US Sports Betting Ad Spend Sees First Decline in Six Years
US sports betting industry, ad spending has decreased by 21% to $1.1 billion last year, marking the first downturn since 2016. This significant drop was highlighted in a Nielsen study commissioned by the American Gaming Association.
Industry Reassessment and Spending Cuts
In recent years, betting operators aggressively promoted their apps in newly legalized markets, pushing ad expenditures to peak at about $1.4 billion in 2022 from just $22.9 million in 2017.
However, a shift occurred in the latter half of 2022, influenced by investor demands for profitability, leading to a strategic pullback in spending.
Scandals and Regulatory Pressure
The sector isn’t just facing financial recalibrations but is also grappling with scandals and increased regulatory scrutiny. High-profile incidents, such as the lifetime ban of NBA player Jontay Porter for allegedly manipulating game outcomes to affect bets, have spotlighted the need for tighter control over marketing practices.
Additionally, legislative proposals by Congressman Paul Tonko to ban sports marketing across digital platforms signal a growing concern over the aggressive advertising tactics previously employed by the industry.
Television: The Dominant Medium Despite Reduction
Television remains the primary channel for sports betting advertising, accounting for over half of the sector’s total spend.
Nevertheless, TV advertising for sports betting has seen a significant reduction, declining by 11% since 2022 and 33% since 2021. This trend reflects the industry’s broader move to diminish its advertising presence on television, where its share slipped to just 0.4% in 2023.
Comparative Perspective on Ad Spend
Despite its visibility, sports betting’s share of national TV advertising remains minimal, less than 1%, which is far lower than sectors like pharmaceuticals (14.1%), fast food (3.8%), and alcohol (0.5%).
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