Not too long ago, Domino’s joined forces with well-known betting operator DraftKings thus giving Domino’s customers a chance to wager on the fast-food restaurant’s car side delivery time. Domino’s promise was simple; order your food online for delivery by car side and if it has not been delivered in 2 minutes, the meal’s free.
Christened “Domino’s Carside Delivery 2-Minute Guarantee Over/Under Challenge”. Customers that entered the challenge with DraftKings stood a chance to win a share of $200,000 for their accurate predictions. To place wagers, all customers had to do was place their bets at DraftKings’ website or from its Daily Fantasy app.
Unlike traditional sports bets that require one to buy a piece of the action, this contest was free for people to participate in. This contest was a success having closed entries on July 12th. Although this was one unique and engaging marketing tactic, it wasn’t the first time that a restaurant teamed up with a betting operator.
Earlier this year in March, sports betting operator BetMGM teamed up with Buffalo Wild Wings sports bars. By making use of geolocation technology, BetMGM was able to offer all Buffalo Wild Wings customers inside their bras exclusive promotions and wagering opportunities. This promotion was launched successfully in 6 states in New Jersey, West Virginia, Colorado, Iowa, and Tennessee.
As part of this promotion, BetMGM created an in-bar channel titled OT Odds by BetMGM that helped to deliver odds and wagering tips to customers. The platform was also used to deliver high-value content across all the Buffalo Wild Wings venues that were taking part in the contest. Winners that took part not only received monthly prizes but a few of them were also picked and featured in the BWW Hall of Fame.
Even though this was the first time that BWW had partnered up with an American-based sportsbook, this wasn’t the restaurant’s first partnership of this kind. In December 2020, Buffalo Wild Wings in Mexico also collaborated with a Malta-based online gaming company known as Betcris in a similar marketing campaign.
What we cover
So how would DraftKings benefit from such a partnership?
In today’s super competitive and fast-growing betting market, sportsbooks such as DraftKings have to come up with innovative ways to market themselves and make their businesses stand out. Most operators have been relying on tried and tested tactics such as content marketing and traditional advertising to market themselves.
Many more are signing media deals and partnerships. DraftKings in particular has an extensive list of partners under its belt including media partnerships with Turner Sports, ESPN, DISH Network, the Bleacher Report, as well as MLB.TV. These partnerships have gone a long way in helping sportsbooks like DraftKings to lower their customer acquisition costs.
Take for instance DraftKings’ partnership with the WWE. As the WWE’s official gaming partner, DraftKings will be provided with exposure to the wrestling fan base, which is one of the biggest and most loyal fan bases in competitive sports. DraftKings also has similar partnerships with NASCAR, Staples Center, as well as Madison Square Garden.
Just earlier this year in March, DraftKings acquired Vegas Sports Information Network also known as VSiN in a move designed to bolster the sportsbook’s presence in the country, as well as its content offerings. Thanks to this partnership, DraftKings will further have the capacity to expand its customer acquisition channels, thus allowing the brand to stand out in a competitive space. At present, DraftKings is extremely well-positioned in the US betting market thanks to its popular daily fantasy sports (DFS) product, as well as its strong brand.
As you can deduce, the media and sports world was always meant to collide ever since PASPA was repealed in 2018. Soon enough, sportsbooks in the country will start utilizing the traditional affiliate model that directs players directly to the betting sites. Unlike companies in Europe or the UK, sportsbooks in the country have always been more focused on vertical integration, which automatically aids customer growth and margins over the long run.
Another partnership that will see DraftKings’ reach expanded is its acquisition of BlueRibbon Software which is a global jackpot and gamification firm based in Tel Aviv. Not only will this acquisition help DraftKings’ reach immensely but it will also help to enhance the customer experience with BlueRibbon’s unique platform and functionality which consists of promotions and tailored rewards for customers.
With this integration, DraftKings will make use of BlueRibbon’s technical and gamification skills, as well as its extensive industry experience. DraftKings will leverage this platform to differentiate its offering further from its competitors while still engaging customers in fresh, new ways.
Customer acquisition costs can be staggering
It’s not just DraftKings that is working hard to lower its customer acquisition costs. The truth is that many gaming operators are working hard to reduce these costs without necessarily impacting the quality of the customers’ experiences negatively. It takes millions upon millions of dollars for a sportsbook to attract brand new customers.
Case in point, Flutter, which operates DraftKings’ biggest competitor FanDuel, has emerged as a market leader since sports betting was approved. Flutter controls at least 31% of the total US betting market and it is said that at least half of its revenue is directed towards marketing.
Thankfully though, sportsbooks such as DraftKings and FanDuel have done a great job to establish and position themselves, which means that their acquisition costs are not as high as they used to be in the beginning. DraftKings already has brand recognition, so it doesn’t have to work as hard to convince customers to join its platform.
Newer brands that are just joining the market, alternatively, are the ones currently dealing with the high costs of acquiring customers. New sportsbooks in the market often have to spend thousands if not millions in curating expensive awareness marketing campaigns that typically come in the form of television commercials.
Final Thoughts
As sportsbooks continue to adapt and scale their businesses in the fast-growing gambling market, many have no choice but to innovate. Keeping up with constant innovation is the only way that sportsbooks will manage to stand out from the mounting competition while attracting new customers.
