Industry

Our Modern Marketing Digital TrendCamp video features Zubeida GoolamCo-Founder and Chief Creative Officer at Brandtruth//DGTL, whose video focuses on diversity in the branding and advertising industry.

The video is live on our YouTube channel – don’t forget to subscribe to the channel for more videos on advertising/branding/marketing trends and topics.

Send a 3-4 minute audible video of yourself at home. The video should be about a general advertising/branding/marketing trend/topic (not a product or company promotion).

BRANDTRUTH//DGTL
+27878975635
hello@brandtruth.co
www.brandtruth.co

Humanz Campaign Highlights Fake Claims In Influencer Marketing

The latest campaign from Humanz was designed to draw attention to how fake claims can so easily be taken at face value, and hence the importance of standardising expectations, definitions and standards in influencer marketing.

Humanz released a video showcasing a ‘new revolutionary product,’ the Humanz Facefilter, which promised to help find and verify influencers even outside of social media. The videos were shared by influencers across social media with #Humanz conversation trending for a while and people asking themselves ‘is this real?’ before trying it themselves. It turns out the FaceFilter is ‘vapourware’ as revealed by Humanz.

Brett Solomon, Humanz’s global CMO said, ‘Influencer marketing is in its gold-rush phase right now. For every person finding gold, there are also numerous vultures, bandits and fools getting lost in the desert. While most people know about the obvious fraud happening, like influencers buying followers or engagements, there is another more insidious type spearheaded by many of the would-be experts in the space: bogus science, bogus data and bogus insights. We released this video to have a little fun and also to try drive some conversations around this.’

‘With the rise of influencer marketing there has been a surge in platforms and data providers all claiming to be the ‘leading solution’ for influencer marketing needs. But most of them have different definitions or ways to count data for basic concepts like reach, impressions, engagement or fraud. Results from one platform to another will differ wildly and their methodology is clouded in techno-mumbo-jumbo and protected IP or shiny case studies with seemingly unachievable metrics. There is an abundance of unreliable, over-inflated, inconsistent and downright fake numbers or illogical data conclusions being thrown around by both influencers, agencies and platforms. So who can you trust? It’s time to standardise definitions and bring in some transparency with regards to methodology.’

Lerato Sengadi, General Manager of Humanz South African shared some of her experience as both an influencer and marketer, ‘The truth is that the influencer marketing space is so new that most influencers and experts are winging it while they learn. Fake it til’ you make it, right?’ 

She added, ‘As an influencer, I often get approached by brands purely because of the number of followers I have. Yet, it is probably the most irrelevant metric when it comes to influencer marketing. Take the following example: there are two influencers with the exact same number of followers but they have vastly different real-and-active audience profiles and content performance. Should they be worth the same? And should you not care about who these real and active followers actually are, rather than having that data lumped together with fake, passive or inactive ones?’

‘The role of influencer and marketer are converging,’ said Solomon. ‘Both have brands to look after and the need to build online audiences, so it didn’t make sense for us to produce separate streams of knowledge for each. What we see as critical is to start offering broad access to clear definitions and benchmarks, aligned to existing standards from established bodies like the IAB, as well as insights rooted in real data obtained through methodologies you can understand and trust. Influencer marketing cannot grow as long as there is no common understanding and trust of the core concepts that make it work or fail.’

Humanz also announced that it would be releasing an online influencer academy before the end of the year, available for free to both marketers and influencers. 

 

HUMANZ
info@humanz.ai 
home.humaz.ai

Opportunities For Brands To Get Ahead In eSports

According to Attic Rush, there is a gap in both the local and international market for brands to get ahead in eSports (competitive gaming). Over the past five years, eSports has progressed from being a niche gaming subculture to a growing cultural phenomenon.

The industry is attracting millions of online viewers per month via livestreaming sites like Twitch and YouTube, according to marketing analytics site ESports Charts. Below are five things to know about eSports:

1. It is not just a trend, it is here to stay

From ESPN launching a new vertical for specific eSports coverage to Overwatch being the first franchised gaming league, the sports industry is rapidly changing right before our eyes. The eSports industry is projected to reach at least 557 million viewers by the end of 2020 and easily generate over $1.4 billion in revenue. As eSports investors and game creators break new ground, keep an eye out for more ways fans can experience their favourite eSports games as pop-ups, sports bars, eSports arenas and casual eSports watch parties.

2. It is complex and not a one-game-fits-all system

Unlike traditional major league sports where athletes play a single type of game, eSports athletes are scattered across a variety of game types that each comes with its own nuances and audience types. It is important to know that the term ‘eSports’ encapsulates every professionally played game from mobile games that typically attract a younger audience to first-person shooter games that draw in a more male adult-skewed audience.

3. It is a worldwide entertainment phenomenon experiencing explosive growth

While the epicentre of eSports started in South Korea and across Asia, in the past 15+ years, it has quickly spread across the world. Industry experts predict global eSports revenues to hit $905 million in 2018 (last available figures), an incredible 36% increase from 2017’s $655 million.

With a compound annual growth rate of 8.2% from 2016 to 2020, the eSports industry is gaining ground across the globe with Asia, North America, and Western Europe charging ahead by capturing 85% of the global eSports audience. Likewise, the estimated 13.5% year-on-year audience growth is attributed to the improvement of IT infrastructure in Latin America and the Middle East, game franchises, and an influx of young viewers around the world who view eSports as a valid entertainment medium. As Asia maintains its stronghold with the biggest gaming audience, franchising and live events have placed North America as the top revenue generating market, set to reach an impressive $345 million in 2018.

4. It is leading the world’s charge towards modernised, live-streamed entertainment

The allure of eSports is its ability to connect the audience to the eSports players, streamers and other fans in the community in real-time, all the time. With the likes of Twitch and other platforms to better support players and develop their fan communities, audiences are actively engaged for long periods of time (averaging 100 minutes per spectating session).

5. The state of eSports advertising

While your typical major players (like Coca-Cola and McDonald’s) have been eager to jump on the eSports bandwagon, the lion’s share of video game streaming advertising goes to gaming-related brands. This is primarily due to the preferences of eSports fans — Digiday reports that 70% of fans preferred promotions from gaming brands.

A large portion of eSports advertising is in sponsorships. According to PMG, eSports saw over 600 sponsorship deals between 2016 and 2017. In 2018, eSports revenue totalled $906 million — with 40% of that revenue originating from sponsorships. Platforms and networks like HelloGamers were even founded with eSports sponsorships in mind. Another 19% of 2018 eSports revenue originated from advertising in other forms — still a relatively new way to spend nearly $175 million on advertising. And that number will most likely continue to rise.

Attic Rush
charlie@atticrush.com
www.atticrush.com
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