Mike Raffensperger, Chief Commercial Officer of FanDuel: Second Screen Success
Aug 9, 2023
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Mike Raffensperger, CCO of FanDuel, challenges the brand vs. performance marketing divide in online sports gambling. He discusses why brand marketing must intertwine with performance marketing for consumer engagement. The podcast also covers how FanDuel became a successful second-screen experience, CMOs' evolving role as strategic leaders, and the challenges faced beyond legalization.
Challenging the artificial separation between brand and performance marketing by emphasizing brand marketing as performance marketing over time.
Prioritizing customer delight as a revenue source, fostering a customer-centric culture for decision-making across marketing and product areas.
Shifting marketing strategies to align with a brand promise of 'making every moment more,' focusing on amplifying customer experiences and entertainment to appeal to a diverse audience.
Deep dives
Brand Marketing and Performance Marketing Integration
Fandal's Chief Commercial Officer discusses challenging the artificial separation between brand and performance marketing. By emphasizing that brand marketing is performance marketing over a longer period, he aims to build a brand that amplifies moments for customers. This approach focuses on making every interaction with Fandal more entertaining and exciting, aligning brand strategy with generating growth.
Customer Experience and Leadership Principles
While Fandal does not have a formal customer experience organization, the company's leadership principles prioritize the customer. The CCO emphasizes that revenue stems from customer delight, encouraging a culture where all decisions across marketing, product, and other areas revolve around customer-centricity. This embedded guiding principle influences roadmap planning, campaign strategies, and offer constructions, ensuring a customer-focused approach in decision-making processes.
Changing Marketing Strategies for Fandal's Evolution
The CCO brings a shift in marketing strategies to better align with Fandal's brand promise of 'making every moment more.' Departing from a focus solely on financial winnings, the new approach centers on amplifying customer experiences, regardless of the outcomes, to deliver excitement and entertainment. By broadening the target demographic, introducing free-to-play gaming, and fostering a brand that appeals to a diverse audience, the marketing strategy aims to position Fandal as an inclusive and entertaining sports experience provider.
Fanduel's Evolution Beyond Gambling
Fanduel's approach goes beyond traditional gambling concepts to position itself as a sports technology entertainment company. It focuses on expanding its offerings to appeal to a wider audience, moving away from its past association with bachelor parties and gambling. Through metrics and data analysis, Fanduel employs multi-touch attribution models, performance dashboards, and other analytical tools to drive business decisions and adapt to the evolving market dynamics.
Navigating Regulatory Challenges and Industry Competition
Apart from regulatory hurdles, Fanduel faces intense competition in the hyper-competitive market. The company emphasizes maintaining efficiency and improving customer return on investment. By strategically avoiding irrational industry trends and focusing on responsible gaming practices, Fanduel sets itself apart. Additionally, the company prioritizes long-term growth while balancing market share aspirations with short-term financial performance.
There are some necessary dividing lines in FanDuel CCO Mike Raffensperger's line of work. The most obvious one is that online sports gambling is legal in 19 states, but not others. The company also refuses to do name & likeness deals with college athletes because many of them aren't old enough to gamble, Mike explains. But he outright rejects the idea — widely accepted in some marketing circles — that there needs to be such a bright line between brand and performance marketing.
"What human being experiences a brand or marketing that way?" he says. "'Ah, I see their new television campaign is out, building their brand attribute... I've formed a more intimate relationship with this company.' A little bit later, I'm on Twitter: 'Oh, they've got a special offer that is 20% off this week! I should click on this and activate.' Nobody does that! That's not the way anybody actually has a consumer journey."
Today on Building Better CMOs, Mike talks with MMA Global CEO Greg Stuart about why CMOs are becoming more like strategic leaders, how FanDuel became "one of the most successful second-screen experiences in the world," and the challenges he is tackling beyond just legalization. Plus: Why FanDuel is able to says it airs more live sports than any other company in America.
