Sponsorship & Advertising - South America

South America

Highlights

In South America, revenue in the Sponsorship & Advertising market market is projected to reach US$12.5m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.88%, resulting in a projected market volume of US$16.6m by 2029.
While the region does not lead in this sector, it is noteworthy that a significant portion of global revenue is generated China, with a projected market volume of US$288.9m in 2024.
The average revenue per user (ARPU) in South America is expected to amount to 0.00.
In South America, the growing popularity of eSports is compelling brands to increasingly invest in innovative sponsorship strategies to engage the region's youth demographic.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in South America is seeing moderate growth due to the increasing popularity of digital technologies, growing awareness of eSports among consumers, and the convenience of online services. However, subdued growth is being impacted by factors such as limited sponsorship opportunities and advertising regulations.

Customer preferences: There has been a significant increase in the use of virtual and augmented reality technologies in the Sponsorship & Advertising Market within the eSports Market. This is due to the growing demand for immersive and interactive experiences among consumers, especially in the younger demographic. Brands are now leveraging these technologies to enhance their sponsorships and advertising strategies, creating a more engaging and memorable experience for their target audience. This trend is also driven by the increasing popularity of eSports tournaments and events, which offer a unique platform for brands to reach a highly engaged and tech-savvy audience.

Trends in the market: In South America, the eSports market is experiencing a surge in sponsorship and advertising, with major brands investing in partnerships and collaborations with popular teams and players. This trend is expected to continue, driven by the region's growing gaming community and increasing interest in eSports. As the market matures, there is potential for more diversified and targeted advertising strategies, such as influencer marketing and virtual events. Additionally, the rise of streaming platforms and social media has opened up new avenues for brands to reach their target audience and engage with them in unique ways. This could lead to a more dynamic and competitive sponsorship landscape, with potential benefits for both industry stakeholders and the overall growth of the eSports market in South America.

Local special circumstances: In South America, the Sponsorship & Advertising Market within the eSports Market is heavily influenced by the region's strong passion for sports and gaming. Brazil, in particular, has a large gaming community and a rapidly growing eSports industry. This has led to a high demand for sponsorship and advertising opportunities, especially among younger demographics. Additionally, government regulations and cultural attitudes towards advertising and sponsorship may differ from other markets, impacting the strategies and tactics used by companies in this sector.

Underlying macroeconomic factors: The growth of the Sponsorship & Advertising Market within the eSports Market is heavily influenced by macroeconomic factors such as the overall health of the national economy, global economic trends, fiscal policies, and other financial indicators. Countries with strong economies and favorable fiscal policies are experiencing faster market growth compared to regions with economic challenges and limited government support. Moreover, the increasing popularity of eSports globally and the rise of online gaming communities are driving the demand for sponsorship and advertising opportunities in South America.

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.