After Summer Olympics, can gaming hold a torch to audiences and advertisers?
After a calendar full of tentpole sporting (read almost exclusively cricket) events, each of which boasted millions of Indian viewers, hundreds of millions of rupees spent on advertising, and countless articles written on the same in hosts of media and marketing publications, the Summer Olympics may well be the last singular sporting spectacle of the year at least in terms of scale. The all-immersive festive season is approaching of course, but what can queue up next on our big screens and attention spans? According to a growing number of industry experts, gaming and esports content has appreciable potential to become a revenue earner for TV and OTT post the Summer Olympics. The segment is growing in both popularity and reach, with upcoming events like esports Olympics and the Esports World Cup in 2025 only increasing their reach. The inclusion of gaming tournaments on major platforms such as Star Sports and Jio Cinema demonstrates the mainstream appeal and commercial viability of esports content.
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Playing the Game
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Jinit Shah, Director-Media, PivotRoots- a Havas Company, says that while gaming is already a head turner in the YouTube space while yet to gain ground on OTT platforms. India boasts of the largest contribution in Gaming downloads (close to 17% of share globally). “Gaming content consumption is maturing with ~15% audience in India already on paid consumption. The market of gaming in India is roughly between 450-550 crore and it has grown 2x since the past two years. These numbers clearly show a trend and we will soon observe adoption via mainstream and OTT platforms too.” With the gaming and esports market projected to hit a staggering 1.6 billion USD mark by 2025, Anuj Tandon, CEO of Gaming, JetSynthesys, believes that the sector is going to have a massive growing audience which provides a significant pool for the channels and platforms to dip their beaks in. “Major esports tournaments already boast impressive viewership numbers, just the GEPL season 1 saw a reach of over 70 million. So, to suggest that esports tournaments hold the potential to fill the gap left by the Summer Olympics is not stretch, offering a similar level of excitement and audience engagement.” The monetization potential that esports and Gaming can bring to the table could easily be considered substantial, given that gaming content offers a highly engaged audience, which is a major advantage for advertisers seeking brand loyalty and focused marketing efforts. In 2022, BGMI made history as the first Esports event (BGMS) broadcasted on mainstream television, with Star Sports attracting 24 million concurrent viewers and a total of 200 million viewers. The following year, the BGMI tournaments drew over 110 million viewers for the live broadcast. For BGIS (BATTLEGROUNDS MOBILE INDIA SERIES) 2023, KRAFTON India partnered with JioCinema to livestream the tournament, achieving substantial viewership. Similarly, the BGMI Masters Series (BGMS) is entering its third season being broadcasted on the Star Sports Network, with previous seasons also drawing impressive viewership, reflecting growing national interest. Agreeing that post-Olympics, there is often a shortage in big sports event programming, Akshat Rathee, MD and Co-founder of Nodwin Gaming, asserts that esports can effectively fill this gap. The high engagement levels and dedicated esports fan base provides a consistent and reliable audience that TV channels and OTT platforms can capitalise on. This shift towards televising esports not only diversifies their content offering but also attracts a younger demographic that is more inclined towards digital entertainment. A recent report highlighted that 61% of gaming fans enjoy brand sponsorships within their communities, indicating a highly attractive-receptive audience for advertising within gaming content, as long as done gracefully. “We know and research backs that companies engaging with gaming fandoms tend to benefit from positive brand perception in the long run suggesting that advertisers already see value in associating with the gaming industry. This results in more brand sponsorships and collaborations in the sector,” says Tandon. Similar to any other sporting content, gaming is expected to have regular monetization models with costs matching those of primary sporting events like cricket, says Shah, noting, “currently this may be at about 5-10% of viewership of primary sporting content, but it is soon expected to surge and make significant ground on the viewership front, leading to inflated advertising opportunities and demand from advertisers wanting to associate with the trend.” Brands line up Initially, the interest was primarily from endemic brands directly related to gaming, such as hardware manufacturers, game publishers, peripheral makers and more. However, as esports has grown in popularity and viewership, non-endemic advertisers have increasingly recognized its potential. However, now Rathee says, non-endemic brands, spanning categories like FMCG, automotive, fashion, and telecommunications, have started to invest heavily in esports. Karan Pathak, Associated Director - Esports, KRAFTON India, says, “Established sponsors of esports tournaments, including Samsung, LG, TVS, Hyundai and Hero Moto Corp underscore consistent interest from the technology and automotive sectors in engaging this dedicated audience. Moreover, there is increasing interest from the FMCG sector, with brands in categories like ice cream and paint showing a growing inclination toward esports sponsorship.” “So far it's been non-endemic advertisers who are guaranteed a set number of impressions against the media buy they make. For many of these non-endemic brands, it's about tapping into Gen Z through esports events, rather than getting deeply integrated into the gaming ecosystem. Direct ROI is not the goal, awareness and tapping into a far younger audience base is the main criteria,” says Rohit Agarwal, Founder and Director, Alpha Zegus. According to him, mainstream esports gaming tournaments sell media inventory anywhere in the range of 4-6cr for visibility and impressions across the tournament. The viewership numbers go upward of 10M-15M views, along with visibility and reach on social media as well. Rathee agrees that ad prices vary depending on the event, platform, and audience demographics. However, esports events, particularly those broadcast in prime-time slots on major channels like Star Sports, command competitive ad rates. The high engagement levels and targeted demographic make esports an attractive proposition for advertisers willing to invest in reaching a dedicated and responsive audience. “Our BGMS tournaments have seen significant advertiser participation for specific numbers, with ad slots being highly sought after. This has resulted in competitive pricing that is comparable to traditional non-cricketing sports broadcasts. As esports continues to gain mainstream acceptance, we anticipate further viewership and ad revenue growth, solidifying its position as a valuable content category for broadcasters and advertisers alike.” At the BGIS 2024 finale held in Hyderabad, Pathak and his team observed numerous parents accompanying their children over the three-day event. “This shows the growing mass appeal of the sport. This presents broadcasters and OTT platforms to tap into new audiences and augment traditional sports programming offerings. For television channels, this also presents an opportunity to tap into a younger audience that primarily consumes content online.” “While concrete ROI data for esports advertising specifically on mainstream media is still emerging, everything we have to offer suggests strong potential for advertiser success. Revenue models are not scarce with the upfront incorporation of ads within the content or around the program, sponsorship deals with developers or publishers, we also see OTT models tapping into subscription models and Video on demand models as well,” concludes Shah.