A large and expanding addressable market

The Directors believe Bidstack is positioned attractively to capture scalable growth from several addressable markets. Immediate commercial opportunities are evident from game developers using Bidstack to drive sustainable monetisation solutions driven by advertisers capturing a growing addressable market and shift in advertising spend from traditional media solutions towards the venues where consumers actually spend their time. The medium to longer term growth drivers are underpinned by capturing a share of global enterprise software spend, where scalable solutions that create efficiency for key stakeholders in the gaming ecosystem are delivered through reporting, data, analytics and dynamic content management.

Engagement levels thriving in the gaming ecosystem

2021 global games market

Newzoo | Source: Global Games Market Report (January 2021)

Newzoo | Source: Global Games Market Report (January 2021)

As per Newzoo’s projections, the lucrative trends in games, esports and streaming are expected to continue to thrive. In 2024:

• The global games market revenue is predicted to grow to $218.8bn
• Mobile games are predicted to generate $116.4bn through consumer spending
• Cloud gaming is predicted to generate $6.5bn
• Esports is predicted to generate $1.6bn

The gaming industry’s lead indicators point to greater consumption across mobile devices, secondary viewing and esports underpinned by innovation and adoption of cloud gaming. This growth is expected to be fuelled in part by recent acquisitions of content by Microsoft (Activision Blizzard), Take-Two (Zynga) and Sony (Bungie) further compounded by new platform entrants to gaming such as Samsung and Netflix. These companies are expected to look at innovative ways to monetise as they grow their user base.

Global active smartphone & 5G-ready forecast

Newzoo | Source: Global Mobile Market Report (September 2021)

Global cloud gaming market cap forecast (US $)

Newzoo | Source: Global Cloud Gaming Report (August 2021)

2021 esports revenue streams (US $)

Newzoo | Source: Global Esports and Live Streaming Market Report (March 2021)

Games live streaming audience growth

Newzoo | Source: Global Esports and Live Streaming Report (September 2021)

Advertising dollars shifting away from traditional channels…

GroupM data shows the global media market rebounded strongly in 2021 by +20.6% post the pandemic across most channels to $765bn. The market is projected to grow in 2022 by 11% and mid-single digits through to 2026. This highlights the attractiveness of the media market as advertisers allocate growing budgets to reach consumers.

Global media spend and growth 2018-2022E

GroupM, TYNY December 2021

Digital advertising’s growth rates are predicted by GroupM to continue to outstrip television as advertisers allocate budget towards devices where consumer dwell times are higher. By 2026, the market share of digital advertising is forecast to represent over 70% and television to erode to 17% of the media mix. This bodes well for video gaming as an emerging media channel within the digital mix as the audience continues to grow and advertisers chase eyeballs.

Global Media Mix 2021

GroupM, TYNY December 2021