Key regions: South Korea, United Kingdom, India, Europe, United States
The eSports market in G7 nan is witnessing minimal growth due to factors such as limited sponsorships and advertising opportunities, as well as the lack of mainstream recognition. Despite the increasing popularity of eSports, it still faces challenges in gaining widespread acceptance and attracting big-name sponsors. This slow growth rate is impacted by the limited marketing and investment opportunities in this emerging market.
Customer preferences: As eSports continues to gain mainstream popularity, brands are increasingly recognizing the potential for lucrative partnerships and sponsorships within the market. This trend is further fueled by the growing influence of Gen Z and millennials, who are avid consumers of eSports content and highly receptive to advertising within the space. As a result, we are seeing a shift towards more personalized and authentic sponsorships, with brands leveraging popular eSports personalities and influencers to connect with their target audience. This approach is driven by the desire to tap into the cultural nuances and preferences of the eSports community, ultimately leading to more effective and impactful advertising strategies.
Trends in the market: In G7 countries, the eSports market is experiencing a surge in Sponsorship & Advertising opportunities. Brands are increasingly recognizing the potential in reaching a highly engaged and young audience through eSports tournaments and leagues. In addition, the rise of influencer marketing within the gaming community is creating new avenues for brands to tap into. This trend is expected to continue, with the global eSports market projected to reach $1.1 billion by 2020. This presents lucrative opportunities for industry stakeholders such as game publishers, teams, and players to secure sponsorships and endorsements. However, as the market becomes more saturated, competition for sponsorships will intensify, leading to potentially higher costs for brands. In order to stand out, brands will need to carefully select partnerships and create authentic and engaging content that resonates with the eSports audience.
Local special circumstances: In South Korea, the Sponsorship & Advertising Market within the eSports Market has flourished due to the country's strong gaming culture and government support for the industry. With a highly connected population and a high demand for eSports content, South Korea has become a hub for advertising and sponsorships in the gaming world. Additionally, the country's strict regulations on traditional advertising have pushed companies to invest in eSports as a means of reaching their target audience.
Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market is impacted by macroeconomic factors such as the overall health of the national economy, global economic trends, fiscal policies, and other financial indicators. Countries with stable and growing economies are likely to see an increase in sponsorship and advertising opportunities in the eSports market. Additionally, regions with favorable regulatory environments and government support for the eSports industry are likely to experience faster market growth compared to areas with regulatory challenges and limited funding. The growing popularity of eSports, especially among younger demographics, is also 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.
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