Although China’s gaming industry is facing the first-ever user and revenue drop, Chinese companies continue investing heavily in esports sponsorships and advertising.
According to data presented by Safe Betting Sites, Chinese brands will spend $223 million on esports sponsorships and advertising in 2022, 35% more than US companies.
Chinese Gaming Industry Loses Revenue and Users, but Esports Sponsorships Grow by 26% YoY
The Chinese gaming industry is having a rough year as government restrictions continue cutting down revenue and users. According to a Statista survey, Chinese gaming revenues are set to dip by a massive $1.6bn in 2022, while the country is expected to lose 61 million gamers by the end of the year.
Nevertheless, Chinese brands continue spending millions of dollars on sponsoring esports teams. Statista data show that while the Chinese gaming industry is witnessing a first-ever decrease, esports sponsorships are expected to grow by 26% year-over-year to $223.8bn in 2022. This includes deals for sponsoring an esports event and esports teams, product placements, and advertising sold as part of a sponsorship package. Statista data show nearly one-third of total esports sponsorships and advertising comes from China.
In comparison, companies and brands from the world’s second-largest gaming industry, the United States, are expected to spend around $165bn on esports sponsorships this year, or 10% more than a year ago.
Overall, companies and brands worldwide will spend $791.9 million on esports sponsorships and advertising this year, or 16% more than in 2021.
Around 50 million New Esports Viewers per Year, One-Third of All Viewers from China
The potential of reaching millions of people continues driving brands to start investing in eSports, making sponsorships, and advertising the largest revenue stream in the entire industry. According to Statista data, global eSports viewership is expected to reach over 526 million people in 2022, and the number continues to grow.
Statistics show the number of eSports viewers is set to increase by almost 50 million per year before rising to nearly 665 million in 2025. Chinese eSports fans will make up one-third of global eSports viewership.
Today, the country has over 178 million esports viewers, and by 2025, this figure is expected to jump to over 210 million.