Unless you have been living under a rock, you’ve likely heard at least a little bit about the exploding esports industry. The industry is set to surpass $1 billion this year and is showing no signs of stopping. In fact, the market could reach a massive $3 billion by 2025, representing a CAGR of 18.58%.
Not only is the esports industry bringing in some serious coin, but viewership is at an all-time high as well. The global esports audience is expected to grow to 453.8 million worldwide in 2019.
In short, video games are no longer reserved for teenage males.
So, how can investors capitalize on this lucrative industry? Experts say companies that are creating the best engagement platforms that are centered around fans could offer the most upside.
The Importance of Esports Engagement
There is a reason why big brands like Coca Cola, Red Bull, and Mountain Dew are pouring money into esports—they are looking to reach a target demographic that isn’t easy to reach through traditional advertising.
Gamers and streamers are typically well-versed in technology, meaning they are able to browse incognito and block ads, cookies, and other marketing tools that have worked in the past.
Esports have created an entirely new marketing strategy that significantly boosts brand engagement and allows brands to gain access to key elements about their target market. This new method is focused on driving engagement and creating a real sense of community among gamers and streamers.
Contests, prizes, and competitions allow brands to engage with their audience and allow members of the esports community to connect with other like-minded individuals. For investors who are keen to gain a stake in this burgeoning market, there are a handful of esports stocks that offer massive opportunity.
Esports Stocks That Drive Engagement
Although Twitch is the most well-known esports platform out there, there are other esports stocks that offer more to both gamers and fans. Enthusiast Gaming (TSXV:EGLX) is not only the creator of Canada’s largest gaming expo—the Enthusiast Gaming Live Expo—but is also the fastest-growing online community of gamers.
Enthusiast Gaming has been busy building its presence in the esports community and inking deals left, right, and center. Most recently, EGLX reached an agreement with Activision Blizzard (NASDAQ:ATVI) to own and field a team in the newly franchised Call of Duty eSports league.
Prior to that, Enthusiast Gaming merged with J55 Capital Corp. and Aquilini GameCo Inc. to form a leading publicly traded global esports and gaming organization.
Another esports stock that is focused on engaging its community is Millennial Esports (TSXV:GAME) (OTCQB:MLLLF). The company operates millennialesports.gg, an esports platform and online community that provides egamers with a range of online competitions and leagues and provides them with the opportunity to win prizes.
On top of that, Millennial Esports also operates mobile applications related to esports, which includes services like video production, streaming, promotions, and broadcasting.
Then there is Super League Gaming Inc. (NASDAQ:SLGG), which also operates an online esports community and content platform. The esports stock connects with its network of gamers, venues, and brand partners through its cloud-based technology platform to enable esports broadcasting throughout the world.
Super League has multi-year, strategic partnerships with major game publishers like Microsoft Corporation (NASDAQ:MSFT) and Riot Games, with titles including Minecraft and League of Legends, respectively.
If you haven’t already jumped on the esports bandwagon, these esports stocks could be a great way to get your foot in the door.
Any esports stocks on your roster that are driving engagement? Let us know in the comments!
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