Newzoo forecasts revenue growth in esports

Analytics company Newzoo forecasts that the global esports economy will reach $905 million in 2018, which is a 38% growth from the last year, as the brand investments increase by 4%. More than 75% of this is generated directly by sponsorship and advertisement deals, as well as through media rights and content licensing with both endemic and non-endemic brands.

Newzoo also shared some key stats, forecasts and observations:

• Ticket revenue generated by 588 major esports events in 2017 almost reached $60 million, compared to $32 million in 2016.
• Brands are projected invest $694 million in the industry, and this number can grow to $1.4 billion in 2021.
• Sponsorships are the biggest stream of revenue in esports, contributing $359.4 million in 2018; a sharp increase over $234.6 million in 2017.

Another analytics company Nielsen reported that the biggest presence in esports had energy drinks, fast food, PC tech and hardware, gaming software, esports news, and gaming chairs brands. The report shows that while the list is dominated by gaming-related endemic brands, food and drink sponsorships are always present as well.