Forum Topics Is Esports an untapped market for Australian advertisers
NewbieHK
3 years ago

An interesting topic and one of I have looked in a number of times. In the end I just went with the ESPO ETF as I was not confident at the moment to understand the full monetisation value afforded to the smaller gaming companies on the ASX and also the lottery of hoping the one I pick produces that "big" game.

One of the challenges i see is the competition. If I want to watch rugby league or the AFL I know I can get the best of the best by watching national level games in Australia. In contrast NBL and the A-League struggle because let's face it you are not watching the best of the best and I would rather watch the NBA, EPL, La Liga etc.

This brings me to gaming. A quick search worldwide revels 100s upon 100s of gaming companies with the most successful ones being those with the block buster games and thus staggering numbers on their platform. Take Tencent for example they either run or own significant % of some of the biggest gaming companies in the world including Epic Games (40%) (Fortnight) and a majority state in Riot Games (League of Legends).
 

I am sure one or two on the ASX has the ability to make it big time but this will require them to produce a game that has international appeal in order to generate the significant noteworthy revenue. 

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Summer12
3 years ago

Hi all,

Full Disc: i own shares in a few small cap Esports and gaming companies.

I found this article on the YouGov site about Esports and how advertisers and Not players could be the key to moneterisation,  

https://t.co/GzbWkr4Xqf?amp=1

would love to hear peoples thoughts positive and negative on the sector.i understand some serious concerns around ESG and how this is considered gambling.

hope the link works.

 

 

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reddogaustin
3 years ago

@Summer12

Hi Mate. I see zero difference between advertising before/during/after a footy match, and doing the same thing for an esports match.

Advertising has long been the moneterisation route for live sports, now closely followed by betting (gambling) would be my guess.

My opinion on ESG - I wouldn't be too worried. So much of hosting an esports event uses infastructure that is already in use, so the additional power usuage is minimal. Stadiums, internet, lights, kitchens, cars - all used for live sport anyway. And, even if there is a social licence at play here - they can offset by loudly buying carbon credits.

Also, I wouldn't worry about gambling. There are loud voices across the spectrum for anti-gamblining in this country, but as long as the governments continue to derive tax revenue from it... we won't see much change.

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Summer12
3 years ago

Great Insights - thanks

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