EPTCBSi acquires SC2 league advertising rights - Page 5
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StarVe
Germany13591 Posts
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Imperium11
United States279 Posts
Michael Pachter, video game analyst at Wedbush Morgan Securities, believes that the audience for eSports will double every two years over the next decade. Exponential growth. (like, literally exponential), not just a figure of speech. For the next decade. While we knew eSports was growing rapidly, this just drives the nail home, so to speak. This kind of growth is enormous, and really illustrates the kind of potential which investors are starting to see in this industry. | ||
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sour_eraser
Canada932 Posts
Where did they get this number from? | ||
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FXOBoSs
337 Posts
Find sponsors for 96% of e-sports, and I will happily bow down to you CBSi. | ||
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HotShizz
France710 Posts
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Laplaces_imp
368 Posts
"We've locked up 96 percent of all the advertising inventory around eSports, and now we have an opportunity to take that to market and turn this pond into an ocean" doesn't sound like they are worried about the love of the game at all. I understand that if we want to see more players better tournaments, more exposure, ect, we need more money in the scene, but i don't like the idea that a single business has this much sway over the scene especially when the people in charge hardly seem to care  hopefully it will come out good though | ||
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jmbthirteen
United States10734 Posts
On June 01 2012 05:28 jidolboy wrote: 96%? Where did they get this number from? 96% of all gaming broadcasts are done on twitch and own3d. | ||
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ShatterZer0
United States1843 Posts
What was the "96%" conjured from? | ||
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Spec
Taiwan931 Posts
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Imperium11
United States279 Posts
On June 01 2012 05:17 Innovation wrote: As the global analytics manager of an international advertising agency I feel like I can shed some light. 1.) This is a good thing. individual leagues don't have the sales staff and advertising knowledge to sell their own advertising inventory optimally. CBSi has a vast network of existing partnerships with agencies and major brands that it can leverage to get the most advertising revenue out of the inventory. (inventory = potential ad impressions) (Impressions = each time an ad is served to an individual computer) 2.) Most leagues focused on individual sponsorship's which are difficult to secure and often don't generate optimal revenue. Another challenge is that many sponsors prefer to have non-compete rights or the sole ability to display ads. Every sponsor has a target market so having one single advertiser limits revenue because inventory (impressions) will go unused. For example. MLG is sponsored by Dr. Pepper/Snapple Group U.S. They are only targeting a US audience with their ads. In this scenario MLG does not get paid for any impression seen by a non-US person. The result is wasted inventory. CBSi can ensure that all available inventory is sold which means more revenue for everyone. There are many more reasons but these two should suffice. Thanks for the insight man. I think this deserves to be reposted for its expertise and hopefully to clarify some of the confusion expressed by others on this thread as to what these deals actually mean. | ||
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canikizu
4860 Posts
On June 01 2012 05:17 Innovation wrote: As the global analytics manager of an international advertising agency I feel like I can shed some light. 1.) This is a good thing. individual leagues don't have the sales staff and advertising knowledge to sell their own advertising inventory optimally. CBSi has a vast network of existing partnerships with agencies and major brands that it can leverage to get the most advertising revenue out of the inventory. (inventory = potential ad impressions) (Impressions = each time an ad is served to an individual computer) 2.) Most leagues focused on individual sponsorship's which are difficult to secure and often don't generate optimal revenue. Another challenge is that many sponsors prefer to have non-compete rights or the sole ability to display ads. Every sponsor has a target market so having one single advertiser limits revenue because inventory (impressions) will go unused. For example. MLG is sponsored by Dr. Pepper/Snapple Group U.S. They are only targeting a US audience with their ads. In this scenario MLG does not get paid for any impression seen by a non-US person. The result is wasted inventory. CBSi can ensure that all available inventory is sold which means more revenue for everyone. There are many more reasons but these two should suffice. Yep, basically this. CBS basically says "Look, we are partners, I'm gonna take care of advertising and marketing department, you guys focus on producing contents" For tournament organizers, they don't have to actively look for sponsors anymore. Their budgets will gonna be more stable, which lead to more stable production quality theoretically. For streamers who use twitchtv or own3d, we may not notice, but in a bigger pictures, the more stable these services are financially, the better the service is going to be, maybe even better payout in the future. 96% of the live stream gaming contents are from twitchTV and own3d, the other 4% may come from ustream, livestream, dailymotion, etc. Of course, monopoly isn't the ideal, but everything has to start out with monopoly. Stuff will change as the scene grows. | ||
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KrazyTrumpet
United States2520 Posts
This means more ad revenue...which is something that is desperately needed for some of these leagues. | ||
aristarchus
United States652 Posts
On June 01 2012 05:30 Spec wrote: For some reason this doesn't sound as bad as it seems? Don't feel like monopoly of advertising is going to be a problem. Yeah, I don't think this is bad at all. It depends on the details of the deals, which we don't know, but as long as those groups aren't locked in for a very long-term thing, then CBSi can't use monopoly power to shortchange them on advertising or anything like that, since they could always leave the deal if they wanted to. | ||
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SealOverseer
Netherlands159 Posts
Why would you even care? | ||
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Dontkillme
Korea (South)806 Posts
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NukeD
Croatia1612 Posts
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TumNarDok
Germany854 Posts
ESL, Dreamhack dont even run commercials on the platforms during major events but rather in-stream clips, so yea CEO-on-CEO hype-sale-talk right there. Still I'll stand by my previous comment hat whenever CBSi will pull out again then the broadcasters and their customers are in major trouble, until then it's a good stuff. | ||
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Hondelul
1999 Posts
On June 01 2012 05:17 Innovation wrote: + Show Spoiler + As the global analytics manager of an international advertising agency I feel like I can shed some light. 1.) This is a good thing. individual leagues don't have the sales staff and advertising knowledge to sell their own advertising inventory optimally. CBSi has a vast network of existing partnerships with agencies and major brands that it can leverage to get the most advertising revenue out of the inventory. (inventory = potential ad impressions) (Impressions = each time an ad is served to an individual computer) 2.) Most leagues focused on individual sponsorship's which are difficult to secure and often don't generate optimal revenue. Another challenge is that many sponsors prefer to have non-compete rights or the sole ability to display ads. Every sponsor has a target market so having one single advertiser limits revenue because inventory (impressions) will go unused. For example. MLG is sponsored by Dr. Pepper/Snapple Group U.S. They are only targeting a US audience with their ads. In this scenario MLG does not get paid for any impression seen by a non-US person. The result is wasted inventory. CBSi can ensure that all available inventory is sold which means more revenue for everyone. There are many more reasons but these two should suffice. Thank you for this post, I really could not decide myself if I like this but this sounds great. And nice writen/formatted, really rare  | ||
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DeepElemBlues
United States5079 Posts
On June 01 2012 05:33 KrazyTrumpet wrote: Christ, people will seriously complain about anything. This means more ad revenue...which is something that is desperately needed for some of these leagues. ^ This is what esports needs to get some really big money to come into the scene. If you want to see the finals of an MLG event (or Dreamhack or whatever) on ESPN or something some day, this kind of thing needs to happen. | ||
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gCgCrypto
Germany297 Posts
I hope it turns out good and all but i frear this monopoly might ruin a lot of what others have build in over 10 Years, very quickly. | ||
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