Sportico recently revealed that FanDuel outspends all of its competitors when it comes to sportsbooks advertising on local television. Nielsen ad-spend data shows that the company made up for 38% of the industry’s TV advertising dollars in the first quarter of 2021.
The study also showed where and how the sports betting industry is spending its ad dollars. More than 78 percent of the industry’s money went to spot advertising at local stations. Another 3.7 percent went to national TV buys, bringing the total sportsbooks spend on TV advertising to well over $160 million in Q1.
Radio is cashing in. It just isn’t cashing in the way TV or digital is.
According to Nielsen, just 2.2% of gambling ad money is spent in radio. That trails even traditional outdoor advertising. Nielsen estimates that radio took in $4.3 million during the first quarter.
Whether or not the percentage of advertising dollars will increase for radio, the amount certainly will over time. Sports radio in particular has inventory, live reads, and segment sponsorships that will be very attractive to advertisers as sports gambling legalization spreads across more states.
Forget getting more money than TV. Sportico suggests that radio should be optimistic for TV and excited to ride its coattails. Anthony Crupi suggests that by 2024, local spot television advertising could generate $590 million from sportsbooks. That is on top of the more than 1300 percent growth the category has seen in the last two years. That growth in TV likely means similar growth for other platforms as well.
