Sponsorship & Advertising - Colombia

Colombia

Highlights

In Colombia, revenue in the Sponsorship & Advertising market market is projected to reach US$1.6m in 2024.
Revenue in this sector is expected to exhibit an annual growth rate (CAGR 2024-2029) of 5.42%, leading to a projected market volume of US$2.1m by 2029.
While most revenue is generated China, the projected market volume in Colombia is US$288.9m in 2024.
The average revenue per user (ARPU) in Colombia is expected to amount to US$0.0.
Colombia's burgeoning eSports scene is increasingly attracting both local and international brands seeking innovative sponsorship opportunities to engage with a young, tech-savvy audience.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Colombia is experiencing subdued growth due to factors such as limited sponsorships and advertising opportunities. Despite the rising popularity of eSports, the market is still in its early stages in Colombia, resulting in slower growth compared to other countries. However, with the increasing interest in eSports and the potential for lucrative sponsorships and advertising deals, the market is expected to see significant growth in the coming years.

Customer preferences: With the rapid growth of the eSports market in Colombia, there has been a noticeable increase in sponsorship and advertising opportunities within the industry. This can be attributed to the changing preferences of consumers, who are increasingly turning to digital platforms for entertainment and engagement. This trend is further fueled by the rise of social media and streaming platforms, creating new avenues for brands to connect with potential customers. Additionally, the younger demographic of eSports fans in Colombia is highly receptive to brand partnerships and endorsements, making it a lucrative market for companies looking to reach a niche audience. As the eSports market continues to expand, we can expect to see more innovative and creative approaches to sponsorship and advertising in order to capture the attention of this growing consumer base.

Trends in the market: In Colombia, the eSports industry is experiencing a surge in sponsorship and advertising, with major brands investing in partnerships with top teams and tournaments. This trend is driven by the increasing popularity of eSports among younger generations, as well as the potential for high return on investment in this rapidly growing market. As a result, we can expect to see even more brands entering the eSports space in Colombia, and the focus on innovative and engaging marketing strategies will continue to shape the industry landscape. This presents opportunities for stakeholders to tap into a new and lucrative market, but also creates competition and challenges for established players to stay relevant and stand out in a crowded field.

Local special circumstances: In Colombia, the Sponsorship & Advertising Market within the eSports Market is influenced by the country's growing gaming community and its rapidly expanding internet connectivity. The market is also impacted by the country's unique geography, with its diverse landscapes and widely dispersed population. Additionally, Colombia's regulatory environment, including its tax policies and government support for the eSports industry, plays a significant role in shaping the market's dynamics.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Colombia is influenced by various macroeconomic factors. These include the country's economic health, global economic trends, fiscal policies, and other relevant financial indicators. For instance, a strong economy with high levels of investment in the digital space and favorable regulatory environment can lead to faster market growth. On the other hand, regions with regulatory challenges and limited funding for digital technologies may experience slower market growth. Moreover, the growing popularity of eSports among the younger population and the increasing digitalization of the sports industry are also contributing to the growth of the Sponsorship & Advertising Market in Colombia.

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.