Dive Brief:
- Energy drink G Fuel has expanded its partnership with esports group FaZe Clan to collaborate on talent, content, retail distribution, apparel, and merchandise, according to a press release.
- The two organizations will build a G Fuel Studio in the new FaZe Clan house for gaming and content creation, including long-form content.
- G Fuel will also launch a new flavor called FaZeberry G Fuel Hydration, as part of the expanded partnership, with cans available in select Walmart, Sheetz, Speedway, Circle K, and other convenience store locations. The new flavor is the fifth in the line.
Dive Insight:
Esports have been gaining popularity among younger consumers, with brands seeing this growth as an opportunity to be a part of the category in order to reach the growing fan base. FaZe Clan has more than 215 million fans across multiple social media platforms and brand partners include Nissan and Wix, in addition to G Fuel, according to the press release.
G Fuel is looking to reach esports audiences to promote its energy drinks and is banking on a deeply integrated content strategy to help it accomplish this. By creating a G Fuel Studio, the beverage brand will expand its opportunities to engage gamers.
In the months ahead, esports could see an increase in viewership and attract more brand dollars that were previously earmarked for live sports marketing now that several major sports leagues have postponed their playing seasons and consumers across the country are stuck at home with orders to isolate themselves from others in response to the COVID-19 pandemic.
The space was already on the upswing this year, with ad revenues from esports projected to reach $200 million this year in the U.S. alone, according to an eMarketer report from last year. Brand investment is expected to reach $795 million this year, up 23.1%, with $584 million going to sponsorships, per a recent study from marketing intelligence firm WARC.
Major brands such as Coca-Cola and Mars' Snickers have been getting into esports sponsorships recently, another signal that advertisers are seeing major interest in this growing digital space. Additionally, energy drinks are a hot commodity, as exemplified in PepsiCo recently revealing plans to acquire Rockstar Energy for $3.85 billion.
