Social and Video Advertising Win Over US Sports Betting Customers

Key Takeaways:

• Per ST data, broadened legalization of online sports betting over the past few years has helped propel massive user growth for operators in the industry. DraftKings, FanDuel, BetMGM and Caesars Sportsbook app MAUs in 2Q24 were each up more than 8x compared to 2Q20

• DraftKings increased its share of US ad spend during the 2023 NFL season (Sep’23-Feb’24) on social media advertising networks such as Instagram (+9ppts), Snap (+6ppts) and Facebook (+3ppts) vs the 2022 NFL season. This adjustment in DraftKings’ advertising strategy may have paid off as MAUs during the 2023 NFL season increased 30% YoY, ahead of peers such as FanDuel (+23%) and Caesars Sportsbook (+12%)

  • BetMGM MAUs increased 50% YoY during the 2023 NFL season, but this was off of a significantly smaller base of <1mn MAUs vs +2mn each for FanDuel and DraftKings

• Per ST data, FanDuel ran 200+ US creatives featuring the term “bonus” from Mar’24-Apr’24 with the operator likely highlighting both its sign up and time-sensitive bonus bet deals around March Madness. This was more than double that of ESPN Bet and more than 3x that of DraftKings

  • FanDuel saw industry-leading downloads (+23% WoW) growth during the first week of March Madness compared to 9% for ESPN Bet and -4% for DraftKings, suggesting that FanDuel saw the greatest return on its advertising investment during this crucial period

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