Global Brands to Spend $325 million on eSports in 2016 – Report
According to a new report released by market analysis firm, Newzoo, international brands are expected to spend $128 million on sponsoring eSports events in 2016.
Newzoo’s Global eSports report also notes that the same brands will look to sponsor another $197 million on advertising for eSports, centered primarily on video content.
In total, Newzoo estimates that brands will spend some $325 million on eSports this year, equivalent to about 70% of eSports revenues. By 2019, the market research firm estimates that brands would have spent some $800 million on eSports.
ESports’ rise as a spectator sports industry is achored heavily on the its young and desirable demographic: Millennials. More than half of eSports Enthusiasts globally are aged between 21 and 35.
Yahoo’s investment into eSports via Yahoo eSports announced launched in February was a clear attempt to attract the Millenial demographic. Newzoo notes that only 26% of its current audience are aged between 21 and 35 versus the 50% of eSports Enthusiasts who don’t visit Yahoo.
ESports has steadily attracted the attention of brands over the past few years. While earlier eSports events were dominated by computer gaming brands such as ASUS, Razer and Intel, recent eSports events have seen support from car manufacturers (Toyota, Honda) and Coca-Cola.
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