Footballs fans, brace yourselves for glut of daily fantasy sports TV advertising.
DraftKings and FanDuel, two of the leading daily fantasy sports platforms, spent a combined estimate of $31 million to drive many fans crazy during National Football League’s first week, but according to a Nomura analyst, there will be more ad blitz coming in the next months.
“Although perhaps a temporary phenomenon, we believe that growth in ad spending from DFS could drive an incremental 40-60 (basis points) in 3Q15 Internet/media ad spend growth,” Nomura analyst Anthony DiClemente said in a research note. “An incremental 50bps represents roughly a third of our estimated +1.5 percent year-on-year 3Q TV advertising growth assumption, with most benefits accruing to broadcasters of the NFL.”
DiClemente forecasts that DFS sites will spend more than $150 million for TV advertising in the third quarter of the year, while total ad spending will reach between $140 million to $175 million in Q3.