Across the industry DFS operators are pouring tons of cash into marketing and promotions in an effort to snare new players and secure market share.
This market is a perfect fit for casino affiliates who are looking for new revenue streams that work on familiar concepts and a business that’s only going to keep growing. Here are a few pieces of DFS news that prove how big this vertical is getting.
DraftKings’ Massive Ad Buy
DraftKings and Fan Duel are locked in a struggle over who will dominate the American market and advertising is their weapon of choice.
To that end, DraftKings has been dropping advertising cash like a drunken sailor as it gears up for the crucial NFL season.
How fast is the DFS site burning through ad money? In the past seven days they’ve spent a little over $ 15 million on television advertising alone.
The $ 15 million in TV money is in addition to the $ 250 million the company dropped in an exclusive advertising deal with ESPN. Under the terms of that contract, other daily fantasy sports sites will be barred from advertising on the influential network.
Fortunately, DraftKings is well funded after receiving more than $ 300 million in venture capital earlier this year.
How About That Sweet Stadium Lounge?
DraftKings has done an incredible job of convincing the NFL that fantasy sports are different from sports betting and for that they should be commended.
They’ve done such a good job, in fact, that three NFL teams will be hosting DraftKings-branded lounges in their stadiums this season.
Starting in the first week of September, NFL fans in multiple cities will be able to check their fantasy stats, in the stadium, during the game, at lavishly appointed DraftKings lounges. The lounges are part of a much larger NFL sponsorship deal
The NFL does, however, ask that players rely exclusively on skill when setting their lineups so that chance does not come into play.
Now Hooters is in on the Action
Acquiring new customers is a whole lot easier if you happen to know where your customers actually hang out.
In the case of fantasy sports players, DraftKings has made the logical assumption that they can be found at their local Hooters.
To that end, the company is sponsoring the Hooter Fantasy Football Challenge which will be handing out over $ 50,000 in cash prizes every week during the season. Participants in the challenge will be going head-to-head against ESPN on-air personalities, including analyst and former NFL coach, John Gruden.
In terms of synergistic relationships, the hot-wings-hot-babes-and-football combination is pretty tough to beat.
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