Why BMW is cutting ties with Esports in 2023. Picture: Hidley

Why BMW is cutting ties with Esports in 2023. Picture: Hidley

Why BMW is cutting ties with Esports in 2023

Newsroom Jan 17, 2023

BMW’s decision to pull away from Esports reflects mounting skepticism among non-endemic brands with regard to the marketing power of Esports partnerships.

Overview:

  • BMW has invested millions of dollars in various collaborations with Esports leagues and events since 2020.
  • BMW has formally chosen to reduce its investment in Esports collaborations starting in 2023.

According to the firm, BMW has formally chosen to reduce its investment in Esports collaborations starting in 2023. BMW corporate communications representative and former BMW Esports spokesman Torsten Julich said, "BMW has chosen to discontinue its esport[s] participation from [the beginning] of 2023 on." "Our emphasis will be even more on the person than it was previously in the future."

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Julich suggested that the recently unveiled I Vision Dee" concept car from BMW, which has a heads-up display unit that can project images across its entire windscreen, will play a key role in the company's evolving marketing plan. However, he did not specify how games might be played or streamed on the car's display. Esports News UK first broke the news of BMW's withdrawal from Esports in December.

BMW will terminate all its investment

BMW will terminate all its investments. Picture: Fanatic
BMW will terminate all its investments. Picture: Fanatic

BMW has invested millions of dollars in various collaborations with Esports leagues and events since 2020. The jerseys of well-known teams like G2 Esports, Fnatic, Cloud9, and OG have BMW emblems. According to the gaming and Esports industry data portal GEEIQ, between 2020 and 2023, BMW collaborated with 11 different Esports organizations. Depending on the extent of the cooperation, the value of such Esports collaborations may vary greatly. However, they often range from tens of thousands of dollars (for one-time activations) to millions of dollars annually (for partnerships involving naming rights and original content).

Some of these partners' material still clearly features BMW insignia. For instance, Fnatic's December player announcement included a reference to BMW, showing that the two parties are still partners. But as 2023 approaches, the business is undoubtedly not looking for new Esports alliances. However, this does not imply that the German automaker will completely abandon gaming. According to a different corporate official, BMW's attention has changed away from Esports and toward other aspects of the gaming industry, such as in-home casual gaming and the metaverse.

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With respect to the marketing effectiveness of Esports collaborations, non-endemic businesses are becoming more sceptical, as seen by BMW's decision to distance itself from the industry. Marketing professionals are starting to understand that individual gaming influencers may provide the same degree of engagement for less money, even though Esports organizations provide advertisers access to a large gaming audience. Working with certain influencers may help soften the impact since gamers are still quite sensitive to advertisements in their entertainment.

For Esports organizations, who still rely on partnership money to remain alive, BMW's pullout from the industry is terrible news. Some organizations are looking at other income sources to break their reliance on brands, such as record labels and original content. However, the market is not ready if a more significant brand exodus is on the horizon. According to Jason Chung, a professor and the head of the Esports and gaming program at New York University, "You have to transmit that value not only to your employees, but also to the outside world and investors who are asking things like ROI, KPIs, and that stuff." "And how do you interpret it when we know the different structural problems we face? Esports is still a marketing tool for the publisher, so it hasn't had to deal with that tricky situation.

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You can also download the Tournafest app from Google Play or App Store to play Esports Tournaments & Scrims games like BGMI, Free Fire MAX, Call of Duty, CS: GO, Valorant, Pokemon Unite & win exciting rewards! You can also go ahead and organize Tournaments & fetch unmatched perks.

Until next time,

#liveitforgaming

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Manish Gupta

I’m a creative thinker. I think it’s important to approach tasks and issues from different angles, rather than doing what has always been done. By having an open mind and taking a different approach.