‘ESPORTS WILL GARNER MORE EYEBALLS’

Thanks to COVID induced lockdowns and WFH models, online casual gaming has witnessed unprecedented growth - both in terms of the game base at 420 Mn in FY21, and the revenue contribution to the gaming industry at INR 60 Bn (44% of the total gaming industry size in FY21).
Picture this – you are working from home and need to take a break and reboot – this is where casual gaming apps and platforms have kept people company and engaged them. They also provide a way to interact with friends and family, while being confined indoors.
As per GroupM Consumer Eye 2021 Wave 4 research, 04:39 (hh:mm) was the typical time spent per week playing games – a 69% increase in time spent since COVID-19 outbreak. 71% of the respondents identified “Relax / de-stress” as reasons for playing games. The pandemic has accelerated a trend towards gaming environments becoming social spaces. Over a third of consumers say they join game worlds for social rather than gaming needs. “Game chilling” as a trend has seen a marked rise in India and is directly linked to how Gaming is a serious business.

A KPMG report namely “Beyond the tipping point - A primer on online casual gaming in India” casual gamers in India is projected to balloon up to 657 million users by FY25. This means that the online casual gaming market could increase from Rs 60 billion to Rs 169 billion in the same time frame. The report also said that advertising will continue to be a big draw for casual gaming. Reason being 61% respondents agreed to watching ads to earns points that can be used to redeem in-game currency/ items as a key reason to make “in-game advertising acceptable” as reported in GroupM Consumer Eye 2021 Wave 4 research. In FY21, advertising revenues constituted Rs 36.2 billion as per KPMG report.
Online gaming in India is still at a very nascent stage. While the country has the second-highest number of gamers in the world, its Average Revenue Per User is still quite low compared to even other developing and comparable markets like Indonesia, Malaysia, and South Africa. There could be several reasons for this ranging from significantly lower GDP per capita of India as compared to mature gaming markets to a negative perception of gaming in India – which is likely to change with introduction of esports as a medalled event at Asian Games 2022.

Unlike online gaming, esports is defined by online games of skill that are played in tournaments where different teams or individual players compete against each other to win the championship, league, or title like physical sports. As per EY report named “Ready. Set. Game On!” esports industry is expected to grow at 46% CAGR - over fourfold from INR 2.5 billion in 2021 to INR 11 billion by 2025. The prize pool is expected to grow at 66% CAGR to reach INR 1 billion by 2025. It is estimated that India currently has 150,000 players and around 60,000 teams. As esports becomes a viable profession for the youth, the number of players playing esports is expected to grow at 78% CAGR by 2025 to reach 1.5 million players and 250,000 teams. The growth will be propelled by the increase in prize money, more games, localization, regional adaptation and growth of smartphone, laptop, and broadband infrastructure.
As esports tournaments grow more competitive, they draw more viewership and support from players and the audience. Presently there are over 14 esports broadcast platforms, it is expected to cross 20 platforms by 2025. While current viewership is 17 million, by 2025 over 85 million unique viewers will watch esports tournaments in the country, comprising around 10% of global esports viewership. Currently, average time spent watching esports in a typical week is 201 min and the watch-time is evenly split between amateur and professional players at 41:59 as reported in GroupM Consumer Eye 2021 Wave 4 research. This is a 65% increase in time spent on streaming since COVID-19 outbreak with 58% of the gamers choosing to watch it on their smartphones.
The EY report further estimates that streaming ad revenue is expected to quadruple to INR 6.5 billion by 2025 generating the largest portion of esports revenues. Tournament sponsorship and syndication revenue is expected to grow at 45% CAGR to reach INR3.5 billion by 2025.
In conclusion, gaming and esports can help brands connect with hard-to-reach audiences. Mobile gaming is a ‘mass medium’ in India. Over 80% of internet users in India play games on mobile devices. However, brands must recognise the cultural significance of gaming. Gaming is the most popular leisure activity amongst Gen Z consumers and with recognition at Asian Games 2022, gaming and esports is likely to hop over the legitimacy barrier.