Market Insights Advertising & Media Esports

Sponsorship & Advertising - South Korea

South Korea

In South Korea, revenue in the Sponsorship & Advertising market market is projected to reach €110.8m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.60%, leading to a projected market volume of €152.5m by 2029.
Although most revenue is generated China, in South Korea is also a significant player in this market.
The average revenue per user (ARPU) in South Korea is expected to amount to €2.2.
In South Korea, the rapid growth of eSports has led brands to increasingly invest in innovative sponsorship strategies to engage younger, tech-savvy audiences.

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

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Analyst Opinion

The eSports market in South Korea is seeing minimal growth due to factors such as limited sponsorship opportunities and the dominance of traditional sports. Despite this, the market is expected to continue growing as digital platforms and technologies gain popularity in the region.

Customer preferences: As eSports continues to gain mainstream popularity in South Korea, brands are increasingly investing in sponsorship and advertising opportunities within the market. This trend is driven by the changing preferences of consumers, who are now seeking more immersive and interactive experiences. With a growing number of young adults and teenagers engaging in eSports, brands are also leveraging influencer marketing strategies to reach this demographic. Additionally, cultural nuances play a significant role in shaping sponsorship and advertising strategies, with brands tapping into the country's strong gaming culture and the widespread use of technology.

Trends in the market: In South Korea, the eSports market is experiencing a surge in popularity and this has led to a significant increase in sponsorship and advertising opportunities. Major brands are investing in eSports teams and events, with a focus on reaching the younger demographic that makes up a large portion of the eSports audience. This trend is expected to continue as the eSports industry continues to grow and gain mainstream recognition. As a result, stakeholders in the industry, such as eSports teams, event organizers, and advertisers, are seeing increased revenue and opportunities for collaboration. This trend also highlights the potential for eSports to become a major player in the overall sports and entertainment market, with implications for traditional sports and media industries.

Local special circumstances: In South Korea, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's strong gaming culture and advanced technological infrastructure. With a large and dedicated fan base, eSports tournaments and events attract significant sponsorships and advertising opportunities. Furthermore, the government's support for the industry through initiatives such as the creation of the Korea e-Sports Association has helped establish the country as a major player in the global eSports market. Additionally, South Korea's strict regulations on online advertising have led to the development of innovative and creative advertising strategies to reach the highly engaged gaming audience.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in South Korea is heavily influenced by macroeconomic factors such as the country's strong economic growth, favorable regulatory environment, and increasing investment in digital technologies. With a booming economy and a supportive government, South Korea offers a conducive environment for businesses to thrive in the eSports industry. Furthermore, the growing popularity of eSports among the younger population and the increasing digitalization of media and entertainment are also contributing to the growth of the Sponsorship & Advertising Market within the eSports Market in South Korea. These factors are expected to drive the market's growth in the near future, making South Korea a key player in the global eSports market.

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.