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According to Newzoo the esports industry will generate $1.1 billion in revenues by the end of 2019.
The growth of esports is seeing the industry cement its place among traditional sports leagues worldwide.
The increase of esports events and the awareness around them has come partly due to the investments and advertisements that renowned companies are putting in.
The new unprecedented highs in terms of income and the number of players are detailed in Newzoo’s Global Esports Market Report.
Global esports revenue is expected to reach the $1.1 billion mark by the end of the year, a 26.7% upsurge comparing to last year.
The investment by top global brands in terms of advertising, sponsorship and broadcasting rights is estimated to be at $897m, a figure around three times the 2015 revenue number. Sponsorship of course, holds the biggest share, as $456.7m is predicted to be generated through sponsorship this year.
For instance, Coca Cola agreed to become the Official Non-Alcoholic Beverage for the Overwatch League, a championship for Blizzard’s first-person shooter team game. The games industry powerhouse has also signed deals with other enormous global brands like Toyota, T-Mobile, HP and Intel.
Broadcasting rights also play a huge part in the rise of esports, as their contribution is estimated at $251.3m (+41.8% compared to last year).
Advertising claims a $189.2m while merchandise and ticketing for events is set to reach $103.7m.
Furthermore, the global esports audience is estimated to climb to 453.8 million people worldwide, representing year-on-year growth of 15%.
Newzoo claims that 201.2m of those people would be esports ‘enthusiasts’, a term that the analyst uses to describe people who watch at least one esports event per month. There will also be some 252.6m occasional viewers (people who watch the events out of curiosity or those who aren’t fanatically engaged).
Newzoo CEO Peter Warman said that the key to esports’ success has been to do with the immersive viewing experience that the internet channels (like Twitch) offer compared to traditional media (like TV).
He also added that the brands are taking advantage of this growth by implementing marketing and merchandising strategies within the sector, thus attracting more esports enthusiasts to purchase their products and services.
Warman also predicted that the industry expansion will see the first billion-dollar season for esports, which is only a taste of what is coming in the future.
Newzoo forecasts that esports revenues will reach almost $2bn by 2022, thus surpassing major football leagues like the French Ligue 1 and approaching the metrics of Formula One.
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