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eSports Update

July 16, 2018 by Reinout te BrakeLeave a Comment(Edit)

A quick and nice update on Esports as I mentioned in the subject.

The eSports industry has grown at a tremendous pace over the past few years. Per a report from Newzoo, total eSports revenue jumped from $493 million in 2016 to $655 million in 2017, and total revenue could exceed $900 million in 2018. Our interactive dashboard for the eSports industry outlines the market’s performance over the past few years, and its outlook for the rest of 2018. You can modify the inputs to see how changes would impact the total market size in 2018.

eSports revenue is comprised of the below components;

-Sponsorship (40%): Sponsorship comes from both traditional Technology or Gaming companies (Intel, Steelseries) and Non-endemic brands

-Advertising (19%): Targeted advertisements for eSports audience during online consumption. The major players in this area are Computer Components and Gaming Peripherals manufacturer

-Game Publisher Fees (12.5%): Companies such as Valve invest on their games to keep it relevant. They also contribute to prize money

-Media Rights (18%): Online broadcasters pour in money to secure media rights. Twitch and YouTube Gaming are the major players.

Tickets and Merchandise (10.5%): Tickets revenue from events hosted in the Arena. Merchandise sales through both offline and online medium

Schermafbeelding 2018-07-16 om 13.15.10

Key factors that will drive growth in revenue:

-Immense growth in broadcasting and media rights

-Investments will continue to flow in from both endemic and non-endemic brands

-With the growth in online consumption, revenue from advertising will benefit

-Franchising model gaining traction

Prize Money: Prize money comes from either game publisher (such as Valve), or an eSports organization (such as ESL). CAGR for 3 years was 37.3%

Twitch Viewership Data: Twitch broadcasts eSports competition and provides a platform to video-game streamers. In the last three years, it has seen a 21.3% CAGR in viewership

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The majority of eSports consumption occurs online. With the industry looking to attract young audiences – who are generally willing to watch matches on smart devices or PCs – several TV and internet companies have started to compete for the rights to broadcast events. Meanwhile, Over-The-Top streaming continues to see impressive growth, and will also likely contribute to the growth in consumption. Furthermore, as franchising gains traction, especially in North America, broadcasters will have a reliable and steadily growing stream of income. While YouTube Gaming and Twitch saw tremendous growth in 2017, the entry of other big players such as Facebook also bodes well for the space’s near-term growth prospects.

Sponsorships and Franchising Will Have Important Roles

Revenue from sponsorships grew by over 55% in 2017 and exceeded $250 million. With more and more brands becoming interested in sponsorships given the growing popularity of the space, this growth trend appears sustainable. Moreover, many investors are looking at the big picture and investing for long-term benefits in eSports through franchising. Franchising has picked up in eSports with the recent launch of The Overwatch League, which had a $20 million price for each slot. This also led to Twitch paying $90 million in 2018 for exclusive distribution of the league, the biggest in eSports history. Several other game publishers plan to introduce franchising in 2018, which will be attractive for investors as it builds a stable ecosystem and should boost revenues.

Key Metrics

Besides the immense growth in revenues of late, growth in the eSports industry can be gauged by looking at two key parameters.

Schermafbeelding 2018-07-16 om 13.17.18

Twitch Viewership Data: Twitch, an Amazon subsidiary, primarily focuses on broadcasting eSports competition along with providing a platform for video game streamers. In the last three years, it has seen a 21.3% compound annual growth rate in viewership. In 2017 alone, viewers watched almost 6 billion hours of content on Twitch.

Prize Money: In the early years of eSports, prize money was fairly low. However, with the overall growth in viewership and other revenues, prize money has grown by over 30% annually of late. Prize money comes from either game publishers (such as Valve) or eSports organizations (such as ESL).

Overall, it is expected that these factors to drive the total eSports market to exceed $900 million in 2018.

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Filed Under: UncategorizedJanuary 10, 2013 by Reinout te BrakeLeave a Comment(Edit)

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https://rtbgameconsultancy.wordpress.com/2013/01/08/734/Filed Under: UncategorizedJanuary 8, 2013 by Reinout te BrakeLeave a Comment(Edit)

I read a very good article today. love to share it with you

The Business of Social Games and Casino

The three most important letters for any social game company, and arguably any B2C or B2B company, is LTV, or “lifetime value.” Although most social game industry professionals acknowledge the importance of LTV, they often fail to realize it is the determinant to a company’s, product’s and / or game’s success and survival. It is the primary factor in why companies fail or are sold for tens or hundreds of millions of dollars.

What LTV consists of

LTV

LTV is a function that shows the present value of a new customer, how much that customer is worth to your company. Although I will be focusing on its application for social games, LTV can be used for any business, from valuing new customers for a restaurant using a GroupOn promotion, to a car dealer deciding how (and whether) to motivate buyers to visit the showroom.

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Oracle acquires Eloqua for just 871mio

December 26, 2012 by Reinout te BrakeLeave a Comment(Edit)

For its $871 million buyout of Eloqua, Oracle will get more marketing automation expertise and access to more than 1,000 customers. The deal is expected to close in the first half of 2013 and continues Oracle’s fourth quarter buying spree.

Lest we forget that Oracle remains primarily a software company, it announced plans to buy Eloqua, a maker of marketing management software for $871 million or $23.50 per share. The buy comes two years after the database giant bought Eloqua competitor Market2Lead and 7 months after it acquired Vitrue for social marketing expertise. (Check out Eloqua’s blog on the Market2Lead acquisition for an interesting read.)

The deal will mean more competition with Oracle rival Salesforce.com which bought Buddy Media for $689 million in June and is adding more marketing expertise to its portfolio as well as help Oracle compete against other companies like Marketo and Hubspot, which recently snagged $35 million in new venture backing. There are differences: Hubspot focuses on inbound marketing — culling likely prospects from  Facebook, Twitter etc. and targeting them. Eloqua’s specialties lie more in lead management and reporting and analysis of marketing programs. Another factor is that many researchers predict that Chief Marketing Officers (CMOs) will get have big budgets for IT acquisitions that help them do their jobs better.

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Read more here; http://gigaom.com/cloud/oracle-beefs-up-marketing-applications-savvy-with-871m-buy-of-eloqua/ 

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Filed Under: Uncategorized Tagged With: CMOeloquamarketingoracle

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