While the coronavirus pandemic caused every major US sports league to suspend its season, esports resumed relatively quickly. Leagues pivoted from competing inside venues to an online-only format where teams and production crews operated remotely. Despite any short-term struggles from large advertising downturns, the outlook for esports remains positive.
This year, US esports ad revenues will still grow 12% to $196 million, about $3 million shy of our pre-pandemic estimate. The coronavirus led us to lower our video advertising estimates, which makes up a significant chunk of esports ad revenues. Esports will make up for this short-term loss by 2021, when ad revenues will grow 15% to reach $225 million, roughly $6 million more than we expected prior to COVID-19.