Esports arena: Collecting new fans - what esports can teach traditional sports

Esports has had a remarkable 10 years. In the space of a decade, it has transformed from an underground pastime into a billion-dollar industry. A number of factors are at play here, but perhaps the most prominent is the industry’s ability to attract huge viewing numbers. Over 496 million people watch esports worldwide, both online and in person, and in fact esports viewing numbers often trump those of their traditional counterparts; in 2016, the NBA finals had 31 million views – the League of Legends final had 43 million.

Typically, the rise of esports has been seen as a threat to traditional sports. Esports often engages a younger and more global audience, who respond to the higher levels of engagement it offers compared to traditional sports. This doesn’t have to be the case, though. As we saw in 2020, there are many innovative ways for fans to get involved with their teams without the need to watch a live game or be in a stadium. Rather than feel threatened by esports’ level of fan engagement, traditional sports can adapt and learn from them to improve engagement with their own fans.

One way traditional sports clubs can learn from esports is by offering digital collectables or trading cards to fans. These can be purchased by fans regardless of geographic location, increasing engagement between supporters across a global fanbase. Digital trading cards and their associated applications let fans connect with each other from all over the world, building a connected global fan base. In the same way, teams can use digital collectables to engage younger fans and improve revenue – something that the NBA has recently done. What’s more, digital trading cards are underpinned by innovative blockchain technology, meaning that cards and collectables cannot be destroyed, forged or replicated, making them a more attractive investment for fans. Digital collectables and trading cards open up new revenue streams for clubs and a new way for fans to interact digitally.

Football teams are another great example of a traditional sport taking a page out of esports’ book. Even before the pandemic took hold, a number of well-known teams have been looking to engage fans digitally with creative new offerings. The most notable of these are blockchain-based fan tokens. Prominent teams like FC Barcelona and Dynamo Kyiv have been investing in these tokens, which can be purchased by fans or earned through ‘social actions’, such as engaging with the club on social media. Fans can then exchange their tokens for exclusive rewards, from VIP events to early access to new merchandise. Fan tokens have been proving hugely popular with supporters, even prior to the pandemic. For instance, FC Barcelona’s first round of fan tokens, worth $1.3m, sold out in under two hours. Fan tokens are not only in huge demand, but engage fans and let traditional sports teams learn from esports by tapping into a more global fan base, which can continue even when game attendance restarts.

Feeling more involved

While 2021 will likely see game attendance revenues back on the table for sports clubs, ticket sales alone will not be sufficient to recoup the losses caused by the pandemic. To diversify revenues, and monetise and engage fans from everywhere around the globe, traditional sports can follow esports’ lead by implementing new technologies to make remote global audiences feel more engaged during live games. Fans watching at home might feel disconnected from the action, but by using VR technology to include them, such as by creating ‘cheer’ buttons to participate with, clubs can help their fans feel more included. Traditional sports that harness this technology to engage remote fans all over the world, something that they will reap the rewards of long after the pandemic is over.

The sports teams who thrive the most during this time will be the ones who can learn from esports’ successes, rather than feel threatened by it. This is already happening in some cases; Manchester City, among other clubs, have dipped their toes in the water by launching their own esports team. Investing in digital transformation and creativity for fan engagement will allow clubs to not only survive reduced game attendance this year but thrive in the years to come by earning the participation of younger fans, diversifying revenues and engaging and monetising international fan bases.

Lars Rensing is CEO and co-founder of enterprise blockchain services provider Protokol. He has over four years’ experience in the blockchain industry, helping to lead and co-found Ark; the open-source blockchain platform which underpins Protokol’s blockchain services. He is passionate about helping everyone from start-ups to enterprises unlock the opportunities of blockchain technology for their business, and as a result currently also serves as an adviser for a number of start-ups leveraging blockchain technology.