Market Insights Advertising & Media Esports

Sponsorship & Advertising - United States

United States

In the United States, revenue in the Sponsorship & Advertising market market is projected to reach €179.9m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.95%, resulting in a projected market volume of €218.3m by 2029.
Although most revenue is generated China, the projected market volume in the United States is €267.9m in 2024.
The average revenue per user (ARPU) in the United States is expected to amount to €0.5.
In the United States, the sponsorship and advertising landscape in eSports is rapidly evolving, with brands increasingly targeting younger, tech-savvy audiences.

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

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Analyst Opinion

The eSports market in the United States is seeing minimal growth due to factors such as increasing sponsorships and advertising, rising popularity among consumers, and the convenience of online platforms. The market's growth rate is impacted by the increasing competition and saturation within the industry.

Customer preferences: As the eSports market continues to grow, there has been a noticeable shift in consumer preferences towards more personalized and immersive experiences. This has led to an increase in demand for targeted and interactive advertising, as well as partnerships between eSports teams and brands that align with their values and appeal to their fan base. Additionally, the rise of influencer marketing in the eSports space has become a key strategy for brands looking to reach a highly engaged and tech-savvy audience. These changes reflect a cultural shift towards a more authentic and genuine approach to advertising, driven by the growing influence and purchasing power of younger generations in the United States.

Trends in the market: In the United States, the eSports market is experiencing a surge in sponsorship and advertising, with major brands like Coca-Cola, Intel, and Red Bull investing heavily in the industry. This trend is expected to continue as the eSports audience continues to grow and become more diverse. As a result, we can expect to see an increase in partnerships between eSports teams and brands, as well as more creative and targeted advertising strategies. This trend is significant as it not only brings in revenue for both the eSports industry and brands, but also solidifies the legitimacy and mainstream acceptance of eSports. Additionally, it opens up opportunities for smaller brands to enter the market and reach a highly engaged and loyal audience. However, this trend may also lead to concerns about the commercialization of eSports and the potential impact on the integrity of competitions.

Local special circumstances: In the United States, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's strong sports culture and the increasing popularity of eSports among younger generations. With a robust economy and high consumer spending, the US market offers attractive opportunities for brands looking to tap into the growing eSports audience. Furthermore, the country's relaxed regulatory environment and advanced technological infrastructure make it a prime location for hosting major eSports events and attracting top-tier sponsorships. However, the market is also highly competitive with a multitude of established players, making it essential for brands to create unique and culturally relevant strategies to stand out and appeal to the diverse American audience.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in the United States is strongly influenced by macroeconomic factors such as technological advancements, consumer spending, and government policies. The rapid growth of the eSports industry is driven by the increasing popularity of online gaming and the rise of digital platforms for live streaming and advertising. Additionally, the strong economy and high consumer spending in the US have created a lucrative market for companies looking to sponsor and advertise within the eSports space. Furthermore, government initiatives to support and promote the growth of the eSports industry have also played a significant role in driving market performance.

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.