Esports has grown tremendously from being considered mysterious gaming jargon to become a thriving industry in South Africa, attracting spectators, brand sponsorships, and diverse players. Not only does the industry continue to attract players and fans, but it’s also caught the attention of brands who realise the potential of reaching an engaged audience.
There are several factors at play in this shift, and they’re all good news for brands, for gamers, and the growing numbers of passionate and engaged spectators, who can watch the most exciting encounters from the comfort of their own homes.
Tournaments
Annual tournaments are at the heart of South Africa’s esports industry, with notable competitions hosted by Mettlestate and the Africa Cyber Gaming League (ACGL). Events like the 2016 Telkom Digital Gaming League (DGL), South Africa’s first R1 million prize tournament, paved the way for increasing prize pools and diverse teams of entertainment and real-world sporting professionals competing on the same team.
That was the case in the 2020 FIFA eNations Stay and Play Charity Cup, where the official eBafana Bafana squad comprised Proteas fast bowler Kagiso Rabada, rapper Cassper Nyovest, 18-year-old professional gamer Thabo Moloi, and professional footballer Sibusiso Vilakazi.
The country’s love for sports
Esports makes other sports more accessible to fans, who can emulate their idols’ match-winning excellence without needing the physical training or kit.
…around 57% of South African gamers
played FIFA in the last 12 months.
What makes esports so attractive to South Africans is that, unlike traditional real-world sports, almost anyone who watches a virtual match can relive all the exhilarating action after the tournament or live stream is over. Fans don’t have to be professional soccer players to boot up their consoles, PCs, or mobile devices and step into their favourite FIFA player’s shoes by playing a match in front of a roaring stadium of amped-up fans.”
According to Newzoo’s 2021 Consumer Insights for Games and Esports, around 57% of South African gamers played FIFA in the last 12 months. This love for the sport is evident in the 76% of South Africans who watched soccer in the past six months, making it the country’s most-watched sport, followed by Rugby (57%). According to Newzoo’s 2021 Global Esports Market Report, esports viewership will reach an astounding 728.8 million in 2021, growing by over 10% from 2020.
Brand sponsorships
Brand sponsorship plays such a crucial role in the growth of the esports industry, from paying players’ salaries to awarding prize money at tournaments. Thankfully, more brands realise that esports is no longer just hype and that it’s developed into a global industry that can expose them to a growing audience.
Global esports revenue from sponsorships and media rights is predicted to hit $833.6 million in 2021. Adding to this revenue stream are consumer ticket sales. While they stood at just R900 000 in 2018, they’re expected to soar to R8.2 million by 2023, at a compound annual growth rate (CAGR) of 55.6%.
Esports is an industry on the rise in South Africa, with a passionate audience’s captive attention. It presents brands with great opportunities to engage with fans that they would otherwise struggle to engage with – making it a sector that’s ripe for early entrants to build brand affiliation and loyalty.
By Alexander Olls, Logitech G Marketing Manager, South Africa