Revenue Maximizing Strategies Leverage Audience Engagement in the ESports Industry

The esports industry is growing its market through audiences, external events, and blockchain-backed in-game transactions.

FREMONT, CA: The esports industry is growing through expanding its audience and viewership. Audience composition and engagement encourage investors to invest in esports companies and events. Live streaming and co-streaming activities are popularizing esports titles to existing and potential players. Research shows that the esports industry has a total viewership of 435.9 million people globally.

ESports revenues will reach USD 1617.7 million at a CAGR of 11.1 percent by 2024. The industry is expanding at a rate of 8.7 percent of audiences.

The following factors contribute to the expanding industry:

Blockchain: Blockchain is integral in establishing revenue streams. Research shows that sponsorships account for 60 percent of the industry's revenue stream as a growing audience of new and diverse players is attracting sponsorships. A single stream of revenue is unreliable and subject to market conditions. Esports companies are looking to expand to monetize players directly. Blockchain technology and non-fungible tokens (NFT) allow secure payments backed by traceability and accountability. Loyalty and reward programs use blockchain for users to trade digital goods and increase investments in a game.

Competitive market: Esports industry is overshadowing traditional forms of gaming like P.C. and console games due to its low entry barrier. User-friendly and accessible features of online games have a larger customer base. Most games are compatible across devices. Emerging network connections strengthen the overall preference for esports. Genres like multiplayer role-playing games and online battle arenas are more viable on mobile devices and computers than on console games. Compatible games attract a larger audience which is essential to the success of multiplayer games. With a larger audience, esports companies announce large prize pools extending up to USD 10 million.

Integrating esports and traditional sports: Esports companies are expanding their influence outside online gaming to integrate physical sports like chess, basketball, and football. Esports receive sponsorship from traditional sports companies, including online versions of traditional sports like basketball and snowboarding. Organizers are encouraging the collaboration of esports entities with gamers' lifestyles. They are partnering with content creators and hosting real-world championships and fandom events.

Streaming: Live-streaming and co-streaming introduce a game to a larger audience by tapping into audience-concentrated platforms like Discord and YouTube. Brands optimize co-streaming platforms and gamers as marketing strategies to expand their brand. Companies are maximizing this revenue-generating activity by adopting in-house streaming. In-house broadcasting gives companies more control over their brand image and audience engagement.