Brand Strategies: Esports
WGSN: Insight
Esports have suffered at the hands of an attention and financial recession, but with the market set to value $6.75bn by 2030, brands still have reason to embrace this space. This report explores the opportunities for partnerships and provides key strategies to capture and convert the diverse gamer community.
Analysis
While the industry is facing economic hardships and growth issues, the esports
fanbase is still set to spike to 577 million by 2024.
In the US alone, it’s estimated there will be 34.8 million esports viewers by 2026, but Asia has the largest market with 1.48 billion gamers. North America, Latin America and Europe, meanwhile, have a combined 1.4 billion fans, and this is translating to sales. In fact, global esports revenue is set to reach $1,624.00m in 2023 and grow at a CAGR of 8.31% to $2,235.00m by 2027.
The industry is evolving beyond archaic stereotypes as a male-dominated space as more women strive to take part. In the US, 48% of gamers identify as female, 18% of Saudi Arabia’s esports gamers are female and in China, 30% of Esports gamers identify as women. Many beauty brands have leaped into the esports world (as 39% of beauty fans play video games and 22% are fans of esports) but brands across the travel, fashion and food and drink sectors also have engagement opportunities via esports hotels and partnerships that provide merch or sustenance to teams, players and their fans.
This report spotlights the brand opportunities in the esports space despite the present harsh market reality, looking at strategic collaborations for brands across the lifestyle sector interested in courting fan communities.
key trends
Empowering Female Gamers
Esports Hospitality
the Convergence of Sport and gaming
NExt-Gen Gamerstalgia
Food and Drink Integration
Monitor the Space
Esports is evolving from the fringes, but it’s not a mainstream global phenomenon yet. With the attention and financial recession impacting its future, brands across the lifestyle sectors should move forward with caution.
Action points
Exhibit Diversity
Gamer demographics are shifting with more female participants taking an interest in the space. Act on this shift by providing more representation for female gamers as developers diversify their workforce.
Listen to Fans
Monitor the changes within the esports community to engage with shifting fan priorities. Leverage social listening on Discord to monitor emerging games, teams, priorities and trends
Capitalise on nostalgia
Lean into the emotional connection of gaming experience of the past via gamerstalgia strategies. Experiment with nostalgic consoles and merch that resonates with millennials who matured alongside these titles.