eSports Sponsorship Will Hit $584 Million in 2020
The entire eSports ecosystem has boomed in recent years, with more and more viewers tuning in to watch their favorite games being played by some of the best gamers in the world. The surge in the number of eSports fans opened up a new market for brands and advertisers to sell their products and led to the impressive growth of sponsorships as the largest revenue stream of the eSports industry.
According to data presented by SafeBettingSites.com, eSports sponsorships are forecast to grow by 7.5% year-over-year and hit $584 million in 2020, 61% of the global gaming industry revenue this year. Digital Revenues to Surge by 60.9% YoY, Merchandise and Tickets Plunge by 50.3%.
The COVID-19 crisis left a significant impact on the global gaming industry, causing a revised revenue forecast for 2020. Just a few months ago, Newzoo estimated eSports sponsorships to grow by a CARG of 16.6% and generate $636.9 million in revenue this year. However, after analyzing the most recent data, research, and actuals from companies in the market, the eSports sponsorships estimates were revised to $584.1 million, or 8.2% less than before.
The new data also revealed that media rights revenues are expected to grow by 3.3% YoY to $163.3 million, 11% less than earlier estimates. Streaming revenues are forecast to surge by 44.9% year-over-year to $19.9 million, a 9% increase from the previous Newzoo report. However, statistics show digital revenues are set to witness the most impressive growth in 2020, rising by CARG of 60.9% to $21.5 million.
On the other hand, further eSports event delays and cancelations due to the COVID-19 outbreak continue causing considerable drops in publisher fees and merchandise and ticket revenues. Owing to the pandemic, Newzoo revised its 2020 forecast for merchandise and tickets downward from $76.2 million to $52.5 million, a 50.3% fall compared to 2019 figures.
Statistics show the entire Esports industry revenue is expected to drop 0.8% year-over-year to $950.3 million in 2020. However, this figure is forecast to surge by 68% in the next three years and touch $1.6bn. Analyzed by industry, consumer goods brands lead in eSports sponsorships, revealed Statista and Sportcal data.
In 2019, companies from this market spent an estimated $21.8 million on sponsorships within the eSports market. The technology sector followed with $15.9 million in sponsorship deals. Brands from the clothing market ranked in third place with $13.3 million worth of deals. Beverage, financial services, and automotive industry followed, with $4.7 million, $4.6 million, and $4 million, respectively.
Statistics show that brands from the gaming and gambling market, sports equipment, and business services industry were on the other side of the list with $3.5 million, $3.2 million, and $2.8 million in eSports sponsorships deals last year.