Sponsorship & Advertising - GCC | Statista Market Forecast

In the GCC, revenue in the Sponsorship & Advertising market market is projected to reach US$9.6m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.30%, leading to a projected market volume of US$13.1m by 2029.
Despite the GCC's market dynamics, the majority of revenue is generated China, with a projected market volume of US$288.9m in 2024.
The average revenue per user (ARPU) in the GCC is anticipated to amount to 0.00.
The GCC region is witnessing an increasing investment in eSports sponsorship and advertising, reflecting its growing acceptance and integration into mainstream entertainment.

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.
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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 GCC nan is witnessing average growth due to increasing sponsorship and advertising opportunities. Factors such as growing interest in eSports, rising digital consumption, and the convenience of online platforms are driving this growth.

Customer preferences: The eSports market in the GCC has seen a significant increase in sponsorship and advertising opportunities, as brands recognize the potential for reaching a highly engaged and tech-savvy audience. With the rise of mobile gaming and streaming platforms, companies are leveraging in-game and in-stream advertising to reach consumers. Additionally, there has been a growing trend towards brand partnerships and collaborations with popular eSports teams and players, as well as the integration of traditional sports sponsorships with eSports events. This shift reflects the evolving preferences of consumers, who are increasingly turning to digital forms of entertainment and advertising.

Trends in the market: In the GCC region, the eSports market is experiencing a rise in sponsorships and advertising, with major players like Red Bull and Coca-Cola investing heavily in the industry. This trend is expected to continue as eSports gain mainstream recognition and attract a wider audience. Additionally, there is a growing trend of utilizing influencers and social media platforms for advertising, providing new opportunities for brands to reach younger demographics. These developments signal a significant shift in the industry, with potential implications for stakeholders such as teams, players, and event organizers.

Local special circumstances: In the GCC region, the Sponsorship & Advertising Market within the eSports Market is unique due to the high disposable income and strong focus on technological advancements. With a growing interest in eSports and a young, tech-savvy population, the market has seen a surge in sponsorships and advertising deals. Additionally, government initiatives to promote the gaming industry and the region's central location for major eSports events have further boosted the market. However, strict regulations on content and advertising may pose challenges for market growth.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in the GCC is influenced by various macroeconomic factors, including global economic trends, national economic health, fiscal policies, and financial indicators. The growth and development of this market are directly impacted by the overall economic performance of the GCC countries, as well as their specific policies and regulations related to the eSports industry. Furthermore, the growing popularity of eSports globally and the increasing investments in this sector by major corporations and brands are also contributing to the growth of the Sponsorship & Advertising Market within the eSports Market in the GCC.

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.