DraftKings Spending More Than McDonald’s On TV Advertising This Week
To get an idea of just how big daily fantasy sports companies like DraftKings and FanDuel are, one only has to look at the amount of money they are spending on television advertising.
A report in CalvinAyre points out the iSpot.tv’s rankings which showed DraftKings as being the seventh highest spender on television advertising in the last 7 days with about $9.5 million spent. This was even more than global brands like McDonald’s, Nissan and Verizon.
As we have reported extensively the marketing of DraftKings and FanDuel is key to their expansion in one of the most highly hyped markets around. With the NFL season set to kick off soon, DraftKings is pulling out all the stops to ensure they put the millions raised to good use. As reported DraftKings signed a deal with ESPN which reportedly requires them to spend $500 million in the next three years.
DraftKings and FanDuel are in new territory as they have to contend with new players in the daily fantasy market like Yahoo and Amaya Gaming who have unlimited resources backing them in a user acquisition war that will determine who dominates the DFS market. The potential for the DFS sector to grow both in the U.S. and globally has go everyone touting this market as the one to watch in the gaming world.
While DraftKings are still smaller than their arch rivals FanDuel their aggressive marketing and acquisition spree has got them the publicity they need to close the gap. Added to that is their recent UK entry which will see them one step ahead of FanDuel.