What’s more, Asia-Pacific leads the global esports market and is projected to capture the largest market share, with $1.5 billion by 2022, according to a study from Activate. Close behind, Europe and the US tie for second at $1.2 billion.
“The US is a natural growth opportunity for esports because of the strong gaming culture here, the ties between gaming and sports, and the country’s natural inclination toward competitive endeavors. The same is true of Western European markets, particularly the UK, Germany, and France,” Verna said.
Somewhat behind the curve due to the lack of fixed broadband, Latin America will account for just $100 million of esports market share by 2022. However, growth is expected in Brazil and Mexico, where esports is officially recognized as a sport.
What This Means for Marketers
With such expansive reach, it’s no surprise that marketers have taken note. According to Newzoo, global “brand investment revenues”—including advertising and scholarships—will nearly double from $694 million in 2018 to $1.39 billion by 2021.
But in today’s fast-paced society, it’s necessary to mirror esports’ form when it comes to implementing advertisements in that space.
Joshua Dyck, associate professor and co-director of the Center for Public Opinion at the University of Massachusetts, Lowell, says that people—teens specifically—can be receptive to esports marketing depending on execution. Dyck explains that “the important thing to look at is whether the ad slows down play performance. If the ad forces people to watch a 30-second spot, it will probably make them angry. Part of the enjoyment comes from the continuous play.”
Verna adds that the majority of the esports market is young and is “therefore less likely to be reached through traditional ad channels than an older TV audience,” saying that “sponsorships and endorsements are equally viable for marketers whose brands align with the target audience.”