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Nodwin Gaming and Star Sports have unveiled the return of the BGMI Masters Series, while Krafton India has partnered with JioCinema for live-streaming the Battlegrounds Mobile India Series (BGIS). Just like established sports events such as IPL, both TV and digital media companies are actively seeking esports IPs, benefiting the sector as a whole. With the esports market in India projected to hit $107.8 million in 2023, broadcasting and streaming are turning significant contributors, generating enthusiasm among brands.

Brands like Lenskart, TVS, Lenovo, Intel, Philips and others are joining in the esports frenzy.

According to experts, the biggest reason behind mainstreaming of esports is that now it is making its way to a much broader and diverse audience, including those who have previously never been exposed to it.
Why are platforms looking at these properties? The answer is manifold.

While announcing its association with Krafton, JioCinema said esports has evolved beyond its niche origins and emerged as a mainstream experience, with a consistent surge in popularity and such collaborations help the platform deliver diverse and engaging content to the viewers.

The demographics of these viewers is a key reason.
“Since the gaming community comprises a significant portion of the younger population, marketers targeting the youth demographics can connect and engage directly with their target audience through esports. Esports tournaments serve for endemic brands to showcase their gaming hardware, peripherals and software within the gaming community,” said Lokesh Suji, Director, Esports Federation of India and Vice President of Asian Esports Federation (AESF).

Bigger scale

According to Suji, with esports making its debut as an official medal sport at this year’s Asian Games while also being confirmed for the 2026 edition of the tournament, video gaming is only going to gain more credibility by being part of these major multi-sport tournaments.

Shradha Agarwal, Co-Founder & CEO, Grapes, said there were always options to watch esports, what has changed is the scale of it.

Online streaming of esports saw a definite spike after COVID-19 but broadcasting of esports dates back to 2017 in India. Earlier, UTV started UCypher, an esports league airing on MTV with Counter-Strike: GO and DOTA 2. Following that, Discovery Communications brought its own channel DSPORTS which broadcast esports and tournaments.

“The viewership at that time was limited to a very small audience segment. There were limited teams, especially the Indian contingent. Recently, platforms like YouTube and Facebook saw the emergence of video game streaming, when a large audience started interacting with gaming content. Also, games like PUBG and Fortnite, with their ease of compatibility and interactive features, made gaming easier for everyone,” she said.

Eventually, it gave a pedestal to esports tournaments as well, and now they have collaborators to broadcast them on television again making them accessible to people and viewers, she said.

Television boost

Experts said esports consumption is now a popular trend with a growing audience that seeks effortless discovery and access to engaging gaming content on various screens, including TV.

“Some of the biggest TV channels are now broadcasting top esports IPs, while digital streaming has improved through the integration of apps like Rooter across connected TVs. Together, they serve millions of households in the country. Brands now see esports as a valuable way to connect with passionate viewers. In the ongoing BGMI Master series, non-endemic brands like Lenskart, TVS and Phillips have joined on smart TV streams and TV, respectively,” said Piyush Kumar, founder and CEO, Rooter.

While digital streaming platforms like Rooter and Loco have always streamed gameplays and tournaments, involvement of mainstream media in televising or streaming boosts the reach, recall and engagement of these events to a whole new level. 

As per EY estimates, the esports industry revenue is expected to reach Rs 1,100 crore by FY25 and tournament revenues, streaming media revenues and prize pool are key revenue streams.

The same report also says that streaming platforms will generate the largest chunk of esport revenues. As esports grows popular amongst youth and the affluent, advertisers and agencies are expected to increasingly use esports tournament viewership to gain reach and engagement with the audience, growing over 4x to Rs 650 crore by FY25.
Infect, eventually, the industry could explore subscription revenue models. Tournament sponsorship and syndication revenue would likely quadruple to more than Rs 350 crore growing at a CAGR of 45 percent.

“Media broadcasting rights and advertisement sponsorship revenue together constitute this segment,” the report highlighted.

This is what experts are calling the beginning of an innovative era for gaming in India.
The role of the audience is of primary importance. They not just add to the reach and boost numbers but are the main reason why brands like to get involved.

“The mix of TV and streaming platforms creates a diverse and dynamic audience—from the dedicated gaming community to those venturing into this dynamic realm for the first time. It also opens up exciting avenues for various brands to advertise,” said Animesh Agarwal, founder and CEO at 8Bit Creatives, a creator agency specialising in gaming, and esports organisation S8UL.

Brands are collaborating with esports at various levels. Agarwal’s organisation recently concluded the S8UL Gaming Festival 2023 and the brand participation in it is a clear indication of their interest in the domain. Popular brands like Lenovo and Intel were an integral part of the festival.

Brands however are not always endemic, sometimes brands that are in no way related to gaming collaborate with players in the space to resonate with a tech-savvy and engaged demographic.
 

What brands gain other than reach?

“The gaming audience in the country is much younger, and we need to deploy various ways of reaching out to them – by participating in community and culture-first events to enable a direct conversation with our consumers. ROI (return on investment) is in two parts, the direct ROI is in showcasing and engaging with the fans at the event we are a part of, and the indirect ROI is the digital engagement and content we are able to drive for us,” said Chandrika Jain, Director - Marketing, Lenovo India.

Shradha Agarwal highlights a few examples of how brands can use the space. “The fashion world, for instance, can present its best designs, using the players as the brand ambassadors. Food and beverage brands can bring their customised products by teaming up, as we have seen in the international market. The automobile industry can leverage the opportunity, collaborating with gamers or distributors to market their products within the game. Also, there are more typical ad formats like TVCs, in-stream ads, skippable ads, short-form videos, and even influencer collaborations,” Agarwal said.

Why TV and digital media companies are pursuing esports IPs?

Bollywood actor Tiger Shroff ensured Bollywood's foray into the Indian Esports industry with his decision to invest an undisclosed amount in Revenant Esports, one of India’s fastest-growing esports teams. 

This strategic investment comes as a huge boost to Revenant Esports who now plans to utilise the latest funding to bolster their Esports rosters, content creators, and bootcamp infrastructure. 

Rohit Jagasia, chief executive officer and founder, Revenant Esports, “We are delighted to welcome Tiger Shroff to the Revenant Esports family. Everyone is well aware of his fondness for gaming and connects with the millennial and Gen Z audience. In Revenant he has the perfect platform to be more actively involved with the Indian gaming community. The entertainment industry starting to set foot in the world of gaming is massively beneficial to the industry as it helps spread awareness about its potential and importance among the not-so-informed Indian population. Tiger's massive fanbase and his zeal for gaming will accelerate our vision of creating an enriching and engaging ecosystem for our organization as well as for the Esports community as a whole.”


Shroff said, “Revenant Esports is one of the biggest names of the Esports landscape in India and I am delighted to be a part of it. They have achieved commendable success in such a short span and with the gaming and Esports revolution taking the country by storm I am confident that Rohit’s and my passion, knowledge, and vision will help us to achieve remarkable success and experience. Being an ardent gamer myself and having followed the industry closely, I also hope to use this association as a launchpad to more meaningful growth in the sector.”

Revenant Esports boasts of being home to some of the country’s best Esports talents as well as the leading content creators. The organization has proved its mettle on the regional and international stage by triumphing in multiple international tournaments such as the BGMI: Master Series (Star Sports) Valorant: Valorant Challengers League South Asia, Pokemon Unite: Asia Champions League 2023, Brawl Stars: ESL Masters Japan, Apex Legends: ALGS Split 2 playoffs, and CODM: World Championship 2021.

In recent times, they have brought on-board three of the most watched content creators in the Indian Gaming scene which are Emperor Plays, Bitty and Ayush is live and plans to add more valuable creators in the upcoming months.

Last year, their Pokemon Unite roster became the very first Indian team to represent the country at the Pokemon Unite World Championships in London.

Bollywood actor Tiger Shroff invests in Revenant Esports

India's booming gaming industry has prompted Krafton to re-imagine its popular game, Road to Valor: Empires, for the Indian market. The game now features India-specific customizations, language support in various Indian languages, and a low entry barrier of Rs. 29. In a bid to establish a strong foothold in India, Krafton plans to aggressively market its offerings in the country, leveraging these market-specific customizations to cater to the unique demands of the Indian gaming community.

“India is an important market for us and we are dedicated to creating and delivering games that resonate with Indian players,” says Sean Hyunil Sohn, CEO, KRAFTON, Inc. India.

According to Sohn, the Indian gaming market is on a fast-track and they want to help unlock the potential of Indian gamers and developers while understanding the nuances of the Indian ecosystem.

“We have therefore embarked on several local partnerships,” he says. The company targets to deliver tailor-made gaming experiences to the Indian audience. Interestingly the new game has already clocked 2.5 lakhs pre-registrations.

KRAFTON has invested over $100 million in various Indian start-ups with the latest one being influencer marketing platform One Impression. Others include game streaming platform Loco, Esports firm NODWIN Gaming, Indian language storytelling platform Pratilipi, audio dating app FRND, mobile game development studios Nautilus Mobile and LILA Games and audio content platform Kuku FM.

India on global gaming map

India is on the expansion itinerary of every global gaming brand. 

India's online gaming market, with over 400 million players, is the world's second-largest after China. The Indian gaming market, valued at $2.6 billion in FY2022, will reach $8.6 billion by 2027 with a 27% CAGR, says Lumikai reports. 

Cheap smartphones and fast internet have made India a lucrative gaming market for global giants. Electronic Arts, Tencent, and Ubisoft are also heavily investing in India, with plans for expansion. In 2020, Tencent led a $100 million investment round in Dream11, while Electronic Arts invested in a Hyderabad-based game development studio, FireMonkeys. Ubisoft, on the other hand, announced its plans to expand its Indian operations with the establishment of a new game development studio in Mumbai.

Coming back to, Krafton. For Road to Valor: Empires, the company has announced plans to launch two campaigns. The first campaign will feature a series of videos that combine dry humor and pop culture, while the second campaign, "Garrison ki Kaksha," will educate users on mastering the game's strategies. 

Additionally, Krafton plans to hide Easter eggs in their Play Store and App Store descriptions, offering rewards for those who solve them. With a focus on engaging India's talented strategy game fan base, Krafton's campaigns promise to offer a more immersive and interactive experience for its Indian users. 

As India's gaming industry rises to stratospheric heights, global and homegrown players are getting more aggressive in their strategies to unlock the next level of growth for companies.

Why is Krafton taking aim at the Indian gaming market with Road to Valor: Empires?

The gaming and esports industry in India has made strides in decreasing the gender gap ratio and welcoming more women into the space. Despite the progress, there remains a significant underrepresentation of women in leadership roles, which needs to be addressed to ensure true inclusivity and diversity. In an interview with Storyboard18, Richa Singh, founder and CEO of FanClash, discusses this issue and shares her personal experiences of facing gender bias while approaching investors. She also discusses the need for industry-wide changes, such as government regulations and initiatives to support and encourage women in pursuing careers in gaming and esports.

Edited excerpts. 

Despite improvements in the men-women ratio in the gaming space, what factors contribute to the underrepresentation of women in leadership positions within the gaming industry?

The fact that the esports industry is dominated by men, makes it difficult for women to build courage to step into an industry where systems are already placed with set rules defined by men.

Women are also discouraged much to pursue career paths in this newly built industry as it still struggles to own a status as a mainstream career option. Lack of women representation, proper support and stereotype mindset tend to discourage them.

<blockquote>My data-driven insights, logical arguments, and other strategies that demonstrate my ability as an entrepreneur helped me overcome the biases.</blockquote>

Although the difference in the ratio of men and women is diminishing, it is important to actively combat the existing gender disparities and unconscious biases that can impede the progress of women in the industry. Women holding managerial positions are a source of great inspiration for others wanting to make their name in this male-dominated sector and also helps the company to reach out to a wide array of markets and larger demographics.

Thankfully the gaming sector is inclusive in nature and encourages women ownership and women will remain committed to overcome this barrier and take leadership roles. I am certain the progress of this move is steady and a bold new number of women leaders in this space in near future is surely coming our way.

Tell us about your journey so far? What motivated you to start FanClash? Did you face any gender bias in your entrepreneurial journey?

The journey so far has been exciting, it all started when I got involved in the gaming community as a player and later my passion for gaming grew and I realized how diverse the gaming landscape is which is rapidly expanding. Twitch and YouTube were becoming the key platforms making it possible for gamers to generate revenue. It is not just a hobby anymore, growing trends in esports and its inclusion in major events such as the Asian Games and Olympics, both of which have further fueled the popularity of esports in the mainstream. But somewhere we realized there was a gap in the market for organized data in the gaming industry. It was still struggling to formulate a defined structure which could help it to attain significant growth, and this led my co-founder Rishabh and me to identify a white space in the market for building digital products in the gaming industry, specifically in the realm of data and fan engagement.

I have faced stereotypes and biases related to gender on multiple occasions. They assumed that as a woman I would be incapable of understanding the business intricacies, would tend to be less competent, and might lose the determination necessary to run a business as a leader. I had to put extra effort while approaching investors and ensure they understand my competency and the value of my business idea. With my data-driven insights, logical arguments, and other strategies that demonstrate my ability as an entrepreneur helped me overcome the biases.

<blockquote>The change is a work in progress, we will see many more women taking up leadership roles shattering the traditional belief that esports and gaming can be led by men only.</blockquote>

Help us understand the audience profiles on FanClash. What is the male-female ratio, what are their preferences and where are they from?

FanClash has 3M+ users with 25+ daily tournaments featured on the platform. Being a host to offer fantasy content in some of the leading tournaments around the globe including CSGO, League of Legends, and Valorant to name a few, the platform has garnered immense popularity amongst gamers from all around the world which includes a fair share of women gamers.

While the numbers with respect to gamers are mostly male-dominated, there has been a steady growth in female participation. This is evident from the current male-female ratio of our app. We are excited to see these numbers continue to increase as more women take up gaming and use our app for their gaming needs. FanClash is a welcoming and encouraging inclusive environment for all female players and fans alike. The platform’s fantasy system is designed to allow female players to leverage their talent and compete against other male and female players from pan India.
 
How can the gaming/esports industry encourage and inspire more women to pursue leadership roles?

We definitely need to increase the visibility of women in senior positions in gaming and esports companies. Proper guidance and encouragement is much needed for them to participate in speaking engagements, panels, and other public forums. Providing networking opportunities with industry bests to connect, inspire and build relationships. Host mentorship programs which are also a great way to support the women who wish to establish their name in the industry. And most importantly we need to offer an environment that is supportive of female leaders and invests in their growth and development.

<blockquote>A blueprint for growth and revenue generation for the Indian esports industry has been outlined following the government’s official recognition of esports.</blockquote>

At FanClash, we are committed to offer and encourage the future generation of women to success and most of the senior positions are led by women. The progressing Indian gaming industry is witnessing more women taking up senior roles with the mindset to establish their hold in the gaming industry. The change is a work in progress, we will see many more women taking up leadership roles shattering the traditional belief that esports and gaming can be led by men only.

Coming to the industry, everybody is celebrating the government announcements of acknowledging gaming and esports as sports and the upcoming regulations. Help us understand the direct impact of these developments on the industry.

The acknowledgement of gaming and esports as a sport is a big step in the development of this industry as it will provide necessary infrastructural support which would ensure the industry thrives in the coming years. This has validated the strengths of the sector leading to encouraging more investments from both public and private sectors. This would also be instrumental in implementing the necessary protections and regulations for gamers to ensure there is no foul play and a regulated gaming environment is built. It will also accelerate the industry’s potential to organize more tournaments and create more job opportunities for the coming generations. A blueprint for growth and revenue generation for the Indian esports industry has been outlined following the government’s official recognition of esports.

What are the biggest trends to look out for in the gaming and esports ecosystem in 2023?

After the government’s announcement of acknowledging gaming and esports as sports a phenomenal rise in professional esports athletes, teams and tournaments in our country is witnessed. Digital platforms are popping up hosting gaming tournaments and leagues these days which is helping to create a vibrant and competitive gaming community inspiring more casual gamers to take it up as a profession like gamers, content creators and streamers from tier-2 and tier-3 regions making the industry more diverse and local. With some popular titles making a comeback, 2023 looks stronger with a high rise in the total addressable market of esports. Which in turn shall give rise to even more exciting and engaging experiences for gamers in our country. Increased popularity comes in direct relation to more companies investing in the gaming industry in India, which could further accelerate its growth. It is ever evolving and technological advancements and the inclusive nature of the gaming industry makes it a huge market to explore.

Need to increase visibility of women in senior positions in gaming and esports cos: Richa Singh, FanClash

The gaming industry and all its stakeholders in India have long been waiting for a policy or regulation in the space. After recognizing esports as a part of multi-sports events, the Ministry of Electronics and Information Technology has prepared draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The draft amendments are aimed at addressing the need for regulation while enabling the growth of the online gaming industry in a responsible manner.

The draft has a strong focus on code of ethics, grievance redressal mechanism, self-regulation, furnishing of information and content guidelines.  

A notice issued by the ministry says, “The draft amendments envisage that an online gaming intermediary shall observe the due diligence required under the rules while discharging its duties, including reasonable efforts to cause its users not to host, display, upload, publish, transmit or share an online game not in conformity with Indian law, including any law on gambling or betting.”

“Moreover, it shall observe additional due diligence by displaying a registration mark on all online games registered by a self-regulatory body and informing its users regarding its policy related to withdrawal or refund of deposit, manner of determination and distribution of winnings, fees and other charges payable and KYC procedure for user account registration,” the notice says.

As per the draft, self-regulatory bodies will be registered with the ministry and may register online games of such online gaming intermediaries who are its members and which meet certain criteria. Such bodies will also resolve complaints through a grievance redressal mechanism.

Businesses in the space see this as a welcome move that would boost the growth of the industry that according to an EY-All India Gaming Federation report, has the potential to generate $2 billion by 2023.

"We at Nazara believe this is a welcome step, where the Central government (and MEITY) have laid out their preferred approach to regulation of the gaming sector, especially skill based real money gaming. There are a number of recommendations which will ensure safety of players and responsible gaming. In addition, it lays down a process by which the industry will self-regulate itself under the guidance of MEITY,” said Nitish Mittersain, founder and CEO at Nazara Technologies.

Mittersain believes the move can catalyze a lot of growth for the industry, which will in turn result in significant job creation as well as accelerate India’s position on the global gaming map.

Deepak Gullapalli, founder and CEO at Head Digital Works says this not only shows the government’s interest in hearing the opinions of all stakeholders but at the same time legitimizes and upholds the online real money gaming industry in India.

“On first glance, the draft is poised towards keeping in check the illegitimate offshore operators breeding in the country which is a long awaited decision,” he Gullapalli said.

For Roland Landers, CEO, All India Gaming Federation among all the other value adds that a regulation shall provide, it is also a first step for comprehensive regulation for online gaming that will reduce the state-wise regulatory fragmentation that was a big challenge for the industry.

“These rules will go a long way in ensuring consumer interest while helping the industry grow responsibly and transparently. These rules will also be a start in curbing the menace of anti-national and illegal offshore gambling platforms,” he said.

The draft amendments are on the Ministry of Electronics and Information Technology website and feedback on the same shall be accepted till 17.1.2023.

Centre releases draft rules to regulate gaming in the country

Gaming is serious business in India. After making the most of the stay-at-home traffic in the lockdowns, businesses in the space are now focusing on strengthening their revenue streams. Content, subscription, advertising and micropayments are the four primary models that gaming companies are working on to monetize their offerings.

According to Piyush Kumar, founder, and CEO, Rooter as of 2022, the Gaming industry in India stands at $2.3 billion in revenue and is expected to grow to $7 billion in 2025.

He says, “Every stakeholder in the industry has potential to make a high revenue growth business. Gaming is one of the fastest-growing sectors in entertainment in India. Consumers in the sector show a very unique trait of spending a lot of time on content and fairly large amounts of money across in-game assets and hardware needed for gaming. This makes this TG highly monetizable, given their propensity to pay.”

Rooter’s revenue has jumped from a few lakhs in FY20 to Rs 2 crore in FY21 and Rs 12 crore in FY22. “We are now aiming to clock a revenue run-rate of Rs 60 crore for FY23,” Kumar says. 

Since last year the gaming and esports streaming platform has been sharply focused on building multiple revenue streams. In the last quarter they recorded a 59 percent spike in MAUs (monthly active users) and an 83 percent jump in revenues from Q4 2021 to Q1 2022.

These revenues have two key revenue sources for Rooter - brand monetization and user monetization.

Leading the growth story 

As reported by Statista, the largest section of India's mobile gaming audience belonged to the 25-44 age group in 2021. The target audience in the sector is exactly the audience most marketers across categories are looking to engage with. Naturally, brands are interested.

“Last decade brands were understanding the engagement code through social media. This decade belongs to brands who understand the same through gaming. Young consumers are here for entertainment and engagement and that is why brands are looking forward to working with us,” says Shivanandan Pare, executive director and CEO at Deltatech Gaming Pvt. Ltd. Deltatech is working with multiple brands in their loyalty programme section.

Abhishek Aggarwal, co-founder at Trinity Gaming India, says earlier they saw the inclusion of only endemic and industry-specific brands like game developers or publishers but recently, non-endemic brands like FMCG and more have started investing and supporting gaming content creators. Since 2019, the company has seen 200 percent growth in revenue.

Advertising and sponsorships are Trinity’s significant sources of revenue, along with fan-related engagement activities like merchandising and sales of digital goods. “This revenue generation is based on our creator pool. However, we are focused on diversifying the revenue streams and working on producing content revolving around gaming,” Aggarwal says. 

Traffic and growth 

The growth in traffic in the last two years has opened up monetization channels for companies. Larger user base is helping these companies to sell in-app offerings and is also being used as a sales pitch to advertisers.

Justin Shriram Keeling, founding general partner at Lumikai that is one of India’s first gaming funds, says that last year there were 10 billion downloads of gaming apps, that is more than the US. There are half a billion gamers in the country today, with an approximate paying user conversion of 20 percent which translates to 120 million who actively pay in and for games.

“Monetisation has absolutely grown with this -- last year there was a 50 percent growth in new paying users in gaming, with over $600 million  in gaming in-app purchases,” Keeling says.

Lumikai’s surveys indicate average yearly spending of $16/year per user. Propensities to pay are even higher in mid-core and core genres, with the paying users spending $7-14 per month.

Talking of user spends Pare points out micro-payments have also led to growth in traffic wherein more and more people get on the platform because of the low entry barrier which is sometimes as less as 25 paisa. This is the smallest amount that players have to put in a cash game micro stake to participate in a big blind on Adda52.

New paying users in gaming have grown faster in India than any other country in the world for two years in a row. 40 percent in 2020 and well over 50 percent in 2021.

Rajan Navani, founder and CEO, JetSynthesys seconds Keeling. “We have noticed the trend that Indians across digital media are getting increasingly comfortable with paying for entertainment online, and the same applies to gaming as well. According to a report by SensorTower, player spend is set to reach $138 billion globally by 2025,” he says.

Other than that he says, in-app advertising has also been an interesting revenue pull for the studios.

“Gen Z and Millennials spend more time gaming than on any other form of entertainment. These opportunities are very attractive for the advertisers making it a rewarding mode of monetization for the studios,” he adds.

JetSynthesys has seen 3-5 percent month-on-month growth leading to 40-60 percent year on year growth.

Growth of ancillary businesses

While growth is a crucial driving force for pushing monetization in the industry, the technology used to promote these platforms deserves equal credit. Fueling the growth of the gaming industry and also gaining from it are numerous gaming studios, IT partners, merchandise providers and even consultancies.

Yudiz Solutions for instance, a Gujarat based IT solutions company offering services related to mobile game development has a target of 50-100 percent growth per year. How do they plan to do it? They plan to cater to projects from several industries that want to leverage the potential of superior technologies such as IoT, Metaverse, Blockchain, and Unity 3.

“The majority of our revenue will be obtained by providing cost-effective development solutions in the blockchain and gaming industry,” says Bharat Patel, co-Founder and director, Yudiz Solutions.

Another company, 8Bit Creatives, an esports consulting and talent agency, says they’ve clocked up to 5X growth in revenue in the last two years. Advertisements have been a major revenue source for them through their content creators. That apart, they also have platform partners that contribute to revenues through streaming deals and IPs.

Just like the gaming companies these companies are also working with both endemic and non-endemic brands like OnePlus, Aorus, Elgato, Iqoo, Amazon Prime Video, Netflix, KFC, Mamaearth, Loreal, PNG Shiksha, Aditya Birla Group, Coca-Cola, Intel, Airtel and Unacademy.

How the Indian gaming industry is gearing up to cross $7 bn revenue by 2025

Brands have always been in love with athletes winning medals at global platforms. The list of these athletes could now include esport players. The Indian DOTA 2 team that won a bronze medal at the first-ever Commonwealth Esports Championship this week, will attract brands to esports like never before, say industry executives.

30-year-old Moin Ejaz who is the DOTA 2 team captain has seen his follower numbers on social media go up after the win. Brands like Red Bull and AMD are already in touch with the team for collaborations. Ejaz will now start a team page for social platforms and also live stream their games for maximum engagement and brand partnership opportunities.

Lokesh Suji, Director of Esports Federation of India and Vice President of the Asian Esports Federation, says, “Brands should start looking at esports the way they look at traditional sports. We are focusing on training the players for other important tournaments and it is a great opportunity for brands to come forward and be a part of the training programmes and build activations around it."

The win will also help in pushing the overall perspective about gaming leading to brands taking notice of the opportunity in the space.

A latest EY report says as esports grows popular amongst youth and the affluent, advertisers and agencies are expected to increasingly use esports tournament viewership to gain reach and engagement with the audience, growing over 4x to Rs 6.5 billion by FY25.

Players in the category are beginning to see brand interest from multiple categories. Indian game streamer Rooter, for instance, is now focusing on monetization and has already clocked an 83% growth in revenue between Q1 and Q2.

Piyush Kumar, founder and CEO at Rooter Sports Technologies says it is a big year for the space from the brand perceptive.

“Brands are taking notice of the space and realizing its potential. At Rooter, we have an array of brands working with us including the likes of Flipkart, HP, TVS Sports and many others. We are onboarding three to four brands every month,” he tells Storyboard18.

The EY report also says that 1.5 million players, 85 million viewers, 20+ broadcasters and several brands, organizers and publishers will collectively define the esports market in India by FY2025.

The industry is expected to grow at 46% CAGR over the next four years and streaming platforms will generate the largest chunk of esport revenues.

[caption id="attachment_1391" align="alignnone" width="750"]<img class="wp-image-1391 size-large" src="https://images.storyboard18.com/storyboard18/62f606abb94f8-62f606abb94f9From-Right-to-Left-Abhishek-Yadav-Shubham-Goli-Ketan-Goyal-ESFI-Director-Mr-Lokesh-Suji-Vishal-Vernekar-Moin-Ejaz-Captain-2.jpg-1024x576.jpg" alt="From Right to Left - Abhishek Yadav, Shubham Goli, Ketan Goyal, ESFI Director Mr Lokesh Suji, Vishal Vernekar, Moin Ejaz " width="750" height="422" /> From Right to Left - Abhishek Yadav, Shubham Goli, Ketan Goyal, ESFI Director Mr Lokesh Suji, Vishal Vernekar, Moin Ejaz[/caption]

'Every ecosystem needs heroes'

Justin Shriram Keeling, founding general partner at Lumikai, one of India’s first gaming funds, says India's medal win at the Commonwealth Championships is a huge event for the domestic esports ecosystem.

He tells us, “We're already seeing a massive uptick in the vibrancy of India's esports viewership on platforms like Loco, which already hosts over 100,000 concurrent viewers on esports tournaments."

"Every ecosystem needs heroes, and we look forward to the success of Moin, Ketan, Abhishek, Shubhnam inspiring future domestic esports athletes to shoot for the moon on the global stage," he adds.

The industry is now preparing for the Asian Games next year.

Sagar Nair, co-founder and CEO, at Qlan, an AI-based networking app that connects gamers and esports enthusiasts, says the win at the Commonwealth Games opens up doors for brands to get into team sponsorships, athlete endorsements, product integrations and any other form of brand partnership that brands have been engaging with other sports and athletes."

He adds, "Asian Games will open the floodgates for brands to reach out to a massive GenZ consumer base."

How will India's first CWG medal in esports affect brands' interest?

Even as content is making a major digital switch, esports is moving to linear TV in India to target the ‘media dark’ audience. Will the booming industry finally get the ‘mainstream’ tag is the big question everyone is asking.

The coming together of Star Sports and NODWIN Gaming to broadcast the BGMI Masters Series tournament live on Star Sports 2, the same channel that also airs IPL, for three long weeks is a step taken towards esports’ journey to prime-time television.

While NODWIN Gaming, a part of Nazara Technologies (BSE: NAZARA) could not give out details of the media rights price or brands associated with the tournament, the series that will see India’s top 24 BGMI squads battling it out has already seen a doubling of partner brands and 350% increase in revenue.

The credit for the exponential growth in numbers goes to the fact that this season’s BGMI Masters Series would be on TV, said MD and Co-Founder, NODWIN Gaming Akshat Rathee.

“TV changes the conversation with partners. So far, esports has always been associated with live streaming on digital platforms. Through this collaboration with a mainstream sports channel, we hope to break that mould. We have a huge media dark advertiser pool that will now be interested to associate themselves with esports,” Rathee told Storyboard18.

“Our advertisers on digital complain about the huge chunk of the audience that is not there on digital and then there are ad blockers too. With television we will be beyond these roadblocks,” he added.

According to him, if the TV works out and the trend of televising esports events continues, the total size of the esports in the country has the potential to grow anywhere between 200% and 300% in the next 12-24 months.

A recent EY report says, as esports grows popular amongst youth and the affluent, advertisers and agencies are expected to increasingly use esports tournament viewership to gain reach and engagement with the audience, growing over 4x to Rs 6.5 billion by FY25. Tournament sponsorship and syndication revenue would also likely quadruple with media broadcasting rights and advertisement sponsorship revenue together constituting this segment.

Coming back to the BGMI Masters Series tournament, just like any other sport each and every segment of the games has been monetized. There are a total of 15 sub-segments in the three hours of content that would be televised.

How it works 

Explaining how it works for brands and advertisers Rathee said, “Just like cricket where there is a wickets package, a sixes package, a man of the match, etc we have similar options in our ecosystem. For example, you have the player of the day than a team of the day, the fastest score for the day etc that we have created for brands and partners.”

Not just partner brands, even Star is looking at recruiting new audiences with this series. In an official statement, Sanjog Gupta, Head – of Sports, Disney Star said, “As the preferred destination for sports fandom, Star Sports is always looking for opportunities to engage fans, galvanise communities and recruit new audiences. Our partnership with Nodwin Gaming seeks to shape the future of eSports in India by introducing high quality competition and prominent players to millions of TV viewers around the country. It will hopefully fuel fandom for eSports amongst gamers and elevate aspiration amongst athletes.”

Esports ready for prime-time on Indian TV

On Monday, esports and skill gaming app Mobile Premier League (MPL) laid off 100 people, which represents about 10 percent of its workforce, and said it is exiting the Indonesia market. MPL joins a slew of Indian startups like Unacademy, Vedantu, Trell, and Meesho among others who have had to lay off employees as they look to cut costs amid an expected funding slowdown in the country.

It seems that the onset of winter in the startup world is also freezing advertising and marketing budgets. This is in sharp contrast to 2021 where startups contributed around 11 percent to the overall AdEx which stood at around Rs 74,000 crore as per industry estimates.

An email sent to Ola and Meesho on their possible ad budget cuts remained unanswered. However, advertising executives say that they are feeling the heat with clients cutting budgets.

“There is a huge slowdown on the advertising spends by startups because of the VC funding drying, these companies don’t have the money to spend. We have already started witnessing the slowdown post Indian Premier League (IPL). Within the startup category, we are witnessing a 30-40 percent reduction in media spends,” a senior media buyer tells Storyboard18 on the condition of anonymity.

Startups were some of the top advertising spenders as they pumped money in the first five months of the year including in the IPL. For instance, IPL’s official broadcaster Star Sports had roped in 14 sponsors out of which eight were startups – Dream11, Byju’s being co-presenting sponsors; CRED, PhonePe, Swiggy Instamart and Meesho as associate sponsors. Disney+Hotstar onboarded 18 sponsors with 12 of them being startups.

“We are hoping that it would be a temporary phenomenon so how adex will be impacted would be dependent on how July to September and World Cup pans out. I would not judge the whole year basis this slowdown but in the short-term it has really gone down because June, July and August are also lean periods. So if it goes down now nobody is bothered but if it sustains then people will get worried,” the executive quoted above adds.

Spending judiciously

There is capital but it is being deployed a lot more judiciously as compared to last year when the capital was flying all over the place, say industry executives. There will be rationalisation and marketing budgets will see some axing.

The amount of budget cuts depends on the stage of the company as well as valuation raised in their last funding round, says Arun Iyer, founder and creative partner, Spring Marketing Capital. “Later stage (Series B) onwards the fund raise is going to be a little tough this year. Twelve to 18 months being a tough environment so everybody is going to be cautious in the way they spend,” he notes.

Apart from working with multiple startups, Iyer’s advertising agency also has a Venture Capitalist (VC) arm which invests in new age companies. He sees this winter as an opportunity as well.

“We are in conversation with our companies where we have invested and having conversation about how to plan the way forward, having conversation on spending money effectively. As far as the investing part, we will be investing in companies this year as well. We will be seeing valuations which are a lot more real which is a good thing,” he notes.

But some are defying the changing tide. Arjun Mohan, CEO - India, upGrad said that they have not cut down on marketing spends at upGrad because they have been strategic in our expense planning to generate maximum ROI.

"In fact, our marketing spends have increased by 130 percent in FY23 because we are focused on creating relatable and personalised edutainment content, to make upGrad a household name, by targeting the right learner base across geographies. Our latest campaigns address the specific needs of our consumers, while piquing their interest with the concept of LifeLongLearning as a means to eradicate skill redundancy. Our plan is to spend an equal amount on both traditional and digital mediums, as we expand our course portfolio and tap into newer audience segments across the country," he adds.

Finding the silver lining

Media industry executives also believe that startups did have a good run so far and it is too early to completely write them off.

“The startups have had a spectacular run and it is only in the last couple of months that things have been relatively slow. These situations are cyclic at best and with India’s strong economic fundamentals and long-term growth outlook, we expect to ride out any temporary blip,” asserts Anupriya Acharya, South Asia CEO, Publicis Groupe.

Unlike established brands and industries, startups cannot afford to stop investing in brand building and sales either.

“They need to be in the consumer’s mind as the preferred choice and all communications are skewed towards ROI, given that growth targets need to be met on an ongoing basis. We expect sectors such as e-commerce, fintech and payment apps and now the gaming apps to continue advertising in a big way,” Acharya concludes.

Ad spends dip as startups slash marketing budgets

Whether you’re an athlete yourself or a fan of sports, follow an individual team or a player, or just casually watch from time to time, sports will bring out your team spirit and provide inspiration or hope in untold ways.

Sport brands have a very powerful role in their fans’ lives, which means that they need to think about how they operate their business, how they engage fans and what kind of messages they deliver to society. The concept of creating a shared value between sports teams, local communities and fan communities is stronger now than ever. Though it’s hard to know what’s coming, keep reading to see what’s trending in the world of sports marketing as I see it.

1. Experience it: Sports marketing is increasingly about giving customers the feeling that they are a part of something good, something that contributes to their life in a meaningful way. As we slowly crawl out of the coronavirus pandemic, we are all eager to experience life in its full glory and participating or attending sporting events, live events, is at the top of the list. Brands will continue to drive authentic engagement through experiential marketing activities on ground by delivering experiences that matter. At Hyperice, we take great pride in recovering athletes at the finish line.

2. Healthify it: Having access to the latest in health tech will become a competitive advantage. It is now evident that better fitness levels, better physical and mental health, have a positive impact on athlete’s performance. Athletes and sport/fitness facilities will continue to invest in health tech &amp; recovery technology.

3. Track it: Among emerging opportunities, wearables and internet services for tracking physical exercise which incorporates social network features will continue to thrive amid increased focus on individual activities such as running and cycling. Brands will continue to create, engage and inspire these communities. Example, the advent of Strava challenges by brands like Trek bikes is one of my favorite.

4. Invest in it: Despite the constraints of the pandemic, be it training in a limited setting, or not being on the field playing in front of thousands as they normally would, athletes saw this as an opportunity to focus on other things including their businesses and investments. Most of the investments made by athletes have been driven by personal experience with the products they have used and come to love; or products that fuel their passion. Athletes will continue to turn investors in relevant start-ups and business as we go along. Example, Virat Kohli became the first Indian Hyperice athlete-investor to join the growing list of athlete-investors such as Naomi Osaka, Earling Haaland, Amanda Nunes, Daniel Riccardo, Rory McIlroy, Ja Morant, and many more.

5. Merchandise it: Majority of the products are purchased for emotional reasons and a smaller percent for functional reasons. We are all collectors at heart, and we like to pronounce our support for our choice of sport, team or a player. And if you attend a sporting event in person, you want to celebrate and commemorate the experience. Licensed merchandise is the trend that will continue to foster under sports marketing - If you have a strong sport brand, it’s time to think about brand licensing, gain from additional retail visibility and promotion, plus rake in the royalties.

6. Post it: Brands leverage their athletes, and the available fan base to further drive a narrative through authentic content on social media. We will see continued rise in athlete voices on social media as they inspire their audience on staying active, being fit and to start taking care of their overall wellbeing. We will see more content collaboration with athletes ,especially with Instagram’s new collabs feature that allows brands to continue to leverage the athlete’s fanbase and vice versa. Brands and consumers are placing high importance on authenticity and relatability, which translates to greater engagement even with athletes seen as influencers or brand advocates who have smaller followings but who are aligned with brand values. Brands will continue to nurture innovative partnerships that deliver high engagement and authenticity through UGC content for social media.

7. Digitize it: Digital content is more important today than ever. Younger fans continue to consume differently than older generations—so short-form, unique content, surrounding events/athletes is going to be a huge emphasis. Not to mention the importance of second-screen content. Of course, there is a sizeable audience for live matches, but the audience for ancillary content on the second screen is equally appreciated. We are already seeing increased original content from both professional and amateur athletes. Sports marketers will draw more emphasis to unique, platform specific ancillary and non-live content through new and emerging content distribution channels.

8. Globalize it: Catering to international fanbases is challenging – one such challenge is that live broadcast cannot be at a convenient time to many fan bases internationally. Here digital will be huge not only for highlights and content, but also for other creative ways to enjoy the sport’s momentum apart from normally watching it on TV. This will give a boost to opportunities like multi-viewing Or, working with local influencers or athletes to create content around the experience in a locally relevant way for a particular market.

9. Esports: Video games are becoming increasingly popular especially after the pandemic, and more and more gamers are finding their way into the world of eSports. There will be more focus on both casual/amateur and professional player development too as we go along. There is an emerging trend of esports players now taking their fitness and recovery seriously to have longevity in their career. We will also see more brands wanting to be a part of the game play by being featured in the games in an interactive way, and we will see more livestream integrations with the e-sports athletes too.

10. Women in sport: For decades, the sports business was a male domain. Thanks to the changes in society, the sports industry is also being strongly mixed up. With this we will see more support from brands towards women in sports and the sports for women. This is also since women are an increasing financially strong group of buyers too.

Note to readers: Storyboard18’s new Month In Focus initiative spotlights themes and topics that are pushing marketers to reshape and rethink how brands interact with today’s customers. Our first theme is Just Sports, a special spotlight on sports marketing presented by Sports18. We bring to you stories of how marketers are harnessing the power of technology, innovation and creativity in sports to create powerful storytelling in campaigns that increase affinity and loyalty with audiences. From traditional sports platforms around cricket to emerging games and the rise of esports, we get leading voices from the marketing and sports worlds to give us sharp and fast insights into future-facing marketing practices. Also, tune in for analyses which will surface ideas and strategies that are helping brands to level up experiences and storytelling with authentic collaborations. So watch this space for Just Sports.

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