Gaming and Esports in Vietnam: A New Arena for Brands
Download PDFGAMING AND ESPORTS
IN VIETNAM: A NEW
ARENA FOR BRANDS
BRANDS AND ONLINE GAME
IN VIETNAM
CONTENTS
WHY ESPORTS NOW ?
CONCLUSION
CREDITS
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A culture of competition
Sex Distributions
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WHO ARE VIETNAM’S
ESPORTS FANS?
HOW CAN BRANDS
BRIDGE THE GAP?
A global rising star
Ads
KOL Engagement
Sponsorship
Unexplored Alleys
Key lessons from the study
Expectations for the near future
About Vero
About Decision Lab
References
Esports Players
Vietnam’s new favorite pastime
Watchers
WHY
ESPORTS
NOW ?
A CULTURE OF COMPETITION
A GLOBAL RISING STAR
VIETNAM’S NEW FAVOURITE PASTIME
WHY
ESPORTS NOW?
4
WHY ESPORTS NOW?
As communicators and marketers, we love to
talk about the “next big thing” in the branding
world. At Vero, we believe that brand relevance
stems from empathy for the people who live
and breathe their culture and interact with the
cultural objects and each other in unique ways.
Decision Lab shares our vision of helping
brands connect with the modern consumers in
innovative ways. As such, we have partnered
up to combine their research capabilities
and our brand consulting teams to explore
the esports landscape in Vietnam today.
Decision Lab’s online survey, which forms the
backbone of this report, looks into Vietnamese
consumers’ gaming behaviors and provides
valuable data on the gaming ecosystem in
Vietnam, the characteristics and behaviors
of Vietnamese gamers and esports fans, and
the communication channels through which
advertisers may reach them.In the past few years, esports has grown to
become a seriously influential platform through
which people craft identities, establish online
presences, and
connect with the outside
world. Like the larger story of gaming, it has
transformed from a subcultural interest to a
mainstream cultural force, which opens up a
wide range of opportunities for brands to join
the fray. In an era characterized by both hyper-
individualism and hyper-connectivity, brands
must be more empathetic and willing to adapt
to rapid changes in cultural spheres that are
increasingly diffuse. Those who can pull it off will
gain a key competitive advantage, particularly
among the younger generations who will only
become more central in the years to come. 3KRWR6FUHHQVKRWIURP/HDJXHRI/HJHQGV5RW*DPHV
WHY
ESPORTS NOW?
5
Photo: PUBG New State, Krafton
Esports has transformed from a subcultural
interest to a mainstream cultural force, which
opens up a wide range of opportunities for brands
to join the fray. In an era characterized by both
hyper-individualism and hyper-connectivity,
brands must be more empathetic and willing to
adapt to rapid changes in cultural spheres that are
increasingly diffuse.
WHY
ESPORTS NOW?
6
Esports is one of the largest cultural platforms
of our time, but its subcultural origins mean
that it is often seen as an “insider’s game”
only accessible to savvy consumers. To unlock
the potential of the esports ecosystem, we
took a deep dive by conducting a survey that
brought us closer to esports fans, granting
us a familiarity with the market akin to
the common understanding of fans of both
traditional sports and pop culture, of which
e
sports is a sort of hybrid.
In Vietnam, a third of the population now plays
e sports games, from mobile players sneaking
a quick round on their lunch breaks to pro
gamers training for international competitions.
The growth of esports as a culture has also
made it a strong platform for Key Opinion
Leaders to establish and grow their online
presence, and it has great potential for brands
to creatively reach out to their target audiences.
The esports ecosystem offers a large set of
consumer demographic data for brands to
develop effective marketing strategies. For brands,
esports are effectively a new
communication channel,withallthe
opportunities and challenges that entails.
At Vero, we are advising our clients to move
beyond stereotypes of gamers and connect
authentically with those who enjoy this popular
hobby. Decision Lab is also excited to help
brands better understand their audiences and
reach them through gaming platforms.
For those who handle it well, esports has
become a highly effective digital marketing
platform with an audience that responds with
unusual enthusiasm to branded elements that
effectively tie in with their favorite games.
We hope that this report will help brands and
marketers to learn and make more informed
decisions about how they might get involved in
Vietnam’s booming esports scene.
3KRWR6WRFN
WHY
ESPORTS NOW?
7
7
WHY
ESPORTS NOW?
The growth of esports as a
culture has also made it a strong
platform for KOLs to establish
themselves and grow their
presence, and it offers great
potential for brands to reach
out to their target audiences in
creative ways.
Photo: iStock3KRWR6WRFN
7
8
A CULTURE OF
COMPETITION
Esports (aka e-sports or eSports) describes
the world of competitive, organized video
gaming. To be considered an esport, a video
game should have… Esports is a descendent of “gamer culture”
but now inhabits its
own distinct space. In
contrast to the narrative- and progression-
based video games that inform much of
gamer culture, “Esports games are designed
and usually continuously improved to provide
the best environment where competitors can
compete based on their skill.”
ii
In gamer culture, the game itself is the art
object around which the culture revolves. In
esports culture, much of the appeal involves
the metagame – the external aspects
surrounding the game such as individual
player style and team strategy.
Leagues or teams competing in the same
games that are popular with at-home
gamers, and..
Players who are watched and followed
by millions of fans all over the world,
who attend live events or tune in via TV
or online streaming.
i
3KRWR6WRFN
WHY
ESPORTS NOW?
9
In 2021, esports will continue appeal to a large audience in Vietnam.
In contrast to other sports, the digital nature of esports has allowed it
to maintain many of its events and tournaments despite the COVID-19
pandemic. The total amount of official prize money announced by leading
professional tournament organizers continued its dramatic rise of the last
several years, and we had many meaningful activities organized within the
esports industry to support virus prevention and to ease the difficulties of
people in areas hit by natural disasters. The inclusion of esports in the 31st
SEA Games should also help to enhance its perception in Vietnam.
— Mr. Do Viet Hung, Secretary General, VIRESA –
Vietnam Recreational and Electronic Sports Association)
WHY
ESPORTS NOW?
Esports is rapidly becoming one of the world’s
most lucrative industries. It has grown from a
niche activity to a global spectator sport that
ranks alongside music and film as one of the
major players in entertainment.
According to Newzoo, in 2020, the global
Esports economy generated revenue of $947.1
million with an audience of 435.9 million,
larger than those of both rugby and golf. In
2021 revenues are expended to break the
billion-dollar threshold, reaching $1.08 billion
with an audience of 474 million.
iii
Mainstream awareness of esports (and video
games in general) has led to rising demand and
rapid growth of the esports market. As access
to the necessary technology expands, so do
its cultural trappings: video content, licensed
products, virtual reality, and video game
competitions. Video games have transcended
niche status to become a genuine realm of pop
culture that is redefining how young people
consume entertainment.
iv 10
A GLOBAL
RISING STAR
Screenshot from League of Legends Youtube Channel
Photo: Screenshot from Arena of Valor, Tencent Games
WHY
ESPORTS NOW?
11In 2020, the global Esports economy generated revenue of
with an audience of
$947.1M435.9M
Photo: iStock
WHY
ESPORTS NOW?
12As the majority of esports fans are young and
highly active online, media and tech giants
are increasingly getting involved and more
game developers are adding esports-friendly
features to their titles. Online broadcasting
sites such as Twitch and YouTube Gaming
are contributing to this global growth, but
the primary income for players comes from
investments and sponsorship from some
of the biggest companies in the world. As
brands from disparate industries have begun
to support e-leagues, their investments are
growing the industry.
v
In fact, despite theever-larger tournament
prizes, approximately 90%ofthe esports
market consists ofsponsorships and
marketing.
vi This means that outside brands
play a massive role in the viability of the
e sports industry and culture. Since winnings alone are neither consistent
nor sufficient to cover costs (they are generally
shared among team members),
esports teams
and leagues will always be on the lookout for
mutually beneficial brand sponsorships.
As a marker of the industry’s growth, the
League of Legends World Championship 2020
reported 139 million hours of viewership, up
from 137 million in 2019.
vii This competition
in arguably the most popular esports game
achieved a peak viewership of 3.8 million during
its final match, making it the most-watched
esports event of the year and the second
most-watched ever (#1 remains a semi-final
match from the 2019 World Championship).
Other championships such as the Dota 2
International Championship and the IEM
Katowice Major registered 88 million and 53
million respectively, while even the lesser-
known Free Fire All-Stars 2020 drew in over
20 million viewers.
viii Photo: iStock
WHY
ESPORTS NOW?
13VIETNAM’S
NEW FAVORITE PASTIME
Several factors contribute to making
Vietnam an attractive growth market for
the gaming industry:
The country is one of the youngest in
the region, with more than half of the
population under 25, and has been a fast
adopter of
esports with a steady rise in
players and spread of gaming cafes. Smartphone penetration in Vietnam is
very high, at more than 50 percent of the
population. High-speed internet coverage,
including 4G networks, continues to grow,
allowing users to play on the go.
The COVID-19 pandemic has reignited
an interest in Vietnam’s already growing
online gaming industry, especially among
students and office workers.
Vietnam has the highest percentage of
adult gamers in the world in 2020, at 85%,
according to a survey released by German
data portal Statista late last year.
x
Gaming or cyber cafes are popular
social gathering spots that offer “low
cost leisure, entertainment and escape
from the confines and constraints of the
family environment where there are few
freedoms for young people and tradition
is still highly valued.”
ix
3KRWR*DPH+RPH+R7XQJ0DX
WHY
ESPORTS NOW?
14WHY
ESPORTS NOW?
Vietnam has
the highest percentage
of adult gamers in the world:
in 2020.
at 85%
Photo: iStock
15V
i
etnam has name d esports as one of
4 0 disciplines of the 3 1st SEA Games,
sc heduled to be held fro m Nov. 21 to
D ec. 2 2021 in Hanoi.
Th e current most popular PC esports
games in Vie tn am are Leagu e of
Le g
ends and Dota 2, both in the MO BA
( Multiplayer Online Battle Arena)
g enre. On m ob ile, Liên Quân (a ka Arena
o f Va lor, also a MOBA), Free Fire, PUBG
Mobile, an d League of Legen ds: Wild
Rif t are on top. Ac
cording to statistics collected by
VISERA, there are about 40 million
gamers in Vietnam, nearly half (18
m illion) of whom play esports titles. xi
Esports en thusiasts are the major
d riving force behind the success
of several gaming-focused startups
i n V ie tn am, including Garena, VTC,
A ppota, and SohaGame.Photo : Team Flash – Arena of Valor World Cup (AWC) 2019
WHY
ESPORTS NOW?
16A Timeline of Esports in Vietnam
xii
1996 – 1999
2004 – 20102010 – now
2000-2004
Players focused on LAN-
based games such as Age of
Empires (AoE), Starcraft, and
Counterstrike. The availability of high-speed
internet made online gaming
popular. In this phase, amateur
and professional tournaments
appeared, stirring the online game
trend in gamer communities of
AOE, Starcraft, and Counterstike.
In 2009, The Vietnamese Esport
Group was established, clarifying
the State’s interest in esports.The rise of powerful, affordable
smartphones and mobile
broadband has brought esports
into the mainstream. Professional
teams have appeared in
the national, regional, and
international circuits. There have
been many national tournaments
such as Vietnam Pro League, with
total prizes up to 2 billion VND.
Online games rose in popularity,
creating a gamer subculture
mostly centered around PC cafés.
In 2000, Vietnamese players
competed in AoE 2 internationally
for the first time.
WHY
ESPORTS NOW?
17Gaming Culture
in Vietnam
A February 2020 study by researchers from three international universities – including
RMIT in Vietnam – interviewed Vietnamese gamers and those involved in the gaming
industry, identifying several characteristics of Vietnamese gamer culture:
xiii
A greater focus on game aesthetics
as a motivation to play, compared to
Western gamers. A higher level of competitiveness
and emphasis on winning compared
to Western gamers.
Dominance ofPC and mobile plat-
forms over consoles, due to cyber
cafés being the only access most had
to gaming prior to the explosion of
affordable smartphones. The use of social media (particularly
Facebook) to publicly display scores
and compete with friends.
A preference for playing on PC for “an
enhanced experience,” even among
predominantly mobile players. Similar levels of bad language and
aggression
togaming cultures else-
where (as encouraged by anonymity),
but greater shame around this
behavior being a “poor representation
in Vietnam.”
Photo : Team Flash – Arena of Valor World Cup (AWC) 2019
WHY
ESPORTS NOW?
Broad dislike of “freemium” games due to
their ‘pay to win’ aspects which privilege
players of higher economic status who
can buy in-game advantages to make up
for lower skill.
Characteristics of Vietnamese gamers cont’d
Thesense that online gaming is a rare
free speech zone, “a safe space for some
where they can speak openly on any topic.”
The central role of the cyber cafe as a
“third place” – a social gathering space
distinct from work and home.
The dominance incyber cafesof“a
stereotypical demographicofpre-
dominantly younger males with females
representing between 5–20percent of
customers depending on the café.”
A growing interest in teamwork and
cooperation compared to the early years
of gaming, in part due to emphasis from
global gaming culture and the popularity
of team games such as League of Legends
and Dota. 18
Photo: iStock
WHY
ESPORTS NOW?
WHO ARE
VIETNAM’S
ESPORTS
FANS?
SEX DISTRIBUTION
ESPORTS PLAYERS
ESPORTS WATCHERS
Vero partnered with ASEAN market
research
firm Decision Lab to carry out an
online survey of Vietnamese people who
play, watch, and/or stream games.
Based
on an estimate of the Vietnamese esports
fan community at approximately 7 ..million
people, Decision Lab collected 503 data
points, an optimal number to estimate a
population parameter at 95% confidence
interval with a margin of error of about 4.4%.
Sampling for the esports study was done
entirely online. Decision Lab sent out survey
invitations to their online panel of over
750,000 respondents who were randomly
recruited to represent the online population
(in terms of age, gender, and geography).
We
asked questions related to their behavior
while playing and/or watching esports
and how they interact with different brand
communications activities to find out how
brands can use esports to win customers and
cultural cachet.
R espondents needed to be in the 16-40 age
group and identify as an esports player, watcher
of esports game streaming, and/or streamer of
esports games. Naturally, there is significant
crossover among these groups.
of those who engage in one of
the activities also take part in at least one
other and only 16% identified as
pla yers
only who neither watch nor stream.
78%
Photo: iStock 2
0
WHO ARE VIETNAMS
ESPORTS FANS?
Most notably, nearly all streamers (all of whom
are
players, naturally) also watch their fellow
streamers play, making watching streams the
most common esports activity.
The largest
correlation is between
players and watchers,
who make up 57% of the respondents.
21%
identify as watchers only, though it may be the
case that many do play the games they watch,
but do not identify themselves as “gamers”
since they do not play professionally.
54% of
our respondents watch streaming more than
2-3 times per week. This overlap led
Decision Lab to randomly
assign a proportion of respondents to either
the “player” or “watcher” subgroups,
which
received different sets
of questions. As many
of them identify as both
players and watchers,
we have weighted the charts for each group
to reflect the proportions suggested by
the
study’s
overall sample. Additionally, due to
this overlap
we will not contrast the behaviors
and preferences of each group with the
others, as many of those in our “watcher”
group play games just as much as those in the
“player” group, and
the majority of individuals
in the “streamer” group are
also members
of
the player or watcher groups. Espor
ts audience by Activities
Gamer &
Streamer only
<1%
Gamer
only
16% All
13%
Other
5%
Watcher only
21% Gamer
& Watcher
only
44%
WHO ARE VIETNAM’S
ESPORTS FANS? 2
1
14%25%
7%
23%
15%
17%
0%
10%
30%
40%
20%
The age
demographics
of our survey
respondents
show that esports
fans have grown
up. While young
people have a
slight majority,
nearly half (47%)
of our respondents
are 30 or older.
Q: What is your birthyear ? n=503
Age group distribution – Esports audience 2
2
17-21 y/o 22-25 y/o
34-37 y/o 38-41 y/o
26-29 y/o 30-33 y/o
WHO ARE VIETNAM’S
ESPORTS FANS?
SEX
DISTRIBUTION
Males still dominate
esports audiences,
but
the percentage
of
female players has
grown in recent years to
more than one-third of the
audience.
As widespread
internet and affordable
smartphones connect
millions more people to
the world of gaming, the
number of genres has
exploded, storylines have
become more inclusive,
and an even wider, more
diverse audience is
getting in on the action.
38%
62%
FemaleMale
Q: What is your sex ? n=503
Se
x – Esports audience
WHO ARE VIETNAM’S
ESPORTS FANS? 2
3
13.2%
Play – Watch – Stream Play – Watch
– Not Stream Play – Stream
– Not Watch Only Play
Only Watch Only Stream
Watch – Stream
– Not Play
14.7%
0.6%
36.8%
1.1%
46.7%
15.8% 0.53%
16.6%
1.3%27.4%
5.3%
16.9%
2.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
In terms of which activities people take part
in, differences are minor.
Among streamers,
there is not a big gap between males and
females. There is, however, an interesting
sex
disparity
within the group who are not playing
and streaming but still watching other people
play:
27% of females prefer watching only,
while only
17% of males say the same.
Female
Male
0.5% 24
WHO ARE VIETNAMS
ESPORTS FANS?
PC is the original esports platform and still the most popular worldwide. However, as mobile devices have become more powerful, they have
expanded the esports player base thanks to their convenience and lower cost.
44.9% of pla yers in our survey report playing esports games
on
PC , making it the most popular gaming platform in Vietnam. This preference is due to both the common impression that PC is a more
immersive experience and its history as the
platform of choice at gaming cafés. It also reflects the lack of investment in the country on the
part of console
mak ers – of the three, only Sony’s PlayStation has official retail and online presence in Vietnam.
Meanwhile the convenience and affordability of powerful smartphones has led to rapid growth in Vietnam’s mobile gaming market, to the
point that it rivals PC. This follows the regional trend: five out of eight
games (and 7 of 10 medals) set to appear in the 2021 SEA Games in
Hanoi
are mobile titles. xiv
However, PC continues to have strong support (particularly from Gen Z) and is generally considered a more immersive experience. Some titles
now employ cross-platform gaming, as popularized by Fortnite. This development makes the platform less important than the game itself –
though the platform can affect player performance and the quality of the experience.
25
Platforms
and games
WHO ARE VIETNAM’S
ESPORTS FANS?
ESPORTS PLAYERS
Top Gaming Platforms
44.9%42.2%
7.9%3.6%1.4%
Nintendo
X-box
PlayStation
Mobile
PC
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0% 26
WHO ARE VIETNAM’S
ESPORTS FANS?
The most-played game genres in our study
were Multiplayer Online Battle Arenas
(MOBA), which Vietnamese esports teams
tend to excel at, and first-person shooters
(FPS). Both genres can be played on PC and
mobile, but developers tend to design different
versions for each platform and cross-play is
rare (with the notable exception of Fortnite).
WHO ARE VIETNAM’S
ESPORTS FANS?
Most-played Esports Games27
League of Legends (MOBA)
Dota 2 (MOBA)Call of Duty (FPS)
Counter-Strike: Global Offensive (FPS) Rocket League (Sports/Racing)Fortnite (TPS/Battle Royale) Rainbow 6 Siege (FPS)Hearthstone (Card Battle) Overwatch (FPS)NBA 2K (Sports) Other
67.2%
46.8% 33.1%27.6%
15.2%11.2% 10.6%10.4% 9.7% 9.3%9.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Mobile esports are a rising trend and will continue to be for
the foreseeable future, thanks to the convenience and ubiquity
of the platform. In fact, there are more popular mobile games
available than PC games, many of which are included in
tournaments. Therefore, investment in mobile esports is a
suitable adaptation to the gaming market in Vietnam.
— Mr. Lê Minh Trí, Director of Marketing and Esports, Garena Vietnam
“
“28
WHO ARE VIETNAM’S
ESPORTS FANS?
WHO ARE VIETNAM’S
ESPORTS FANS?
WHO ARE VIETNAM’S
ESPORTS FANS?
Reasons for Playing
6RFDO3OD\
Esports is a rising star in the entertainment
industry…and…a …major…trend…among…
the young people who make up
the majority
of
Vietnam’s population,..who..often create
gaming..communities around their favorite
games in shared spaces like schools, internet
cafes, and bubble tea shops.
This organic
gamer culture is not a product of esports, but
rather a necessary condition for its existence.
The esports games that become popular
are the ones
people like to play (and watch)
themselves for entertainment, relaxation,
and to fight boredom.
29
For fun/ entertainment
85.9%
74.7%
46.5%
38.1%
20.7%
18.3%
To relieve stress
To interact with other players
To improve my skills/ advance in levels To compete/ become professional To make money
0% 20% 40% 60% 80% 100%
Contrary to the stereotype that gaming
is solitary and antisocial, esports games
function as social platforms. While most
people play for fun and stress relief,
46.5%
of
players see interaction with others as
a primary factor
for why they play. These
social interactions are conducted via
voice and text chat, primarily in-game
but sometimes on separate messaging
platforms.
73% of players primarily play
alone and connect with friends and strangers
online, while 22% play in the same space
as
others
(likely gaming cafés), and less than
4% play primarily with bots.
Medium of Gamer Interaction
Social Gaming Preferences
WHO ARE VIETNAM’S
ESPORTS FANS? 30
The game’s chat function
Online/ direct callMessaging apps
37.5% 35.8%
22.3%
3.7%
I play alone and connect with
friends online I play alone and
connect with
players online I play with
friends in the same space I play alone with
bots 91.6%
53.3%
12.3%
0% 20% 40% 60% 80% 100%
40%
35%
30%
25%
20%
15%
10%
5%
0%
of players see interaction
with others as a primar y
factor
for why they play.
46.5%
Photo: iStock 31
WHO ARE VIETNAM’S
ESPORTS FANS?
WHO ARE VIETNAM’S
ESPORTS FANS?
6.2%
Once a day
7.8% 7.1%30.1%
23.6%19.2%
5.7%
Frequency of playing Esports games
Average duration of each gaming session
35%
30%
25%
20%
15%
10%
5%
0%
0%
20% 40% 60%80%100% 32
Gaming attracts a valuable cross-demographic
audience of people who are highly engaged
for a considerable length of time. 78.6%
of
players in the study play at least 2-3 times
per week, and 42.8% play at least once a day.
A typical gaming session lasts 1-3 hours.
Play Time
10.4%
24.9% 47.2%
14.2%
3-4 hrs
2-3 hrs 1-2 hrs 4hrs
We categorize players into four groups based
on the amount of time the y spend gaming.
Brands entering the esports scene tend to focus
on power and mainstream gamers, but nearly
half of esports
players in Vietnam are “casual
gamers” who play 5-10 hours per week. While
marketers may be tempted to neglect them,
casual gamers remain a valid target audience
for brands uniquely suited to them.
LIGHT
GAMERS CASUAL
GAMERS
5-10 hrs/week
<5 hrs/week
47.6%
24.8%
MAINSTREAM
GAMERS POWER
GAMERS
16.4%
11.8%
11-20 hrs/week 21+ hrs/week
WHO ARE VIETNAM’S
ESPORTS FANS? 33
According to our research, Youtube Gaming is the most popular streaming platform, followed by Facebook Gaming as a close second, both of which
are far ahead of the competition. Globally, Amazon-owned Twitch is by far the most popular streaming platform.
Statistics from StreamLabs show
that Twitch watching hours
surpassed 4.7 billion in Q3 2020, up from 2.8 billion in Q3 2019. xv But in Vietnam, Twitch is in a distant 6 th place, far
behind
Youtube Gaming and Facebook Gaming among both streamers and watchers. 34
Platforms
and games
WATCHERS
WHO ARE VIETNAM’S
ESPORTS FANS?
Favorite Streaming Platforms
77.9%
Youtube Gaming Facebook Gaming StreamTV Garena Live NimoTV
TwitchNonolive DliveCube
66.6%
30.2%29.7%
21.2% 17.3%
12.0%
5.1%3.7%
90%
100%
60%
70%
80%
50%
40%
30%
20%
10%
0%
Vietnam is among the top 5
countries where users spend
the most time on Youtube,
alongside India, Indonesia,
Japan, and Thailand.
xvi
It is
the second-mos t accessed
site in the country, with a user
ratio of 59%, while Facebook
ranks
first with 61%.
xvii Photo: iStock 35
WHO ARE VIETNAM’S
ESPORTS FANS?
H
oweve r,
Facebook has fallen behind Youtube
w hen it comes to game streaming, perhaps
d ue to its constant ly changing algorithms and
an interface that is less optimized for
s treaming than Youtube’s flexible, cro ss-
platform video-centric one. The record for
m ost-viewed livestream on Facebook Gaming
in Vietnam belongs to Nam Blue, a PUBG
player with 137,000 views at peak time, while
a livestream with Độ Mixi on Youtube Gaming
may attract 238,000 views at peak time. xviii
Nonetheless, Facebook Gaming has seen major
g ro wth during the Covid-19 epidemic in
V ie tnam. In 2020, it garnered an 81.37%
i n crease in total views, a 50% increase in
engagement, and a 79.6% increase in total
r e ach. x
i
T he top games Vietnamese spectators watch
o n these platforms closely mirror pe ople’s
favorite games to play, with the sp ectator scene
d o
m inated by the MOBA and FPS gen res. Most-watched Esports Games
68.1%
47.6%39.5%
29.6%24.5% 22.6% 22.1%
18.9% 16.5%14.8%
League of Legends (MOBA)
Dota 2 (MOBA)Call of Duty (FPS)
Counter-Strike: Global Offensive (FPS) Fortnite (TPS/Battle Royale)Rocket League (Sports/Racing) Overwatch (FPS)Rainbow 6 Siege (FPS) Hearthstone (Card Battle)
NBA 2K (Sports)
90%
100%
70%
80%
60%
50%
40%
30%
20%
10%
0% 36
WHO ARE VIETNAMS
ESPORTS FANS?
Reasons for watching game streamingFrequency of watching esports streaming
For entertainment
To improve my skills/ strategy
To interact with other
gamers/ the streamers
To channel my emotions
To spend my freetimeTo save time/ effort To save money
Once/
day
10.9% 17.5%
12.2% 35.7%
4.6%10.6%
6.9%
80.4%
62.2%
43.4%
38.1%
25.7%
11.5%
8.7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
0%
5%
10%
15%
20%
25%
30%
35%
40% 37
WHO ARE VIETNAMS
ESPORTS FANS?
Vietnam’s top
streamers
Độ Mixi gained popularity playing PUBG and founded Refund Gaming,
which won 1
st place at PGI 2018 – a global PUBG competition PUBG. While
he is no longer active in playing and streaming PUBG, Độ
Mixi remains
one of the most popular streamers. He has 1 million subscribers on his
original streaming platform
NimoTV, but his Youtube channel currently
has 4.65 million
subscribers and his Facebook page has 4.3 million
followers. He even aired his first music video “Stream Đến Bao Giờ”, that
was a top trending video at its premiere and now has millions of views.
ViruSs
started his career as the team leader of Hanoi Dragon – the first
pro League of Legends team in Vietnam. He is now known as both a
streamer and a music producer.
ViruSs currently has over 4 million
subscribers on both his
Youtube channel and his Facebook page.
Current
popular pro players who prioritize competition over streaming –
such as Chim Sẻ Đi Nắng, Team Flash, and V Gaming – nonetheless have
major fan followings on their personal pages. For instance, Team Flash
has 134k followers, but the team leader of team Flash, ADC, has
691k.
55.2% 50.5% 48.3%
43.3%
34.2% 33.0%
20.1% 17.9%16.5% 14.0%
3.7%
Độ MixiViruSsPewPew Misthy
Linh Ngọc Đàm Cris Devil Gamer Dũng CTQTV
Xemesis Uyên Pu Other
Most watched/followed game streamers
40%
50%
60%
70%
80%
90%
100%
30%
20%
10%
0% 38
WHO ARE VIETNAMS ES-
PORTS FANS?
WHO ARE VIETNAM’S
ESPORTS FANS?
Photos: vietnamnet.vn, topreview.vn
0[9UX6V PewPew Misthy /QK1JFP
8\Q3X
;HPHVV
479
‘)QJ&7
&UV’HYO*DPHU
Vietnam’s top streamers 39
HOW CAN
BRANDS
BRIDGE
THE GAP?
ADS
KOL ENGAGEMENT
SPONSORSHIP
UNEXPLORED ALLEYS
1
According to a report by WARC, xviii despite
COVID-19’s negative impact on most global
economies, brand investment (in the form of
advertising and sponsorship) in esports is set
to rise 9.9% worldwide to $844m in 2021–
though this is less than half the growth rate
recorded in 2019 – with the majority ($615m)
spent on the sponsorship of competitors or the
tournaments themselves. A further $229m will
be spent on spot ads during esport broadcasts,
representative of a 1.7 percent rise at a time
when traditional TV advertising is set to fall by
13.8 per cent. Practitioners believe advertising
spend will be the key driver of esports growth
in the coming years, and investment will
top $1bn in 2022, compared to an estimated
$844m in 2021. The motivation of watchers to interact with
streamers and other followers can be a
good opportunity if brands approach it well.
For example, Burger King took. advantage
of Twitch’s “donation bot” feature to create
a marketing campaign. The bot reads out
messages from fans who donate during a
stream, but BK has been using it to advertise
its latest offers, gaining exposure that would
have cost thousands of pounds for as little as
£2.50 (82,000 VND.).
xix
As most esports fans are young and active online, media and tech giants are increasingly
seeking to capture some part of the audience, and more game developers are building
esports-friendly features into their titles.
41
HOW CAN BRANDS
BRIDGE THE GAP?
Ảnh: Burger King
Brand investment in esports is set to riseworldwide to in 2021.
9.9%$844M
42
HOW CAN BRANDS
BRIDGE THE GAP?
Photo: Honda, Riot Games
Despite the rapid growth and development of the industry
in recent years, most players and viewers only pay
attention to some specific well-known esports games,
which are promoted through social media and videos with
large amounts of viewers. Therefore, it is necessary for
brands involved in the esports arena to stay up to date on
the evaluation criteria of tournaments for each game, such
as peak concurrent users and total views, to make their
investments as effective as possible.
— Mr. Lê Minh Trí, Director of Marketing and Esports, Garena Vietnam
43
HOW CAN BRANDS
BRIDGE THE GAP?
Through our research, we found out that
advertising is still an effective tactic
for brands to communicate with their
prospective customers, as 86% of the esports
audience claim that they interact with brand
advertising efforts.
Among those, ads with in-game prize and
ads with video attract the most attention and
interaction (49% and 40% respectively). Only
14% of players and watchers claimed that
they do not interact with ads at all.
ADS
Ads with In-Game prize
Ads with Video
Ads with Interactive Video
Ads with Still Image
Do not interact with Ads
Q: Which types of ads do you usually interact with? n=503
Interaction with Ads – Esports Audience
14%
25%
27% 37%
40% 49%
0% 20% 40%60%
Ads with Prize not from Game
44
HOW CAN BRANDS
BRIDGE THE GAP?
of the esports audience
claim that they interact with
brand advertising efforts.
86%
Photo: Getty Images
45
HOW CAN BRANDS
BRIDGE THE GAP?HOW CAN BRANDS
BRIDGE THE GAP?
As expected, in-game advertising appeals
to people’s interests. They are more likely
to purchase products in the categories of
electronics (55%), technology (53%), and
gaming accessories (53%). However, other
industries that are less directly relevant follow
close behind, including F&B (45%), clothing
(44%), and fashion accessories (41%).
Electronics
Technology
Gaming Accessories
Fashion Accessories
Sportswear
Cosmetics
Stationeryn=503
0%
20% 60%
40%
Trave l
Q: Please rate your intention to purchase the following product categories
after seeing them advertised on gaming platforms (5pt Likert scale).
Very unlikely
UnlikelyNeutralLikelyVery likely
Food & Beverages
Clothing
Intent to Purchase Product Category after seeing ads – Esports Audience
34%
35%
32%
29%
27%
26%
26%
24%
22%
21% 21%
21% 18%
16%
17%
15%
14%
12%
13%
12%
12%
11%
10%
14%
15% 13% 8%
8% 9%
9% 12%
13%
11%
11% 17%
18%
18%
21% 22% 16% 25%
26%
27%
28%
32%
32%
32%
32%
31%
33%
46
HOW CAN BRANDS
BRIDGE THE GAP?
ESPORTS
AUDIENCE
INTERACTION
WITH ADS
Frequently to very frequently
About 1/3 see ads frequently to very frequently Rarely to very rarely
Neutral
Q: How frequently do you see ads on gaming platforms? n=503
0%20%
15%
44% 32%
40% 60% 80%100%
The esports audience interacts most often with the following types of advertisements:
Ads with In-Game prizes
Ads with Video
Ads with Interactive Video
Q: Which types of ads do you usually interact with? n=503
0%20%40% 60%
40%
37% 49%
47
HOW CAN BRANDS
BRIDGE THE GAP?
ESPORTS
AUDIENCE
INTERACTION
WITH ADS
After watching ads, they have highest purchase intent for products relevant to gaming,
e.g. Electronics, Tech & Gaming accessories
0%
20%
40%
60%
55% 53% 53%
45%44%
80%
Electronics
Technology Clothing
Gaming
Accessories Food
& Beverages
Q: Please rate your intention to purchase the following product categories
after seeing them advertised on gaming platforms. n=503
48
HOW CAN BRANDS
BRIDGE THE GAP?
In-game advertising has been around for
decades already. Adidas billboards were a
natural fit for the original FIFA International
Soccer in 1994 that reflected the sportswear
brand’s prominence in real-world FIFA
tournaments. In the 90s and early 2000s, some
corporations even built entire games around
their mascots.
xx Since then, in-game advertising
has mostly taken the form of billboards and
static (hard-coded) advertisements.
Recently, however, technology has opened up
many opportunities for brands to take on the
next form of in-game advertising: dynamic
advertisement. Like out-of-home advertising
in real life, this type of advertising is meant to
raise brand awareness among gamers rather
than drive them to a specific product.
Adidas found new ways to plug their brand
into the game. In 2019, they were a sponsor
of the FIFA 20 Global Series, and their brand
logo was prominently featured throughout the
tournament on the in-game object everyone
watches the most: the ball. Adidas also had its
virtual advertisement shown at the midfield
circle during each game of the tournament.
In-game advertising
Photo: FIFA 21, EA Sports
49
HOW CAN BRANDS
BRIDGE THE GAP?
Another form of in-game advertising is
hybrid, cross-platform promotion, in which
the actual advertising occurs in real life and
the audience can receive in-game rewards by
interacting with it.
For instance, Samsung has
collaborated with Epic Games to release the
Galaxy Skin in Fortnite, which is awarded to
those who download the game onto a
Samsung S11 or S11+. Cross-
platform
advertising
50
HOW CAN BRANDS
BRIDGE THE GAP?
For a Vietnam-specific example, in September
2020 Oishi collaborated with Garena to launch
a limited Snack Oishi 4X with packaging
featuring characters from Arena of Valor and
in-game rewards vouchers inside each pack.
xxi
51
HOW CAN BRANDS
BRIDGE THE GAP?
Photo: Oishi
Clear Men was struggling to connect with
modern Vietnamese men, an audience for
whom shampoo brands are seen as much the
same. The hair care brand found that gaming
and esports are becoming increasingly popular
in Southeast Asia and that there are 26 million
esports players in Vietnam, the majority of
whom are male.Taking this as its cue, Clear Men used in-
game advertising in League of Legends to
make its branding appear when opponents
were defeated, promoting the idea that Clear
Men supports Vietnamese men’s success. It
also set up a microsite for esports viewers to
vote for their favorite teams with the chance
of winning prizes and launched a social media
minigame. The campaign achieved an ROI
of 1312%, garnered 19 million views of the
microsite, and had 100% message retention
among LoL players.
xxii
Case study: Clear Men
Photo: Screenshot from League of Legends, Riot Games
13
HOW CAN BRANDS
BRIDGE THE GAP?
52
HOW CAN BRANDS
BRIDGE THE GAP?
The hair care brand was struggling to connect
with modern Vietnamese men, an audience
for whom shampoo brands are seen as much
the same. Clear Men found that gaming and
Esports are becoming increasingly popular in
Southeast Asia and that there are 26 million
esports players in Vietnam, the majority of
whom are male.
TIPS ON
REACHING GAMERSWITH ADS
CUSTOMIZE YOUR
CREATIVE ASSETS DON’T RUIN
THE GAMING EXPERIENCE LOOK FOR OPPORTUNITIES
TO INTERACT
It’s important for brands to think beforehand
about the platform, choosing the right game
and visual to ensure the ad blends in – and
ideally creates some extra appeal. No gamer appreciates ads interrupting
their match. Identify the precise
opportunity to expose people to your brand
without annoying them. Esports audiences are more likely to pay
attention to ads that are interactive or
feature in-game rewards. Research what
the games they play currently do.
53
HOW CAN BRANDS
BRIDGE THE GAP?
1
2
3
KOL ENGAGEMENT
As esports have developed, pro players and
streamers have become minor celebrities – key
opinion leaders (KOLs) in their field and beyond.
They are not just popular for how they play,
but also for their personalities and how they
share their daily lives, which means they can be
influential even on non-gaming platforms.In fact, our survey shows that watchers are
just as likely to look for their favorite gamer
KOLs in TV/game show content as on their
streams (63%), while blogs and music videos
(58.5%), and even short movies (56%) are
nearly as popular.
Intent to consume gamer KOL content
Livestream
Vlog series/
Web dramaBlog
Podcast
Music video
TV/Game shows
Short films
1-Very unlikely 2-Unlikely3-Neutral4-Likely5-Very likely
36.6 % 26.2 %
20.3 %
19.5 %
15.1 %
20.6 %
22.2 %
22.7 % 35.8 %
32.3 %
23.8 %
35.4 %
35.1 %
43.0 %
6.0 %
5.6 %
6.3 %
5.1 %
6.1 %
6.9 %
12.9 %
14.0 %
7. 7 % 29.0 %
24.0 %
37.1 %
25.3 %
25.1 %
31.5 %
24.7 %
10.4 %
10.6 %
9.9 %
7. 2 %
6.0 %
0%20% 40%60% 80%100%
54
HOW CAN BRANDS
BRIDGE THE GAP?
Esports fans are
exceptionally devoted:
two-thirds of those we
surveyed say gamer
KOLs make up at
least half of those
they follow, and
44% primarily or
exclusively follow
gamer KOLs.
Types of KOL followed
28.0%
23.1%
37.3% 2.4%
6.4%
Very few KOLs I follow
are gamers
I follow as many gamer
as non-gamer KOLs
The majority of KOLs I
follow are gamers
I only follow gamer KOLs
I do not follow gamer KOLs
55
HOW CAN BRANDS
BRIDGE THE GAP?
For brands, KOLs
are effective at both
raising awareness
and promoting sales.
65% of watchers say
they purchased a
product advertised
by a gamer KOL in the
past month.
Last purchase of a producted advertised by gamer KOLs
Last 3 days
0%
10%
10.3% 17.0%
16.8% 21.3%
9.5%9.2%16.0%
20%
25%
15%
5%
Last 7 days
Last 2 weeks Last monthLast 3 months > 3 monthsDo not recall
56
HOW CAN BRANDS
BRIDGE THE GAP?
Types of KOL followed
Gaming KOL
Recommendation are more
relevant to me than others
I often buy products
recommended by the
KOLs I follow
I trust products
recommended by
KOLs I follow
26.6 % 15.2 %
16.3 %
14.7 %
34.5 %
27.2 %
8.8 %
10.2 %
6.3 %
12.0 %
8.9 %
36.4 %
37.5 %
34.1 %
11.5 %
Over half (51%) of
watchers trust
the products
recommended by
KOLs they follow,
and 42% buy such
products often
and consider them
personally relevant.
0% 20% 40%60% 80%100%
1-Strongly disagree 2-Disagree3-Neutral4-Agree5-Strongly agree
57
HOW CAN BRANDS
BRIDGE THE GAP?
As with ads, the products in question do not
need to be related to gaming (though it helps).
As we see in the chart below, other product
categories such as F&B and fashion can be a
good fit for the esports audience.
0%20% 40%60% 80%100%
Intent to Purchase Product Categories Recommended by Gamer KOLs
1-Very unlikely 2-Unlikely3-Neutral4-Likely5-Very likely
Electronics
Technology
Gaming Accessories
Fashion Accessories
Sportswear Cosmetics
Stationery
Trave l
Food & Beverages
Clothing
20.7 %
23.4 %
11.6 %
12.3 %
15.5 %
14.6% 16.4
%
32.3 %
35.8 %
17.4 %
12.9 %
8.6 %
10.8 %
9.9 %
14.9 %
14.1 %
13.3 %
12.5 %
17.1 %
10.5 %
9.9% 32.6
%
32.5 %
32.0 %
28.9 %
24.0 %
26.3 %
26.6 %
26.9 %
29.1 %
28.8 %
27.2 %
34.4 %
32.8 %
32.1 %
21.8%
25.1
%
25.7 %
12.7 %
15.7 %
15.9 %
16.9 %
6.6 %
5.3 %
5.7%
10.8 % 33.3 % 27.6 % 18.1%
10.2 %
58
HOW CAN BRANDS
BRIDGE THE GAP?
Adidas Original collaborated with the popular
streamer Ninja to release a new sportswear
collection: “Time In”.
xxiii The collection was
introduced by Ninja himself on his original
streaming platform – Mixer – and quickly
expanded via different communications
material across platforms such as Facebook
and Instagram. As a result, adult sizes of the
Time In collection sold out within 40 minutes.
Case study: Adidas
Photo: Adidas Photo: Adidas
20
HOW CAN BRANDS
BRIDGE THE GAP?
59
HOW CAN BRANDS
BRIDGE THE GAP?
How gaming KOLs
maintain their followers:
Interview with Team Flash
Originating in Singapore, Team Flash has professional teams in Vietnam playing League of
Legends, Free Fire, and Arena of Valor. Their Vietnam team were runners-up at the Arena of
Valor International Championship 2018, two-time champions at League of Legends Mobile
2019 and Arena of Valor International Championship 2019, and winners at Arena of Glory
Championship 4 times from Winter Season 2018 to Spring Season 2020. Their League of
Legends team is also competing in the Vietnam Championship Series (VCS) tournament,
which it won in both the Spring and Summer Seasons of 2020.
About Team Flash
Photo: Team Flash
60
HOW CAN BRANDS
BRIDGE THE GAP?
What is your secret to
building content that
attracts viewers, and
how is your channel
different from those of
other KOLs?How do you balance
your original content
and requirements
from brands?
With your experience of
working with different
brands, what are your
suggestions for better
cooperation between
brands and KOLs?
We strive for authentic and
engaging content that relates to our
audience of young digital natives.
Understanding the interests of
today’s youth and crossing over is
key, as is maintaining a consistent
brand voice across all our channels. At the end of the day, many brands
are striving to work with esports
teams to engage their audience. We
believe in the 80 – 20 rule, in which
80% of our effort remains focused
on the original content that brought
our fans to us, and the other 20% is
focused on slowly bringing branded
content into the space. Brands need to understand what
the KOL represents. Each KOL has
a unique personality and fanbase,
so the approach is never the same.
In the case of esports players,
winning is one of the key factors to
their popularity, but so is building an
appealing image. This is the space
where brands can get involved and
engage the community effectively.
Terence Ting, Founder of Team Flash
Photo: Team Flash
61
HOW CAN BRANDS
BRIDGE THE GAP?
1
2
3
FL.XB (Member Of Team Flash)
FL.XB plays as a Mid Lane for Team Flash in Arena of Valor. He joined in 2018 and quickly gained
popularity when Team Flash won at Arena of Glory Championship in 2018 and 2019 and AWC
2019. Besides being a pro player, he is also a popular streamer.
What is your secret to building content that attracts viewers,
and how is your channel different from those of other KOLs?
Beyond showcasing personal skill in tournaments, during livestream sessions I
always try to show my personality traits to fans and viewers through some form of
entertainment: things like karaoke, freestyle rap, and maphack checking/detecting.
I think the combination of gaming skills and entertaining activities is what attracts
large amounts of viewers on my channel, and this factor sets me apart from other
gamers and KOLs.
Photo: Team Flash
62
HOW CAN BRANDS
BRIDGE THE GAP?
1
How do you balance your original content and
requirements from brands? With your experience of working with different brands, what are
your suggestions for better cooperation between brands and KOLs?
The balance between livestream content and advertising content from brands has
always been the main concern, and it’s something that the Team Flash media team and
I discuss carefully. In order to successfully promote brands and products, I believe the
factor or “being myself” should be prioritised. I always make an effort to communicate
with viewers during livestream sessions, so I try to insert content advertising in a natural
way. For example, I’ll ask “which shampoo brands do you guys usually buy?”, or “I’m
thinking about opening a new bank account. Which banks did you guys choose to open
yours?” Besides, content advertising only lasts for 10-15 minutes, and I will spread out
mentions of it across the whole livestream session, which tends to last 2-3 hours. In my opinion, brands should not restrict how KOLs advertise their products. It’s
important to let us relay messages in their own styles, which is what their audience
comes for. One method is to spread messaging out across the stream rather than having
it in a single block. This way, it will be able to reach more people, since many viewers
do not tune in for the entire stream, and it will avoid annoying people by breaking up
the action for too long.
63
HOW CAN BRANDS
BRIDGE THE GAP?
2
3
The hair care brand was struggling to connect
with modern Vietnamese men, an audience
for whom shampoo brands are seen as much
the same. Clear Men found t