The campaign comes along with improvements in the DraftKings app, rolling out in time for the start of the football season, when sportsbooks typically capture the most new customers. Those include extended same-game parlay capabilities (the ability to make multiple bets on the same event) and faster bet settlements.
“This is the most important time of the year. This is when we acquire the most customers, when we have the biggest opportunity to gain more market share, to where we generate the most revenue, we’ll generate the most [earnings],” Jason Robins, DraftKings CEO, said in an earnings conference call last week.
Sherman declined to share how much DraftKings would spend on the new campaign but said the company was spending more efficiently as it grows. “What we’re really seeing is as we continue to scale, and sports betting continues to legalize across the states, we’ve been able to drive significant efficiencies, as we lean into national spending. With nearly 50% of the population legalized, we’ve really been able to drive efficiencies there,” she said.
DraftKings disclosed 2022 ad spending of $965 million. The company reported sales and marketing expenses of $597 million in the first half of the current year, a 15% increase from last year.
Flutter Entertainment’s U.S. operations, including FanDuel, TVG, Fox Bet and PokerStars, spent $1.19 billion on U.S. sales and marketing expenses in 2022, according to Ad Age Datacenter’s calculations. The group’s first-half 2023 U.S. spending totaled about $597 million, a 15% increase from last year, matching DraftKings’ spending, according to Ad Age Datacenter. (Fox Bet, which dates to a 2019 deal with Fox Corp., is closing this month. Fox Corp. continues to own a stake in Dublin-based Flutter.)