Esports industry to reach $1.1B global revenue in 2019

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

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