The esports industry is experiencing explosive growth in both viewership and sponsorships. The increase in viewers can be attributed to the rise of streaming platforms like Twitch and YouTube, which make it easier for people to watch esports tournaments from anywhere in the world. Meanwhile, leading brands are sponsoring events and teams, with the esports economy estimated to reach $1.1 billion in 2020. The recent Fortnite World Cup drew 2.3 million concurrent viewers and had a $30 million prize pool, while Adidas partnered with esports team, Team Vitality. The esports industry is showing no signs of slowing down as it attracts more investors and sponsorships.

Esports industry sees explosive growth in viewership and sponsorships

Introduction

The esports industry has been experiencing an unprecedented growth in recent years. With its popularity spreading far and wide, the esports industry is fast becoming one of the most lucrative businesses in the world. As audience numbers continue to surge and sponsorships pour in, esports is set to take the world by storm. Let’s take a closer look at the factors that are contributing to the explosive growth of the esports industry.

Viewership

One of the biggest drivers of growth in the esports industry has been the increase in viewership. According to a report by Newzoo, a leading research firm, the number of esports viewers is set to reach 495 million by 2020. This figure represents a massive increase from the 335 million viewers recorded in 2017.

The rise of streaming platforms like Twitch and YouTube has made it easier for people to watch esports tournaments from anywhere in the world. With live streaming becoming more commonplace, esports has been able to capture the attention of people who may not have been able to access traditional sports broadcasts.

Sponsorships

Another major driving force behind the growth of the esports industry is sponsorships. Leading brands have been increasingly flocking towards the industry to sponsor events and teams. The eSports economy is estimated to reach $1.1 billion in 2020, with sponsorships making up a large part of the revenue. This is a huge increase from the $194 million in revenues recorded in 2014.

Esports sponsorships are attractive to companies because of the high level of engagement that they offer. Esports events can reach a massive audience, making them an ideal platform for marketers to promote their products and services.

Examples

A good example of the explosive growth of the esports industry is the recent Fortnite World Cup, which took place in July 2019. The event drew a total of 2.3 million concurrent viewers on Twitch, making it one of the most-watched esports events of all time. The prize pool for the event was $30 million, making it the largest ever offered for a single esports tournament.

Another example is the partnership between Adidas and the esports team, Team Vitality. The partnership involves Adidas providing Team Vitality with apparel and shoes that are tailored to the esports industry. The move signifies the growing interest of major brands in the esports industry.

Conclusion

The esports industry is showing no signs of slowing down. With its fast growth rate and huge audience numbers, it is set to become a major player in the world of sports and entertainment. As more investors enter the market and sponsorships continue to grow, the esports industry is poised for even greater success in the coming years.