M&C Saatchi Sport & Entertainment "has launched a new eSport division, which will be led by the agency's head of digital, Haran Ramachandran," according to Khidr Suleman of PR WEEK. In conjunction with the launch, M&C Saatchi Sport & Entertainment "has signed a partnership with the inaugural eGames, which will take place in Rio" from Aug. 14-16. The agency "will provide strategic counsel and sponsorship advice for the event." According to Newzoo, which specializes in gathering market intelligence on the gaming industry, "the eSports economy is expected to generate" $463M during '16, representing a year-on-year increase of 43%. By '19, eSports is predicted to generate in excess of $1B in worldwide revenue. While the sector "shows plenty of potential," Ramachandran noted that brands in Europe have so far "been relunctant to get involved." He said, "We want to change that by working with brands to create compelling eSports campaigns in the same way we do for traditional sports" (PR WEEK, 5/11). CAMPAIGN LIVE's Shona Ghosh reported the agency "is also advising the company behind the event, the International eGames Group, on sponsorship strategy." It eventually plans to advise brands on esports sponsorship activations, "though it is less likely to broker sponsorship deals directly." The sell for brands is that sponsorship "is likely to be in the tens of thousands of pounds rather than the tens of millions commanded by major sporting events." And a "highly engaged," young male audience -- both online and offline -- "means that brands might see higher ROI." Aside from "lack of awareness on the brand side, a lack of prize money is another potential hiccup for the eGames event." Ramachandran: "When the eGames were announced, that was the main beef that the esports community had. The model is [usually] based on prize money -- that’s the main draw" (CAMPAIGN LIVE, 5/11).
