Sponsorship & Advertising - Africa

In Africa, revenue in the Sponsorship & Advertising market market is projected to reach US$8.2m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 6.27%, resulting in a projected market volume of US$11.1m by 2029.
While a projected market volume of US$288.9m in 2024 indicates significant activity, most revenue is generated China.
Additionally, the average revenue per user (ARPU) in Africa is expected to amount to 0.00.
In South Africa, the burgeoning eSports scene is attracting significant sponsorship deals, reflecting a growing recognition of gaming as a mainstream entertainment avenue.

Definition:

Esports Sponsorship & Advertising refers to the marketing and promotional activities within the competitive gaming industry, where brands engage with the esports audience by sponsoring teams, tournaments, players, or events, and through targeted advertising across various digital platforms. This market leverages the global popularity of esports, reaching millions of engaged fans through live-streaming platforms, social media, and in-game advertising. It encompasses a range of strategies, from brand placement and endorsements to integrated campaigns that enhance visibility and consumer interaction. The goal is to connect with a young, tech-savvy audience, driving brand awareness and loyalty in a rapidly growing, highly dynamic sector.

Additional information:

The market comprises ad spendings. Sales channel data shows online revenues. All monetary figures refer to the annual gross revenue.
Key players of the market include companies or teams such as FaZe, Cloud9 or TSM.
For more information on the data displayed, use the info button right next to the boxes.

Deals for sponsoring an Esport event
Product Placement
Sponsoring Esport Teams
Payments by brands for the use of the Esport Team
Advertising sold as part of a sponsorship package

Sponsorship outside of the Esports ecosystem
Advertising outside of the Esports ecosystem

The eSports market in Africa is seeing minimal growth due to factors such as limited sponsor interest and low advertising investments. The region's slow economic development may also be impacting the market's growth rate.

Customer preferences: As the eSports market continues to expand in Africa, the Sponsorship & Advertising Market is witnessing a rise in demand for localized and culturally relevant content. This trend is driven by the growing popularity of African eSports players and teams, who are gaining a loyal fan base within their communities. As a result, brands are increasingly collaborating with these local players and teams to tap into their strong fan following and promote their products and services. This shift towards localized sponsorship and advertising is also fueled by the growing availability of regional streaming platforms and online gaming communities, catering to the unique preferences and interests of African consumers.

Trends in the market: In Africa, the eSports market is experiencing a surge in sponsorship and advertising opportunities as the region's gaming industry continues to grow. Brands are taking notice of the potential for reaching a young and tech-savvy audience through eSports events and teams. This trend is expected to continue as the African market for eSports expands, with major players such as South Africa and Nigeria leading the way. As more companies invest in sponsorship and advertising in the African eSports market, it will create new revenue streams for both industry stakeholders and content creators. This could also lead to the development of localized marketing strategies that cater to the unique cultural and social dynamics of the African market.

Local special circumstances: In Africa, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the continent's increasing access to technology and widespread use of social media. With a young and tech-savvy population, eSports sponsorships and advertising opportunities are in high demand. Additionally, local regulations and cultural norms may affect the types of sponsorships and advertisements that are accepted, leading to unique strategies and partnerships in different regions.

Underlying macroeconomic factors: In Africa, the Sponsorship & Advertising Market within the eSports Market is significantly impacted by macroeconomic factors such as the region's economic health and fiscal policies. The overall economic stability of the continent, as well as global economic trends, can influence the growth and development of the market. Additionally, favorable regulatory environments and investments in digital infrastructure can drive market growth, while limited funding and regulatory challenges can hinder the market's progress. The increasing popularity of eSports and the growing young population in Africa also play a crucial role in driving demand for sponsorship and advertising opportunities within the market.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

The rapidly growing phenomenon surrounding eSports continues to gather steam. The intersection of gaming and sports offers an innovative wave of branding opportunities, engaging content and activations for millions across the world. It therefore comes as no surprise that the size of the global eSports market is expected to increase more than fivefold between 2023 and 2032, reaching a value of over 10 billion U.S. dollars within the next ten years.