The mindset change crystallized late last year and became a board agenda item in the first quarter after private equity partner General Atlantic, which took a stake in the company at the end of 2021, pushed the company to think bigger, per Rensch.
The pitch to advertisers leans on cultural cachet of the game. Its legacy as one of the oldest board games in the world, along with its associations with cunning, strategy, and cerebral excellence, make it a natural fit for luxury advertisers, according to Rensch.
“We think of chess as one of the elegant, evergreen, brand-safe, and brand-elevating opportunities in the market,” Rensch said. “When you align yourself with chess, you say you are a strategic thinker.”
Events are another lever the company plans to pull.
Sponsorship currently accounts for around 2% of revenue, but Chess.com sees room to grow it considerably through coverage of marquee moments like the World Chess Championship and Speed Chess Championship, as well as deeper integrations across its content footprint on YouTube, Twitch, TikTok, and Instagram.
While the company declined to offer specific financial projections, the business could add “a small eight figures or more” to the top line by the end of the year, Rensch added.
On paper, the user base is attractive. In February, the site reached an all-time peak of 25 million human-versus-human games in a single day. Around 38 million people play each month. Daily active users hovering near 10 million. Its users are highly engaged, largely logged-in (around 70%), and average 17 sessions a month at roughly 15 minutes per session. The platform relies on hashed emails and identity partners to support privacy-safe targeting. Its core ad formats remain mobile video interstitials and standard display.
As part of its push to engage its users more deeply, the platform has also employs a slew of features designed to encourage repeat visits, such as streaks, a mobile widget, and push notifications.
The challenge, according to former Rolling Stone CEO and noted chess enthusiast Gus Wenner, is execution.
The company has built a product that generates around $130 million in subscription revenue and enjoys a loyal following across the globe. In introducing more advertising to the equation, it will need to exhibit restraint to ensure the gameplay and user experience remain undiminished.
“It’s a double-edged sword,” Wenner said. “The opportunity to grow their ad business is probably big on a number of levels, but their most compelling element is their user experience, so they have to bring in advertising in a smart way so as to not compromise that.”
Its focus on growing events is a smart strategy, according to Wenner. Advertisers have embraced experiential as a way to cut through the digital noise, and Chess.com’s authority in the space gives its convening power an added layer of authority.
