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Online Sports Betting Rise, Especially in North America

Online sports betting has swept across the globe, gaining momentum. It has become a significant economic force worldwide, driven by the digital transformation of traditional betting practices. The global market is characterized by its dynamic regulatory changes, technological innovations, and the increasing acceptance of sports betting as a mainstream entertainment activity. 

In North America, the legalization of sports betting has had a profound impact. The US Supreme Court's 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA) opened the doors for states to legalize sports wagering. Since then, over 30 states have passed legislation to allow sports betting.

As this sector presents unique opportunities, it also challenges companies and marketers. Let's dive into online sports betting ad nuances, examine its perception by the generations, and, for sure, discuss strategies for effective customer engagement.

Statistics and Trends

Sports betting in the United States has experienced exceptional growth in recent years. According to the American Gaming Association's Commercial Gaming Revenue Tracker, Americans gambled an astonishing $119.84 billion in bets on sports in 2023, a 27.5% increase over the previous year.

The US online sports betting business is rising, with revenue estimated to reach $9.65 billion by 2024 and an annual growth rate of 12.08% until 2029, resulting in a market volume of $17.07 billion. By 2029, the user base is expected to reach 54.7 million, with user penetration rising from 11.0% in 2024 to 15.6% in 2029.

Each user is estimated to generate an average income of US$256.60. Although, Australia leads in revenue-generating internationally with US$9,757.00 million anticipated for 2024. Canada has the best user penetration rate, at 48.8%. The US online sports betting business has enormous potential for future growth and market expansion.

Challenges During Launching Sports Betting Campaigns

Advertising Restrictions: Many regions impose strict regulations on sports betting advertising. So, companies must ensure full compliance with state and federal regulations, which can vary significantly across different regions. These restrictions limit how and where companies can advertise, complicating outreach efforts.

Market Saturation: The rapid expansion of sports betting apps has led to intense competition. Standing out in a crowded market requires innovative marketing strategies and unique product offerings.

Ambiguous Reception: Sports betting is often perceived ambiguously due to its association with gambling addiction and societal concerns. That is why promoting gambling responsibly and preventing addiction is paramount. Companies face the dual task of maximizing profit and balancing promotional activities with social responsibility messages.

Customer Engagement Strategies

  • Entering a new sports betting market requires prioritizing marketing localization to comply with state-level policies.
  • Engaging content in blog and podcast formats can build trust with sports bettors and attract a loyal following, enhancing your advertising campaigns.
  • Set to programmatic advertising to optimize ad delivery based on user interests and highlight the unique selling propositions beneficially.
  • Mobile betting dominance, providing a seamless and intuitive mobile experience is crucial. Apps need to be user-friendly and fully functional across devices and operating systems.
  • Influencer marketing with sports content creators to reach niche audiences and increase brand awareness through their established credibility.
  • Consider email marketing to segment audiences and personalize messages. Email campaigns can be an effective way to acquire new bettors and engage existing ones with tailored content.
  • Offering timely and attractive promotions or special bonuses can attract new customers and retain existing ones.

Case Study: Mobupps And Leading Sports Merchandise Company Collaboration 

A leading global sports merchandise company known for its innovative, tech-infused approach to sports betting and digital collectibles, aimed to diversify its offerings into online sports betting. To achieve this, the company partnered with Mobupps, a frontrunner in advertising technology and programmatic marketing solutions. 

The collaboration aimed to boost visibility and engagement for the company’s online sports betting platform in North America. The goals were to increase first-time deposits (FTUs), reduce customer acquisition cost (CAC), and effectively navigate the complex regulatory landscape of online sports betting across various states.

Strategy

  1. Targeted Advertising Campaigns: Mobupps utilized its real-time bidding (RTB) capabilities to deploy highly targeted ads focused on sports enthusiasts who were potential bettors but hadn’t yet registered on the platform.
  2. Geo-Specific Strategies: Considering the varying regulations across states, a geo-targeting strategy was implemented. This tailored advertising based on local laws, maximizing engagement in regions where sports betting was legal.
  3. Optimized User Acquisition: Using advanced data analytics and machine learning, Mobupps refined the bidding process to lower CAC, identifying the most efficacious touchpoints and messaging for converting viewers into active users.
  4. Cross-Promotion with Licensed Merchandise: Leveraging the company's strong foothold in sports merchandise, the campaign integrated betting promotions with merchandise offers. This strategy attracted existing merchandise customers to the sports betting platform, capitalizing on their trust and loyalty.

Results

The partnership between Mobupps and the sports merchandise company delivered remarkable outcomes:

  • Increased First Time Deposits (FTUs) by 395% Month-over-Month: This spike was attributed to the strategic, localized advertising that resonated strongly with sports fans.
  • Expansion from 9 to 18 States: The adaptive approach to regulatory compliance allowed the company to double its operational presence in the U.S. market effectively.
  • Decreased Customer Acquisition Cost (CAC) by more than 200%: The campaign significantly reduced acquisition costs through smarter ad spending and targeting.

This case study demonstrates the tailored digital advertising effectiveness and deep industry knowledge in driving growth within the online sports betting sector. The partnership showcased how strategic use of technology and data can overcome regulatory challenges and market barriers, setting a benchmark for future endeavors in the industry. The collaboration not only enhanced user engagement but also expanded the market reach of the sports merchandise company, illustrating the cross-industry potential.

What can wait for us in the future?

Growth, scaling, and immense income... But only if we accept the industry's multifaceted challenges, such as government and legal regulations, responsible advertising, and ambiguous public opinion.

The online sports betting industry in North America and worldwide is growing and changing rapidly. Companies can prosper and positively influence future development by adopting responsible and innovative engagement strategies. The Mobupps team already had experience working with such advertising campaigns and we proved ourselves successful. Turn to the professionals for a winning strategy. And get A GAME PLAN!