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Let us not seek the Republican answer or the Democratic answer, but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.
Read more at http://www.brainyquote.com/quotes/quotes/j/johnfkenn121400.html#46Ul8rBF4XpB4lo0.99
Let us not seek the Republican answer or the Democratic answer, but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.
Read more at http://www.brainyquote.com/quotes/quotes/j/johnfkenn121400.html#JZxA5jXY4rCwemgZ.99
Let us not seek the Republican answer or the Democratic answer, but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.
Read more at http://www.brainyquote.com/quotes/quotes/j/johnfkenn121400.html#JZxA5jXY4rCwemgZ.99
Let us not seek the Republican answer or the Democratic answer, but the right answer. Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.
Read more at http://www.brainyquote.com/quotes/quotes/j/johnfkenn121400.html#46Ul8rBF4XpB4lo0.99
Saturday
Mar262016

eSports Eyes $2B Business In Three Years With More Non-Endemic Brands, Investors

By Barry Janoff

March 25, 2016: A new study from NewZoo, and a separate one from SuperData, confirm what a growing number of companies and marketers seem to be acknowledging: eSports is big and will continue to get bigger in the years to come.

According to the Global e-Sports Market Report from NewZoo, a San Francisco-based firm that focuses on the category, brands are expected to spend $128 million on eSports sponsorships and another $197 million on advertising around video content in 2016.

That would bring total brand spend to $325 million, or 70% of all eSports revenues — an increase of 49%. And growth is expected to continue as more brands enter the space.

According to NewZoo, companies are projected to put more than $800 million into eSports by 2019, the same year the total market passes the $1 billion mark.

And it's not just companies in the category that are investing.

"2016 will see an accelerated growth of non-endemic consumer brands' engagement in eSports," according to Heinrich Zetlmayer, managing director for eSport gaming and platform company Turtle Entertainment/ELS.

Among the non-endemic brands aligned with eSports are Coca-Cola, American Express and Nissan.

This year, Turner Sports is launching eLeague. In January, ESPN created an online destination for coverage of the category.

According to New York-based research and digital goods measurement firm SuperData, the worldwide eSports market was $747.5 million in 2015, with year-over-year revenue growth "largely a result of more brands and advertisers entering the market."

The NewZoo report shows that more than 50% of eSports enthusiasts worldwide are between the ages of 21-35, a sweet demographic for brands and marketers.

“eSports is one of the fastest growing entertainment genres among young adults around the world,” Lenny Daniels, president for Turner Sports, said regarding the formation of the Turner-WME | IMG alliance behind eLeague, scheduled to debut on May 24, with live event coverage featuring Valve’s Counter-Strike: Global Offensive.

“We’re looking forward to creating a tremendous live event atmosphere, leveraging the infrastructure and expertise within Turner Studios, and presenting the competitions in an innovative way throughout our portfolio of leading brands," said Daniels.

Accounting for other factors, SuperData sees the eSport category growing even more than NewZoo's predicted numbers. Based on such areas as investments, sponsorships and advertising, by 2018 the market is set to reach $1.9 billion with the added growth of direct revenue sources such as betting sites and amateur tournament platforms.

“Brand advertising accounts for 77% of the market, and is on course to reach $1 billion by 2017,” Stephanie Llamas, SuperData’s director of research and consumer insights, said in a statement regarding her firm's eSport calculations. “eSports are becoming more mainstream and that has attracted traditional media channels like TBS and ESPN."

The breakdown of the 2015 financial figure, according to SuperData, includes more than $578 million from sponsorships and advertising, almost $56 million from betting and eSports fantasy sites, nearly $54 million from amateur and micro-tournaments, $17 million from merchandise and just under $16 million from ticket sales.

The gaming industry, of which eSports is a part, topped $91 billion last year. The Top 25 public companies based on all game revenues in 2015 reached $61.6 billion, an increase of 14% over 2014, according to NewZoo's Global Games Market Report. That accounted for 67% of the $91.5 billion global games market.

The top ten public companies based on game revenues in 2015, according to NewZoo, are China-based media-Internet-entertainment-mobile conglomerate TenCent ($8.7 billion), Microsoft ($6.8 billion), Sony ($5.8 billion), Activision Blizzard ($4.7 billion), Apple ($4.4 billion), EA ($4.3 billion), Google ($3 billion), NetEast ($2.8 billion), Warner Bros. ($2.2 billion) and King ($2 billion).

NRG eSports, an eSports organization based in Los Angeles, made news this month with investments from sports legends Shaquille O'Neal, Alex Rodriguez and Jimmy Rollins. NRG has a team in League Of Legends competition and one in Counter-Strike: Global Offensive. Both teams are owned by Andy Miller and Mark Mastrov, businessmen who, like O'Neal, have minority investments in the NBA's Sacramento Kings.

Late last year, Skillz, a global leader in mobile eSports, recently raised $15 million in Series B funding, led by Wildcat Capital Management. Participating in the round were The Kraft Group, owners of the NFL's New England Patriots; and Marc Lasry, co-owner of the NBA's Milwaukee Bucks.

Among other moves, rEvolution, a leading integrated sports marketing and media services agency based in Chicago, acquired NEXTGEN+MVPs, an eSports sponsorship consultancy, and launched an eSports consultancy, rEvXP, "to serve brands, platforms and players in advancing their respective brand connections with fans."

rEvolution's client roster includes Chipotle, Continental Tire and Northwestern Mutual.

However, not all areas are seeing growth.

According to NewZoo, investors will put more than $150 million of capital into new platforms like eSports betting and fantasy sites, but these sites will fall short of expectations and earn $56 million this year. "Fans remain more comfortable wagering virtual gaming content over cash, causing real-money sites to gain traction slower than anticipated," reports NewZoo.

In addition, "Amateur tournament platforms earn $28 million but face an overcrowded market as supply exceeds demand. More than a third of eSports fans in the U.S .participate in online amateur tournaments, but the number of sites cropping up is leading to a saturated market," per the Global eSports Market Report.

"So far, fans have had to seek out platforms to watch tournaments and players, but now people can stumble upon eSports while flipping through channels. Even old-fashioned brands are taking notice and there is a growing interest in advertising to the coveted millennial male demographic on a medium they know well," said Liamas.

The NewZoo report shows that more than 50% of eSports enthusiasts worldwide are between the ages of 21-35, a sweet demographic for brands and marketers.

NewZoo relates that publishers hope to make mobile eSports the next frontier, gaining 19% of the U.S. eSports audience. "The success of Hearthstone: Heroes of Warcraft has caused mobile publishers like Super Evil MegaCorp, creator of VainGlory, to develop mobile games specifically for competitive gaming."

Matt Wolf, head of gaming for Coca-Cola, said that, "Over the last few years, we have made it our mission to elevate and celebrate eSports and gaming at large."

That includes an alliance with with Internet media company IGN to become title sponsor for eSports Weekly with Coca-Cola, a 30-minute online vídeo series on IGN.com.

"On a global scale, the number of eSports enthusiasts compares well to mid-tier traditional sports," NewZoo wrote in its 2015 study. "Swimming and ice hockey, for example, have 76 million and 94 million global fans, respectively, similar to the 89 million eSports enthusiasts. By 2017, the global number of eSports fans will come close to that of American football."

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