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TV & Sports Betting: A Winning Combination

TV & Sports Betting: A Winning Combination

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The online gambling/sports betting category continues its powerful growth in 2021 with massive spending on advertising. Forecasts show this category continuing to expand, driving over a half-billion dollars into the local spot TV market by 2024. Much of the current ad spend is driven by the two biggest platforms: FanDuel & DraftKings. 

In fact, the more these platforms target local spot TV over national, the stronger and more resonant their message. TVB conducted a case study analyzing the local/national ad mixes and expenditures by FanDuel and DraftKings. The results validated the strength of local spot TV in the online gambling space.

Source: American Gaming Association

Some key findings:

  • Online gambling ad spend is seeing astronomical growth, with $10.7 million in 2019 to over $154 million at the start of 2021.
  • Forecasts predict local spot TV to greatly benefit from the growth of online gambling advertising.
  • Television is the most important sports betting influencer for awareness, consideration, and placing bets.
  • Exposure to TV ads motivates sports bettors into action.
    • Driving people to learn more online
    • Motivating people to open sports betting accounts online
    • Creating ad recall
    • Initiating word of mouth
    • Doing research for potential sports bets
  • Among the biggest online sports betting platforms, bigger spending doesn’t guarantee ad weight and effectiveness. How ad dollars are spent (local vs. national) is the key to stronger ad weight in key sports betting markets.
  • DraftKings spent significantly more dollars than FanDuel in the time period studied, but DraftKings’ strategy placed heavy emphasis on national TV, whereas FanDuel’s emphasis was on local TV. As a result, despite DraftKings’ heavier ad spend, FanDuel had far more weight in key markets.

For more information, please contact Hadassa Gerber, Chief Research Officer, TVB.