Introduction – What is “esports” and how did it come to be?
Esports is a term that encompasses competitive video games. The term “esports” is derived from the words “electronic sports”. The beginnings of esports date back to the 1970s, with the earliest video games such as “Space Invaders”. In 1980s, the popularity of esports grew as it became a spectator event in some tournaments.
In 1991, Nintendo launched Super Mario Brothers 3 and began an annual World Championships for Nintendo players. In 1994, a growing interest in professional gaming led to creation of several organizations and leagues for eSports. In 2003, media outlets began broadcasting matches between gamers over cable television networks including ESPN and MTV2.
Why is esports a billion-dollar industry?
Esports is a burgeoning industry with rapid growth. With the growth of the industry, there are more players and contributors who continue to help it reach incredible heights. Players make money in a vast array of ways, and this may include tournament prizes, part-time work with esport teams, earning revenue through playing on sponsored streams, enabling game sponsorships on their personal video channels or through selling merchandise like t-shirts. Lately professional players are also making big bucks by signing contracts to represent hardware companies at gaming tournaments.
The global esports market is worth more than 1.08 billion USD in 2023 with the number of esports enthusiasts expected to double in the next four years.
By 2023, revenues are expected to rise to 2.64 billion USD, with all revenue streams growing in value.
We have seen the growth of esports in recent years due to the increased amount of games being released, higher production quality and ever more competitive players.
But what has really grown this industry into what it is today are investments from major media companies that have started broadcasting esports events on their channels and streaming platforms.
Unless you’re an avid gamer, you might not know just how big this industry is becoming but watch out for it because it’s here to stay!
The future of esports in the media industry – content creators and influencers.
The future of esports in the media industry is very promising. This industry has been growing steadily in recent years and it’s expected to grow even more. It has a lot of potential in the mainstream media and could be a mainstay in this industry for decades to come.
Many video games tournaments already have professional commentators who provide live coverage of the action, but this is usually not enough. There are many other jobs required for television broadcasts such as producers, camera operators, and floor managers. Every position needs to be filled when it comes to broadcasting an esports event.
Influencers play a huge role when it comes to making an esports event successful and can do so much more than just playing the game itself. They can engage with their fans on social media and build hype for events by releasing exclusive snippets, behind the scenes content, and more.
How Much Does an Average Esports Gamer Make?
Income varies based on talent, popularity and negotiating skills. But the average professional player still makes good money. Especially if they are on a team, which has an average monthly salary of $5,000. A total of $11,000 in tournament prizes plus an additional $3,000 per month just for streaming.
how much do pro gamers make a year?
A select few esports streamers actually earn about $5000 a month, but those are the top tier, most popular esports players. The average pro player makes anywhere from $7-10 thousand a year which is not too bad. Even though your pro player may not be great, they’re still doing good. But, we can’t totally rely on social media presence to see their worth since that’s not always reliable. Some streamers have already established a fanbase on other channels before gaining more attention on Twitch. This lets them continue to build their business without having to start from scratch. There are tonnes of careers and lifestyle opportunities in esports, some of which we often forget about. An example is the e-sports athletes that have such a huge following on social media that they start developing apps themselves.
Who are the Highest Paid Esports Players?
There are two different categories to consider when deciding who the highest paid esports players are. One, which is the most common, is the overall earnings of the player. Meaning, all of their income from streaming, sponsorships and prizes from tournaments. Some people feel that money should not be the only factor when considering one the best in esports.
Johan Sundstein, otherwise known as NOtail, would win in that regard. His monthly earnings of $1 million in 2023, for example, is much more than any other gamer to date.
After prize money, this pro gamer – Johan Sundstein (NOtail) has won $6.9 million in total 2023. His highest payout came from winning a Dota 2 tournament back in 2023 with a sum of $6.97 million. While the $3,500 prize money for this tournament is very impressive, Sundstein’s $6.9 million career winnings don’t even add him to the top ten list of those of the top 10 richest gamers in the world.
Esports earnings for 2023
Gaming is the fastest-growing form of entertainment globally, used by all ages. The revenue generated due to this keeps increasing at an amazing 9%+ every year. The global video game market is expected to generate $190 billion in revenue by 2023. Reports shows that esports revenues are estimated at $1.08 million in 2023, but are projected to reach $2.79 billion by 2023.
When plugging these numbers into our model, we found that the total market opportunity set for esports (inclusive of advertising, sponsorships, event/media rights) is significantly greater than esports (with game publisher fees) alone. Let’s say, for example – if I watch my favorite player at the Fortnite World Cup tournament then end up buying that skin that player used. Is Epic counting revenue from esports?
The Future of Esports gaming industry
With the introduction of new gaming titles, such as Fortnite and Dota 2, the Esports gaming industry has been growing phenomenally. More and more companies are investing in Esports teams and more viewership is seen at tournaments.
The future of Esports industry is bright due to the rise of mid-tier tournaments like DreamLeague and GESC. They provide a platform for amateur gamers to compete with professionals, which is something that the industry has been lacking for a long time. This can be attributed to the rise in popularity of eSports games like Dota 2, League of Legends, Overwatch etc.
Everyone from gamers to traditional sports brands are seeing the potential in esports. It’s an industry that’s quickly rising and that’s why people are starting to wonder just how far it will go. Tradition is important, but using that as your only source of inspiration would be a mistake.
There are many differences between these two options. For example, streaming offers another option for gamers who are more interested in reaching broader audiences. The world of competitive gaming is full of talented individuals, but for those who can combine skills with a personality that suits the audience, streaming offers major opportunities. It has been reported that Ninja, a popular fortnite player and streamer, has signed a deal with Microsoft to stream exclusively on their platform and for an undisclosed figure. However estimates range from $6 million to $10 million per year. Esports have been around for a while, but it’s still unclear whether traditional players will get paid six-figure salaries. Across the ocean, Lebron is still holding on to his league salary and probably won’t be leaving the NBA anytime soon.
Sponsorships in Esports games
The rise of esports has brought a new dynamic to the world of sports. While there have been many traditional sponsors that have been involved with traditional sports, esports has seen a completely new type of sponsor. These types of sponsors are called non-endemic sponsors and they are more likely to be from related industries such as gaming peripheral manufacturers, computer hardware companies, and streaming services.
In the past few years there has been a rapid increase in the number of non-endemic sponsors in esports. As more and more companies see how profitable the market is becoming they want to get involved in it. This has led to an increase in sponsorship prices for teams.
Sponsorships are an important source of revenue but in 2018 they accounted for 40% according to Hexa. In 2019, sponsorships generated $456.7 million. For brands that sponsor us as athletes, sponsorships can help you make a name for yourself as an endorsed product. It’s the perfect way to promote your brand and allow people to see your gear on our field of play. Endemic sponsors include Razer, MSI, Bilibili, Huya, AfreecaTV, and NetEase – among several others.
Non-endemic brands have been sponsoring esports events for a long time now. They include product placements, sponsorship of specific teams or events, and the rights to use IP in marketing campaigns. You can leverage virtual possibilities when in esports or when in a traditional sports because of the nature that is in a sense virtual. You can think about branding on a player’s jersey and on the player’s avatar skins because of this. For instance, the Samsung Galaxy Fortnite skin that was recently made available as a pre-order bonus for the Samsung Galaxy Note 9.
Esports is a booming industry and it doesn’t seem to be slowing down anytime soon. It still needs to go through the standard marketing cycle of building awareness, generating interest, and finally converting viewers to customers. For esports teams and leagues, this means developing sponsorships and partnerships with brands that align with their interests. We will look at some of the most popular advertising strategies in esports and how these strategies can be implemented in order to build revenue for both advertisers and esports teams.
Companies like Microsoft have used various types of advertising opportunities in order to generate revenue through sponsorship deals with eSports teams like Evil Geniuses (EG). These sponsorship deals range from simple branding opportunities like logo placement on team’s jerseys, banners during major tournaments, or video content highlighting their products; all the way up to exclusive partnerships with teams and organizations that include player contracts, event hosting rights, and even the right to live stream matches.
Sometimes it’s better to separate advertising and sponsorships. This can be tricky because it might not always be clear where the revenue comes from, but we’ll talk about that later.
Advertising revenues are generated by sponsorships on esports programmes. As more and more people are interested in streaming videos, the advertising money for this content is larger than ever before. Due to linear TV making up a smaller proportion of the views, the majority of revenue comes from online video ads served on streamed content. As such, advertising revenue could be reclassified as content revenue, or revenue generated by deals with streaming platforms. These deals also include rights to advertise on players’ individual streams.
As in most traditional sports, merchandising is an important part of the revenue stream. 100 Thieves describes themselves as “an organization built at the intersection of competitive gaming and entertainment.” This is a clear way of how esports teams are approaching their business and focusing on what they’re excellent at. 100 Thieves just raised $35 million to improve themselves, and other teams are following suit.
One of the reasons why Esports does so well is because of merchandising. Merchandise like physical and digital gear can be linked with teams and make a difference both now and in the future.
Tournament winnings are the last revenue channel we’re going to discuss. Many might have read about the 2019 Fortnite World Cup winner, Bugha, and his $3 million first place prize. What many may not realize is that a portion of his winnings ultimately go to his team, LA Renegades.
Most team organizations value team success in the tournament, but the primary goal is not always to take a cut of tournament winnings. Impressing your sponsors with your performance is key for teams. And since many sponsorships are negotiated during the season, it’s important that you keep up your game and bring value to what they invest in you.
dota 2 players salary per month
Here are the highest-earning Dota 2 gamers in 2023:
- Johan Sundstein (N0tail) – $6.9 million
- Jesse Vainikka (JerAx) – $6.4 million
- Anathan Pham (ana) – $6 million
- Sébastien Debs (Ceb) – $5.5 million
- Topias Taavitsainen (Topson) – $5.4 million
- Kuro Takhasomi (KuroKy) – $5.2 million
- Amer Al-Barkawi (Miracle-) – $4.8 million
- Ivan Ivanov (MinD_ContRoL) – $4.5 million
- Maroun Merhej (GH) – $4.2 million
- Lasse Urpalainen (Matumbaman) – $3.7 million
|Ranking||Player ID||Player Name||Total Earnings||Highest Paying Game|
|1.||Denmark||Johan Sundstein (N0tail)||$6,983,817.80||Dota 2|
|2.||Finland||Jesse Vainikka (JerAx)||$6,470,548.78||Dota 2|
|3.||Australia||Anathan Pham (ana)||$6,004,411.96||Dota 2|
|4.||France||Sébastien Debs (Ceb)||$5,573,712.41||Dota 2|
|5.||Finland||Topias Taavitsainen (Topson)||$5,490,317.57||Dota 2|
|6.||Germany||Kuro Takhasomi (KuroKy)||$5,215,504.15||Dota 2|
|7.||Jordan||Amer Al-Barkawi (Miracle-)||$4,818,441.68||Dota 2|
|8.||Bulgaria||Ivan Ivanov (MinD_ContRoL)||$4,599,516.16||Dota 2|
|9.||Lebanon||Maroun Merhej (GH)||$4,213,810.69||Dota 2|
|10.||Finland||Lasse Urpalainen (Matumbaman)||$3,787,569.04||Dota 2|