Esports industry to reach $1.1B global revenue in 2019

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SG Esports and Sports Geek founder Sean Callanan appeared on Sky News Australia's Business of Sports program to discuss esports.

Check out the video above for an in-depth look at the rapidly growing esports industry.

Which Revenue Streams Are Driving Growth?

A report from marketing research company Newzoo shows that esports revenues were just over $900 million in 2018.

The industry is projected to grow to around $1.1 billion by the end of 2019 and all the way to $1.65 billion by 2021, with the huge growth in revenue largely being driven by brand sponsorships, media rights deals and advertising sales.
Newzoo - Esports Revenue Streams 2019

Source: Newzoo | 2019 Global Esports Market Report

Sponsorship

The largest revenue stream by a considerable margin is sponsorships, which currently make up roughly 40% of the industry's earnings.

As is the case with conventional sports, sponsorship deals are mutually beneficial for both leagues and sponsors.

With naming rights and patches on teams and tournaments around the world, big companies receive a ton of recognition and advertising from all of the millions of viewers around the world watching and supporting these teams.

Advertising

Much like sponsorship deals, companies are looking to take advantage of the massive audiences that esports draw in through advertising.

Esports has a global audience of 454 million people, allowing the industry to bring in roughly 19% of its revenue through advertising dollars.
Esports Audience
Prize Money

Due to the increasing revenue from advertising and sponsorship, prize money has increased dramatically in only a number of years for esports tournaments.

As you can see from this graph, tournaments with the most viewers, most sponsors and most advertising are able to be as successful as they are because of the high quality players involved in the tournament.

Lucrative prize money ensures the participation of the best players in any given esports game.

The prize money offered by leading esports tournaments is now surpassing some of the biggest traditional sporting events around the world.
Graph - Esports Prize Money
How Can Brands Get Involved In Esports?

Money In Esports Summit

Learn more about the opportunities esports presents for brands, marketers and investors at the Money In Esports Summit featuring Sean Callanan, Founder at SG Esports, alongside industry leaders as they take to the stage to discuss the world's fastest growing sports category.

Free Download: Connecting Brands With Esports Report

This report by SG Esports provides marketers with a detailed understanding of:

The esports landscape
Esports audiences
Sponsorship trends and opportunities
Case studies from Shell, Mercedes & Kia
Building your esports strategy
Why brands need to act now

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Money In Sport: Perth Photos & Wrap Up

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The Money In Sport Summit Series headed to Perth for the first time on 16 July inside Optus Stadium during one of the city's biggest sporting weeks.

On the eve of the huge match between Manchester United and Leeds United, we were delighted to host Paul Bell, Executive Director at Leeds United along with senior executives from leading clubs, brands and sporting organisations across Australia for a morning of insights, discussion and networking.

Brodie Carr, Managing Director at Tourism Western Australia, kicked off the morning with some opening remarks followed by a keynote presentation from Simon Millar, GM Commercial & Marketing at ICC T20 World Cup.

"The investment in marketing and promotion for the 2020 Women's #T20WorldCup will be equal to or greater than the men's tournament"- Simon Millar, GM Commercial & Marketing @T20WorldCup #moneyinsport #optusstadium

— Money In Sport (@MoneyInSportAus) July 16, 2019

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The panel discussions that followed featured leading executives from local and international sport, with a major focus on:

The challenge of attracting major international events and how they benefit the host city;
How clubs and brands can stand out in such a crowded sporting landscape;
And innovative partnerships that are keeping fans engaged while delivering for both partners.

"Before we had an asset like @OptusStadium we would've struggled to attract major events like the @ManUtd and @LUFC matches" - Brodie Carr, Managing Director at Tourism WA#moneyinsport #optusstadium #perth #majorevents pic.twitter.com/wC1i3H0n27

— Money In Sport (@MoneyInSportAus) July 16, 2019

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Food delivered from outside the stadium to your seat? Discussing innovative partnerships from @LUFC and food delivery partner @Deliveroo for hospitality suites inside the stadium #moneyinsport #stadiumpartnerships pic.twitter.com/nXtPitaUFK

— Money In Sport (@MoneyInSportAus) July 16, 2019

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MOney In Sport: Perth Gallery