Sports betting TV ad costs decried as not sustainable
Social media seen as better option to reach younger demographic.
Advertising spend by sports gambling operators has reached all-time highs, and one company is saying the cost involved in reaching new customers must come back to earth.
Sports Gambling Guides cited Neilson research that found operators spent $153.6 million on online gaming television ads in the United States – just in the first quarter of this year. The company said the competition for client acquisition will continue to heat up as new states legalize betting, and operators such as Caesars Sportsbook, WynnBet and Barstool Sportsbook clash for market share in those new territories.
“This can’t be sustainable,” Troy Paul, president of Sports Gambling Guides, said in a statement. “This is another major reason social media marketing is exploding in popularity with sportsbook operators.”
According to Paul, social media advertising is the future of advertising in this space, as he said it gives operators access to millions of targeted sports fans for a fraction of the cost of traditional advertising.
“It is important for sports fans to not just see gambling ads all the time, as they learn to tune those out,” Paul asserted. “That is a huge advantage for social media content when it is well done, as the posts give content the fans want, and they click on the post to receive their sports news, and the latest action on their favorite players and teams.”
Instagram, Twitter, TikTok and Twitch are beneficiaries of the way younger sports fans receive their daily sports content, Paul continued.
“Younger adult sports fans are watching sports while simultaneously interacting on social media via their cell phones,” he said.
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