It's the beginning of the year, and all the world and its marketers play the samegame: bright prospects, large numbers, and shiny new plans.And since we’re looking at the bright side this side of January, it makes sense to examine a media industry segment that’s booming and indeed raking in more than any other form of popular entertainment around the world.
Thegamingindustryis expected to witness significant investments and advancements from various platforms and services, further propelling the industry's growth. The rise of mobilegaming, with its increasing market share, is attracting substantial investments, with the market expected to reach $377 billion by 2027. According to a Dentsu X Loco report, globalgamingrevenue is estimated to surge to $475 billion by 2027, promising a bright future for monetization withingamingplatforms.
Time, money, and branding
Ashwin Suresh, Founder, Loco, enthuses that2023 was a rocket shipfor thegamingindustry, and 2024 is poised to follow suit. “The Indiangamingecosystem is primed for growth, fostering a relationship between the advertising and esports sectors. Additionally, live streaming platforms are experiencing rapid revenue growth, with a year-on-year increase of 13%, attracting a larger consumer base. This upward trend is strengthening the connection between brands and live-streaming platforms,” he says.
“Users are increasingly spending more time on the platform, enabling in-gameadvertisers to conduct effective targeting based on age, geography, gender, device, language, and interest groupings to reach their ideal users and optimize ROI” he adds.
Animesh Agarwal aka 8Bit Thug, Founder and CEO of 8Bit Creatives and S8UL, points to the successful integration of non-endemic brands into thegamingspace, such as MG's Comet's launch, specifically designed forgamerswith his brand’s creator Mortal, exemplifies thepotential for brandsto connect authentically with thegamingaudience.
“Non-endemic brands will continue exploring thegamingmarket, building on their influx of sponsorships and investments in the previous year. We also anticipate the eSports industry to become a preferred advertising medium for brands, both endemic and non-endemic, as it holds the potential to rival major sporting franchises by offering multiple revenue streams like sponsorships, advertising, media rights, merchandise, and ticket sales,” he says.
eSports, eSupports
The rise of eSports as an official sport and its imminent participation in major events is set to attract substantial investments into the sector. Corporates and conglomerates, with a proven track record of supporting sports in the country, are expected to play a pivotal role in fueling this surge in investments.
Keeping that in mind, for Lokesh Suji, Director, eSports Federation of India and Vice President of the Asian Esports Federation (AESF), over the next two years, the focus is to assemble the best possible Indian contingent starting right from meticulously organizing national qualifiers to ensure a fair qualification process for our athletes.
“We will leverage our partnerships with Hama and FITGMR to provide top-notchgaminggear and coaching to the contingent to make sure that they are well-prepared to not just compete but bring laurels for the country.”
Ready players win
Rohit Agarwal, Founder and Director, Alpha Zegus, agrees that the segment is increasingly seeing more non-endemic brands not only market togamers, but also creategaming-centric products (eg. Hero, MG Motors, etc) to make themselves more relevant.
“I’m expecting this trend to continue and grow in 2024, with more brands making products/services centred aroundgaming. Also, we will see non-endemicgamingbeing more inclusive this year, either through tournament sponsorships, team sponsorships, or media rights,” he says, while noting that for endemic brands, their marketing spends will depend on their 2024 product roadmap, but for now, it seems positive.
Animesh Agarwal adds that the transformative potential of technologies like AI, Virtual Reality (VR), and Augmented Reality (AR) is expected to drive further investments and innovation in thegamingsector. Moreover, the alignment betweengamingand entertainment platforms is poised to create a win-win situation for both industries, with the entry of multiple services or platforms into thegamingecosystem.
“A couple of interesting entrants in the space are Jio and KICK. While one is one of the most recognized brands in India, the latter is gaining fame worldwide and is all set to enter the Indian space. We are also seeing more conglomerates like PayTM, Airtel, etc. preparing themselves to enter thegame, and we can start expecting launches from Q2,” says Agarwal.
As Suresh points out, “The last three esports events on Loco featured partners from brands in the hardware, FMCG, and consumer electronics space, showcasing diverse interests. Overall, 2024 is expected to witness the consolidation ofgamingas a preferred advertising medium in India.”
