Sponsorship & Advertising - NAFTA

In NAFTA, revenue in the Sponsorship & Advertising market market is projected to reach US$211.1m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.98%, resulting in a projected market volume of US$256.6m by 2029.
With a projected market volume of US$288.9m in 2024, most revenue is generated China.
The average revenue per user (ARPU) in NAFTA is expected to amount to 0.00.
In the United States, the eSports sponsorship and advertising market is rapidly evolving, driven by increased brand engagement among younger audiences and innovative digital platforms.

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 NAFTA is experiencing minimal growth due to factors such as limited sponsorship and advertising opportunities, lack of mainstream recognition, and the dominance of traditional sports. However, with the increasing popularity of eSports among younger generations and the potential for global expansion, the market is expected to see significant growth in the coming years.

Customer preferences: With the growing popularity of eSports and its increasing mainstream appeal, the Sponsorship & Advertising Market within the eSports Market has seen a shift towards more diverse and inclusive branding and partnerships. Brands are now actively seeking out eSports teams and players from a variety of backgrounds to appeal to a wider audience and reflect the diversity of eSports fans. This trend is driven by the recognition of the importance of inclusivity and representation in connecting with audiences and cultivating brand loyalty.

Trends in the market: In the NAFTA region, there has been a significant increase in sponsorships and advertising partnerships within the eSports market. This trend can be attributed to the growing popularity of eSports, especially among younger demographics. With the rise of online streaming platforms and social media, there is a greater potential for reaching a global audience through sponsorships and advertising. This trend is expected to continue in the coming years, with brands recognizing the value of investing in this market. However, there may also be potential challenges in balancing commercial interests with the integrity and authenticity of the eSports community. This could lead to increased regulations and guidelines for sponsorships and advertising in the industry.

Local special circumstances: In the Sponsorship & Advertising Market within the eSports Market in NAFTA, local factors play a crucial role in shaping the market landscape. For instance, in the US, the market is driven by the large fan base and the high spending power of the population. In Canada, the eSports market is influenced by the country's strong tech industry and the popularity of gaming culture. In Mexico, the market is emerging due to the increasing adoption of internet and mobile devices, providing a promising platform for sponsorships and advertising opportunities. These unique factors contribute to the growth and development of the eSports market in the NAFTA region.

Underlying macroeconomic factors: The growth of the Sponsorship & Advertising Market within the eSports Market is also influenced by macroeconomic factors such as global economic trends, national economic health, fiscal policies, and other relevant financial indicators. Countries with stable and growing economies, as well as favorable fiscal policies, are experiencing higher market growth compared to countries with economic instability and unfavorable policies. Additionally, the increasing popularity and global reach of eSports are attracting more investment in advertising and sponsorship opportunities, further driving the growth of 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.