Esports hits the Mainstream in 2018
Not too long ago, the idea that watching gamers play video games would generate as much interest as the Super Bowl would be laughable. Now in 2018 it is close to becoming a reality. Interest in esports is expanding quickly and the appetite for more coverage of the biggest competitions is at an all-time high.
This year, an esport tournament was given a trial run in the South Korea Olympics and esports are being considered as a medal event in 2024. More than 20 leading European football clubs, including Paris St. Germain, Manchester City and Ajax, have created esports teams to compete in international teams in the football simulator FIFA 18. The NBA is starting the NBA 2K league and has already started qualifying rounds.
Some live tournaments can attract tens of millions of online spectators, with concurrent viewing records being broken almost tournament-by-tournament. Top players can earn millions of dollars per year; the prize pool for the latest Dota tournament was more than $20 million.
Huge Industry Growth
The industry is growing much faster than experts had previously predicted. In 2017, the revenue generated by the esports industry beat predictions and surpassed $1.5bn, up 66% from $900m in 2016 (SuperData Research). As we go further into 2018, the Esports industry continues to thrive, building on the explosive growth experienced last year.
Media rights is possibly the fastest growing revenue stream, which is expected to generate $340m by 2020 (Nielsen) as traditional sports broadcasters such as Sky and ESPN start bidding against Twitch, Youtube and Facebook.
Early Sponsorship and advertising came from companies with ties to the gaming or computer industry. Now traditional brands are seeing the vast exposure available to them and beginning to get involved. According to Nielsen, over 600 sponsorship deals were struck in 2016–7. Large mainstream sponsors include Coca Cola, Airbus, Audi, Gillette and Bud Light.
Esports Audience Demographics
For advertisers, it is important to consider esports audience demographics. A study by Mindshare North America found that esports fans are typically high earners, with 43% having a household income of $75,000 or more. While 65% are aged between the ages of 18–34, 60% are aged between 25 and 39. Women make up a significant 38% proportion of the audience. This is very different to the video gamer stereotype and may surprise some.
Esports fans are deeply engaged in the pastime and are part of a demographic that can be difficult to reach through traditional media channels. Newzoo the games industry researcher, predicts that the global audience for esports will be close to 600m by 2020. Given that esports is still in its relative infancy, it represents a low-cost opportunity for advertisers to get involved as it grows and gains mainstream acceptance.
Esports Interactive Platform (EIP) is a decentralized marketing platform that will allow brands and companies of all sizes access to the global esports audience. The token sale, which extends from 4 April to 30 May 2018 is a fantastic opportunity for both advertisers and investors to become involved in this expanding market.
