Due to the strong demand during the holiday season, advertising in the fourth quarter has historically been among the most costly of the year. Retailers, toys/games, clothes, alcoholic drinks, movie studios, and retailers are some examples of traditional product sectors that increase their marketing costs.
Revenue from Sports Betting
Sports betting revenue has been increasing. Earnings for the initial half of 2022 were a little above $3 significantly higher when compared with $4.3 billion for the entire previous year. By 2025, according to Morgan Stanley, revenue will be $7 billion. Additionally, Americans made $57.2 billion in sports wagers in 2021, a 165% increase from the previous year.
California Proposition Vote
The most populated country, California, has placed legalized sports wagering on its November election ballot. According to Kantar/CMAG, advertising spending has indeed surpassed $300 million. Steve Passwaiter, the Senior Advisor to Kantar/CMAG, said that when compared to prior ballot initiatives, “It’s obviously set a new record, the expenditure to date has topped totals for the 2020 vote [Proposition 22] on contract workers.”
Spending on Regional Sports Gambling Advertising
BIA projects that local advertising for sports betting will cost $1.8 billion by 2022, a significant increase of 80% from 2021. According to BIA, local advertising spending for the category will reach $2.9 billion by 2024. According to Nicole Ovadia of BIA, the legalization of online sports betting in New York as well as other major cities this year has significantly increased ad expenditure.