Sports betting accelerates ad spend in Q4

Sports betting accelerates ad spend in Q4

Historically, advertising in the fourth quarter has been the most expensive of the year due to high demand in the holiday season. Traditional product categories that are ramping up their marketing budgets include retailers, toys/games, apparel, liquor, and movie studios. In addition, every two years political advertising cuts billions of advertising dollars. New sports betting on the list.

Also every fourth quarter, the NFL and college football are in full swing, there is a baseball game after the season, and the NBA and college basketball as well as the NHL start new seasons. This year will also include the FIFA Men’s World Cup, which is held every four years in Qatar. The global event has been postponed from June to July to November and December due to the heat.

In the fourth quarter, Nicole Ovadia, Vice President Forecasting and Analysis, BIA Advisory Services, says, โ€œIt’s a very busy time for sports betting, and therefore, we expect to see an uptick in advertising spend by key players in the field as they compete for customers – especially in markets that are considered Where sports betting is something new.โ€ TVREV analyst John Casillo adds, “Sports betting is seasonally focused, with a particular focus on the NFL’s fall and winter.”

Sports betting revenue: Sports betting revenue soared. In the first half of 2022, total revenue was just over $3 billion compared to $4.3 billion for the whole of last year. Morgan Stanley expects revenue to reach $7 billion by 2025. Also, in 2021, Americans bet $57.2 billion in sporting events, with a year-on-year increase of 165%.

Helping increase revenue (and advertising dollars) is the continued legalization of sports books by states. And last month, Massachusetts became No. 36The tenth State to legalize sports betting (Washington, D.C. has also legalized it). Massachusetts has joined Maine, Ohio, Nebraska, Kansas, and Florida as states that have legalized gambling but have not yet enacted any regulations.

California State Referendum Polling: California, the most populous state, embarked on sports betting on the ballot this election day. Kantar/CMAG reports that ad spend has already exceeded $300 million. When compared to previous polling procedures, Steve Basswetter, senior advisor to Kantar/CMAG, notes, “Clearly setting a new record, spending so far has exceeded the 2020 measure totals. [Proposition 22] on gig workers. Additionally, to date, California’s proposals have easily exceeded the ad dollars spent in any statewide political elections this year (Pennsylvania’s Senate race was the second most expensive). Alaska also held a sports betting referendum in November.

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Legal sports betting in California has two suggestions on the ballot. Proposition 26 would allow only casinos and four racetracks owned by Native American tribes to allow personal gambling. Native American tribes, who currently have the only legal rights to gambling in California, financially support this proposal. Proposition 27 would legalize mobile sports betting at the state level and has funding from sportsbook companies including DraftKings and FanDuel as well as Major League Baseball. There is a third group that opposes the legalization of sports betting.

Spending on local sports betting ads: For local advertising, the BIA expects ad spend on sports betting to reach $1.8 billion in 2022, a significant jump of 80% from 2021. By 2024, the BIA expects local ad spend for the category to total $2.9 billion. BIA’s Nicole Ovadia says, โ€œWith New York and other big markets making online sports betting legal this year, this has led to a significant increase in ad spending. The BIA also expects this segment to grow significantly between now and 2024 when it will reach approx. of $3 billion. This jump depends on California’s vote to legalize online gambling in 2023 and start-up in 2024.”

Local radio also benefits from a seasonal advertising spending strategy for sports books. according to Inside RadioAnd the After a period of lull for several months in marketing activity, for the week of September 5 (which coincided with the start of the 2022 NFL season), three esports companies were ranked among the top 100 advertisers. DraftKings ranked 9th among all advertisers with 28,945 AM/FM spot appearances, the largest number of radio ads run by a sports book advertiser in any week. FanDuel played 11,268 ads in the 52nd ranksecond abbreviation And Caesars Sportsbook aired 6,766 messages, ranked No. 86. The BIA recently increased its radio advertising spending forecast for sportsbooks from $150 million to $164 million for this year.

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NFL: The NFL will lead the popularity of sports betting in the fourth quarter. According to the American Gaming Association, 46.6 million Americans plan to bet on the NFL during the 2022 season. Sports Front Office She reports that this represents 18% of all adults in the United States and an increase of 3% from last season. Similar to last season, the NFL will limit the number of sports book ads to six on TV and Amazon Prime per game. One ad can be broadcast before the match starts and another in the first half. There are currently five advertisers accredited by the NFL; FanDuel, DraftKings, Caesars, BetMGM, FOX Bet. Earlier this week, Amazon Prime announced that Draft Kings will be the sponsor for its inaugural season Thursday night football. Plus, as in the past, sportsbooks at NFL stadiums will remain closed throughout games.

Spending on national TV sports betting ads: As expected, NFL games dominate national television spending with sports betting advertisers. Analyzing iSpot data, John Casello noted in 2021, that 41.7% of TV ad impressionsโ€”and 81% of discretionary TV ad spendโ€”for sports betting brands were allocated to the NFL.

In the first week of the 2022 NFL season, estimated sports betting ads accounted for 4.80% of NFL television ad impressions and $24 million in ad spend. These numbers are comparable to the first week of 2021 (4.83% of ad impressions and $23.8 million of ad spend). For the first week of 2022, FanDuel topped ad spend with $13.8 million, followed by DraftKings ($5.4 million), BetMGM ($2.6 million) and Caesars ($2.2 million).

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Furthermore, iSpot reports that discretionary sports betting ad spend on national television is on the rise, rising from $64.6 million in 2020 to $199.7 million in 2021. So far, with the NFL season just starting, it has reached Ad spend is already $161.7 million. Casillo notes that national sports betting advertising still has the potential to grow in the coming years as well, as more states legalize mobile sportsbooks and sports betting in general.

Magna Global noted in its latest ad spend forecast; Sports betting has become a major category; So far, local and digital media have captured the bulk of the spending, but national television will increase its share as it is legalized in more states (New York this year, California and Texas possibly in 2023).

Sports betting ads are also bypassing traditional media outlets. For the 2022-23 season, the NHL will, for the first time, have a “3” x “5” ad patch on the front of the players’ uniform. Three out of the 32 franchises will have a casino and betting related slot. Arizona coyote will have an ad from Gila River Resorts and Casinos; Vegas Golden Knights with Circa Sports and Washington DC with Caesars Sportsbook.

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