In past years, commercials during football games have stayed pretty standard. You can expect to see the basic commercials for sports cars, insurance companies, fast food, and beer when you start watching football on Sunday. However, the past year has seen a massive rise in sportsbook advertisements, due mainly to spreading legalization and new platforms launching. In fact, before the start of the NFL season, there were predictions that around $1 billion could be spent on sportsbook advertisements throughout the football year. This onslaught of advertising spending hasn’t been as productive for some sportsbooks as you might believe. Here’s a deeper look at how one sportsbook is starting to reverse course on spending to close out 2021.
Wynn Interactive Changing Course on Spending
WynnBET, the official sportsbook of Wynn Interactive, isn’t having the amount of success the company was hoping for when it launched in 2020. Wynn Interactive has announced plans to pump the brakes on sportsbook spending for the near future, noting the extreme competition in the sector. Thanks to new state sports betting legalization launches this year, such as in Arizona and Connecticut, plenty more customers have been signing up. These launches have actually been costly for WynnBET, with Wynn Interactive losing approximately $200 million between 2021’s Q3 and Q4. The Arizona sports betting launch attracted 26,000 new users in the month of September to the WynnBET platform.
According to Matt Maddox, the soon-fo-be former CEO of Wynn, the decision to reduce sportsbook spending is mainly due to the massive amounts other platforms are spending on advertising. The aim is apparently to look at the bigger picture so that the company won’t be bleeding money.
New CEO Looking To Make Big Changes
With Matt Maddox on his way out as CEO of Wynn Interactive, Craig Billings is taking over. Billings is hoping to focus mainly on the main strengths of Wynn Interactive, such as an extensive customer database and brand recognition. Billings has made it clear he wants a strategy that avoids a hyper-focused customer promo plan that many competitors are opting for. The details of the future of WynnBET, as well as how successful the platform will be in the future, will be interesting to watch.
DraftKings is Staying Aggressive
Just because WynnBET won’t be spending as much money this season doesn’t mean other platforms are following suit. For example, DraftKings is committed to staying aggressive in spending strategy. The sportsbook isn’t new to making big investments, as it was revealed in September that the company had spent an impressive $500 million on marketing in 2020. The thinking behind this major spending is that, although getting new customers can be expensive to DraftKings, it has been claimed that the current strategies have been profitable. Keep in mind that each sports betting company tends to have varying models that they analyze these numbers with, such as customer retention, scale and productivity of marketing, and databases of customers. DraftKings and FanDuel are constantly battling it out for sportsbook supremacy, and, with WynnBET changing course, there could be even more room for growth.