AGA: Sports betting ads volume and spend declines for the second year running
New research finds total advertising spend down $210m in 2023 as volume of commercials decreases 4%
A new American Gaming Association (AGA) study has found the number of sports betting ads, and the amount spent on them by firms, has fallen for the second consecutive year in the US.
Research using Nielsen’s advertising monitoring platform analyzed commercials linked to the gambling industry across various categories including casino, lottery, sports betting, and fantasy that were aired in 2023.
The study found sports betting TV ads were down 4% year on year (YOY) and down 20% from its peak in 2021.
Total spend on sports betting ads across all channels, including daily fantasy sports, declined 15% YOY, by $210m. Excluding DFS, ad spending was down 21%.
In comparison to other industries, research found that for every sports betting ad in 2023 there were more than three telecom/wireless commercials, eight fast food spots and 31 pharmaceutical ads.
In terms of national spend on TV advertising, sports betting was lower than alcohol, a trend which has continued since 2013.
Sports betting ads accounted for 0.8% of total national TV ad spend in 2023, down from 1% in 2022, while alcohol ads increased from 1.2% in 2022 to 1.5% in 2023.
Commenting on the results on LinkedIn, Chris Grove, co-founder of Acies Investment, said it was key for stakeholders to have a “research-based” position on advertising in sports betting following recent criticism.
Grove said: “[It’s] great to see the American Gaming Association getting into the fray with hard facts about the trajectory of online sports betting ads.
“The past 18 months have brought a torrent of negative coverage of the industry, some of it deserved, much of it wildly off the mark.
“It’s critical that the AGA and other stakeholders carve out and occupy an aggressive, research-based position in the national conversation about sports betting, and work like this is a good example of what such a position looks like and why it matters.”
Earlier this week, the AGA’s sixth Gaming Industry Outlook biannual report found 32% of industry CEOs believe business will improve over the next six months, with the Current Conditions Index standing at 102.8 for Q1.