Esports Insider recently published ‘Is winter thawing? Industry leaders discuss esports finances’, in which they discuss with teams whether the "esports winter" is finally over or not.

Whilst the title may seem negative, in fact it’s about esport finding its own identity with less reliance on sports models and more reliance on the broader gaming ecosystem. In ESI’s article it’s clear that, whilst teams are making mostly positive noises, there are still deeper rooted issues that need solving for teams to turn their popularity into larger revenue streams. Has esports only weathered the storm, as it did before, or is it truly transforming into an ecosystem with its own identity?

Image credit: Ubisoft

Traditional sports clubs like Manchester United, Barcelona, or the Dallas Cowboys have a single sport focus, strong regional ties, and real fan loyalty. Naturally, many esports teams have dreamt for (too) long being like them. And it makes sense to some extent, larger sponsorships may be easier to sell as "one brand, one mission", and easier to manage. However, esports teams are fundamentally different to sports clubs.

Esports orgs manage multiple teams across different games. Fans connect more with individual players than the organization. So, while they’re trying to mimic traditional sports clubs models, they’re missing out on leveraging their unique strengths.

Even the name teams give themselves, "esports organization," shows they are in a severe identity crisis and do not know who or what they are. An organization could be anything, and when we go to non-endemics with this word, it just causes confusion. Esports teams are more like talent agencies than sports clubs. They manage multiple teams and star players, focusing on player management, branding, and sponsorships.

Instead of trying to fit into the traditional sports club mould, they should embrace their true identity. Right now, many esports teams aim for broad, organization-wide sponsorships. But what if they also focused on sponsorships for individual players or specific teams? Sponsors love tailored marketing opportunities, and fans are more engaged when they see their favourite players highlighted. Again, I understand this will require more sponsorship management, but isn't it worth a try? Look at OverActive Media for example with their multiple brands, focused on different games and regions.

Image credit: MAD Lions

Merchandising is still a hugely untapped market. Generic team merch is okay, but player-specific merchandise could be a game-changer for both teams and players. Fans are more likely to buy gear that features their favourite player. It’s all about creating that personal connection and it's easier to align yourself with a person than a brand. If you go on to any of the top teams webshops, how many player branded merch can you find?

Many esports teams have a one-size-fits-all branding approach. Imagine the potential of having regional and game-specific brands. Stronger regional fan bases and more targeted marketing could attract local sponsors and more fans. I'm not saying to go into city-based models (we all know how that has worked out in the past), however leveraging a team or player's heritage is often worthwhile.

Image credit: Cloud9

It's the same for content; generalized content works, but personalized content is so much better. Tailoring content for different player fanbases can drive higher engagement and increase viewership. More eyeballs means more ad revenue, and again more chances for targeted activations with regional sponsorships.

So, how can esports organizations embrace the agency model and unlock new revenue streams? Focus on individual player branding and marketing. Differentiate your brands based on region and game. Tailor sponsorships to highlight individual players or specific teams. Expand your merch lineup to include player-specific items. Produce content that speaks directly to different segments of your fanbase.

The identity crisis in esports is real. It's costing us a lot of potential revenue and might even go beyond just teams. My Co-Founder Wouter Sleijffers strongly believes that "we are not an electronic version of sports. It is gaming, competitive gaming". You can read his thoughts on the topic here.