Sporting Book Operators Slash Their TV Ads for the First Time in 2023
After the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, sportsbook commercials became very common. Many people and regulators became concerned about how often these ads were being shown during sports games. The American Gaming Association (AGA) even requested a study on this topic.
According to Nielsen, 2023 saw a decrease in the amount spent on sports betting ads compared to 2022, marking the first year with less sports betting advertising since PASPA was overturned. The total advertising budget related to sports betting, including daily fantasy sports, dropped by $210 million, representing a 15% decline. If daily fantasy sports are excluded, sports betting ad spending saw a 21% decrease.
Prominent online sportsbook companies like FanDuel, DraftKings, and BetMGM are members of the AGA.
Sports Betting Advertising Decreased Across Different Media
During the initial years of sports wagering marketing, which were between 2019 and 2021, gaming firms prioritized growth and market share by spending heavily on advertising and promotions. This involved commercials with celebrities and big-name events like the Super Bowl. While these types of ads still exist, the focus has shifted towards cost-effective techniques to please investors who are more concerned with the bottom line.
The reduction in sports betting advertising was not limited to TV. Across all channels, sports betting ads declined by 4% when compared to the previous year. TV ads, the most frequently used medium for these companies, reduced by 11%, with a decline of 33% from their peak in 2021.
Sportsbook Ads Still Lag Behind Other Industries
Despite the significant growth in advertising expenditures within the sports betting industry from 2019 to 2022, its share of TV ad volume remains minimal. The AGA observed that sports betting had a 0.4% share of total TV advertising volume in 2023, significantly lower than alcohol (0.5%), telecom/wireless (1.5%), and fast food (3.8%). Compared to pharmaceuticals (14.1%), sports betting ads had a very small presence.
Considering that for every sports betting commercial in 2023, there were eight fast food ads and 31 pharmaceutical ads, the 3-to-1 margin between cell phone companies and sportsbooks seems small. While the study did not include a comparison with the auto insurance industry, three companies (Abbvie, Procter & Gamble, and Walt Disney) spent more on TV ads in 2022 than the entire regulated sports betting industry spent on all types of advertising.
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Source: www.casino.org
