Market Insights Advertising & Media Esports

Sponsorship & Advertising - Portugal

Portugal

The revenue in Portugal's Sponsorship & Advertising market is estimated to reach €2.9m in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 7.22%, leading to a projected market volume of €4.1m by 2029.
China generates the highest revenue in this market segment, with a projected market volume of €267.9m in 2024.
The average revenue per user (ARPU) is anticipated to be €0.3.
Portugal's Esports sponsorship and advertising market is rapidly growing, with major brands investing heavily in partnerships with local teams and events.

Key regions: South Korea, United Kingdom, India, Europe, United States

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Analyst Opinion

The eSports market in Portugal has seen steady growth in recent years, driven by increasing sponsorships and advertising opportunities. However, growth rate remains subdued due to limited funding and lack of mainstream recognition for eSports in the country.

Customer preferences: As the eSports market continues to grow in popularity, brands are increasingly turning to sponsorship and advertising opportunities to reach the highly engaged and tech-savvy audience. This has led to a rise in partnerships between gaming companies and non-endemic brands, such as automotive and financial companies, as they seek to tap into the lucrative eSports market. Additionally, with the rise of live streaming and social media, there is a growing trend towards influencer marketing in the eSports industry, with brands leveraging the influence of popular gamers to promote their products and services. This shift towards non-traditional advertising channels and collaborations with influencers reflects the changing preferences of consumers, who are increasingly receptive to authentic and personalized marketing strategies.

Trends in the market: In Portugal, the eSports market is experiencing a surge in sponsorship and advertising, with major brands recognizing the potential of this rapidly growing industry. This trend is expected to continue, as more companies seek to reach the highly engaged and tech-savvy audience of eSports fans. The significance of this trend lies in the potential for increased revenue for both the eSports market and its stakeholders. Additionally, as the eSports market continues to gain mainstream recognition, sponsorships and advertising partnerships can help legitimize the industry and attract even more investment. However, this trend may also lead to concerns about excessive commercialization and the impact on the authenticity of the eSports experience. As such, industry stakeholders must carefully balance the need for revenue with maintaining the integrity of the community.

Local special circumstances: In Portugal, the eSports market is gaining traction due to the country's strong gaming culture and growing interest in competitive gaming. This has led to an increase in local eSports teams and tournaments, creating opportunities for sponsorship and advertising. Additionally, Portugal's favorable tax incentives for eSports organizations and events have attracted international investments and partnerships. However, strict regulations on gambling and advertising of certain products may limit the scope of sponsorships and advertising within the eSports market in Portugal.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Portugal is greatly impacted by macroeconomic factors, including the country's overall economic performance, global economic trends, and government fiscal policies. This market also relies heavily on the level of investment and support from the government and other organizations. Countries with a stable economy and favorable regulatory environment tend to experience faster market growth, as they are able to attract more investment and support for the eSports industry. Additionally, the increasing popularity of eSports among younger generations and the rise of digital media consumption are also contributing to the growth of the Sponsorship & Advertising Market within the eSports Market in Portugal. These factors are expected to continue driving the growth of the market in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Sponsorship & Advertising market, which comprises revenues of teams and organizers via sponsorship deals. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.