Valuing the total eSports revenue at $892.8M in 2016E, year-over-year revenue growth is largely a result of more brands and advertisers entering the market. Direct consumer revenue grew 36% YoY, as eSports enthusiasts spend $231M on tickets, merchandise and prize pool contributions, among others. Asia, worth $328M, still leads the market, but is giving way to North America and Europe. By 2018E, the market is set to reach $1.1B with the growth of direct revenue source sources such as betting sites and amateur tournament platforms.
Direct consumer revenue grew 36% YoY, as eSports enthusiasts spend $231M on tickets, merchandise and prize pool contributions, among others. eSports audiences are predominantly male (85%), and nearly half (46%) are between 18 and 25 years old. eSports are becoming more mainstream and that has attracted traditional media channels like TBS and ESPN. So far, fans have had to seek out platforms to watch tournaments and players, but now people can stumble upon eSports while flipping through channels. Even old-fashioned brands are taking notice and there is a growing interest in advertising to the coveted millennial male demographic on a medium they know well.
In the past year, we’ve been working together with both our publisher clients and brand owners to map out the market for competitive gaming and help them identify key areas and opportunities. In addition to mapping out the overall market and its trends, the Spring 2016 eSports Report breaks down the revenue distribution between direct consumer monetization (e.g., fantasy and betting sites, merchandise) and indirect revenue (e.g., advertising).
Key findings include:
A few questions answered by the report: