The gaming industry is one of the largest global industries by revenue. In 2018, it reached $43 billion – an impressive increase over 2017. Furthermore, projections indicate that esports will surpass $1 billion in annual revenue by 2022.
The esports industry is a highly profitable one, with many players, teams, and tournament organizers looking to make a profit from it. But before you jump in there are a few things you should keep in mind:
Gamerji – Online Electronic Sports Platform: June 2022 This company launched an online platform to connect Middle Eastern gamers with one another. They hope to attract 2.5 million users within the region through this service.
Newzoo’s Electronic Sports Market Report for January 2020 projects the esports industry to grow at an annual compound growth rate (CAGR) of 28% from 2019-2022 (Chart 4), driven by technological advancements that enable and promote eSports and its fans.
Esports, unlike traditional sports, is a competitive video game. Teams that specialize in one particular title compete against each other to win cash prizes. Though this form of entertainment is relatively new, it has quickly gained momentum.
The gaming and esports ecosystem is expanding at an incredible rate, becoming increasingly popular around the world. As such, brands have several avenues to enter this booming sector.
Brands targeting Generation Z are capitalizing on the rise of eSports and live streaming to connect with fans. These brands are taking advantage of Gen Z’s social media savvy and affinity for gaming in order to build engagement, loyalty, and awareness for their products and services.
They have experienced an impressive surge in sales and are now expanding internationally. This trend is predicted to continue as gaming and esports gain wider acceptance.
In addition to the growing popularity of eSports, there are other trends that could shape its future. These include an influx of new players, expansion in new markets, and the rise of digital platforms.
eSports Franchising and Revenue Sharing: In June 2016, Riot Games, the publisher of League of Legends, announced they were considering franchising their gaming franchise to select players and teams. The idea is to create a league of professional gamers competing for a portion of the publisher’s profits.
Riot recently declined several requests from esports players and teams for new revenue sharing deals, but with franchising on the horizon this power dynamic could change drastically.
No matter the changes taking place, gaming and esports remain a significant market that continues to expand. Therefore, brands must understand the various facets of this rapidly expanding sector in order to maximize their benefits from it.