The gaming industry has been growing rapidly in the last few years thanks to the rollout of new gaming devices, the rising popularity of gaming influencers, and the push from the pandemic. Enthusiast Gaming is trying to capitalize on this trend by creating a gaming ecosystem. Enthusiast Gaming (EGLX) is a Canadian company founded in 2014 that focuses on the gaming industry. It creates experiences through its integrated platform which includes over 100 gaming websites, youtube channels with over 20 million subscribers, 7 professional gaming teams, 550+ influencers across different platforms, live and virtual gaming events globally, and 1000+ channels that create gaming content. This allows gamers to interact through the company’s various channels which increases the engagement rate of the gaming community.
The gaming market is growing rapidly as Gen-Z, millennials, and the younger generation now represent 50% of the US population and the gaming market is valued at $175 billion in 2020 with 2.7 billion gamers totally. The growing market provides a massive tailwind for Enthusiast Gaming to expand its ecosystem. Enthusiast Gaming’s platform is currently able to reach over 300m gamers monthly and the total content view in the last twelve months is around 43 billion with 145 thousand paying subscribers. By having the reach to millions of gamers and Gen-Z audiences, the company is able to generate revenue by selling digital advertisements to companies that want to reach the younger generation. Blue-chip companies like Disney (DIS), Microsoft (MSFT), Samsung, and even Facebook (FB) are customers of Enthusiast Gaming. Microsoft also acquired gaming giant Activision Blizzard for $68.7 billion to expand their footprint in the gaming industry.
The Gaming Market is valued at USD 198.4 billion in 2021, and it is expected to reach a value of USD 340 billion by 2027, representing a CAGR (compound annual growth rate) of 8.94% from 2022-2027. Whereas the digital market ad spend is forecasted to grow from $378 billion to $524 billion as well. With so many platforms Enthusiast Gaming is able to provide very flexible advertising strategies and solutions catered to different companies with different needs. For example with Samsung, they can have their influencers unbox and use Samsung’s product to allow audiences to know the features and capabilities of those products. And if a new game wants to drive engagement, Enthusiast Gaming can help the gaming company to host events that allow audiences to learn more about the game.
Having a full suite of platforms gives Enthusiast Gaming a moat in gaming advertising that no other gaming company can match. Enthusiast Gaming is trying to become the leading go-to platform for gamers in the future and the company is determined to grow bigger. Their platforms are gaining traction and attracting more gamers and audiences. They are also continuously improving their marketing solution strategies and capabilities such as establishing more and more partnerships. Given the tailwind from the trend in gaming and the increasing digital ad spending in the coming years, Enthusiast Gaming may have a chance of becoming the leading ecosystem and platform in the gaming industry.
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