DraftKings' new CMO: 'We could have reduced the ads a bit'

DraftKings' new CMO: 'We could have reduced the ads a bit' · Yahoo Finance

As legal pressure continues to dog the daily fantasy sports industry, its two leading private companies, DraftKings and FanDuel, have taken different approaches to their situation. In Illinois, for example, where both companies have filed counter-suits against Attorney General Lisa Madigan after she asked them to stop operating in the state, FanDuel filed its suit in tandem with a season-long fantasy sports company, Head2Head Sports. In New York, where Attorney General Eric Schneiderman is determined to have the two companies shut down, DraftKings has arguably been more aggressive in the language of its statements to the press.

Both companies are fighting for their business, as officials in state after state come out each week to either declare daily fantasy sports illegal gambling or to announce their intention to keep it legal and regulate it.

Now DraftKings, amid all this activity, has announced a major new executive hire: The company has appointed Janet Holian as its first-ever chief marketing officer.

Holian is the former CMO of publicly traded Vistaprint, which changed its name to Cimpress (CMPR) in 2014. While at Vistaprint she worked with the cofounders of DraftKings, Jason Robins, Matt Kalish and Paul Liberman. Since they launched DraftKings in 2012 Holian has served as an informal adviser, and since August she had been its acting CMO. Now she joins full time as DraftKings' global CMO.

Holian spent the past five years at Gemvara, an online jewelry retailer based in Massachusetts. She will help steer DraftKings into its next phase and manage its advertising approach and image. In the first week of this NFL season, DraftKings and FanDuel spent nearly $30 million combined to air some 8,000 TV spots, according to iSpot.tv.

Janet Holian, DraftKings' new CMO
Janet Holian, DraftKings' new CMO

Holian spoke exclusively to Yahoo Finance about her appointment; she is the first DraftKings executive to talk to the media since October. What follows is an edited transcript.

Yahoo Finance: You obviously saw the company's advertising strategy this past fall, and how the ads were seemingly everywhere for a while. Did they run too many?

I would say a couple things about that. First and foremost, in 2014 I think they learned that this time period—the two weeks prior to Week One [of the NFL season] and Week One—was the critical time when we needed to acquire customers. So there was a definitive decision to have a very wide media footprint during that time. I will say, we are a very analytics-driven company. We had eight ads running in the market during that three-week period, and we were testing to make sure we came out of that period with the best two ads. I think we could have done that testing sooner, so that we could have known which one was the winner. We should have done that in late July or early August so that we got a read and went out there with just two ads.