Esports is a global form of competitive gaming where pro teams and players compete in leagues and live events across major arenas and online. It grew fast from niche to mainstream as networks like ESPN and TBS aired tournaments and platforms streamed matches daily. Fans watch from North America, Europe and Asia, and sponsors fund teams and events. The big question many ask is simple and timely: how much is the esports industry worth and where does the money come from?
Esports Market Size and Growth Outlook
Activate’s Tech and Media Outlook projected that esports could be worth over 5 billion by 2020, a figure that shows the scale investors saw in the space. In 2016, the industry already cleared well over 890 million when counting advertising and endorsements. That base helped fuel rapid expansion in media rights and sponsorships. It also helped teams build stable rosters and practice facilities.
For 2017, the esports economy was expected to reach about 696 million, a year over year rise of 41.3 percent. That growth rate stood out compared to many traditional sports and media segments. More brands entered, tournaments added stages, and pay TV and digital platforms eyed exclusive rights. The result was more content, higher prize pools and better production.
Esports is not tied to one country or one platform. It scales online first and then fills venues when demand is high. This hybrid model makes revenue more diverse and less tied to one channel.
Biggest Regions by Revenue in 2016
Three regions led the money flow. Asia ranked first, followed by North America and Europe. Local leagues, PC gaming culture and mobile adoption helped Asia stay on top. North America and Europe leaned on big sponsorship deals and arena events.
| Region | Esports Market Value (2016) |
|---|---|
| Asia | 330 million |
| North America | 275 million |
| Europe | 269 million |
Asia’s lead came from strong viewership, publisher support and a deep base of PC cafes and local events. North America grew fast as media and sponsors moved in. Europe stayed close behind with cross border leagues and city events. Together, these regions formed the core of global esports revenue in that period.
Top Games that drive Viewers and Revenue
League of Legends sat at the top with reach and scale. It drew about 100 million monthly players and about 740 million in annual game revenue at the time, which helped fuel esports operations. Its world finals packed arenas and set streaming records. It was also easy to follow with a clear structure and storylines.
Overwatch arrived in 2016 and made a fast start. It earned almost 270 million in its first month after release and drew about 10 million active users monthly. Team based play and bright design helped it grow fan bases. Franchised leagues and city branding made it easy for new fans to pick a team.
Big titles matter because they anchor leagues, draw sponsors and set the calendar for fans and media. They also help smaller titles grow by keeping viewers on platforms longer. A healthy mix of genres brings more age groups into the fold.
Where the Money Comes From in Esports
Brand spend powered the early business model. Renowned brands were set to spend over 500 million in 2017, with more than 150 million for advertising and about 260 million for endorsements. Media rights were near 100 million as platforms sought exclusive content. These streams added up fast when combined with tickets and merchandise.
| Revenue Stream | Estimated Value | Notes |
|---|---|---|
| Advertising | 150+ million (2017) | On streams, event signage, digital |
| Endorsements/Sponsorship | 260+ million (2017) | Team and league deals |
| Media Rights | About 100 million (2017) | Platform and TV licensing |
| Tickets and Merchandise | 64 million (2017) | Live events and fan gear |
| Publisher Investment | 116 million (2017) | Partnerships and league support |
Diversified revenue reduces risk and lets organizers plan bigger, multi day events with better production. As media rights mature, the split between sponsorship and rights fees can shift toward a more balanced mix. That path mirrors what happened in many traditional sports.
Why Big Brands invest in Esports
Sponsors want to reach young, global, digital first fans who do not watch much traditional TV. Esports delivers that audience with long watch times and live chat that drives engagement. The content runs year round, so brands get steady exposure. Teams and leagues also build custom content around partner goals.
- Large live audiences on platforms plus TV replays increase total reach.
- Events in arenas add premium on site activations and hospitality.
- Team creators and pro players amplify campaigns through social video.
For many marketers, esports is a cost effective way to reach hard to reach groups at scale. Clear measurement and branded segments inside broadcasts also help justify the spend. As rights become more exclusive, inventory value can rise.
How Events and Venues boost Fan Spend
Live events drive tickets, merchandising and on site sales. KeyArena in Seattle, Staples Center in Los Angeles and SAP Center in San Jose all hosted sell out esports finals. Those events also boost local tourism and food sales near the venue. They create a festival feel that keeps fans on site longer.
- Tickets and limited merchandise often sell out ahead of finals week.
- Meet and greet sessions add VIP upsell options for teams and organizers.
When a game peaks, a single finals weekend can match the attendance of big traditional sports events. That proof of demand makes it easier to book prime venues and sign city partners. It also gives teams data to plan the next season’s schedule.
What to Watch next for New Growth
Publishers plan new leagues and formats as the fan base evolves. They invest to expand franchises in step with regional demand and platform trends. Media partners test exclusive windows and co streaming to grow total watch time. Meanwhile, brands widen from endemic to mainstream categories.
Keeping current fans happy while bringing in new ones is the key to steady growth. That means fair competition, strong anti cheat, and easy to follow broadcasts for first time viewers. With those parts in place, the market can keep rising across regions and platforms.
FAQ
How much is the esports industry worth?
In 2016 it was already worth well over 890 million when counting advertising and endorsements. Projections for 2017 placed the economy near 696 million with 41.3 percent annual growth, and longer range forecasts from Activate saw potential above 5 billion by 2020.
Which regions lead the esports market?
Asia led in 2016 with about 330 million, followed by North America at 275 million and Europe at 269 million. These three regions formed the core of global esports revenue.
What games drive the most revenue and viewers?
League of Legends led with about 100 million monthly players and roughly 740 million in annual game revenue at the time. Overwatch launched in 2016, earned almost 270 million in its first month and drew about 10 million active users monthly.
Where does esports revenue come from?
Key streams include advertising, sponsorship and endorsements, media rights, tickets and merchandise, and publisher investment. In 2017, brands were set to spend over 500 million across ads and endorsements alone.
Why do brands invest in esports marketing?
Esports reaches young, global, digital first fans with long watch times and interactive chat. Sponsors gain year round exposure, on site activations at arena events, and measurable campaigns inside broadcasts.
How do live events impact esports growth?
Sell out arenas such as KeyArena, Staples Center and SAP Center prove demand and lift ticket and merchandise sales. They also raise media interest and make it easier to secure future venues and city partners.
What factors could shape the next phase of growth?
Better media rights deals, clear rules, and easy to watch broadcasts for new fans are vital. Publisher support and fair play tools also help keep leagues healthy for the long term.
Leave a Comment