BY Kathy Crosett
If your clients are wondering how to target young men with their next campaign, talk with them about the hot new gaming sector: esports. The VAB has just published an in-depth report on esports and the staggering amount of ad money this new passion is attracting.
Market Definition
Because esports is so new, the VAB outlined exactly what’s encompassed in the market. For example, all esports are video games, but not all video games are esports. Young men, in particular, don’t just play esports. They watch the competitions. They may watch these competitions in person, online via a streaming service like Twitch, or increasingly, on television. Don't be fooled into thinking the games are based on traditional sports. Esports contestants play titles like Call of Duty and Counter Strike.
Market Size
This year, over 450 million consumers will follow esports competitions globally. Promoters understand the size of their audience. In 2019, they’ll generate over $1.1 billion in revenue. And half of that amount will be spent in the U.S. The revenue picture for this fast-growing industry breaks out as follows:
- Sponsorship $456.7 million
- Advertising $189.2 million
- Media rights $251 million
- Game publishers Fees $95.2 million
- Merchandise and tickets $103.7 million
The Audience
Your clients should know that the esports audience is heavily millennial, 62 percent. In addition, 43% of esports fans have household incomes that exceed $75,000. And 58% have children living in their households.
The better news is that 43% of these fans notice brands during games and events. Over 60% say they’re willing to try products advertised during the games they watch. And 31% truly identify with their favorite teams’ sponsors and want to support them.
Esports viewers enjoy watching their favorite teams, think Cloud9 and TeamLiquid, battle the competition. They also cheer on favorite players like Scarlett and NOtail. Some of these players rack up earnings of over $1 million annually.
No doubt fans and amateur players envision themselves scoring huge wins in the near future. In the meantime, your clients can advertise to these folks. Whether it’s through event sponsorship, including U.S. college varsity esports programs, or more traditional media space, esports fans could prove to be a boost to their bottom line.
Check out the AudienceSCAN profile for Mobile Live Sporting Event Watchers at AdMall from SalesFuel and then talk with your clients about the best way to advertise to esports fans.