According to the new market research report, published by MarketsandMarkets™, the market is expected to be worth USD 926.3 million in 2018 and is expected to reach USD 2,174.8 million by 2023, at a CAGR of 18.61% between 2018 and 2023. Media rights (subscription and online advertisement), tickets and merchandise, sponsorship and direct advertisement, and publisher fees are the major streams that contribute to the overall revenue generation of the esports market. The increasing popularity of video games and growing awareness about esports are the major factors driving the esports market.
Sponsorships and direct advertisements have a large contribution to the overall esports market revenue. In the recent years, sponsorship has witnessed a vast increase, bringing a whole new dimension to the concept of professional gaming. Sponsorships and direct advertisements offer various opportunities to the brand owners to directly reach to the game fans in an event. Booths, video displays, posters, freebies, interactive advertising, and many other creative methods facilitate this reach to the brands.
Further, the gamers form a highly dedicated audience, with a strong sense of brand loyalty; they tend to be loyal to their preferred products and brands. If brands succeed in attracting esports audience, they would successfully gain some long-term customers. Further, high prize pool events are also boosting the number of viewers and attracting top-level players, especially for offline esports tournaments. The increasing number of offline esports tournaments is providing opportunities for sponsors and advertisers to create brand awareness and loyalty among its customers.
None of this is surprising as the Esports community, through Twitch and Youtube, is growing day by day. Between selling out stadiums for live events to watching celebrities play online and over 500,000 people come to watch said celebrities play. It’s only a matter of time before the Esport market is a billion dollar industry.