Fan Duel: Customer Acquisition Strategies
Three strategies that FanDuel uses/has used to become successful in the sports betting space are creative video advertising campaigns, strategic partnerships, and the use of automated marketing technology. Three strategies that Draftkings uses to draw people to their app and acquire new customers are flexibility and seamless app interaction, influencer marketing campaigns, and new customers rewards/incentives.
FANDUEL’S STRATEGIES FOR BECOMING SUCCESSFUL IN THE SPORTS BETTING INDUSTRY
- CREATIVE VIDEO ADVERTISING CAMPAIGNS
- One of the strategies employed by FanDuel in becoming successful is the development of creative video advertising campaigns. In the 2019 NFL preseason, FanDuel developed two comic video adverts. The campaign was developed with Bartle Bogle Hegarty (BBH) New York, which was named FanDuel’s lead strategy agency.
- One of the adverts specifically promotes Sportsbook, its online betting platform. Gerrard Caputo, the chief creative officer of BBH New York explained that the advert was based on the frequent opinion of fans that they knew what was going to happen in a game. Building on that insight, the campaign featured fans and not pro athletes.
- Mike Raffensperger, FanDuel’s chief marketing officer, noted that FanDuel was particularly interested in BBH because the company had previous experience working with sports betting companies in non-US markets, such as Bwin in Europe.
- Raffensperger revealed that FanDuel continues to work with other roster agencies on smaller projects. One of such agencies is The Many.
- In July 2019, FanDuel worked with The Many, a Los Angeles-based creative agency, to develop a campaign to promote the launch of its Sportsbook app in Pennsylvania.
- Raffensperger also noted that above all else, FanDuel sees itself as a technology and entertainment company.
- STRATEGIC PARTNERSHIPS
- In 2018, Boyd Gaming Corporation and FanDuel entered into a strategic partnership to explore sports betting and online gaming activities across the US.
- The partnership enabled Boyd gaming eligible to operate 29 casinos across 10 different states of the US.
- Under the agreement terms, Boyd gaming will establish its presence in the online sports gaming and betting market by leveraging the technology and services of FanDuel to operate Boyd gaming-branded mobile and online sports betting services.
- Similarly, the partnership will allow FanDuel to establish and operate mobile and online sports betting under the FanDuel brand, in the states where Boyd Gaming is licensed.
- The partnership will enable FanDuel group to market Boyd Gaming properties through its existing sports betting services.
- Also, the partnership would enable Boyd Gaming will promote FanDuel’s products to its customer base.
- AUTOMATED MARKETING TECHNOLOGY
- FanDuel, in partnership with Fresh8, leverages automated marketing to advertise the services of FanDuel.
- FanDuel uses Fresh8 to machine optimise their advertising inventory across social, display, programmatic channels, and even on FanDuel’s website.
- Fresh8 creates and delivers optimised marketing through operator's wagering and CRM data. Fresh8 provides real time creative decisioning and minimises the time and overhead of creating and distributing digital marketing assets by hand.
- Aaron Dugan, head of online marketing at FanDuel, noted that Fresh8’s self build technology allows them to massively scale their advertising efficiencies.
WAYS FANDUEL ACQUIREs MORE CUSTOMERS AND APP USERS
- FLEXIBILITY AND SEAMLESS APP INTERACTION
- FanDuel customers and app users in Pennsylvania and New Jersey will be able to use the same account in either state.
- Raffensperger noted that the ease of payment and interoperability facilitated by FanDuel is important to them and a lot of resources and time had been devoted to it.
- Raffensperger revealed that FanDuel would prefer, and look to create a ‘national wallet’ that would not require different registrations in each of its state of operation, but conceded that each state will have slightly different priorities.
- FanDuel was the first online sports betting company in Pennsylvania that had its app directly available in the Apple Store.
- INFLUENCER MARKETING CAMPAIGNS
- FanDuel, with the services of NeoReach, rolled out a strategic influencer marketing campaign two weeks before the start of a new NFL season.
- NeoReach developed a performance-based Cost Per Action (CPA) campaign that was designed to measure the individual performance of influencers and create new user signups as well as revenue-share incentives from new player referrals who signed up on FanDuel’s platform.
- NeoReach employed an always-on approach to revenue sharing for new users. This allowed FanDuel to collaborate with influencers on an ongoing basis, in order to drive long term brand loyalty.
- For the campaign, FanDuel aimed to reach US based male audiences between the ages of 18 and 45 years who showed interest in sports, especially football or basketball, through YouTube.
- As part of the campaign, influencers encouraged YouTube viewers to play along with them on a weekly basis, in a season-long fantasy football league.
- The YouTube content created by influencers for this campaign contained affiliated back links to enable new users to create new FanDuel fantasy sports accounts.
- The influencers involved in the campaign are Mikey Bolts Matt Stonnie, Jimmy Tatro, and Chris Smoove.
- The campaign helped FanDuel to end the year with $1.8 billion generated from entry fees. The campaign also drove a total of over 38 million impressions, had over 115 influencer posts, and resulted in a 5:1 Return On Investment (ROI).
NEW CUSTOMERS REWARDS/INCENTIVES
- FanDuel carries out new user/customer acquisition, to draw people to their apps by offering player incentives and perks.
- As part of the effort to draw people to their apps, FanDuel offers a 100% welcome bonus up to $100 on customers’ very first deposit amount. Also, FanDuel gives a $20 for real-money deposits.
- FanDuel offers a prize pool that is 233,000 times the buy-in amount, compared to 230,000 for DraftKing.