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Ad Age Speculates On Online Poker Advertising Boom

Industry Experts Believe Up To $4 Billion Could Be Spent In Next Five Years

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With online poker set to roll out in Nevada over the next few months, industry experts are predicting other states will follow suit and create a new online gambling advertising boom.

According to Ad Age, a trade publication that focusing on marketing and media data and analysis, online gambling companies will spend somewhere in the neighborhood of $3.5 to $4 billion over the next five years.

To put that number in perspective, Ad Age points out that $4 billion is more than General Motors spent in U.S. advertising in 2011. According to this Word Stream infographic, that’s equal to what the entire finance and insurance industry spent on Google ads in 2011, and twice that of the computers and consumer electronics industry.

However, a significant roadblock to this boom is Google’s current rules in place regarding casinos and gambling. In the U.S., Google advertising policy “doesn’t allow advertising for Internet-based games where money or other items of value are paid or wagered in order to win a greater sum of money or other item of value.” Google’s total advertising revenue for full year 2011, according to its income statement, totaled $36.5 billion.

Simon Holliday, Director at H2 Gambling Capital, believes that the online gambling market will be worth $1 billion in 2014 and more than $13 billion in ten years. Holliday was also quick to point out just how much advertising spending will eat into the industry.

“It is probable that 25 percent to 30 percent of company net revenues will be spent on advertising and marketing budgets in the initial years, as there is a land grab,” said Holliday.

Though Delaware remains as the only other state to legalize online poker, some experts believe that others are waiting to see how successful Nevada is with their product before jumping on board. Other states that have looked at online poker include California, New Jersey and Iowa.