Sponsorship & Advertising - EU-27

EU-27

Highlights

Revenue in the Sponsorship & Advertising market market in the EU-27 is projected to reach US$215.0m in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 7.27%, resulting in a projected market volume of US$305.4m by 2029.
With a projected market volume of US$288.9m in 2024, most revenue in the global context is generated China.
The average revenue per user (ARPU) in the EU-27 is expected to amount to 0.00.
The EU-27 is witnessing a surge in innovative sponsorship strategies in the eSports market, reflecting a growing recognition of its cultural significance and audience engagement potential.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in EU-27 has seen a notable rise in sponsorship & advertising due to the growing adoption of digital platforms and increasing awareness among consumers. However, the market's growth rate is subdued, influenced by factors such as limited audience reach and competition from traditional sports.

Customer preferences: The eSports market is seeing a rise in sponsorships and advertising deals with non-endemic brands, as companies recognize the potential for reaching a highly engaged audience. Additionally, there has been a shift towards native advertising and influencer marketing, as consumers are increasingly drawn to authentic and relatable content. This trend is fueled by the rise of social media and the growing importance of influencer culture, particularly among younger demographics. As a result, brands are investing more in creating targeted and personalized campaigns that align with the values and interests of the eSports community.

Trends in the market: In EU-27, the Sponsorship & Advertising Market within the eSports Market is experiencing a surge in influencer marketing, with brands collaborating with popular eSports players and teams to reach a wider audience. Additionally, there is a growing trend of in-game advertising, where brands can directly advertise within the game itself. These trends are significant as they allow for more targeted and personalized advertising, while also helping to legitimize eSports as a lucrative market. However, it also raises concerns about the potential for over-commercialization and loss of authenticity in the industry. Stakeholders will need to carefully balance these trends in order to maintain the growth and credibility of the eSports market.

Local special circumstances: In the EU-27, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the region's strong presence in the traditional sports industry and its growing interest in eSports. This has led to partnerships between sports teams and eSports organizations, as well as the use of traditional sports marketing strategies in the eSports space. Additionally, strict regulations on advertising and sponsorship in certain EU countries, such as France and Germany, have impacted the market and forced companies to get creative with their marketing strategies. In contrast, countries such as Sweden and Denmark have more relaxed regulations, allowing for more innovative and targeted advertising and sponsorship efforts.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in the EU-27 is heavily influenced by macroeconomic factors such as the overall economic health of the region, consumer confidence, and government policies regarding advertising and sponsorships. Countries with strong economic growth and a thriving consumer market tend to attract more investment and sponsorships in the eSports industry. Additionally, the increasing popularity of eSports globally and the rise of digital advertising have also contributed to the growth of the market in the EU-27. Moreover, with the rise of online streaming platforms and social media, the market is expected to continue its upward trend 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.