2017 Q2 Collegiate eSports Report: 40 Schools Giving $4M+ In Scholarships

2017 Q2 COLLEGIATE ESPORTS REPORT: 40 SCHOOLS GIVING $4M+ IN SCHOLARSHIPS

Riot's League of Legends Collegiate Championship (Photo: Riot Games)

Riot's League of Legends Collegiate Championship (Photo: Riot Games)

TNL Industry Guest Post 005: James Kozachuk has been building the collegiate eSports ecosystem since 2011, with key roles at the Collegiate Starleague and the High School Starleague. He is currently a researcher at the University of Central Florida, where he studies the effects of eSports programs on students. In addition, he works with Blizzard Entertainment's collegiate eSports division, Tespa, and has provided his collegiate analytics and data services to multiple Fortune 500 companies.

TNL Take: When people talk about eSports, they often talk about its exponential growth. Usually there's a bit of an exaggeration with these numbers but collegiate eSports is no exaggeration. We've been seeing exponential growth in the scene since inception and it doesn't seem to be slowing.

We estimate 655 students from 40 universities will receive a collective $4.1M+ in scholarship tuition packages for representing their institution as a varsity player in competitive League of Legends, Overwatch, CounterStrike: Global Offensive, and other video game tournaments next year.

Send that quote over to your parents, spouse, or literally anyone you know and they will think you're crazy.

Maryville University 2017 League of Legends College Champions (Video: Youtube)

 

/01 GROWTH

TNL Infographic 041: 2017 Q2 eSports Schools With Scholarships (Infographic: The Next Level, Source: James Kozachuk)

TNL Infographic 041: 2017 Q2 eSports Schools With Scholarships (Infographic: The Next Level, Source: James Kozachuk)

Fall 2014: Thirty Robert Morris University students were given scholarships to join the first ever varsity eSports team

Fall 2015: University of Pikeville and Maryville University join the fold

Fall 2016: 6 more universities begin offering scholarships

Fall 2017: At least 27 additional universities will recruit student athletes to play on behalf of their institution.

This brings the current total of announced eSports scholarship programs up to 38 in the US with The Next Level estimating 60 schools by the end of the year.

TNL Infographic 042: US Schools eSports Scholarship Growth (Infographic: The Next Level, Source: James Kozachuk)

TNL Infographic 042: US Schools eSports Scholarship Growth (Infographic: The Next Level, Source: James Kozachuk)

In addition, a number of schools have elevated their student teams to varsity status, although do not currently provide scholarships. These institutions include: Keuka College, Five Towns University, Miami University (Ohio), Principia College, University of South Carolina (Sumter), DigiPen Institute of Technology, Jarvis Christian College, University of Mount Union, Talladega College, and Illinois Wesleyan.

What's fueling the growth?

Regionality and precedence - along with of the crazy investment and allure of eSports across all facets of sports.

TNL Infographic 043: US Schools With Scholarships, Programs, or Courses (Infographic: The Next Level, Source: James Kozachuk)

TNL Infographic 043: US Schools With Scholarships, Programs, or Courses (Infographic: The Next Level, Source: James Kozachuk)

When each university announces their program, their press release typically refers to a local institution that has recently created a similar program. It's the reason why we see such a cluster of eSports programs at schools within the same or neighboring states.

 

/02 BIG NAMES

Almost 2/3 of the eSports programs are part of the National Association for Collegiate Esports (Photo: NACE)

Almost 2/3 of the eSports programs are part of the National Association for Collegiate Esports (Photo: NACE)

With so many similar colleges creating programs, there's bound to be a few traits that the majority of them share. In the case of collegiate eSports, that's their traditional athletic governing body.

Robert Morris University in Chicago is not part of the NCAA but they are part of the NAIA, the National Association of Intercollegiate Athletics. So is Pikeville, Kansas Wesleyan, Midland, Columbia College and so on.

So what did the NAIA do?

Well nothing really but what did someone affiliated with the NAIA do?

Create the NAC eSports, or NACE. NACE is a 501(c)3 non-profit organization whose mission is to "promote the education and development of students through intercollegiate eSports participation." 

They're looking to build the NCAA of eSports and they're doing well: two-thirds of the collegiate eSports programs are affiliated with NACE.

You know them, you love them: The NCAA. (Photo: Wikimedia)

You know them, you love them: The NCAA. (Photo: Wikimedia)

What's the NCAA's reaction?

Not much.  

But one of their biggest conferences, the Big Ten Conference, expanded on their partnership with Riot Games to provide scholarships and a competition for eight of their conference schools (Penn State and Nebraska declined to participate).

BTN League of Legends Schedule (Photo: BTN/Riot Games)

BTN League of Legends Schedule (Photo: BTN/Riot Games)

The Big Ten Network's announcement came after another large athletics conference, the Pac-12, announced their intent to add eSports to their roster.

Unfortunately it's been over a year since the Pac-12's announcement last May and no further information has materialized.

University of Utah eSports (Photo: University of Utah)

University of Utah eSports (Photo: University of Utah)

Likely tired of waiting for their conference to integrate eSports, the University of Utah announced their program a few months ago. While the school is known for it's strong athletics program, it also boasts one of the most established game development programs. Funding and support for the UoU eSports scholarships will come from this Entertainment Arts and Engineering program.

 

/03 DIVERSITY

University of Utah's Female Gaming Leader (Video: Youtube)

A defining characteristic of eSports is each games' accessibility to any individual that wants to compete. There's amazing organizations like AnyKey out there working with professional players, teams, and leagues out there  and recently they published a white paper on diversity and inclusion in collegiate eSports.

This is critical as the collegiate eSports has an amazing opportunity to really showcase the strength of diversity within our scene. We're now starting to see some institutions build the foundations of that mission.

Stephen's Women's College (Photo: Stephen's College)

Stephen's Women's College (Photo: Stephen's College)

In April 2017, Stephen's College announced the first varsity eSports program at an all-woman's college.

Jarvis Christian College, a Historically Black College (HBC) in Texas, is a member of NACE and will likely be announcing an eSports program soon.

Jarvis Christian College (Photo: Jarvis Christian College)

Jarvis Christian College (Photo: Jarvis Christian College)

Hopefully these two institutions will help set the precedence to keep driving diversity in collegiate eSports forward.

 

/04 IS COLLEGIATE ESPORTS HERE TO STAY?

To answer this question, we need to understand the motivations for why colleges would create eSports programs. While many may point to high tuition fees, and bringing in students to their campus, it's much more nuanced than that.

Colleges create programs to engage their students. To have their school represented in a new, growing, and unique field. To be able to bring down students to their amazing facilities (or eSports arena) and have that be the one thing they vividly remember from their trip.

Twitch and CLG Support Collegiate eSports with Southwest Baptist University (Photo: Southwest Baptist University)

Twitch and CLG Support Collegiate eSports with Southwest Baptist University (Photo: Southwest Baptist University)

There are colleges that are doing it really well, such as Southwest Baptist University and Columbia College (Missouri). Between the two of them they've hosted multiple events on their campus, have begun strong high school outreach, and are generally staying engaged with their community.

University of California Irvine is another great example, having run symposiums with both eSports researchers and AnyKey, organizing a woman's summer camp program for high school students aspiring to get involved in eSports, in addition to creating a certificate program for eSports Management.

UCI's eSports Management Certificate (Photo: University of California, Irvine)

UCI's eSports Management Certificate (Photo: University of California, Irvine)

In previous semesters eSports courses have been offered at Lewis University, Miami University (Ohio), and Emerson College but this is one of the first announced certificate or degree program.

Programs that stay involved are the ones we'll see alive and with the strongest legacy ten years from now.

Plus where else can Columbia College defeat Ohio State in sports?

President of Columbia College Talks About Their eSports Program (Video: Youtube)

[Edit: One year ago to the day, I wrote in The Next Level 008 about "The Collegiate eSports Opportunity". The space has clearly seen massive growth in the past year from not only the number of schools providing scholarships, but programs, courses as well as the international opportunity.

Massive thanks to James Kozachuk for doing the ardious, month long due diligence on the Collegiate eSports growth and opportunity. Amazing work] 

Exclusive: TNL and Wunderman eSports and March Madness Brand Study

TNL AND WUNDERMAN ESPORTS AND MARCH MADNESS BRAND STUDY

2017 NCAA Champions UNC Tar Heels (Photo: Bob Donnon)

2017 NCAA Champions UNC Tar Heels (Photo: Bob Donnon)

TNL Take: Last year, Wunderman analyzed the March Madness fan during the tournament and what Brands they engaged with and purchased

With the explosion of eSports investment from Pro Sports teams, dozens of colleges providing scholarships and 30+ Brands investing in Q1 2017 alone; what does the eSports fan look like, what does the combined March Madness and eSports fan look like and how can Brands take advantage of this unique marketing opportunity?

The Next Level and Wunderman partnered on the first research study to find out who exactly was this March Madness and eSports audience, the overlap of this audience and how Brands could best benefit from investing in both the NCAA Tournament and eSports content.

The research study combined Wunderman’s audience research data, along with what these audiences were talking about on Social platforms and layered on top of their purchase behavior.

Here’s what we found:

/01 IT’S NOT JUST YOUNG MALES BUT YOUNG FAMILIES ALSO

The 2016 study showed that the average March Madness fan is primarily a 35-39 year old male, married with children and an income between $75K-$100K

The current study showed that the combined March Madness and eSports audience was even younger, had a higher annual income, but the most unique data point was that it wasn’t just the expected young males -  but young families as well.     

Young Families had a 201 index and having 3+ children in the Household also over indexed at 172.

Looking at the combined audience’s top 5 Brands buying preferences – Matchbox, Jiffy, Kodak, Dirt Devil and Magic Chef - essentially family based products, supports using both March Madness and eSports combined to reach this audience.

 

/02 THE ESPORTS AUDIENCE LIKES ALCOHOL

As the average eSports fan is typically a young male between 18-34, not surprisingly, Alcohol greatly over indexes for this category.

The eSports Audience is 3x more likely to purchase Jack Daniels (174 Index) vs. just the March Madness Audience (60 Index).

Budweiser is twice as likely to be bought by the eSports audience (123 Index) than the March Madness audience (63 Index), however by advertising to both audiences at the same time, it would increase Budweiser’s overall purchase intent by 12%.

“The brands that have bought into eSports are amazed not only at the ROI but that it's with the audience that’s just not consuming media in the ‘traditional’ manner.  What was amazing about the research was that when you combine eSports with your March Madness investment, not only do you get the eSports audience, but it actually influences overall purchase intent when combined with the March Madness fan” - Manny Anekal

 

/03 AUTO BRANDS GREATLY BENEFIT FROM ESPORTS

According to Kantar Media, in 2016 the Auto Industry spent over $250M on March Madness representing the top Brand category with 18% of total Ad spend.

Auto Brands have finally realized the value of the eSports audience and the past year has seen deals with Audi and Subaru and a renewal between Turtle Wax and top team OpTic Gaming. Now car companies can use eSports to leverage their NCAA sponsorship and media investment.

Mini Cooper has double the purchase intent (260 Index) for the eSports audience vs. the March Madness audience alone (119 Index); however by including an eSports buy during the same time, Mini Cooper increases it’s overall purchase intent for the combined audience by 38%.

Buick, which is one of the biggest Auto ad spenders during March Madness, would increase reaching previous Buick buyers by 26% by also including eSports during tournament time.

“eSports is unique in that it offers brands an opportunity to connect with an increasingly hard-to-reach audience. When done right, the paybacks can be enormous but the trick is relevance. This is a community of very savvy gamers and they don’t want any distractions. The brands who succeed are those that truly understand this audience, how to reach them and can prove their commitment to the community.” - Jamie Gutfreund, Global CMO, Wunderman

 

TL/DR: Leverage eSports to augment your March Madness spend, target your exact audience, increase overall purchase intent, and greater ROI per overall investment compared with TV alone.

Time To Kill The "eSports Beats Sports Viewers" Stat

TIME TO KILL THE "ESPORTS BEATS SPORTS VIEWERS" STAT

No eSports Isn't Beating The NBA In Viewers (Graphic: Riot)

TNL Take: If you read any Mainstream Media article on eSports, it pretty much starts like this:

Part 1: What’s eSports? It’s kids playing video games and getting paid for it. Can you believe it!

Part 2: Insert latest SuperData or Newzoo - nothing against those companies - projections on market size and revenue estimates.

Part 3: More people watched League of Legends than [Insert Sport of your choice]

For those that don’t know anything about eSports, the first two parts are totally fine for a new audience – although you know my thoughts on eSports projections.

 It’s Part 3 that I have the biggest issue with. Why?

Because it’s completely wrong.

Go ahead and Google “League of Legends beats NBA Finals” and see the results you get. I’ll even make it easier for you, here are the first four:

Results For "League of Legends Beats NBA Finals" (Photo: Google)

Now those aren’t just tiny gaming sites or some random blogs – is that term still used? – no, these are national if not international media organizations.

 

USA TODAY

USA Today's League of Legends Headline (Photo: USA Today)

 

ESPN

ESPN's League of Legends Headline (Photo: USA Today)

KOTAKU

Kotaku's League of Legends Headline (Photo: USA Today)

 

Why would large media companies make statements like these?

Simple: It makes a great headline… and they don’t understand eSports metrics.

Here’s the reality.

 

01/ NIELSEN

When reporting on any TV or sports viewership data – be it the NFL or Mr. Robot – there’s a standard metric that’s been used for a very long time: Nielsen.

Nielsen’s viewership data is based on the “average” number of viewers who watched the entire program or event. It’s not the total viewers in the first hour, the last hour or even the maximum during one particular moment – it’s the average over the whole game.

Here are the Nielsen numbers for the most recent 2016 Sports Championships or Finals:

2016 Sports Championships and Finals Nielsen Ratings (Chart: The Next Level)

02/ NIELSEN AND ESPORTS

So does Nielsen measure eSports?

It’ doesn’t.

That’s why most reported eSports viewership data is all over the place: Maximum concurrent users, total minutes consumed, most social posts, engagement metrics, tickets sold, number of hot dogs consumed, etc.

So you can’t really compare Sports TV content with digital eSports content.

Yet the media still does.

 

/03 US VS. INTERNATIONAL

Here’s a little secret that pretty much only people who work in the industry know: depending on the eSports game, the international viewership could be anywhere from 25% up to 75%.

The Nielsen viewer numbers don’t count how many people in the Ukraine watched the NBA Finals. It's only US viewers.  But eSports viewership data is global.

Another reason you can’t compare TV Sports vs. digital eSports.

 

/04 WHAT’S THE REALITY THEN?

The reality is that it’s really hard to make an apples-to-apples comparison between Sports and eSports viewership.

But I’m going to show you what I think is closer to reality.

There is always one stat that gets used for the #1 eSports game in the world: League of Legends. The headlines are usually “League of Legends Beats/More/Watched than [Insert Sport Here]”.

So let’s try to get this as close to Nielsen metrics as we possible can for some comparison:

 

  • The 2016 League of Legends Finals had a peak of 14.7M viewers.  That means at one given moment, ~15M people were watching. I’ll be very generous and let’s assume that the PEAK viewers was the actual AVERAGE over the entire game.

 

  • The Finals were between two South Korean teams – SKT and Samsung Galaxy. I’ll be very generous again and say that 50% of the US watched - but it’s probably much lower.

 

Taking those 3 factors into account, the relevant “Nielsen eSports Viewership” for the 2016 League of Legends Finals would be 7M – NOT 43M.

 

So has a League of Legends Finals ever beat the NBA Finals, The World Series or any other Sport in viewership?

Here’s how they stack up based on 2016:

2016 US Viewers: Sports vs. LoL (Source: The Next Level   Graphic: Jordan Fragen)

As you can see, eSports viewership as a whole in the US has a while to go to catch up to other sports.

Before the hate mail starts pouring in, what does this actually mean?

  • Is League of Legends over? No.
  • Is eSports a lie? No.
  • Is eSports dead? No.

Does eSports have a future? YES.

 As I’ve said many times “I don’t care about the next 12 months – I care about the next 12 years”.

I want to see eSports flourish, implement a healthy infrastructure and an ecosystem where players, teams and publishers can all benefit.  I hope that everyone from billionaires to sports teams to venture capitalists don’t expect The Next Big Thing tomorrow.  There's a massive global opportunity ahead.

 

Let’s not burst the bubble before we’ve even started