Sponsorship & Advertising - Nigeria

Nigeria

Highlights

In Nigeria, revenue in the Sponsorship & Advertising market market is projected to reach US$1.4m in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 8.18%, leading to a forecasted market volume of US$2.1m by 2029.
Although most revenue in the global context is generated China, the market dynamics in Nigeria may differ.
The average revenue per user (ARPU) in Nigeria is anticipated to amount to US$0.0.
Nigeria's burgeoning youth demographic is driving increased investment in eSports sponsorship and advertising, highlighting the sector's potential for significant growth and engagement.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Nigeria is witnessing a steady growth rate, impacted by factors such as limited sponsorships and advertising opportunities. Despite the rising popularity of digital platforms, the market is still facing challenges in attracting investments and partnerships. This can be attributed to the relatively new and niche nature of the industry in Nigeria, as well as the lack of infrastructure and resources compared to more developed regions. However, with the increasing awareness and interest in eSports, the market is expected to experience gradual growth in the coming years.

Customer preferences: With the rapid growth of the eSports market in Nigeria, there has been a noticeable increase in the number of sponsorship and advertising opportunities available. This is due to the shifting preferences of consumers towards digital content and gaming, particularly among the younger generation. Additionally, with the rise of influencers and social media, brands are now leveraging eSports as a strategic marketing tool to reach a highly engaged and tech-savvy audience. This trend is expected to continue as the eSports industry in Nigeria continues to expand and attract more mainstream attention.

Trends in the market: In Nigeria, the eSports market is growing rapidly, with a significant increase in sponsorship and advertising opportunities. This trend is driven by the rise of local and international gaming events, as well as the increased popularity of eSports among younger generations. As a result, companies in the region are increasingly investing in eSports sponsorships and advertising to reach this growing audience. This trend is expected to continue in the coming years, with the potential for even more partnerships and collaborations between eSports organizations and brands. This presents a significant opportunity for industry stakeholders, including eSports teams, event organizers, and advertisers, to tap into this emerging market and drive revenue growth. However, with the rapid growth of the market, there may also be challenges in ensuring effective and ethical advertising practices, especially in regards to targeting younger audiences. It is crucial for stakeholders to closely monitor and adapt to these trends to stay competitive and maximize their impact in the evolving eSports market in Nigeria.

Local special circumstances: In Nigeria, the eSports market is still in its early stages, but it has seen significant growth due to the increasing popularity of online gaming and the country's young population. The Sponsorship & Advertising market within the eSports market is also developing, with local brands and companies starting to recognize the potential of this industry. However, factors such as limited internet access, cultural preferences for traditional sports, and strict regulations on gambling may impact the growth and dynamics of this market.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Nigeria is heavily influenced by macroeconomic factors such as the country's economic stability, government policies and regulations, and overall investment in the gaming industry. With a growing middle class and increasing access to technology, the Nigerian market for eSports is expected to experience significant growth in the coming years. Additionally, the country's large youth population and their increasing interest in gaming and eSports present a lucrative opportunity for brands and advertisers to tap into this market. However, challenges such as limited infrastructure and political instability could hinder market growth.

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.