Latin America is one of the most fast-paced growing markets in the world, and many companies are jumping in esports before it's too late...
Huge numbers around the esports industry are everywhere. Millions of people in audiences and millions of dollars in revenue appear in many articles and news. Brands all over the world are acknowledging this scenery and join to reach that specific and golden target.
Probably, North America, Europe and Asia are the most mature markets in the world, and things are well-established there. Commercial opportunities had been already explored, and brands invest their money in competitions, teams and players. Emerging markets are the new break for brands willing to do things right and to jump into the esports ecosystem.
Latin America is -without any doubt- one of the most fast-paced growing markets in the world. New serious competitions, teams are getting more and more professional, and players work hard and responsibly to reach the top. In the commercial side, endemic and non-endemic brands are seeing it’s potential and investing in the LatAm landscape.
Audience in Latin America will reach up to 55 million people in 2020, and is expected to grow to more than 70 million in 2022. Twitch also reports that in 2022, LatAm will overtake North America in terms of esports enthusiasts. Regarding revenue, Latin America will reach almost 40 million dollars in 2020. Non-endemic brands such as Coca-Cola, Red Bull, Gillette, Burger King, Motorola, Samsung, Claro, Movistar, Axe, Mastercard, and many others are already investing in Latin America.
The key factor when it comes to investing in Latin America for brands is doing so in the right way. Each brand is different from another, and its approach into esports should be the best possible for each case. Esports audience is smart and recognizes when a brand joins in the wrong way, that’s why working together with companies with many years in the business is very important.
That’s the case of Play The Game Agency. The company was founded in 2016 in Spain and started operations in Latin America a few weeks ago with a new office in Buenos Aires, Argentina. Play The Game Agency works with brands to assist them with entering gaming and esports in a way that appears natural. The company have worked with brands such as Danone, Chupa Chups, Nike, Citroën, Burger King, LG, Peugeot, and BBVA, helping them to navigate esports in Spain.
Agustín Cikes, MD Argentina, said that :
Opening Play The Game’s office in Argentina sums up the work we started at Latam Media Group (LMG) more than three years ago. We covered the most relevant B2B esports events in the world, and that allowed us to witness the entrance of non-endemic brands to the ecosystem. We string along with this evolution that now has LatAm as a huge emerging market, closely followed by the world’s best teams, tournaments organizers and other brands – Cikes
Oscar Soriano Mullor, Co-founder of Play The Game Agency, spoke on the expansion:
Four years ago, when Play The Game started, we had a clear goal: to help brands and organizations to understand gaming and esports. To understand it and to reach an audience that traditional media can’t. What we didn’t expect was to grow geographically this fast. We reach now LatAm’s Southern Cone willing to help the ecosystem and the organizations to climb to the next step – Soriano Mullor
Latin American landscape shows mature companies getting involved in many areas. From tournaments organizers to teams, and from brands to broadcasters. Probably, the biggest competition in Latin America is Liga Latinoamérica of League of Legends. It gathers teams from all the region in Mexico, where Riot Games signed a partnership with a local company and TV Azteca as the main broadcaster. Also, Counter-Strike: Global Offensive is important, with a massive scene in Brazil. Brazilians teams such as MIBR and FURIA are right now Tier 1 level and compete in the best global events. DOTA 2 is very popular in Peru mostly, and football simulators like EA Sports FIFA and Pro Evolution Soccer are also very relevant.
There are many options for brands when it comes to joining the esports ecosystem. Partner with a tournament or a team is a classic route, but many others seek for an influencer (or streamer) or even an event. Streamers drive massive audiences to the teams they represent and the brands that sponsor them. When it comes to events, there are plenty around LatAm. Brazil Game Show, Argentina Game Show and Festigame Chile have a long history, but many others are starting to generate their own audiences.
The esports market is already a worldwide giant and it’s expected to keep its march. Latin America presents itself as a big opportunity being one of the fast-paced regions in the world. Jumping in is a decision that brands will do eventually, but it remains crucial to do so in the right way to improve the possibilities of engaging with the audience properly. There are many ways, it only needs to be done.