The Brand Investment in Esports Report

ESPN's Collegiate Esports Championship

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Esports viewership is on the rise.

Thanks in part to streaming services such as Twitch, the number of esports fans globally is anticipated to surge 59% over the next four to five years.

This rapid expansion, coupled with the tendency for esports spectators to be younger and more receptive to sponsorship, is driving brand investment into competitive gaming.

In The Brand Investment in eSports Report, Business Insider Intelligence details the explosive growth of the eSports audience, and breaks down the different channels brands can take to reach eSports fans.

This exclusive report can be yours for FREE today.

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THE ESPORTS ECOSYSTEM: The key players and trends driving the red-hot, fast-growing esports space that's on track to surpass $1.5 billion by 2023

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This is a preview of The Esports Ecosystem research report from Business Insider Intelligence.
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Esports and gaming have burst into the mainstream in recent years, transforming from a vibrant niche to a central form of entertainment around the world. While esports may have once stood for a subset of sports culture, it has grown into a full industry in its own right.
That shift has been powered by championing from mainstream celebrities like Michael Jordan, Drake, and DJ Marshmello, an increasing amount of coverage from traditional outlets like ESPN, and, at least in part, the breakneck rise of Fortnite.
As competitive gaming cements itself in the popular culture, global investors, brands, media outlets, and consumers are all paying attention. Total esports viewership is expected to grow at a 9% compound annual growth rate (CAGR) between 2019 and 2023, up from 454 million in 2019 to 646 million in 2023, per Business Insider Intelligence estimates. That puts the audience on pace to nearly double over a six-year period, as the 2017 audience stood at 335 million. 
The pop-culturization of esports has helped power the explosions in esports investment and revenue. Esports has hit this stratosphere in large part because of the social component of live streaming and gaming. Gaming-specific streaming platforms like Twitch and YouTube Gaming give fans a direct connection to the players and teams, while more mainstream socials have allowed those connections to flourish. Certain esports organizations, like FaZe Clan, are also moving aggressively into areas like merchandise, lending their brands more notoriety than if they’d stuck to esports alone.
Rick Yang, partner at NEA — a venture capital firm that invests in esports — underscored this in a conversation with Business Insider Intelligence: “I actually think of esports as the mainstreaming of gaming, or the pop culture instantiation of gaming versus the pure idea of these players becoming professionals to compete at the highest levels.” It’s essential to think of the esports opportunity in this way — one inclusive of gaming, media, pop culture, and commerce — as it shines a light on opportunities beyond gaming events alone. 
As a result, the industry has seen a huge uptick in investment from venture capitalists, and more recently from private equity firms. The number of investments in esports doubled in 2018, going from 34 in 2017 to 68 in 2018, per Deloitte. That’s reflected in the total dollars invested, too: Investments are up to $4.5 billion in 2018 from just $490 million the year before, a staggering YoY growth rate of 837%, per Deloitte. These investments are distributed to players across the ecosystem — from esports organizations, to tournament operators, to digital broadcasters — allowing it to function and grow. 
The net result is that esports has matured from its roots in arcade gaming to the complex digital ecosystem it is today, and in this report, Business Insider Intelligence will provide a comprehensive breakdown of the key players involved in the space. This report will provide a high-level overview of the industry to clarify how the many moving pieces of the esports ecosystem fit together. It will also break down how money flows into the ecosystem.
The ultimate goal of this report is to give readers a clear understanding of how the major players and components of esports function so that they can more readily take advantage of the many opportunities this dynamic ecosystem presents. 
The companies mentioned in this report are: Activision Blizzard, Alienware, Amazon, Apple, AT&T, BAMTech, BMW USA, Bud Light, Caffeine, Champion, Chinese Mobile, Cloud9, Coca-Cola, Comcast, Deloitte, Disney, Douyu, DreamHack, Electronic Arts, Epic Games, ESL, ESPN, Facebook, FaZe Clan, FIFA, G-Fuel, GamesBeat, Gen.G, Google, HBO, Honda, Huya, HyperX, Instagram, J!nx, KeSPA, Liquipedia, Madrinas Coffee, Manchester City, Marvel, Microsoft, Mixer, MLB, MLG, Monster Energy, NBA, NEA, NetEase, Newzoo, NFL, NHL, Nielsen, Nissan, NZXT, Old Spice, OnePlus, PandaTV, Pizza Hut, PlayVS, Postmates, Puma, PwC, Red Bull, Renegades, Riot Games, SAP, SK Telecom, Steam, StreamElements, Sunshine Soldiers, TDK, Team Liquid, Tencent, TJ Sports, Treyarch, Twitch, Twitter, Uber Eats, Ubisoft, Valve, Vivendi Games, YouTube, 1 UP Studios.
Here are some key takeaways from the report:

Most projections put the esports ecosystem on track to surpass $1 billion in revenue for the first time this year. And revenue is expected to grow from here — Newzoo projects it to hit $1.8 billion by 2022. Money flows into esports through media rights, live event ticket sales, merchandise sales, and in-game purchases, but most of the revenue (69%) comes from sponsorships and advertising, per Newzoo figures cited by Statista.   
That growing revenue comes from around the world: 

Asia-Pacific (APAC), North America, and Europe are the top three esports markets, respectively, in terms of audience and revenue. APAC will account for over half (57%) of global esports viewership in 2019, up from 51% in 2017, per Newzoo. Meanwhile, North America is set to hit $300 million in esports revenue this year, while Europe is expected to reach $138 million, per PwC estimates. 
The rest of the world only accounts for about 15% of total esports revenue, but it contains several regions to watch. One of the fastest-rising regions is Latin America, which is expected to hit $18 million in esports revenue in 2019 before skyrocketing to $42 million by 2023, per PwC estimates.  

The future of esports will likely be powered by mobile, which will further reduce barriers to entry and allow even more gamers and fans to pour in. The mobile gaming segment is set to make up 45% of the total global games market this year. That popularity is already spilling over into some competitive spaces, as China already has a thriving mobile esports scene. 

In full the report:

Clarifies what the esports space is, who the major players within the ecosystem are, and what roles they play.
Highlights the key demographics within the space, their interests, and what spaces are ripe for brands or other interested investors.
Breaks down how revenue is generated and what the key areas of future growth are.

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Amazon's Leap Into Healthcare

Summary List PlacementHealthcare organizations are contending with a population that’s growing sicker, heightened spending, and shifting consumer demands for fast and convenient services.
Big tech companies have stepped in to alleviate or solve some of these issues, bridging technological gaps that give health organization partners the opportunity to realize cost savings and bolster their top lines.
One of these companies is Amazon, which has been casting a wide net across the healthcare ecosystem over the last two years — having started initiatives to disrupt or transform pharmacy, the medical supply chain, health insurance, and care delivery.
In the Amazon’s Leap Into Healthcare report, Business Insider Intelligence details how the tech giant is making waves in the healthcare sector.
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Financial Services: 6 Key Attributes to Attract Gen Z

Summary List PlacementNow the largest generation worldwide, Gen Z accounts for nearly 68 million people in the US alone. As Gen Zers age, financial services providers will be increasingly pressed to shift focus to the burgeoning demographic.
As digital natives, Gen Zers are more receptive to influence from friends and family than traditional advertising. For marketers, strategists, and developers, understanding Gen Z’s unique needs — and creating and marketing products accordingly — will be critical to reaping their value.
In Financial Services: 6 Key Attributes to Attract Gen Z, Business Insider Intelligence provides a six-point framework that highlights core traits of the demographic, which banks and payments firms can use to attract, engage, and retain Gen Zers.
This exclusive report can be yours for FREE today.
As an added bonus, you’ll receive a free preview of our Banking Pro Briefing.Join the conversation about this story »

Key Digital Wealth Managers: How robo-advisors present an opportunity for fintechs and incumbents alike

Summary List PlacementDigital wealth managers, also called robo-advisors, came into existence after the financial crisis in 2008, when fintechs aimed to simplify and democratize wealth management services with technology-first solutions.
Robo-advisors use technology such as AI algorithms and machine learning to manage users’ assets, while often relying on a hybrid model including human advice to enhance the customer relationship.
Although they only hold a fraction of the more than $43 trillion in investable assets under management in North America, digital wealth management is set to grow in the future – presenting an opportunity for fintechs and incumbents alike.
In this report, Insider Intelligence details the Key Digital Wealth Managers that are demonstrating best practices for the industry.
This exclusive report can be yours for FREE today.Join the conversation about this story »

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