Market Insights Advertising & Media Esports

Sponsorship & Advertising - United Kingdom

United Kingdom

In the United Kingdom, revenue in the Sponsorship & Advertising market market is projected to reach €22.9m in 2024.
This revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.69%, leading to a projected market volume of €34.7m by 2029.
While most revenue is generated China, the projected market volume in the United Kingdom is expected to be €267.9m in 2024.
Furthermore, the average revenue per user (ARPU) in the United Kingdom is anticipated to amount to €0.3.
The United Kingdom's eSports sponsorship and advertising landscape is increasingly attracting major brands, reflecting a growing recognition of the sector's vibrant and engaged audience.

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

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Analyst Opinion

The eSports market in the United Kingdom is seeing subdued growth due to factors such as limited sponsorships and advertising opportunities. Despite the rising popularity of eSports, the market's growth rate is being impacted by the slow adoption of digital technologies and lower health awareness among consumers. However, with the increasing convenience of online services, it is expected that the market will experience significant growth in the coming years.

Customer preferences: There has been a significant rise in the use of virtual and augmented reality technology in the eSports industry, creating new opportunities for sponsorship and advertising. These immersive technologies allow for a more engaging and interactive experience for viewers, leading to increased brand exposure and consumer engagement. Additionally, with the rise of live streaming platforms and social media, there is a growing trend towards influencer marketing, where popular eSports players and teams are leveraged as brand ambassadors. This shift reflects the increasing importance of authenticity and personal connections in consumer preferences, as well as the impact of social media on shaping consumer behavior.

Trends in the market: In the United Kingdom, the Sponsorship & Advertising Market within the eSports Market is experiencing a surge in brand partnerships and collaborations. Companies are increasingly recognizing the potential of eSports as an effective marketing channel to reach a highly engaged and tech-savvy audience. This trend is expected to continue as eSports continues to gain mainstream recognition and attract larger audiences. Additionally, the rise of influencer marketing in the eSports industry is providing new opportunities for brands to connect with their target demographic. This trend is likely to have a significant impact on industry stakeholders, including eSports organizations, brands, and advertising agencies, as they adjust their strategies to capitalize on this growing trend.

Local special circumstances: In the United Kingdom, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's strong presence in the gaming industry and its high level of internet usage. Additionally, the UK's diverse and multicultural population allows for targeted advertising and sponsoring strategies catered towards specific demographics. The country's strict regulations on gambling and advertising also play a role in shaping the market, with restrictions on certain types of advertising and sponsorships in the eSports industry. These unique local factors contribute to the dynamic and growing Sponsorship & Advertising Market within the eSports Market in the UK.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in the United Kingdom is influenced by various macroeconomic factors, including the overall economic health of the country, global economic trends, and fiscal policies. The UK's strong economy and favorable regulatory environment have made it an attractive market for investment in the eSports industry. Additionally, the country's high internet penetration and growing popularity of eSports among young audiences have also contributed to the market's growth. However, the ongoing Brexit negotiations and potential impact on trade and investment may present challenges for the eSports market in the UK.

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.