fbpx

In our September 27th, 2021 piece titled, “GameSquare Adds TimTheTatman to Increase Engagement and Drive New Revenue Streams”, we highlighted:

  • Esports influencer TimTheTatman announced he would join Complexity Gaming and GameSquare Esports;
  • TimTheTatman has a following of over 4 million on YouTube, 3.4 million on Instagram, and 2.6 million on Twitter, and;
  • Influencer advertising is growing as it gains acceptance with marketers – and TimTheTatman adds to GameSquare’s audience reach and engagement. Investors liked this development, sending GameSquare’s stock up meaningfully following the announcement.

In this follow up piece, we examine some potentially specific benefits for GameSquare, and milestones investors can look forward to.

Recapping TimTheTatman’s announcement and his internet personality and audience reach

Recall, TimTheTatman announced that he’s joining Complexity Gaming and is also a co-owner of the organization. He will provide collaborations with esports competitors, influencers, athletes, and celebrities to assist Complexity’s expansion in gaming content creation. According to Complexity CEO, “TimTheTatman has immediately enhanced Complexity’s audience and engagement.” As part of the announcement, TimTheTatman was granted options and RSUs, by the Company.

Timothy Betar (TimTheTatman) is a 31-year-old New York native known for his Internet personality and video game streams. He brings with him an audience of more than 18 million followers across platforms like YouTube, Instagram, and Twitter. Betar was nominated for content creator of the year in 2020.

Relevance of TimTheTatman’s engagement statistics

Engagement helps boost brand experience, increase loyalty, and improve customers’ experiences, which suggests adding a well-known internet personality with high audience engagement such as TimTheTatman could help grow Complexity’s audience reach and appeal even further. TimTheTatman’s Instagram engagement is around 2.5 to 3% which is higher than the average engagement of users with 100,000+ followers of around 1.5-2%. On his average post, Tim receives ~85,000 likes and ~1,000 comments. TimTheTatman has a proven appeal with audiences, allowing to rapidly gain followers, for example, he had 100,000 viewers in his first stream on YouTube Gaming, exceeding the 100K viewers level in just 90 minutes. He also racked up 10,000 members (paid subscribers) in the first hour of his stream on YouTube. To compare, on Twitch Tim had roughly 28,000 member equivalents, but 5129 of those were, “gifted subs” meaning that they weren’t paying subscribers. The engagement TimTheTatman receives from his followers should be helpful in the esports marketing world — high engagement not only shows commitment and loyalty to TimTheTatman by his followers, but it is also a desirable attribute for any marketer – directly improving the offering of GameSquare’s core business.

Sophic Capital - Logo - Colour

Source: Sophic Capital

Esports offers brands a channel to connect with a well-defined demographic

The largest esports audience cohort is 16 to 24 making up 32% of the sector according to GlobalWebIndex, and is the largest audience age cohort. Unsurprisingly, 72% of U.S. esports fans are male, according to IDC.

Sophic Capital - Logo - Colour

Source: Sophic Capital

As can be seen in the accompanying chart from Newzoo, sponsorships were by far the largest revenue segment for esports in 2020. Esports sponsorships, therefore offer brands a channel to connect with a largely young and male audience. In addition to sponsorships, there are plenty of opportunities in other segments for companies such as GameSquare to grow revenue. Next, we list the direct benefits to GameSquare from TimTheTatman.

GameSquare – leverage engagement for events and brands working with GameSquare

Now affiliated with TimTheTatman, GameSquare should gain recognition when he competes in tournaments and other events. In 2020, he competed in 15 Warzone tournaments including the World Series of Warzone NA which had an average viewership of close to 350,000 people. TimTheTatman also has deals with several large brands like Chipotle, and recently announced he was teaming up with AT&T to showcase the role of 5G in gaming. While GameSquare will not directly benefit from AT&T and Chipotle deals signed by TimTheTatman, these developments illustrate the size and magnitude of deals that GameSquare could benefit from, as esports has clearly entered the mainstream.

Driving merchandise sales

TimTheTatman and Complexity have already partnered to release merchandise with both parties’ names on it. We believe the recent merchandise collaboration has been a success with over half the products already sold out, and more products already being released. We expect the Company can further capitalize on this network of engaged fans via branded content, and collaborations, like the most recent collaboration between TimTheTatman and AT&T which had him streaming Warzone with Dallas Cowboys star Ezekiel Elliot on the Cowboys big screen racking up over 800,000 views on YouTube.

Sophic Capital - Logo - Colour

Source: Sophic Capital

Just the beginning, and expecting more updates in the short to medium term

The announcement between GameSquare and TimTheTatman brought lots of excitement and attention to GameSquare, For example, the tweet from TimTheTatman teasing the announcement of what organization he was joining got nearly 30,000 likes, and over 1,100 comments  displaying the type of excitement deals like this can generate. In addition, this increased attention could further broaden the stock’s profile amongst U.S. investors. Management has indicated that it is pursuing an OTC listing and it is expected that management will likely provide an update during its Q3 conference call. The Company has scheduled its third-quarter 2021 financial results conference call for Monday, November 1, 2021 at 5:00 pm EST. Investors can access the webcast at: http://services.choruscall.ca/links/gamesquare20211101.html. The call should provide investors a good opportunity to get an update on the existing business and future growth plans.

Disclaimer

The information and recommendations made available through our emails, newsletters, website and press releases (collectively referred to as the “Material”) by Sophic Capital Inc. (“Sophic” or “Company”) is for informational purposes only and shall not be used or construed as an offer to sell or be used as a solicitation of an offer to buy any services or securities. In accessing or consuming the Materials, you hereby acknowledge that any reliance upon any Materials shall be at your sole risk. In particular, none of the information provided in our monthly newsletter and emails or any other Material should be viewed as an invite, and/or induce or encourage any person to make any kind of investment decision. The recommendations and information provided in our Material are not tailored to the needs of particular persons and may not be appropriate for you depending on your financial position or investment goals or needs. You should apply your own judgment in making any use of the information provided in the Company’s Material, especially as the basis for any investment decisions. Securities or other investments referred to in the Materials may not be suitable for you and you should not make any kind of investment decision in relation to them without first obtaining independent investment advice from a qualified and registered investment advisor. You further agree that neither Sophic, its, directors, officers, shareholders, employees, affiliates consultants, and/or clients will be liable for any losses or liabilities that may be occasioned as a result of the information provided in any of the Material. By accessing Sophic’s website and signing up to receive the Company’s monthly newsletter or any other Material, you accept and agree to be bound by and comply with the terms and conditions set out herein. If you do not accept and agree to the terms, you should not use the Company’s website or accept the terms and conditions associated to the newsletter signup. Sophic is not registered as an adviser or dealer under the securities legislation of any jurisdiction of Canada or elsewhere and provides Material on behalf of its clients pursuant to an exemption from the registration requirements that is available in respect of generic advice. In no event will Sophic be responsible or liable to you or any other party for any damages of any kind arising out of or relating to the use of, misuse of and/or inability to use the Company’s website or Material. The information is directed only at persons resident in Canada. The Company’s Material or the information provided in the Material shall not in any form constitute as an offer or solicitation to anyone in the United States of America or any jurisdiction where such offer or solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation. If you choose to access Sophic’s website and/or have signed up to receive the Company’s monthly newsletter or any other Material, you acknowledge that the information in the Material is intended for use by persons resident in Canada only. Sophic is not an investment advisor nor does it maintain any registrations as such, and Material provided by Sophic shall not be used to make investment decisions. Information provided in the Company’s Material is often opinionated and should be considered for information purposes only. No stock exchange or securities regulatory authority anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. Sophic and/or its principals and employees may have positions in the stocks mentioned in the Company’s Material and may trade in the stocks mentioned in the Material. Do not consider buying or selling any stock without conducting your own due diligence and/or without obtaining independent investment advice from a qualified and registered investment advisor. The Company has not independently verified any of the data from third party sources referred to in the Material, including information provided by Sophic clients that are the subject of the report, or ascertained the underlying assumptions relied upon by such sources. The Company does not assume any responsibility for the accuracy or completeness of this information or for any failure by any such other persons to disclose events which may have occurred or may affect the significance or accuracy of any such information.

The Material may contain forward looking information. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible,” “projects,” “plans,” and similar expressions, or statements that events, conditions or results “will,” “may,” “could,” or “should” occur or be achieved or their negatives or other comparable words and include, without limitation, statements regarding, projected revenue, income or earnings or other results of operations, strategy, plans, objectives, goals and targets, plans to increase market share or with respect to anticipated performance compared to competitors, product development and adoption by potential customers. These statements relate to future events and future performance. Forward-looking statements are based on opinions and assumptions as of the date made, and are subject to a variety of risks and other factors that could cause actual events/results to differ materially from these forward looking statements. There can be no assurance that such expectations will prove to be correct; these statements are no guarantee of future performance and involve known and unknown risks, uncertainties and other factors. Sophic provides no assurance as to future results, performance, or achievements and no representations are made that actual results achieved will be as indicated in the forward looking information. Nothing herein can be assumed or predicted, and you are strongly encouraged to learn more and seek independent advice before relying on any information presented.