Market Insights Advertising & Media Esports

Sponsorship & Advertising - Australia

Australia

In Australia, revenue in the Sponsorship & Advertising market market is projected to reach €9.1m in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 7.34%, leading to a projected market volume of €13.0m by 2029.
While the projected market volume in Australia is €267.9m in 2024, it is noteworthy that most revenue is generated China.
Furthermore, the average revenue per user (ARPU) in Australia is expected to amount to €0.3.
In Australia, the growing popularity of eSports is prompting brands to increasingly invest in sponsorship and advertising strategies tailored to engage younger audiences.

Key regions: South Korea, United Kingdom, India, Europe, United States

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Analyst Opinion

The eSports market in Australia has seen moderate growth in the sponsorship & advertising sector. This is due to factors such as limited understanding of the potential of eSports, lack of mainstream media coverage, and the niche audience. Despite this, the market is expected to grow as more companies recognize the value of investing in this emerging industry.

Customer preferences: The eSports market has seen a rise in sponsorship and advertising opportunities, with brands looking to tap into the growing popularity of competitive gaming. However, there has been a shift towards more targeted and personalized forms of advertising, as consumers become increasingly skeptical of traditional ads. Brands are now turning to influencer marketing and branded content to reach their target audience, leveraging the strong digital presence and influence of top eSports players. This trend reflects the changing preferences of consumers, who are seeking more authentic and relatable forms of advertising in the age of social media.

Trends in the market: In Australia, the eSports market is experiencing a surge in sponsorship and advertising deals, with major brands like McDonald's and Coca-Cola investing in the industry. This trend is expected to continue as the eSports market grows in popularity and reaches a wider audience. With the rise of live streaming and online gaming platforms, there is also a growing trend of targeted advertising and product placement within eSports events and tournaments. This presents a significant opportunity for industry stakeholders to tap into a highly engaged and tech-savvy demographic. However, it also raises concerns about the potential for over-commercialization and the impact on the authenticity of the eSports experience. As the market evolves, it will be important for stakeholders to carefully balance the integration of advertising and sponsorship with the integrity of the eSports industry.

Local special circumstances: In Australia, the eSports market has seen a surge in popularity due to the country's strong gaming culture and high internet penetration rate. This has also led to a flourishing Sponsorship & Advertising Market, with major brands eager to tap into the young and tech-savvy audience. However, the country's strict regulations on gambling and advertising have posed challenges for brands looking to enter this market. Additionally, the vast geographic spread of Australia's population has resulted in unique regional preferences and opportunities for targeted sponsorship and advertising campaigns.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Australia is significantly impacted by macroeconomic factors, including global economic trends, national economic health, fiscal policies, and other relevant financial indicators. As the eSports industry continues to gain popularity and mainstream recognition, countries with strong economic conditions and supportive government policies are expected to experience higher market growth. Additionally, the increasing global demand for digital advertising and sponsorships in the eSports industry is driven by technological advancements and rising consumer spending on entertainment. The growing trend of cross-platform advertising and the rise of mobile devices also contribute to the market's growth, as advertisers and sponsors seek to reach a wider audience.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Sponsorship & Advertising market, which comprises revenues of teams and organizers via sponsorship deals. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.