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Sports betting boosts advertising spending in Q4

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Historically, Q4 ad spend was the highest of the year, driven by high demand during the holiday season. Traditional product categories that increase marketing budgets include retailers, toys/games, apparel, alcoholic beverages, and movie studios. Additionally, political advertising drives billions of dollars in advertising dollars every other year. New to the list is sports betting.

Also, every fourth quarter the NFL and college football are in full swing, and postseason baseball and the NBA, college basketball, and NHL start a new season. This year, his once-in-a-four FIFA Men’s World Cup soccer tournament will also take place in Qatar. The global event has been postponed from June-July to November-December due to the heat.

Commenting on the fourth quarter, Nicole Ovadia, Vice President of Forecasting and Analysis, BIA Advisory Services, said: For our customers, especially in markets where sports betting is new. TVREV analyst John Casillo added, “Sports betting is seasonally focused, and he’s particularly focused on the NFL’s fall and winter.”

Sports betting earnings: Sports betting earnings are on the rise. Earnings for the first half of 2022 totaled just over $3 billion, compared to his $4.3 billion for the entire last year. Morgan Stanley predicts revenue will reach $7 billion by 2025. Also, in 2021, the American will bet his $57.2 billion on sporting events, a 165% increase from the previous year.

Continued legalization of sportsbooks by states has contributed to increased revenues (and advertising costs).Massachusetts hit 36 ​​last monthth States legalize sports betting (Washington DC does too). Massachusetts is the only state to legalize gambling, following Maine, Ohio, Nebraska, Kansas and Florida, but has not yet enacted regulations.

California Voting Referendum: California, the most populous state, legalized sports betting in this election day vote. Kantar/CMAG reports that advertising spending has already taken him over $300 million. In comparison to previous ballot measures, Kantar/CMAG Senior Advisor Steve Pathwaiter said: [Proposition 22] about gig workers. Moreover, so far, California’s proposal has easily surpassed the advertising dollars spent on this year’s statewide political elections (Pennsylvania’s Senate election is his second most expensive). . Alaska will also hold a referendum on sports betting in November.

There are two proposals on the ballot for legalized sports betting in California. Proposition 26 allows only Native American tribe-owned casinos and his four racetracks to allow face-to-face gambling. The only Native American tribe in California that currently has legal gambling rights financially supports the proposal. Proposition 27 legalizes mobile sports betting statewide and is funded by sportsbook companies like DraftKings, FanDuel and Major League Baseball. A third group opposes the legalization of sports betting.

Advertising costs for local sports betting: For local advertising, the BIA expects sports betting ad spend to reach $1.8 billion in 2022, a massive 80% increase from 2021. By 2024, BIA expects local advertising spend in this category to total $2.9 billion. BIA’s girlfriend Nicole Ovadia said: The BIA also predicts that the sector will grow significantly between now and 2024, reaching nearly $3 billion. This leap depends on California voting to legalize online gambling in 2023 and go live in 2024. ”

Local radio has also benefited from the sportsbook’s seasonal ad spending strategy.according to inside radio, After months of stagnant marketing activity, three sportsbook companies ranked among the top 100 advertisers in the week of September 5 (coinciding with the start of the 2022 NFL season). DraftKings ranked him ninth among all advertisers with 28,945 occurrences of his AM/FM spots. FanDuel said he placed 11,268 ads and ranked him 52nd.nd Caesars Sportsbook aired 6,766 messages and ranked 86th. The BIA recently raised its forecast for annual sportsbook radio advertising spending from $150 million to $164 million.

NFL: The NFL will lead the way in sports betting in Q4. According to the American Gaming Association, 46.6 million Americans will bet on the NFL during his 2022 season. front office sports That’s 18% of all US adults, up 3% from last season. Like last season, the NFL will limit the number of sportsbook ads to six across TV and Amazon Prime for each game. One ad will be shown before kickoff and another will be shown at halftime. There are currently five advertisers approved by the NFL. FanDuel, DraftKings, Caesars, BetMGM, FOX Bet. Earlier this week, Amazon Prime announced DraftKings as a sponsor for the first season. thursday night footballAdditionally, as in the past, sportsbooks at NFL stadiums will remain closed during games.

Advertising costs for sports betting on national television: Not surprisingly, NFL games dominate national television spending by sports betting advertisers. In an analysis of iSpot data, John Casillo noted that 41.7% of his TV ad impressions (81% of his estimated national TV ad spend) in 2021 were allocated to his NFL sports betting brand. doing.

In the first week of the 2022 NFL season, sports betting ads accounted for 4.80% of ad impressions on NFL TV, with ad spend estimated at $24 million. These numbers are on par with Week 1 of 2021 (4.83% ad impressions and $23.8 million in ad spend). In Week 1 of 2022, FanDuel leads the advertising spend with his $13.8 million, followed by DraftKings ($5.4 million), BetMGM ($2.6 million) and Caesars ($2.2 million).

Additionally, iSpot reports that the estimated advertising spend for sports betting on national television is on the rise, rising from $64.6 million in 2020 to $199.7 million in 2021. $161.7 million. Casillo points out that national sports betting advertising could grow in the future as more states legalize mobile sportsbooks and sports betting altogether.

Magna Global’s latest advertising spend forecast states: Sports betting is becoming a major category. Historically, local and digital media accounted for the majority of spending, but as more and more states legalize, the share of national television is increasing (New York this year, possibly in 2023). California and Texas).

Sports betting advertising also goes beyond traditional media outlets. For the 2022-23 season, the NHL will, for the first time, use a ‘3’ by ‘5’ advertising patch on the front of player uniforms. Three of the 32 franchises have casino and wagering related patches. The Arizona Coyote will feature ads from the Gila River Resort and Casino. Vegas Golden Knights and Circa Sports, Washington Capitals and Caesars Sportsbook.