Public preferences are evolving at a faster pace, and this ecosystem is changing to adapt to the new times.
The sports industry has an incredible global financial impact. Football alone generates approximately $500 billion annually. Therefore, analyzing the market and exploring the potential for certain sports to gain popularity among viewers is crucial, both for current revenue and future opportunities.
In recent times, we’ve seen some very interesting changes in the landscape. While football, as mentioned before, maintains its dominance on the international stage, certain sporting events are standing out from the rest and achieving greater media and financial impact. Others, however, seem unable to adapt to these changing times.
Heads and tails
The UFC has built a veritable empire through its promotions and its management of advertising and social media. Its success is undeniable: the company that the Fertitta brothers bought in 2001 for $2 million was sold in 2016 for $4 billion. Today, it is part of the Silver Lake Management group, which acquired Endeavour Group Holdings, owner of UFC and WWE, for $13 billion.
The other side of the coin lies in more traditional options, such as the Olympic Games. The IOC has been struggling for several years to maintain its audience share, but it’s not always easy. Reduced relevance would also translate into less interest from advertisers, meaning lower revenue. Brands are aware that these events don’t connect with the public as they once did.
In fact, the IOC has made efforts to adapt to the changing times, for example, by introducing more modern sports into the competitions. However, the effect hasn’t been as significant as one might expect. That’s why e-Sports are a major asset for regaining the popularity of previous eras and attracting a younger audience, which is always very appealing to advertisers and sponsors.
The inclusion of e-S-ports in the official Olympic disciplines is now a reality, at least to some extent. Olympic e-Sport Series have been held in the past, but these disciplines have not yet been fully integrated into the main, most prestigious events. This hybrid approach has not yet yielded the desired results, and understandable concerns among organizers persist.
eSports: constantly growing
Are e-Sports so powerful that they could become the great hope of an organization like the IOC? It certainly seems so, given that these spectacles have already surpassed 500 million viewers annually. And what’s most interesting is that their growth has been meteoric, making it a very tempting incentive for advertisers and encouraging them to see e-Sports as a future investment.
The truth is, the rise of these digital disciplines shouldn’t surprise us: they have many elements that resonate perfectly with our times. For starters, technology is part of their DNA. And not only because the activity itself is related to video games; they also make optimal use of current tools. A prime example of this is social media, the primary medium through which they promote themselves.
We also need to talk about streaming: the technology now commonly used in areas like live casino, podcasts, and audiovisual platforms, has been the preferred medium for broadcasts since their inception, replacing traditional television. Streaming has given viewers greater freedom to follow events. Furthermore, the presence of influencers also increases popularity.
The structure of these events is much more immersive and interactive than other sporting events. It’s also more varied, as it usually includes complementary activities: new video game presentations, contests, performances, and so on. Also, fans choose which competitions to follow based on different criteria, such as the game itself, the game mode, whether it’s a national or international tournament, and so forth.
Modernity and greater freedom are two of the factors that have allowed e-Sports to grow thanks to the support of millions of fans. Currently, with increased advertising investment and the flexibility to incorporate more innovations and cutting-edge technology, they are outpacing other sports and positioning themselves as a viable option for the future. A future that is drawing ever closer.
