The Sports Betting Advertisement War
Recently, Barry O'Farrell announced that he would be leading a governmental review of sports gambling laws pertaining to advertising. Betting companies were sure to hear about this, and as a result television and radio companies have seen a massive growth in the amount of gambling advertisement deals being sent their way. It's created a turf war among betting companies, as the deals increase in order to preserve precious advertisement times.
Standard Media Index is a company that works to track the amount of money that is spent on certain forms of advertisements, and they have just released a data report of the advertising costs being put out by competitive betting companies. At the end of last month, betting companies have already spent $149 million, which is up $44.5 million from an entire year's worth of betting ads. Most of the money being spent through television advertisements which makes up 64% of all advertisement costs, with digital and online advertisements coming in with a second place title.
Gambling advertisements have ranked among the top ten categories of ads displayed each year, but they have taken a dramatic twist this year and are now ranked as the fastest growing form of advertising.
While it's highly unlikely that gambling advertisements will be banned altogether due to mounting pressure from gambling companies as well as broadcasters, governmental officials are reviewing the need to ban it from family sporting events. This is to protect youth from being influenced by gambling messages and lowering the risk of families having a member pick up a gambling addiction. This would either target sporting events that have a “G” rating, or it may be aimed at all day sporting events that may be viewed by families at home. If the ladder was the case, late night sports may become more prominent as a result in order to move around gambling advertisement laws, but that's a problem broadcasters won't have to deal with for some time.
The reason gambling advertisements are being looked into in Australia is due to the rising number of gambling addicts in recent years. Within the last three years, the number of sports betters that have sought treatment has doubled, and counselors are even fearing that children are becoming effected by these types of commercials. The biggest reason for the sudden growth is mainly caused by betting giants that have risen up. These include William Hill, Crownbet, and many others.
Gambling advertisements will usually target a younger audience, aiming for the 18 – 24 aged crowd. These are young adults that can legally gamble and have access to credit options, while having very little accumulated debt and understanding of finances. Betting sites will lure in these types of customers with deposit bonuses, free bets, and special events.
The total amount of money spent over the past eight months on gambling advertisements is $90.1 million in television marketing, $23.4 million in online and digital advertisements, $18.7 million on radio advertisements, and $7.9 million placed into newspapers.