Fanatics, the renowned sports merchandising company, has appointed Selena Kalvaria as the new Chief Marketing Officer (CMO) for its betting and gaming division. Kalvaria, previously a marketing leader at Gucci and luggage brand Away, brings her expertise in luxury brand management to the sports betting industry.
Kalvaria joins Fanatics after a successful three-year tenure at Gucci, where she served as Senior Vice President of Brand and Client Engagement for the Americas. She steps into a role left vacant by Jason White, who transitioned to become the President of Wieden+Kennedy’s Portland office in 2023.
Fanatics aims to establish itself as the premier betting app for dedicated sports enthusiasts, a market largely dominated by traditional casino brands and newer, aggressive competitors. Kalvaria emphasizes the untapped potential among female sports fans, noting the significant overlap between sports, fashion, and commerce. “There’s a huge intersection between female athletes and sports and fashion, and we have a huge commerce business,” she stated. “We can cultivate unique ideas that resonate with this audience.”
The sports-betting sector is currently shifting its marketing strategies. Following a period of intense advertising to build awareness in 2020 and 2021, companies began to scale back their marketing efforts in 2022 to focus on profitability. According to Nielsen data commissioned by the American Gaming Association, advertising spending in the sector dropped by 15% in 2023. Retention has become the primary goal, as the cost for customers to switch between betting apps remains negligible.
Kalvaria, who also served as CMO for Away before joining Gucci, understands the importance of transitioning from acquisition to brand development. “We’ve been focused on acquiring customers through performance marketing. Now, we need to build the brand that underpins these efforts,” she said.
Leading a team of approximately 40 marketing professionals, Kalvaria will oversee brand strategy, media, content, creative, communications, and social media functions.
Fanatics, a privately held company known for selling trading cards, team gear, and autographed memorabilia, entered the sports betting arena in 2023. Despite the sector’s reduced marketing activities, FanDuel and DraftKings continued to heavily advertise, while BetMGM invested $50 million in a Super Bowl commercial.
Fanatics’ CEO, Michael Rubin, believes the company’s extensive database of 100 million customers provides a unique advantage. Though the size of its betting division remains undisclosed, Fanatics plans to leverage its strong sports brand reputation in future marketing campaigns. Kalvaria indicated plans to integrate athletes, commentators, leagues, and teams into their promotional strategies.
Additionally, Fanatics intends to offer more than just monetary rewards. Customers who spend above certain thresholds may receive team jerseys or other merchandise, which could be crucial in retaining users amidst fierce competition.
Bernie McTernan, Managing Director at Needham & Co., highlighted the importance of technology in differentiating sports-betting apps. “Advertising is important, but ultimately, sports-betting apps compete on technology. They need to offer the best user experience to stand out.”
Kalvaria’s arrival at Fanatics coincides with an increase in sports wagering among women, driven by the growing popularity of the WNBA and women’s college sports. As Fanatics already has dedicated lines for female sports fans, Kalvaria’s background in fashion and brand engagement could prove instrumental in attracting this demographic.
Facing potential challenges such as rising taxes in some states, Kalvaria may need to innovate in her marketing strategies to attract and retain customers. By focusing on brand differentiation and leveraging Fanatics’ established reputation, she aims to position the company as a formidable competitor to DraftKings and FanDuel.
4o
