• Loading stock data...
Tuesday, June 25, 2024
Meet the Rising 25 Class of 2024!

Study Confirms Esports Has Graduated to the Big Leagues

esports

When a reputable consulting firm like Deloitte has its clients clamoring for more information about something, people begin to take notice.

Deloitte recently published a groundbreaking report titled “ESports Graduates to the Big Leagues,” which reveals just how large and rapidly growing the esports industry has become. The paper goes on to outline the various opportunities the burgeoning sector presents to everybody from media and entertainment companies to video game publishers, potential advertisers and professional sports leagues, as well as prospective athletes and franchise owners.  

[mc4wp_form id=”8260″]

“Esports is growing exponentially and starting to show up in places it wasn’t traditionally seen,” said Pete Giorgio, who leads Deloitte’s U.S. Sports Practice. “That explosion of the industry has clients consistently asking us more about it.”

Like any good consulting company, that client feedback prompted Giorgio and the Deloitte sports practice to dive in and wrap their hands around this former niche industry. It’s not just Deloitte’s sports partners so interested in understanding and getting involved in the burgeoning space, either.

“Yes, our sports clients want more information, but it’s also the game publishers, organizations building potential leagues, media, entertainment, and advertising companies, and a huge component is potential investors and private equities,” Giorgio stated.

One of the Sports Practice’s main directives is to be an expert that is well-versed in all the opportunities presented by the sports industry in general. “Now, they [our clients] are relying on us to help them think about and better understand the space, potential opportunities, and how they might get involved,” Giorgio said.  

Deloitte’s prospective clients are wise to be so intrigued by the allure of the esports space. The industry can already boast of having a passionate, global, highly engaged audience that’s only expected to grow. As evidence of that enthusiasm and reach, just look at some of the study’s findings.

Released a mere eight months ago, Epic Games’ “Fortnite: Battle Royale” already has 40 million users logging on to play each month. The game has also become the most-watched title on Twitch, which is no small feat, considering that means an average of 140,000 viewers at any given time. Popular title “League of Legends” has been posting similarly remarkable numbers. During one week alone, LoL reported having an audience that spent a total of 17.7 million hours watching league matches on Twitch.

Most astoundingly, those numbers and time spent viewing and participating are only expected to grow, according to Deloitte. In its report, the consulting firm forecasts an estimated audience of 600 million globally by 2020, with the esports industry generating approximately $1.5 billion annually from sponsorships and advertising.

What makes this robust, rapidly emerging esports industry especially complicated and intriguing is that “it’s still very much a ‘Wild West’ system without any established norms and patterns,” Giorgio stated. The structure of teams and leagues, formation of partnerships, and ‘best practices’ for those interested in the business are all still being created.

While it may be a bit confusing for now, the esports space is worth understanding. The demographics and habits of the audience in that ‘Wild West’ present a tremendous opportunity for media and entertainment companies, as well as potential partners.

“The esports audience is interesting, in that it shares many of the similar characteristics as a traditional sports audience: passion, fervor, and everything else you might see from fans of MLB or the NFL. Except the esports demo skews far younger, and reaches an entirely different ‘persona,’” Giorgio said.

Esports offers partners and sponsors access to an extremely valuable — and otherwise difficult-to-reach — millennial demographic not nearly as impacted by traditional television and advertising. You can be sure the fans are active consumers of what they are playing and watching. It’s not just background noise, with any marketing messages lost in the ether.

In addition, what’s especially powerful is the access to data and ability to execute highly targeted, tailored campaigns over a platform like Twitch to the esports fanbase. “What’s really interesting about these {esports} on Twitch is that unlike with ESPN or FOX, you know exactly who is watching,” Giorgio said. “The esports space offers access to a plethora of data on a much more granular level.”

[mc4wp_form id=”8260″]

And if Facebook has taught us anything, it’s that data equals money.

It’s these highly targeted, addressable, engaging campaigns that are going to be the future of sponsorships, advertising, and marketing. The esports industry offers a built-in trove of resources for those ambitious enough to take advantage of, just by its very nature of being digital. Perhaps when discussing the esports industry, we should start to think of the E as expansive.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

IOC Proposes Holding Separate Olympics for Esports

The organization’s executive board has proposed a separate Olympics for online gaming.
Jan 13, 2021; Washington, DC, USA; The U.S. Capitol Building is seen on Jan. 13, 2021, one week after it was stormed by a pro-Trump mob while a joint session of Congress was certifying the 2020 election victory of President Elect Joe Biden.

House Committee Sends Bill Banning College Athlete Employment to House Floor

The bill has gone further than any other athlete compensation legislation.
May 10, 2024; Lake Forest, IL, USA; Chicago Bears quarterback Caleb Williams during a press conference before Chicago Bears rookie minicamp at Halas Hall.

Caleb Williams Launches Investment Firm Before Signing a Bears Contract

Williams announced 888 Midas for private equity, VC, and real estate deals.
podcast thumbnail mobile
Front Office Sports Today

How the American Soccer Fan is Unlike Any Other Sports Fans

0:00

Featured Today

Jan 3, 2022; Pittsburgh, Pennsylvania, USA; General view of the NFL shield logo signage before the Pittsburgh Steelers host the Cleveland Browns at Heinz Field.

Odds Stacked Against NFL in Multibillion-Dollar Sunday Ticket Trial

Why the class action trial does not look promising for the league.
Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.
June 9, 2024

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

A banishment, betting scheme, and guilty plea all in one scandal-filled span.
June 8, 2024

‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles

Here’s why confusion continues to outweigh solutions in the streaming package boom.
June 2, 2024

The Nostalgia Market: Michael Jordan’s Memorabilia Remains Coveted, With Caveats

Due to scarcity, and sometimes, items’ undisclosed whereabouts, this world has limitations.
Sponsored

How Daily Fantasy Sports Solved NBA Fantasy

The remarkable growth of the #1 Discord sports server in the world.
Oct 5, 2021; Kansas City, Missouri, USA; Bob Kendrick, president of the Negro Leagues Baseball Museum in Kansas City, points to the lettering outside of the museum Tuesday.
February 28, 2024

How Do You Keep Negro Leagues Baseball History Alive? Put It in a Video Game

Negro Leagues Baseball Museum attracting increased donations, visits from ‘MLB The Show.’
February 29, 2024

Electronic Arts’ Layoffs Signal Ongoing Evolution, Struggles

The company is set to make a second major round of staff cuts in the last year.
Sponsored

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
Sony-Playstation-Demo-Booth
February 27, 2024

Sony to Lay Off 900 From PlayStation Team After Missed Sales Target

Cuts come amid a tough stretch for the gaming industry.
EA Sports
February 15, 2024

EA Sports: Summer Release for Long-Dormant College Football Video Game

Ed O’Bannon’s historic lawsuit led to the shuttering of EA Sports’ popular college games.
Gatorade
February 14, 2024

Was the Gatorade Color Compromised Before Super Bowl LVIII Kickoff?

Multiple gambling companies saw a sharp spike in the color purple prior to Sunday’s kickoff.
Reba McEntire Super Bowl
February 12, 2024

Reba McEntire Repeated ‘the Brave’ in the National Anthem, Sending Prop Bettors Spiraling

BetMGM paid bettors on both the over and the under.