Sponsorship & Advertising - Denmark

Denmark

Highlights

In Denmark, revenue in the Sponsorship & Advertising market market is projected to reach US$5.8m in 2024.
It is expected that revenue will show an annual growth rate (CAGR 2024-2029) of 7.88%, resulting in a projected market volume of US$8.5m by 2029.
While the projected market volume of US$288.9m in 2024 indicates significant activity, most revenue is generated China.
The average revenue per user (ARPU) in Denmark is expected to amount to US$1.0.
Denmark's burgeoning eSports scene is attracting significant sponsorship and advertising investments, reflecting a growing recognition of its potential within the digital entertainment landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Denmark has seen subdued growth in the sponsorship and advertising sector. Factors such as limited consumer awareness and lack of established infrastructure are impacting the growth rate.

Customer preferences: As the eSports market continues to grow in Denmark, there has been a noticeable increase in the use of influencer marketing and branded content in sponsorship and advertising. This trend is driven by the rise of social media and a younger demographic that prioritizes authenticity and relatability in their interactions with brands. Additionally, with the ongoing pandemic, virtual events and online tournaments have become the norm, providing opportunities for companies to reach a wider audience through online advertising and partnerships with popular eSports teams and individual players.

Trends in the market: In Denmark, the Sponsorship & Advertising Market within the eSports Market is experiencing a surge in influencer marketing, with brands partnering with popular eSports players and teams to reach a wider audience. This trend is expected to continue, as eSports gains more mainstream recognition and attracts larger sponsorships. Additionally, the use of live streaming platforms like Twitch and YouTube for advertising is becoming more prevalent, providing a unique opportunity for brands to engage with the highly engaged eSports community. This trend is significant as it allows for a more targeted and authentic approach to advertising, and has the potential to bring in significant revenue for both the eSports industry and its sponsors. However, it also raises some concerns about transparency and ethics in advertising, as regulations in this area are still developing.

Local special circumstances: In Denmark, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the country's strong support for digital infrastructure and its tech-savvy population. As a result, the market has seen a rise in innovative sponsorship and advertising strategies, such as interactive in-game ads and partnerships with popular local influencers. Additionally, Denmark's strict regulations on gambling and advertising have also shaped the market, leading to a more responsible and sustainable approach to sponsorships and partnerships in the eSports industry.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Denmark is heavily influenced by macroeconomic factors such as the country's overall economic performance, government policies, and global economic trends. Denmark has a strong economy with a high GDP per capita, which provides a favorable environment for businesses to invest in the eSports market. Furthermore, the country's favorable regulatory environment and support for innovation and technology play a crucial role in driving the growth of the eSports market. Additionally, the rising popularity of eSports among the younger population and the increasing investment in digital media are contributing to the growth of the Sponsorship & Advertising Market within the eSports Market in Denmark.

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.