Market Insights Advertising & Media Esports

Sponsorship & Advertising - China

China

Revenue in the Sponsorship & Advertising market market in China is projected to reach €267.9m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 2.82%, resulting in a projected market volume of €307.8m by 2029.
With a projected market volume of €267.9m in 2024, it is evident that most revenue is generated China.
The average revenue per user (ARPU) in this sector is expected to amount to 0.00.
China's rapidly expanding eSports market is attracting significant sponsorship and advertising investments, reflecting the country's growing digital youth culture and competitive gaming landscape.

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

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Analyst Opinion

In China, the eSports market is facing subdued growth due to factors such as limited advertising opportunities and sponsorships. Despite rising awareness and convenience, the market's growth rate is impacted by these challenges.

Customer preferences: As the eSports market continues to grow in China, there is a notable trend towards more diverse and creative sponsorship and advertising strategies. Brands are now leveraging cultural icons and influencers within the gaming community to connect with younger audiences. Additionally, there has been a rise in immersive in-game advertisements and virtual product placements, catering to the increasing preference for seamless and non-intrusive marketing experiences among eSports viewers. This shift towards more personalized and engaging advertising reflects the evolving preferences of Chinese consumers for authentic and interactive brand interactions.

Trends in the market: In China, the eSports market has seen a significant increase in sponsorship and advertising, with major brands like Nike, Mercedes-Benz, and Coca-Cola investing in the industry. This trend is expected to continue as eSports gains mainstream recognition and a larger audience. With the rise of streaming platforms like Douyu and Huya, brands are also increasingly turning to influencer marketing and product placement in live streams to reach a younger demographic. This shift towards digital marketing in the eSports industry has the potential to disrupt traditional advertising methods and create new opportunities for brands to engage with their target audience.

Local special circumstances: In China, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's strict regulations on media and entertainment industries. This has led to a unique market dynamic where traditional forms of advertising, such as TV commercials, are limited, while digital marketing and influencer partnerships thrive. Additionally, China's large population and high levels of internet and mobile usage have created a massive audience for eSports, making it an attractive market for sponsorships and advertising. Furthermore, the Chinese government's support for eSports development has also played a significant role in the growth of this market.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in China is heavily influenced by macroeconomic factors such as the country's strong economic growth and increasing disposable income among its population. This has led to a significant increase in consumer spending, making China a top market for advertising and sponsorship opportunities. Additionally, the Chinese government's support for the growth of the eSports industry through favorable policies and investments has further contributed to the success of the Sponsorship & Advertising Market. Furthermore, the country's large population and high internet penetration rate provide a vast audience for eSports events and advertising campaigns, making China a highly attractive market for companies looking to engage with the eSports industry.

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.