ROI of Draft Kings TV Explosion
To put it in perspective, DraftKings spent $21.8 million on nearly 5,800 commercials over a seven day period ending Sept. 10, 2015. According to DraftKings, this media flight ultimately generated more than 1 million new fantasy sport players.
Doing the simple math, that's a $21.80 cost to acquire, which could be good, great...or bad depending on the lifetime value of a DraftKings fantasy sports nut. Will this serious media outlay pay out for DraftKings in the long run? Time will tell - factoring in the possibility that subscribers can play DFS year round and not just for NFL football - this could lead to a nice average lifetime value of each subscriber.
And let's not forget about FanDuel. For this same seven day time period, their ad spend hit $11.8 million over 2,600 commercials.