Market Insights Advertising & Media Esports

Sponsorship & Advertising - Worldwide

Worldwide

Revenue in the Sponsorship & Advertising market market in the world is projected to reach €0.9bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.02%, resulting in a projected market volume of €1.1bn by 2029.
With a projected market volume of €265.1m in 2024, most revenue is generated China.
The average revenue per user (ARPU) is expected to amount to 0.00.
Worldwide, the Sponsorship & Advertising market in eSports is witnessing an unprecedented surge as brands increasingly recognize the potential of engaging with younger, digitally-savvy audiences.

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

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Analyst Opinion

The eSports sponsorship & advertising market is experiencing minimal growth globally, influenced by factors like saturation of the market, limited audience reach, and competition from traditional sports. Despite this, digital technologies, increasing awareness, and convenience still drive some growth.

Customer preferences: With the growing popularity of eSports, the Sponsorship & Advertising Market within the market has seen a surge in consumer preferences for authentic and engaging content. Brands are increasingly leveraging cultural nuances and demographic shifts to appeal to the diverse audience of eSports. Moreover, with the rise of influencer marketing and the importance of authenticity, advertisers are now focusing on creating partnerships that align with the values and interests of the eSports community. As a result, we can see a shift towards more targeted and personalized sponsorships and advertisements, catering to the unique lifestyles and interests of eSports enthusiasts.

Trends in the market: In the eSports market, the Sponsorship & Advertising sector is experiencing significant growth, with brands recognizing the potential of this industry. One trend that is gaining traction is the use of influencer marketing, where brands partner with popular players or teams to reach a wider audience. Additionally, virtual advertising within eSports events is becoming more prevalent, as it allows for targeted and measurable advertising. Another trend is the integration of traditional sports teams into the eSports world, creating new opportunities for sponsorships and advertising. These trends indicate the increasing mainstream acceptance of eSports, presenting lucrative opportunities for industry stakeholders to tap into this growing market.

Local special circumstances: In China, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's massive gaming industry and its large audience of gaming enthusiasts. The market is dominated by local brands and platforms, with traditional sports companies also entering the space. In South Korea, cultural factors play a significant role in the eSports market, with gaming considered a national pastime and top players achieving celebrity status. This has led to a thriving market for sponsorship and advertising deals, with a strong focus on technology and innovation.

Underlying macroeconomic factors: The Sponsorship & Advertising market within the eSports market is heavily impacted by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and financial indicators. Countries with a strong and stable economy, along with favorable regulatory environments, tend to attract more investment in eSports and therefore experience faster market growth. Additionally, the increasing popularity of eSports among both younger and older demographics worldwide has led to a higher demand for sponsorship and advertising opportunities, further driving the growth of this 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.