How Massachusetts Fits Into Evolving DraftKings Advertising Strategy

In a recent YouTube interview with Joe Pompliano, DraftKings CEO Jason Robins revealed that the company is modifying its sports betting advertising approach outside of Massachusetts. The new strategy involves allocating more resources to national ad campaigns while reducing the emphasis on local and state-level campaigns.

When Pompliano inquired about the decrease in local or team partnerships lately, Robins went into detail to explain why DraftKings Sportsbook isn’t actively pursuing such collaborations.

“We are currently examining this matter because we believe there is a significant amount of inefficiency involved,” stated Robins. “Those deals essentially serve as local advertisements, correct? As we receive more national advertising and concentrate our local launches within shorter time periods, it does not imply that these deals were ineffective or inadequate in the past.”

The situation has evolved. Presently, we are operating various national media platforms to effectively reach our target audience.

How DraftKings is advertising in Massachusetts

Out of the six Massachusetts online sportsbooks, only DraftKings has created a commercial specifically tailored for the state. However, other sportsbooks have aired advertisements that showcase Boston sports icons, such as Rob Gronkowski for FanDuel and Kevin Garnett for BetMGM.

The widely popular sportsbook advertisement titled “Bet Local” was launched on March 10 in Massachusetts, starring Lenny Clarke, David Ortiz, Brian Scalabrine, and Zdeno Chara. It has received immense positive reception.

In particular, right after the March 10 release, DraftKings placed a strong emphasis on TV advertisements. As an example, during the Celtics vs. Rockets game on March 13, DraftKings aired four commercials, which included the notable “Bet Local” advertisement.

However, DraftKings has not yet revealed any collaborations with local professional sports teams. Although it currently serves as the daily fantasy sports partner for the Red Sox, Celtics, Patriots, and Bruins, it continues to enhance its visibility. On the other hand, BetMGM and FanDuel have taken substantial steps in this area in conjunction with the launch of sports betting in Massachusetts. BetMGM has become the official sports betting partner for the Red Sox, while FanDuel has secured the same position with the Bruins.

DraftKings has clearly not prioritized that area in its home state.

Robins explained to Pompliano that if your marketing budget is entirely focused on local initiatives, you have a wide range of options to invest in. However, if only a portion (around 20 to 30%) of your marketing budget is allocated to local efforts, you will need to prioritize the most impactful strategies. Consequently, certain initiatives that were previously included may no longer be relevant or may require adjustments based on the value they provide compared to their cost.

Impact on Massachusetts market share?

On April 18, the Massachusetts Gaming Commission will unveil the March revenue figures for all six sportsbook apps, shedding light on the extent to which DraftKings’ ad strategy has influenced its market share.

There is speculation that FanDuel is expected to have the biggest market share in Massachusetts in the long run, just like it currently does in 15 out of the 18 states where it operates. However, is it possible that DraftKings could initially take the lead? Moreover, could DraftKings leverage its home-state advantage to outperform FanDuel in the long term?

Once again, we will soon discover the outcome. If DraftKings sees a positive market share in March, April, and May, it might allocate a larger portion of its advertising budget towards Massachusetts than initially intended.

If you are 21 years old or older and currently in Massachusetts, please be aware that if you have a gambling problem, help is available. Reach out to 1-800-327-5050.