Poker Coverage: Poker Legislation Poker Business Poker Tournaments
Sitewrap_left
Sitewrap_right

Ad Age Speculates On Online Poker Advertising Boom

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

Print-icon
 

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.

 
 
 
 
 
 

Most Viewed Articles
 

1 Phil Ivey Now Down $5.1 Million Under His 'Polarizing' Online Poker Screen Name
2 Seminole Hard Rock Poker Open Stuck With $2.5 Million Overlay
3 Study: You're Like A Pigeon When You Play Poker
4 Poker Strategy With Ed Miller: Reverse Bet Sizing Tells
5 Man Carjacks Vehicle From Golden Nugget Atlantic City, Returns Hours Later To Carjack Another And Gets Caught: Police
6 Poker Hand of the Week: 8/27/14
7 Crazy Gambling Stories From August
8 Texas Station Closes North Las Vegas Poker Room
9 Gaming Law Expert: Online Poker In California Has 'Very Good Chance' Next Year
10 2014 CarbonPoker Card Player Player of the Year Update -- Dan Smith and Jason Mercier Join Top 10
 
 
Get-it-delivered-240