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Effect of eSports Live Streaming on Video Ad Revenue

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Online video is on the rise, and more people are watching content online than ever before. eSports live streaming has proven to be an important factor in this trend. A new report found that while eSports viewership is up by 44% year-over-year, advertising dollars are equally growing for game publishers (up 28%), with some of the most significant games benefiting from a 50%+ increase in ad spend.

There has been a significant increase in the number of people watching eSports live streams. This increase is causing video ad revenue to decrease as advertisers are not receiving enough views for their ads. The question now becomes, what should be done about this?

Significance of eSports Live Streaming

  • The eSports industry is projected to grow from $325 million in 2017 to $765 million by 2020
  • Brands are starting to take notice of the eSports market and are investing more money into it
  • Twitch, a live streaming platform for video games, has an estimated 1 billion viewers per month
  • YouTube Gaming has over 200 million monthly active users
  • Live streamers can make up to six figures off their streams alone
  • Video ads on these platforms will be another revenue stream for brands looking to advertise on social media sites or other channels that allow advertisers access, such as Facebook’s Audience Network and Google’s AdMob network.
  • Video ad revenue is projected to reach $203 billion by 2020
  • With the prevalence of eSports, video ads are being viewed on a variety of platforms
  • The most popular game genres for eSports live streaming are FPS (first-person shooter), MOBA (multiplayer online battle arena), and sports games
  • Online gamers like to watch other players learn new strategies or improve their skillset
  • Streaming sites make money through advertising; Twitch makes approximately $1 million per month from ads alone
  • Live streamers can also earn money by playing sponsored games, leading companies like Red Bull and Monster Energy to create professional teams with full-time players who play exclusively for them.
  • eSports live streaming is a booming industry, with revenues skyrocketing
  • Twitch and YouTube Gaming are the two most popular video game live streaming platforms
  • It was estimated that there were over 2 million viewers of eSports events on Twitch and YouTube combined
  • There has been an increase in viewership as well as revenue for video ads on these sites due to the popularity of eSports live streaming
  • This article will discuss how this new form of entertainment can affect advertisers’ return on investment (ROI) and what marketers should know about this trend before jumping into the world of eSports advertising themselves.

Evolution Of Gaming and Emergence of eSports

Initially, video games were played by a few individuals or small groups of friends. As time passed and technology advanced, so did the opportunities for playing.

The evolution of gaming started with Pong, one of the first game consoles. Two people used the game to play against each other, and it only had two buttons to control the paddles on both sides. Since then, many games have been made.

Video games have been around for decades, and the industry has always been moving forward. From simple arcade-style games to complex multi-player experiences that can be enjoyed on a personal computer or console system, video gaming is no longer just an entertainment medium.

The evolution of gaming has been immense. First, arcade games like Donkey Kong soon developed into the modern-day video game playable on consoles such as Xbox and Play Station.

The gaming industry has evolved tremendously over the years, with a huge increase in people who play games. Many professional gamers now make more money than some famous athletes.

Benefits Of Streaming eSports

  • Streamers earn money from subscriptions, donations, and sponsorships
  • Fans can get to know their favorite players better
  • There are more opportunities to watch games live instead of on delay or after they’ve aired
  • Esports events are streamed in HD quality with no commercials
  • Esports is a growing industry with more than 100 million viewers and $700M in revenue
  • Streaming services offer a variety of games, tournaments, and gamers to watch
  • The audience for esports has grown over the years across all demographics
  • The average age of an esports viewer is 38 years old
  • You can watch it on your own schedule
  • It’s free to stream and watch
  • There are no commercials or interruptions during the broadcast
  • Esports is a growing industry with many opportunities for future growth
  • You can watch your favorite video game players live
  • You’ll be able to interact with other fans through chat
  • It’s a great way to meet new people
  • Watching esports is not only entertaining, but it also teaches you about teamwork and how different games work
  • Streamers can make money from their streams, whether they’re playing video games or just talking to the camera
  • The audience is usually very interactive and supportive of the streamer
  • Esports is a great way to stay connected with friends who live in different countries

eSports And Advertising

  • eSports is a growing industry, with over 350 million viewers worldwide
  • Advertising in eSports can take many forms, including sponsorships, product placements, and event integrations
  • Sponsors are looking for high-quality advertising opportunities to reach their target audiences or demographics
  • Advertising should be considered carefully to ensure that it aligns with the brand’s values

Top eSports Audience Insights

  • The majority of eSports viewers are male, aged 18-34
  • Most watch on Twitch or YouTube
  • League of Legends is the most popular game watched by spectators
  • Counter-Strike: Global Offensive is the second most popular game watched by spectators
  • Not surprisingly, gamers make up a large portion of eSports viewers
  • The eSports audience is mostly millennial males
  • Most of the audience is living in Asia-Pacific countries, led by China and South Korea
  • The average time spent on watching live streams is 1 hour and 40 minutes per session
  • 76% of viewers are male, 24% female
  • 57% of viewers have played video games for more than 10 years, and 43% play at least one hour a day
  • Of the top 20 countries with the highest number of eSports fans, China has the largest audience, followed by the United States and Korea
  • The eSports audience is mostly male, ages 18-34
  • Esports viewers are generally more affluent and educated than the general population
  • Twitch has more female viewers than other platforms
  • Most of the people who watch esports are not gamers themselves
  • Top eSports games include League of Legends, Dota 2, and Counter-Strike: Global Offensive
  • The average age for an eSports viewer is 27 years old
  • Almost half of all viewers are women
  • Viewers from the United States make up 11% of the audience

Advertising Opportunities within the eSports Ecosystem

  • Sports betting
  • eSports team sponsorship
  • Streaming advertisement for live streams of tournaments and competitions
  • Endorsement deals with players, teams, and coaches
  • Sponsorship
  • Transmedia advertising
  • Social Media Advertising
  • Influencer Marketing
  • eSports is a global phenomenon with an audience of over 310 million people worldwide
  • The industry has grown to become worth $696 million in 2017, up from $194 million in 2021
  • Brands are jumping on the bandwagon and investing heavily into this industry due to its explosive growth potential
  • Sponsorship deals between brands and eSports teams can range anywhere from $450,000 to $8 million per year, depending on the team’s success
  • This is not just about advertising- there are many other ways for brands to get involved within the esports ecosystem
  • Sponsor a team
  • Become an eSports influencer and create sponsored content on your social media channels
  • Create branded merchandise for sale via the eSports team’s store or website
  • Partner with a gaming company to sponsor events, tournaments, and competitions
  • eSports is a growing industry
  • The audience for eSports is mostly male, 18-34 years old, and affluent
  • The average age of an esports viewer is 27 years old, and the majority are college graduates or in graduate school
  • Brands with sponsored teams include Coca-Cola, Red Bull, Samsung, T-Mobile US Inc., Mercedes Benz USA LLC., Nissan Motor Co., Ltd., Geico Insurance Group, Audi AG.

Conclusion:

The eSports industry exponentially grown in the last few years. As a result, video ad revenue for live streaming of eSports events is expected to grow by an astounding 219% by 2020. Suppose you are thinking about getting started with your own broadcast or looking into boosting your current viewership. In that case, there are many different advertising options available that will be sure to help you reach this goal. Contact us today, and we can discuss all of these opportunities more thoroughly so that you know exactly what it takes to get involved!

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