Sponsorship & Advertising - Egypt

Egypt

Highlights

In Egypt, revenue in the Sponsorship & Advertising market market is projected to reach US$1.4m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 3.24%, resulting in a projected market volume of US$1.7m by 2029.
While most revenue is generated China, the projected market volume in Egypt is US$288.9m in 2024.
The average revenue per user (ARPU) in Egypt is expected to amount to US$0.0.
Egypt is witnessing a surge in eSports sponsorship and advertising, reflecting the youth's growing engagement with digital gaming platforms and competitive gaming events.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Egypt has seen a slow growth rate in the Sponsorship & Advertising sector. This can be attributed to limited funding and lack of awareness among potential sponsors. However, with the increasing popularity of eSports globally, we can expect this market to experience a steady growth in the near future.

Customer preferences: The rise of eSports has opened up new opportunities for brands to reach a highly engaged audience, leading to a significant increase in sponsorship and advertising investments. However, consumers are becoming increasingly selective about the brands they support and are looking for authentic and relevant partnerships. This has led to a shift towards more targeted and personalized campaigns, leveraging cultural nuances and tapping into the diverse demographics of the eSports community. As a result, brands are now focusing on creating unique and immersive experiences for their target audience, using innovative advertising strategies such as in-game sponsorships and influencer marketing.

Trends in the market: In Egypt, the eSports market is seeing a surge in sponsorship and advertising, with brands recognizing the potential of this rapidly growing industry. This trend is expected to continue as the eSports audience in the country continues to expand, attracting more investments and partnerships. The significance of this trend lies in the potential for brands to reach a young and tech-savvy audience through eSports events and online streaming platforms. Furthermore, the increasing popularity of eSports in Egypt could also lead to the development of a local eSports ecosystem, creating opportunities for local businesses and job growth in the industry. Overall, the rising trend of sponsorship and advertising in the Egyptian eSports market is a positive sign for industry stakeholders, indicating the market's potential for growth and monetization.

Local special circumstances: In Egypt, the eSports market has been on the rise thanks to the country's young and tech-savvy population as well as the government's efforts to promote digital entertainment. This has resulted in a high demand for eSports sponsorships and advertising opportunities, with local brands eager to tap into this growing market. Additionally, Egypt's strategic location in the Middle East and its strong cultural ties to gaming have made it a prime destination for international eSports events, further driving the growth of the sponsorship and advertising market. However, stringent regulations on advertising and gaming in the country may pose challenges for businesses looking to enter this market.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Egypt is heavily influenced by macroeconomic factors such as government policies, national economic health, and global economic trends. Countries with strong economic stability and favorable policies towards eSports are experiencing faster market growth compared to regions with economic challenges and limited government support. Additionally, the increasing popularity of eSports worldwide and the rise of digital advertising have created a high demand for sponsorship and advertising opportunities within the eSports market, further driving its growth in Egypt. With the rise of digitalization and technological advancements in the country, the Sponsorship & Advertising Market within the eSports Market is expected to continue its expansion in the coming years.

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.