Sponsorship & Advertising - Europe

In Europe, revenue in the Sponsorship & Advertising market market is projected to reach US$286.5m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.27%, leading to a projected market volume of US$406.9m by 2029.
Although most revenue is generated China, in Europe is anticipated to have a projected market volume of US$288.9m in 2024.
The average revenue per user (ARPU) in Europe is expected to amount to 0.00.
As the eSports scene in Germany continues to flourish, brands are increasingly aligning their sponsorship strategies to engage the country's youthful gaming demographic.

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 Europe is experiencing subdued growth due to various factors, including the impact of COVID-19, limited sponsorship and advertising opportunities, and the slow adoption of digital technologies by traditional sports organizations. However, the market is expected to grow as the popularity of eSports continues to rise and brands see the potential for lucrative partnerships.

Customer preferences: The growing popularity of eSports has led to an increase in demand for sponsorships and advertising opportunities among brands looking to reach the highly engaged fan base. As the market continues to mature, there has been a noticeable shift towards more targeted and authentic partnerships, with a focus on reaching niche audiences and integrating with the gaming community. This trend is driven by the recognition of the unique cultural nuances and preferences within the eSports market, as well as the evolving lifestyle factors of the predominantly young and tech-savvy demographic.

Trends in the market: In Europe, the eSports market is experiencing a surge in sponsorship and advertising, with brands increasingly recognizing the potential for reaching a highly engaged and tech-savvy audience. This trend is expected to continue as eSports continues to gain mainstream recognition and attract major investments from traditional sports organizations. Industry stakeholders are also seeing an influx of non-endemic sponsors, such as luxury brands and financial institutions, further legitimizing the market and increasing its revenue potential. This shift towards more diverse and high-profile sponsorships has the potential to significantly impact the growth and sustainability of the eSports market in Europe.

Local special circumstances: In Europe, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the region's strong presence in traditional sports, as well as its tech-savvy population. Additionally, the diverse cultures and languages in Europe present a challenge for advertisers, who must tailor their campaigns to specific countries. Furthermore, regulations around advertising and sports gambling vary greatly between European countries, making it crucial for sponsors to navigate these differences in order to effectively reach their target audience.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Europe is heavily impacted by macroeconomic factors such as economic stability, consumer spending, and government policies. Countries with strong economies and a high level of consumer spending tend to attract more sponsorships and advertising investments in the eSports market. Additionally, favorable government policies and regulations that support the growth of the eSports industry also contribute to the market's performance. Furthermore, the increasing popularity of eSports globally and the rise of digital media consumption are driving the demand for sponsorship and advertising opportunities in 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.