Advertising on Online Gambling to Reach $4b
Latest research sees marketing expenditure on online gambling soaring in next five years
Online gambling operators are expected to significantly increase expenditure on marketing and advertising in the coming years as competition heats up, a new study shows.
Up to $4 billion
Marketing expenditure will reach somewhere between $3.5 billion to $4 billion in the next five years, according to H2 Gambling Capital director Simon Holliday. If this prediction turns out to be correct, the online gambling industry will spend more per year than the insurance industry.
Breaking this down, Holliday forecasts that the total value of the online gambling market will reach $1b. in 2014 and more than $13 billion over the next decade. But he said companies would spend around 25-30% of net revenues on advertising and marketing in the early years.
Ads and sponsorship
Long-time OCR readers will already be aware that the major online gambling operators are competing in every form of media, through advertising, marketing, and sponsorship of major sports tournaments, events, leagues and clubs.
Bet365 is one company that has recognized the power of advertising. It has a heavy Internet and TV presence, and its logo appears on the shirt of Stoke City, the English Premier League club that hails from the same city as bet365.
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