A recent study by Juniper Research has estimated that the US Online Gambling Ad Spending could reach $1.8B by the end of 2022, up from $1B in 2021. This would represent an 80% increase in spending over the next two years, and indicates the growing importance of online gambling as a marketing channel.
Gambling Ad Spending With 80% Increase
With the growing importance of advertising, it is not surprising that gambling companies have spent $1 billion for online promotions last 2021. However, BIA Advisory Services estimated that it can go around $1.8 billion by the end of 2022.
This will be an 80% Year-On-Year increase on both US online casinos and sports betting ads. According to the study:
“The online gambling business verticle is presenting a continuing boost for local media sellers that operate in states where gambling is legal. For 2022, BIA estimates that the total nationwide advertising spend will be close to $1.8 billion and, for local markets, this spend can be a win-win for identifying and securing local ad revenue.”
Moreover, Nicole Ovadia, Vice President of analysis and forecasting of BIA Advisory Services stated that it is expected to level off as the forecasted ad spending was $1.9 billion for 2023.
Operators Implement Ad Spending Cutbacks
While iGaming frontliners like DraftKings, and Ceasars have spend hundreds of millions for online promotions, these companies have announced ad spending cutbacks.
After its $1 billion customer acquisition campaign, Ceasars Casino recently announced its $500 million slash on ad spending and decided to focus on upgrading its offerings.
On the other hand, DraftKings CEO Jason Robins announced that it spent $278 million for marketing during the Q4 2021 alone. However, it will also slash its ad spending budgets to focus on other long-term strategies to achieve profitability.
Rising US Online Gambling Industy
In recent years, the US online gambling industry has seen a significant uptick in both revenues and players. This is largely due to the increasing availability of legal gambling options and the growing acceptance of gambling as a mainstream pastime. With more and more states decriminalizing or legalizing online gambling, it’s likely that this trend will continue.
This growth presents a unique opportunity for both established gambling operators and start-ups looking to make their mark in this rapidly expanding market. In order to tap into this potential, however, they will need to invest in advertising.
Advertising is crucial for any business, but it’s especially important in the gambling industry. However, as the industry has become increasingly competitive, and operators have begun to explore other approach to increase their market share.
After all, advertising is not the only way to gain customers. In fact, many gambling operators have found that they can generate just as much interest by investing in other areas, such as customer service and responsible gaming initiatives.