low talkers wrote:I’ve been thinking a lot about this whole industry shift of players flooding into DFS, and how that relates to the NFBC. Daily sites are targeting and getting new customers from the yahoo players to guys who play just a local league with their buddies. The idea is that there are much better things than being in an anonymous yahoo league with people you don’t know, or being the only guy in your local league who plays all year. The incredible growth of Fanduel and Draftkings has a lot to do with the allure of DFS, but it also really shows the power of advertising. Of course, you guys don’t need to be running millions of dollars of TV ads, but I think there is still such a huge untapped audience out there that would love the NFBC if only they knew about it. The radio show is great, and certainly helping, but there’s just no way that there aren’t thousands of people out there would love to be a part of the NFBC. Everyone on SiriusXM talks about NFBC ADP’s all day, is there some way to leverage that more? Maybe strategically send out NFBC ambassadors to be on all these radio shows, talking it up. Just curious I guess if you guys have any ideas on how to reach more customers, because they are definitely out there.
Thanks for the thoughts Champ. In the recent 8-page article on Fanduel in Sports Illustated there was a graph that showed Draft Kings and Fanduel as the 3rd and 4th largest advertisers to sports programming. They both continue to raise VC money to keep that advertising program going. It makes you wonder what our favorite TV shows would look like if online poker or sports betting ever became legal!! They would dominate the airwaves as well with ads because it doesn't take much to lure Americans into a quick wager/competition.
I think if a season-long contest flooded the airwaves we'd see an uptick but nothing like you're seeing on daily games. Why? Because we're not an impulse buy. We're a commitment. Baseball is a chore. But you are totally right that any uptick in advertising and marketing will lead to an increase in participation. The trick is making sure every dollar brings in two dollars and that you're not spending more than you can make. We've seen enough previous fantasy game operators do that and screw the players out of their rightful winnings.
We get accused of not marketing our games enough and I"m sure that's true, but other competitors would kill to have the exposure we have on SiriusXM and other avenues. Our ADPs can be found on other industry sites and we'll continue to add to them because we feel like this is the best exposure we can get for our games. When people trust the ADPs they will check out our site and our games and hopefully play at some point. We also have a new Marketing Director who is really into Search Engine Optimization and we'll be spending more there and doing more on TV as well. We had a good meeting yesterday that will allow the NFBC ADPs to be seen more often on the Bloomberg Sports telecast on Fantasy Sports Network and we may even make a weekly appearance on there starting soon. They are small steps to increased awareness.
Also, I believe that we have limited ourselves with the season-long games. It's been proven that folks like the one-week fantasy football contest and we should run more of those for our customers. And why not do that in baseball, too? Hey, in July when some of your teams are struggling, wouldn't it be fun to play on the NFBC site for $25 or $50 and win prizes that could include a free entry into the 2016 NFBC Main Event? Of course. I think there are ways to get new customers to try us out and get used to our game outside of just hoping they leave their local league and jump right into our Main Events. This could work. Maybe adding a mock draft site to let folks familiarize themselves with our new online draft software would work, too. It's all things I've been kicking around to help with our growth.
But let's at the very least look at where we are now compared to just four short years ago. In 2010, WCOFF was almost too big to fail. I know what their revenue was at that time and what we had for baseball and football. Our combined sports revenue was equal to that. Today our revenue is almost three times what it was four years ago and we top WCOFF's record at that time not only in football but baseball as well. FFPC is more than twice what WCOFF was at that time. So the entire industry has grown, you folks have grown and stepped up your participation in high-stakes season-long games and the best is yet to come. There is NO DOUBT that we can grow in so many ways beyond where we are today, but where we are today is night and day from where we were in February of 2011. So I'm proud of where we are, but I know there is so much more.
And I see good signs from our new ownership group toward this space. I see more resources coming our way in IT and Marketing that will impact us soon. I see some of the benefits of the addition of Bloomberg Sports coming our way. I see more acquisitions coming that could help us. I see the technology improving for our live events and at the same time our online technology showing improvements now and more on the way. I see how adding Player Accounts is going to make it so easy for you guys to sign up future events and keep track of your winnings/costs. I see how DFS is making lineups so easy, making Live Scoring so easy and knowing that we have to keep up to retain our customers. Everyone is pushing the envelope on each other, which is good.
Sorry for the long answer, but it's more than just advertising dollars. It's improving the product to retain what is no doubt the best fantasy baseball community in the industry, while giving you more tools to enjoy more drafts/contests each year. And then it's definitely spreading the word through so many different avenues to attract new customers while doing it smartly without overspending for those new customers. DFS has put an enormous price on the per customer acquisition and they can do that with the VC money they have. We have to be smart year-to-year, sport-to-sport, while still growing each year. And we will as long as we keep innovating and keep improving. Thanks for the question Dave.