GLOBAL OPPORTUNITIES FOR BRANDS:LOCAL ESPORTS COMPETITIONSForeword1. Local Places of Competition2. National Leagues and Collegiate3. LAN Events03041015TABLE OF CONTENTSFOREWORDBrands shouldnt miss the chance to leverage the growth of local esportsJURRE PANNEKEETSr. Market AnalystNEXT EDITION: February 12th-14thCannesEsports is a global digital phenomenal. Across the globe,millions of viewers tune in to watch their favorite teams andplayers competeinternationally and locally. Most esportscontent consumption happens online, which has allowed theindustry to grow exponentially. And watching esports is a trulyborderless pastime; it can be watched by anyone, anywhere.What is often overlooked, however, is the increasing importanceof grassroots competitions acting as a foundation for hugeinternational events.After all, the first wave of esports tournaments was held insmaller venues such as arcades, with only a couple of dozenpeoplesometimes fewerattending to compete and spectate.These local competitions give up-and-coming talents a chancemake their debut, hone their skills, and rise through the ranks,setting them on the path to become a fulltime esportsprofessional. National events, which are often organized andviewed by the most dedicated fans, also allow local heroes toconnect with their fanbase.Local competitions, therefore, present an exciting opportunity forbrands. There is a real opening for sponsors to make an impactamong local esports communities. While the reach of theseevents is smaller than their international counterparts,activations around local competitions can often be moretargeted, more creative, and more measurable.In this whitepaper, we will look at various types of local esportscompetitions and how brands can benefit from them. We willalso highlight some notable examples of how large internationalorganizations, such as Nike, Coca-Cola, and Vodafone, havesuccessfully engaged with local initiatives.For any brand active in esports, overlooking the localopportunity may have some serious repercussions. A moreholistic approach targeting a particular esports community at alllevels is crucial for maximizing brand impact. If your brand islooking to understand local esports or activate fans, Newzoohas you covered. Whether its finding out how many esportsenthusiasts a specific country has or profiling the esportsaudience of 30 countries/markets using our consumer insights,we can help you navigate any aspect of esports that yourcompany is interested in.31. LOCAL PLACES OF COMPETITIONRETURN OF THE PC CAFELocal gaming makes a comebackGaming cafes and LAN gaming centers were popular in the late 90s and early 2000s. Afterthis, widespread adoption of broadband Internet and online services such as Steam, XboxLive, and PSN made playing games over an online connection easier than ever. Gamingcafes died out. Playing locally with friends at gaming cafes, however, has made somethingof a resurgence latelyespecially in China (Internet Cafes). Interestingly, PC cafes neverlost popularity in South Korea, where they are called PC bangs.The increasing popularity of competitive gaming has led to a new form of gaming cafe thatemphasizes esports. In addition to traditional gaming facilities, these newfound cafesfeature areas in which customers can watch games being played or even competethemselves (at any level). Local competitions can easily be organized and held at thesecafes, giving local esports scenesones that can tap into the larger scenea means tothrive and grow. They also encourage local communities to get involved with esports,making the industry more visible, just as local soccer, American football, and basketballteams have done for traditional sports.Large game retailers across the U.K., including GAME and PC World, are adapting theirbusiness models to include in-store arenas. Capitalizing on the success of esports is asmart move, as the games marketonce dominated by physical gamescontinues tobecome increasingly digital. In the U.S., even Walmart is getting involved, introducing an in-store area in which some family members can spend time playing/watching games whileothers in the family are shopping.5SOCIAL VIEWING OF ESPORTSSmall- and large-scale venues dedicated to esports ESPORTS-DEDICATED BARS GO GLOBALGoing out with friends to watch live sports is a staple of many cultures across the world.Now, several initiatives have launched with the aim of making this a reality for esports.These initiatives give esports enthusiasts a local place to share their viewing experience.Naturally, this has led to the introduction of dedicated esports bars. Many of the worldsmajor cities now have at least one of these bars. One of the best-known esports barfranchises is Meltdown Esports Bar. Boasting partnerships with the likes of Logitech, RedBull, Samsung, and Discord, Meltdown has 27 franchised bars across eight countriesworldwide.ESPORTS CITIES?Of course, there are also many new venues dedicated solely to hosting esports events incities and local communities. These venues typically cater to around 100 to 1000 fans, andsome leaguesincluding the Overwatch League and Chinas League of Legends ProLeaguerequire teams to have a local venue for home matches. This development hasdirectly led to an increased number of venues in cities with a focus on esports, especially inChina and North America. Chinas case is particularly interesting, with three of the countrysmajor cities each vying to host events for the biggest esports organizations.6CITIES COMPETE TO BECOME CHINAS ESPORTS HUBHangzhou, Chongqing, and Shanghai want to be Chinas leading esports cityBy 2022, Hangzhou aims to invest over $2Bn into developing the citys esports activities. The city will host the 2022 Asian Games.LGD Gaming built its own esports venue in the city, which will serve as the home venue for its LPL matches. Other projects include an esports academy, esports-themed hotel, theme park, business center, and even a hospital designed for esports players. HangzhouPopulation: 10 million#10Largest Chinese city by urban area inhabitants To boost local esports activity, Chongqing singed a deal with Alisports, resulting in Alisportsrelocating its business unit to the city. The sports affiliate of Alibaba Group will also work with Chongqing High-Tech Zone to build an international esports street in Jiulongpo District.Alisports will also organize large-scale sports events and networking sessions to boost collaborations between foreign and domestic companies in the citys sports industry.ChongqingPopulation: 15 million#5Largest Chinese city by urban area inhabitants Shanghai recently held a signing session with multiple companies active in esports to put the city on the path to becoming a world esports center.As a result, Tencent Games Honor of Kings Winter Champion Cup took place in Shanghai, and The International 9 will happen there in 2019. Also, Esports athletes can register with the city to receive benefits, and NetEase and Shanghais government reached an agreement to move NetEasesesports facilities to the city. PandaTVand ShihouTV signed similar agreements.ShanghaiPopulation: 24 million#1Largest Chinese city by urban area inhabitants 7COCA COLA: FROM GLOBAL TO LOCALViewing parties turn international viewing into a local, social activityAcross Europe and the U.S., Coca-Cola has hosted various local viewing parties in theaters, allowing those who were unable to physically attend an event to enjoy the experience of watching with other fans. The company turned a global experience into a local social activity. 8SNICKERS TAKES A CREATIVE SHOTThe company organized a FIFA match on a real-life soccer pitchOne particularly creative local esports sponsorship came from Snickers. The brand set up its own 11-a-side FIFA esports match, which was played on PSVs Eindhoven soccer pitch in the Netherlands. Team PSV and the Snickers Team, both consisting of members of the public, faced off at the Philips Stadium. To find players for the teams, Snickers worked with Dutch YouTubers LuckyGraafNL and FC Roelie, who produced a series of video content about the event.92. NATIONAL LEAGUES AND COLLEGIATE