Nielsen: The way to correctly measure the affect of esports for manufacturers and advertisers

Analysts predict esports must be a really huge enterprise sooner or later, and it's already amassing big audiences. Manufacturers and advertisers wish to dive into it, however first the enterprise must be correctly measured and understood.

And that’s the job of Nicole Pike, the managing director of Nielsen’s international esports enterprise. I spoke together with her in regards to the challenges of correctly measuring esports audiences for manufacturers and promoting purchasers, and understanding the distinctive nature of esports followers. We talked in regards to the tendencies and the hype.

Pike goes to be a speaker on the upcoming Esports BAR Miami occasion on October 1 to October 4. She has been following the sport business for a dozen years and up to now few years she has been consulting with key gamers within the sports activities enterprise and measuring the affect of sponsorship campaigns with esports audiences.

Right here’s an edited transcript of our interview.

Above: Nicole Pike is managing director for esports at Nielsen.

Picture Credit score: Nielsen

GamesBeat: When did you begin getting targeted on esports your self?

Nicole Pike: I’ve been within the gaming analysis and consulting area for happening 11 or 12 years now. As esports grew when it comes to its affect within the gaming area, I began to get extra concerned via all of the gaming purchasers we’ve labored with. As they had been taking a look at esports and what their technique round it was, my group helped to supply them with knowledge and analysis on followers, serving to to have a look at some preliminary technique.

Nielsen, in mid-2017, determined to type a devoted esports vertical that went deeper into the subject material and actually constructed a group that was 100 p.c devoted to engaged on esports throughout analysis and the sponsorship and measurement aspect of issues. That’s after I began main our international esports apply right here.

GamesBeat: These 11-12 years, was that each one as an analyst at Nielsen, or had been you in different roles?

Pike: I began out in additional of an analytical function. The crack that I helped to begin in Nielsen round gaming—it began out being pushed by shopper survey analysis. We began out with a variety of work with gaming purchasers across the launch of recent video games and gaming merchandise like consoles, peripherals, that form of factor. Each when it comes to understanding shopper attraction and serving to forecast gross sales, in addition to serving to them decide what to speak in regards to the merchandise they’re providing and how one can goal followers. It was very particular to followers and new product initiatives, and really deep within the survey aspect of issues.

From there we constructed a bridge into the identical kind of knowledge in esports, after which supplemented that with a spotlight particularly across the sponsorship angle of esports, bringing in a variety of what our Nielsen sports activities apply does within the conventional sports activities area.

GamesBeat: How would you describe Nielsen’s essential curiosity? Is it measuring the area when it comes to manufacturers and sponsorship and promoting as a way to allow promoting commerce to occur? Or would you describe it otherwise?

Pike: That’s a superb description of an enormous a part of what we do, or possibly even one step increased when it comes to our general initiative and mission and why we felt like Nielsen had a spot in esports. We wish to present trusted knowledge and measurements coming from a trusted third celebration within the esports area, to assist corporations, gamers, and traders throughout the ecosystem make sensible choices about how and if they need to turn into concerned in esports, and have the ability to measure how efficient these choices are.

With that in thoughts, an enormous a part of it's, such as you stated, the manufacturers and promoting aspect of issues, taking a look at sponsorship and promoting investments. Measuring and offering knowledge and knowledge to tell the fitting choices earlier than they occur. But in addition we do a variety of work and analysis on the esports fan to assist perceive who they're and why they’re engaged with esports, which finally in a variety of methods finally ends up tying to that first purpose, which is to supply extra knowledge and perception into the who, so that individuals make the fitting choices about how one can play within the area.

Above: Alienware and Riot Video games have teamed up.

Picture Credit score: Alienware

GamesBeat: Was it completely different indirectly when it comes to developing with the fitting issues to measure, in comparison with other forms of media? Nielsen pioneered a variety of surveys for tv watching. I don’t know if that is drastically completely different from what used to occur.

Pike: A part of it touches on the truth that there are a variety of various elements and teams inside Nielsen who measure completely different elements of the sponsorship and media ecosystem. You’re proper on the standard media and promoting aspect of issues. Esports is a really completely different mannequin when it comes to it being digitally pushed, excessive advert blocker utilization charges. When digital advertisements are served they’re generally not acquired by the viewer. That panorama could be very completely different.

Nevertheless, on the sponsorship aspect of issues, like I discussed, our sports activities enterprise does a variety of work monitoring and measuring model publicity from a sponsorship standpoint throughout the broadcast setting for dwell sports activities occasions, on social media, that form of factor. That kind of methodology, even when it’s totally on digital versus linear TV for conventional sports activities, is definitely very related on the core when it comes to what to measure, the dynamics and parts that go into it. Clearly there are completely different broadcast sources we measure, several types of entry which can be activated in esports, however basis of what and how one can monitor could be very related and constant from conventional sports activities to esports.

It’s one of many ways in which we’ve been in a position to construct a aggressive benefit within the esports area. We are able to use and examine the metrics throughout sports activities and esports, which is similar to how manufacturers are enthusiastic about their investments in esports.

GamesBeat: What number of completely different sorts of stories are you doing? Are you doing them quarterly, or every year? What’s the cadence?

Pike: That relies on the product and what we’re taking a look at. From a free white paper standpoint, we’ve usually been doing—we launched our Playbook collection, our Nielsen Esports Playbook, not too lengthy after we launched our vertical, in late 2017. Then we expanded that into an Asian model in early 2018. We’ve roughly been averaging one actually huge thought management piece a 12 months that tends to be a mixture of fan knowledge and our syndicated sponsorship measurement software, which is known as Esports 24. That tracks numerous completely different occasions all through the course of a calendar 12 months and appears in any respect the model publicity that’s taking place throughout the completely different belongings and activations inside that broadcast setting.

That’s our huge thought management piece, however clearly, from an information assortment standpoint, we’re accumulating knowledge ongoing for the sponsorship aspect of issues all year long, in addition to working survey work in numerous nations. Typically the surveys are annual, however we tempo out the nations and who we’re interviewing when throughout the course of the 12 months. That finally ends up being an ongoing knowledge assortment course of with another thought management items we put out to the general public. Actually we do a variety of customized tasks and reporting for purchasers within the background as effectively.

GamesBeat: It seems like a variety of that is arduous to measure. It's important to include new methods to measure some issues.

Pike: Once more, it’s been an artwork and a science. We've the overall framework for a way we do issues, both in conventional sports activities or in conventional media, and a few parts of that translate effectively to esports. There’s truly a bonus in utilizing these, so now we have that methodology throughout.

However yeah, there’s additionally a variety of problems and idiosyncrasies in esports that make it a bit extra sophisticated. One is simply the published dynamics in esports, the place you’ll typically have—esports content material is broadcast globally, primary, so you'll have one thing taking place the place you may measure and take a look at model publicity on Twitch, however it’s on a completely completely different broadcast setting in China.

That turns into two completely different sources of knowledge, generally completely different instances that issues are aired, and then you definitely even have in lots of circumstances non-exclusive broadcast rights. The identical program may very well be broadcast in eight completely different locations everywhere in the world. Having the ability to perceive whether or not these broadcasters are all the identical or not, and all of the viewership op—clearly there’s potential for overlap in viewers from one supply to a different. That dynamic itself is extraordinarily sophisticated, and positively one thing that’s completely different from what historically has been the case in sports activities. We’re beginning to see sports activities transfer that method as effectively, with extra OTT platforms and so forth.

Above: Mastercard is embracing esports in addition to conventional sports activities.

Picture Credit score: Riot Video games

GamesBeat: I’m inquisitive about girls in esports, that aspect of issues, and whether or not you’ve seen something very fascinating occur there. Not too long ago, Riot Video games settled their sexual harassment lawsuit with their workers. There’s been a variety of completely different controversies associated to sexism in esports. For somebody like Nielsen, does that present up on the radar indirectly?

Pike: The most important method that we’ve appeared into or collected knowledge on girls in esports tends to be centered across the followers. I definitely assume that from a fan standpoint, we’re seeing, 12 months over 12 months, once we take a look at new entrants into the fanbase, extra girls are represented, comparatively talking. There’s the next share of ladies within the newer fanbase than the legacy esports fanbase. That’s thrilling. It exhibits that esports is attracting a extra numerous viewers over time, although it’s nonetheless positively skewed male.

By way of sexism and that form of factor, we’ve definitely, from some survey knowledge we’ve collected, we all know it’s prime of thoughts for ladies, and it’s additionally one thing that males acknowledge is going on. Even via conversations I’ve had throughout the business up to now six to 9 months, I’m bullish and enthusiastic about lots of people within the business taking a look at methods to fight that, and actually understanding the worth of the feminine viewers, which has been largely untapped. They’re making a concentrated effort to do one thing about that, each when it comes to grabbing the chance and working with it, in addition to simply being good residents within the esports area.

I additionally assume increasingly manufacturers are beginning to put that strain on esports. So many manufacturers today are involved about—they wish to be certain that their investments are supporting variety and equal play. As increasingly manufacturers have the cash to spend on this area, and so they’re asking about these items, the business goes to appreciate it’s vital. In the end they’ll see the profit from that and that cycle will proceed, which I’m fairly excited to see.

GamesBeat: There was additionally that Kotaku story in regards to the overhyping of esports that ran just lately. Individuals threw out numbers that had been simply too optimistic. Did you see any fallout from that?

Pike: Inside that article, clearly, I used to be quoted and interviewed. Nielsen’s tackle issues has at all times been that we’re right here to supply trusted, unbiased knowledge. The purchasers which have already been working with us come to us for that. I definitely don’t assume we noticed something from a consumer engagement standpoint. If something, I believe individuals realized, from that article and the dialogue that has occurred out and in of the business because of this, the worth of an organization like Nielsen being within the area and what we will do to supply confidence based mostly on knowledge that’s rooted within the broader leisure ecosystem.

After we take a look at esports, it’s one among a variety of completely different areas of leisure that Nielsen performs in. We definitely can’t be biased towards esports, as a result of that instantly impacts all the opposite purchasers now we have throughout the corporate. We've an obligation not solely to the business, but additionally to our purchasers, to ensure that we’re being truthful and clear. The worth of that basically exhibits via in a number of the dialog that occurred based mostly on the Kotaku dialogue.

Above: Twitch esports followers are proving to be enthusiastic.

Picture Credit score: Nielsen

GamesBeat: Out of your perspective, was there an excessive amount of optimism, an excessive amount of hype, or individuals getting forward of themselves? Is there some form of cycle that has gone together with that?

Pike: Initially, I believe my take is—definitely as Nielsen has checked out being within the esports area, the sample and the expansion trajectory of esports could be very clear when it comes to the rising fanbase and the way esports is aligned with broader tendencies in media leisure, which goes extra digital. Individuals need extra selection. They wish to be extra interactive with their media content material. From that standpoint, I definitely don’t assume that the momentum that individuals are seeing and the expansion individuals are seeing out of esports is inaccurate or misrepresented in any respect.

By way of the precise numbers across the business and issues like that, Nielsen hasn’t ourselves put out any particular numbers. I've been, in several venues, outspoken in regards to the viewership aspect of issues, utilizing completely different metrics that aren't how different types of media are talked about and measured. Being in comparison with the requirements of TV measurement, which clearly Nielsen places out. One of many huge issues that I actually help and take away is ensuring that the numbers which can be put out—after all, that they’re correct, but additionally that they’re being in contrast in an correct context to different types of leisure, the issues that individuals are placing them up towards.

I do assume we’ve seen that not occur as a lot in esports, and it’s been throughout the ecosystem, throughout numerous completely different gamers. That’s one thing I advocate for, and I believe increasingly individuals throughout the business are pushing for it, which is nice. It’s going to make everybody much more assured within the numbers which can be popping out within the area, which could be very wholesome for the business in the long run.

GamesBeat: Are there some stats that you just’re most focused on, or that you just assume individuals don’t discover as a lot, that stand out indirectly?

Pike: I believe of some issues that get me excited, particularly once we discuss to manufacturers about esports. Plenty of instances individuals are trying on the development of esports and so they deal with the western world, the extra developed nations, simply because that’s the place a variety of the information comes from. When individuals ask if esports development goes to proceed—you see so many nations, and we as Nielsen have a world footprint via so a lot of our places of work all over the world.

There are such a lot of nations the place esports is simply approaching the radar, each from a media consumption standpoint and types realizing that there’s a possibility, or wanting to place some cash towards it, or they’re truly beginning extra native or regional initiatives the place it is smart for them to try this. From that standpoint we definitely see a variety of development potential on that aspect. International basically, there are a variety of nations all over the world the place esports is simply beginning to get momentum, and we’ll proceed to see that in numerous different locations.

The opposite factor—we as Nielsen discuss to so many manufacturers, and have long-standing relationships with numerous purchasers. We’re nonetheless having conversations with corporations which can be extraordinarily established, which have been round a very long time, which can be simply beginning to have a look at esports in a extra critical method. One other query I get so much is, “Is the potential, the alternatives, tapped out?” I believe there’s nonetheless a ton of alternatives to get manufacturers which have simply dabbled concerned in a deeper method, and even get manufacturers which have not likely checked out esports in a significant method when it comes to their funding in sponsorship and promoting. That’s an thrilling factor to consider as effectively.

Above: Esports is on the rise.

Picture Credit score: Nielsen

GamesBeat: Are there any explicit stuff you’re going to speak about at Esports Bar in Miami?

Pike: What we’ve talked about immediately foreshadows a variety of it. You talked about the Kotaku article. There’s a variety of dialogue within the business round transparency in numbers, and the thought of how vital knowledge is in esports, in driving the additional potential of esports. That’s one thing the organizers at Esports Bar have requested us to get right into a bit extra. That’s going to be one of many huge issues I speak about: what kind of knowledge we’ve developed, how we’ve seen that make a significant distinction for purchasers, and the way, in the long run, that may be supportive and assist the business, even when it doesn’t at all times essentially imply that we’re placing out the most important numbers. It doesn’t take actually huge numbers to indicate effectiveness. We’re going to stroll via some cool examples of what success in esports means and the way knowledge can present that.

GamesBeat: So far as the measurement area goes, do you're feeling alone in what you do, or do you're feeling there’s a gaggle of opponents right here that assist reinforce these normal impressions associated to the measurement that occurs? Do you get some exterior reinforcement of your individual measurements?

Pike: There are definitely numerous completely different corporations on the market which can be measuring esports – generally in related methods, generally in several methods. The motion towards that's thrilling, as a result of three or 4 years in the past, there was little or no measurement taking place in esports. Simply seeing that, seeing manufacturers ask for it, is thrilling, and once more actually serving to the business propel ahead.

We definitely see different corporations on the market the place—there’s a pair locations the place I believe we really feel just like the angle we’re taking is exclusive in comparison with the competitors on the market. A type of is having that true unbiased—we’re in esports, however we’re in nearly each different type of media and leisure on the market. That’s distinctive and completely different with Nielsen.

We take a look at ROI and sponsorship effectiveness in numerous other ways. We’re not compartmentalized simply in emblem measurement or simply in giant international analysis research. One of many causes purchasers work with us is as a result of we will do finish to finish. We are able to take a look at all of the methods sponsorship impacts issues, whether or not it’s via social media, taking a look at fan dialog, taking a look at a very cool story round what followers are speaking about round particular esports activations and model partnerships, to understanding the worth of logos, piping that into advertising and marketing combine modeling, after which layering survey analysis on prime to have a look at the acquisition funnel and the way individuals go from being conscious of a emblem to purchasing a product due to esports.

That mixture of issues is the place the story round esports shines. It’s not at all times going to be the media kind with the very best attain, however it’s going to have cool engagement alternatives between followers and types. You'll be able to’t get that from simply coming at one element of it. However there’s much more to it, and we’re excited to have the ability to take a look at all these completely different features for our purchasers.

Above: Esports groups are getting extra model sponsorships.

Picture Credit score: Nielsen

GamesBeat: So far as the comparisons individuals make to conventional sports activities, it looks as if there’s a sure benefit esports have with issues like—anyone can aspire to be an esports star. It’s a wider potential base than simply bodily match individuals. But in addition, it’s bought the drawback of—the video games come and go. They’re not as established as bodily sports activities are. How do you consider that, and whether or not esports is overcoming a few of this or not?

Pike: Initially, I believe the aspirational facet of issues is without doubt one of the coolest issues about esports. It’s one of many causes followers are so into it. After we do analysis with followers and ask why they like esports, the primary motive that they observe is constantly as a result of they wish to be higher avid gamers themselves. You don’t get that with the vast majority of individuals watching the NFL or MLS or no matter it could be. They might have performed at one level, however it’s arduous for them to get out and play soccer now.

Players of all talent ranges are nonetheless doing that and watching esports to interaction with that private gameplay, which is tremendous cool. It makes it really feel such as you’re a bit of nearer to the place that skilled is, since you could be enjoying the identical recreation as them concurrently them. That doesn’t occur within the conventional sports activities area in any respect. I positively assume that’s a cool facet.

So far as video games coming and going, in the event you take a look at it strictly via the standard sports activities window, it does really feel like a problem. Actually we discuss to a variety of manufacturers which can be involved about that. On the flip aspect, you may consider it as a possibility, a very cool facet of esports. Should you take a look at somebody like Twitch constructing Twitch Rivals, that’s actually taken that facet of issues and made a whole mannequin based mostly on that. Twitch Rivals wouldn’t exist if everybody was constantly into the identical video games. The publishers would have the lease and that may be it. However Twitch Rivals is attracting a ton of viewers, and it’s utilizing that concept of, “A brand new recreation is coming in, individuals are enthusiastic about it, let’s get everybody watching it and do one thing round it.”

One of many issues we inform manufacturers is, you definitely must be comfy as a model with change and evolution, however that evolution doesn’t really feel bizarre to followers and avid gamers. They’re those driving that in some methods, as a result of they’re going from one recreation to the following. That’s what they wish to see. Should you generally is a model that accepts that and be prepared to evolve, that may be a superb factor with followers. They’ll see you as related. So long as you’re activating in a method that communicates with them and never simply leaping on as every new development hits, however doing it in a method that’s significant, that may be a very cool alternative for manufacturers that match that mannequin.

Once more, it’s not one thing that the followers are combating towards or they’re annoyed with. They get it. Should you, as a sponsor, actually wish to join with followers, you simply settle for that as part of the business and discover methods to work with it as a substitute of towards it.

Disclosure: The organizers are of Esports Bar Miami are paying my technique to Miami. Our protection stays goal.