Due to the widespread adoption of video games in daily life, esports has grown into a sizable worldwide industry. By 2022, more than 530 million people will be watching esports competitions, which turn to play video games into a spectator sport, predicts market research firm Newzoo. The growth of esports has attracted investor attention since it has the potential to provide significant financial benefits. You must be aware of the following if you are an esports investment.
Esports and its Scale
Esports sometimes called “electronic sports,” turn online gaming into a spectator sport. Except for seeing video gamers compete against one another online, the experience is analogous to going to a professional sporting event. Competent video gamers participate in “esports” leagues, a growing worldwide industry. Esports refers to events that feature a variety of video games, many ways traditional sports do with games like basketball, football, and other sports.
Contrary to common assumption, the esports industry is real, developing internationally, and investable; it is not just a phenomenon occurring in the basements of unemployed twenty-somethings. In reality, more than 380 million people worldwide watch esports both live and online. 43 million more people watched esports competitions like the League of Legends World Championship in 2016 than in Game 7 of the NBA Finals (31 million viewers).
Reasons why Esports is an excellent field for investing
· Before others, they aim to control the market
If you’re the kind who needs numbers to believe a point, here’s a large one: According to Newzoo. This company does market research on all things digital. Esports revenue is predicted to rise 38% from 2017 to a remarkable $905 million this year. By 2021, sales might reach $1.5 billion. This industry is growing quickly. The truth is that more and more esports teams are starting to invest in this market as more people become aware of what they are. PSG might be credited with creating connections between European football and esports.
· Sponsors and growth are a result of exposure
No team would protest if a partnership made more money, right? With the participation in esports competitions, the possibility for sponsorship from businesses that may not have been paying attention before expands. Football teams may be able to draw sponsors that are ready to invest in esports, particularly rather than more traditional sports, thanks to the diversity of competitions.
· Connect with New Market Segments
According to Activate, 62% of US esports viewers are between the ages of 18 and 34. 56% of US Gen Z men (aged 13 to 21) said unconventional sports (like esports) are more relevant to their generation than traditional sports. Marketers should be intrigued by the idea that this number has likely altered dramatically in recent years to understand how easily a certain target group. It is possible to recreate the love and passion for conventional sports as we know them in that market group, but not necessarily in the same way.
· Fans who are devoted and wealthy
Esports fans are willing to pay for their hobby in a variety of ways, such as subscribing to streaming services ($4.99 to $24.99 per month on Twitch, depending on the tier), buying tickets and merchandise ($90 million is expected to be spent on these in 2018), and making donations to professional players ($500,000+ per month, according to Ninja, one of the most well-known streamers).
Big brands are already investing in teams and tournaments:
Different methods that brands participate in esports events include:
· Funding
The finest marketing strategies for brands incorporate professional players, game-specific elements, and sponsorship of esports teams, competitions, and product placements. Since 2016, there have been over 600 esports sponsorship deals struck. While most of them have been made by gaming, technology, and consumer electronics businesses (endemic ones), non-endemic participation is also increasing. This has been shown by brands including Coca-Cola, Red Bull, Mercedes-Benz, Audi, McDonald’s, HTC, and others.
· Marketing
On platforms like Twitch, advertising is seen when streaming live video or watching content on demand. TV shows that focus on esports may also include commercials. Even though it is less popular than sponsorships, advertising is nevertheless expected to be significant in esports in 2018.
Conclusion
There has never been a better time than today to consider investing in the esports industry. There are various essential things to remember in this situation and many opportunities for action. As esports begin to have a more significant social impact, finding these opportunities may become more complex. If you’re searching for the optimum time to do so, now is the time to consider what the esports industry could have to offer an investment.