24 minute read
Marketing
by SBC Global
BY CHRIS MURPHY
The ability to measure player engagement, said Sexton, relies on an operator’s ability to consolidate and analyse player data collected from across the entire digital estate. Who they support, what games they like to play, how long they play for, how much they win and how often.
He explained: “This data sits within your customer data platform and helps to create a player experience that keeps them happy and engaged. Engaged players spend more, boosting their player lifetime value and making them less likely to churn. Player retention should be at the heart of every operator’s marketing strategy.”
While the industry’s operators focus on ramping up the number of new players, they are also learning how expensive such an exercise can be. “Cost of acquisition is on the rise and while the global average sits at $300 per player,” said Sexton. “In countries like the US, cost per acquisition can be between $1,000 and $2,000 per player. But player lifetime value sits at around $2,500.
“This is in no small part due to increasing competition. The more choice players have, the harder operators have to work to win new players onto their platform. This means the amount of money operators can expect to make from each player is shrinking.
“By extension, just as it’s harder to attract new players, it’s getting harder for operators to keep the players already active on their platforms.”
By way of a solution, he offered: “The better you understand your customers, the easier it will be to hold on to them. Personalisation is the obvious place to start but to win in the hypercompetitive world of SBG, operators need to dig a little deeper.”
Driving engagement
According to Sexton, operators have a huge amount of first party data to draw on to help them engage with their audiences. “Everything from what games they like or the team they support - all the way through to deposits and win rate. The more data they can consolidate into one place, the greater the level of segmentation they can apply to their players.
“Granularity of data means operators can create more sophisticated engagement and retention campaigns. Content, games, offers and promotions can be personalised based on interests to maximise open rates, clicks and conversions.
“The best thing about it is it becomes almost self-sustaining, as the more players interact with this personalised content, the more accurate the content becomes.”
Sexton emphasised that the data can even be used to create an engaging VIP experience that rewards players in a highly personalised way. “If operators know what teams players support during tournaments like the World Cup or an NFL season, then it’s easy enough to build incentives around them, or offer something as simple as tickets to the World Cup final or the Super Bowl.
“The more consolidated data operators have access to, the easier it is to put relevant content and games in front of players that they will engage with.”
The delivery is also important, he believes, adding: “Presenting players with their preferred form of betting or gaming helps to build trust between them and their chosen operator. They feel valued and understood and are far more likely to engage with that operator for longer as a result.
“The more data operators have on their players the easier it becomes to provide players with their explicit needs.”
He continued: “Providing players with what they say they want is a great way to keep them happy. Using analysis and artificial intelligence, you can start to predict those explicit needs. This allows operators to get out in front of the inevitable drop in interest.
Presenting players with new, relevant content helps to sustain engagement and player lifetime value.”
Understanding implicit buying behaviour
Sexton believes that operators can also use the same data to push players towards implicit behaviours by using nudges, FOMO, incentives and other methods.
He said: “Predicting explicit behaviour is getting easier thanks to marcomms technology and artificial intelligence. These tools present players with more information, content or games that they like based on either stated preferences or observed
behaviour. The real challenge for operators is anticipating and driving implicit behaviour.
“To clarify - explicit behaviour is deliberate. Someone logging in to their email or driving a car to carry out an errand. Implicit behaviour is spontaneous. Stopping at a bakery for a doughnut on the way home, for example.
“The key component is that the person stopped for a doughnut, rather than understanding what prompted the driver to make that spontaneous decision. A variety of factors such as slow moving traffic giving the driver a good view through the window, a special offer on the sandwich board outside, missing breakfast, or they needed a sugar hit all play a part in triggering implicit behaviours.”
Creating a similar environment for players, advised Sexton, will allow operators to surprise - and possibly even delight - players with games or experiences that are in line with their interest.
“By leveraging the data they have about each of their players, operators can encourage players to act out implicit behaviours,” he said. “Using
the same data to provide players with the experience they’ve asked for, operators can provide an experience that encourages implicit behaviours too.
“Player data points towards clear preferences and trends of behaviour in terms of deposits, frequency of play and win rates etc. It’s relatively easy to use this data to present them with a game, an offer or exclusive odds to extend that level of engagement.”
He added: “Introducing a new game as a pop up at the point the data says they usually log out is powerful. As is a well-timed promotion around the time of day your players login to check odds or place bets.
“Nudging them towards placing a bet on a different game, in addition to the flutter they usually place, is something that can be scaled rapidly and when amplified across all players boosts revenues and retention.”
The rub
Realistically, this can only be achieved if operators have consolidated all their player data in the first place, noted Sexton. “It’s essential that they have complete player profiles located in a single customer data platform or CRM system. Without this technology it’s going to be very difficult to get the insight needed or to segment players into the various data points.”
Equally, he said, the ability to ingest, analyse and segment data in real time is essential. “Without this functionality operators will be too slow to respond to player behaviours. Having pre-built campaigns triggered when players meet set criteria means operators don’t need to manually intervene.
“Rather, between their platform and an omnichannel customer engagement platform, they have all the tools they need to create an environment in which implicit behaviour is more likely to occur.”
Sexton warned that in the absence of this “synergistic technology”, operators would be forced to intervene manually. “Any such approach would be time consuming and costly to the point of impractical, and slow to the point of irrelevant.
“After all, the secret to tapping into implicit buying behaviour is creating an environment in which players feel safe to respond impulsively. Which is why learning how to meet a player’s explicit behaviours first is so important.”
He concluded: “Without that trust or sense of value, players wouldn’t respond as favourably to seemingly spontaneous offers.” •
A STAR IN THE MAKING: ESTRELABET’S RAPID GROWTH ECHOES BRAZIL’S PROMISING FUTURE
FELLIPE FRAGA, CHIEF BUSINESS OFFICER OF ESTRELABET,
sat down with SBC Leaders to discuss what the industry can expect from Brazil and the company in 2023. He weighed up whether there is room for more operators and what role sponsorships have in the South American country
BY LUCIA MOURIÑO
Measuring the size of the sports betting market in Brazil is virtually impossible. Not because there’s no data or accurate analysis around it, but because it seems to keep growing every day. What was supposed to be a legal and regulated market in 2023 will, once again, turn into a legislative piece pushed into the new government’s agenda, with the hope of finally validating this lucrative industry later this year.
Regardless of Jair Bolsonaro’s inaction around the bill that would’ve regulated the sports betting industry, companies are still building their operations and signing sponsorship deals - the latter often being one of the largest contributors to their finances.
EstrelaBet is on its way to becoming a major force in the region, with a complete offer featuring multiple verticals and games, relevant sponsorships - such as those with the Brazilian Football Confederation, SC Internacional and America Mineiro - and most importantly, its own responsible gambling rules. This is something that the company takes very seriously as prioritising clients is at the core of all its business operations.
SBC: Do you think the results of the elections will shape the future of the industry? Can we expect a positive outcome?
FF: The elections left high expectations for the entire industry about what will happen in 2023. Because even though Bolsonaro’s presidency had its own regulation, a process that involves amendments, it needs to have the support of both chambers - Deputies and Senators - and also the approval of the next President.
SBC: Although there is no firm regulation, there are currently a large number of operators in Brazil, ready to share their products. What makes EstrelaBet so different from the competition?
FF: We have the capacity to connect with people in general. The team that works with EstrelaBet knows how to carry the message to attract entertainment, while also being responsible.
Right from the beginning, we choose the highest ethical quality and responsible control, through internal work and partnerships with top providers in the industry. All our actions go through an intelligence and strategy process until a final decision is reached, allowing us to operate with fewer mistakes.
SBC: Is there enough market for all the operators interested in Brazil? And as we expect increased competition, what steps are the most important to become the biggest one?
FF: Without a doubt, yes, there is space [for everyone]. There is an important fact around this: the number of people who can play and place bets is approximately 30 million. To be the main operator in the long term, it’s necessary to be willing to change [the operations] to marketing needs and new technologies.
We hope to be recognised as such, because we’re known to be fast and responsible. Our clients understand our values and think very highly of us.
SBC: Going back to the elections and the missed deadline, do you think that the long wait for a firm framework has prepared the operators and the players to take Brazil to the top? How has this long wait influenced the market?
FF: If I had to make a bet, I would say that Brazil will be one of the three most important markets in the world in five years. The law was clear and allowed us to have over 1,000 operators in the local market.
During that wait, especially in the last four years, there has been a lot of growth, even in regards to the culture around it, despite some negative comments. Of course the pandemic helped a lot, and so did technological evolution. More and more people are talking about gambling, so we are ready not only for what is coming, but also to take us to the highest levels in the industry.
SBC: About being ready, how would you describe EstrelaBet’s meteoric rise in the local industry? Can you name some examples that have helped you achieve this position?
FF: Our success has both secret and not-so-secret key points. We have a very strong team in all sectors,
with excellent professionals. We also understand the need to know Brazilians, the public, how they think and how they consume products. The most important thing is to know how to reach people so that they not only see us but also feel that we are with them.
In Brasileirao’s Série A, the country’s top football competition, all football teams have a sports betting sponsorship. If their brands are not featured on the men’s kits, they’re either on the women’s or at the stadiums or websites.
Brazilian football has become a synonym for sponsorships, and sportsbooks have reached an indisputable position as one of the largest contributors for local teams. Consequently, they have more resources to compete both locally and regionally.
SBC: Do you think there is a direct relationship between the success of Brazilian football at a continental level, like in the Copa Libertadores or Copa Sudamericana, and the number of existing sponsorship deals with sportsbooks, compared to other countries such as Colombia and Argentina, where there is still a long way to go to reach these agreements?
FF: There is immense competition in Brazil when it comes to sports betting sponsorships. You know when you have to buy a special outfit and you say it’s for a wedding that the prices go up? The same thing happens with this. Teams now receive bigger contributions, and there is not a team in Serie A or Serie B without a betting sponsorship.
But that current success is not only thanks to these betting deals. Teams like Flamengo and Palmeiras - who have won the last four Copa Libertadores - have been executing a good strategy for years now. Palmeiras even has a sports betting sponsorship and that brand doesn’t even show up on its kit. So I think that the effect of the bookmakers will be felt later, especially from 2023.
SBC: How important are these sponsorship opportunities for EstrelaBet’s strategy in Brazil?
FF: There’s two main focus points. The first one is that we not only showcase our brand through sponsorships, but also that we’re committed to the sport and that we can support winners. It seems obvious, but many believe that sports betting companies won’t pay the prices. So when we say that we have partnered with one team, or several, it helps.
The second point, one that is special for us, is that our work is more than a sponsorship. In fact, EstrelaBet is also a supporter. EstrelaBet and fans are equals, and every day we get to know them better. In 2023, we’ll have a lot of things to learn, but I will leave those surprises for later. •
BREAKING DOWN BARRIERS: THE INDUSTRY NEEDS TO BETTER MARKET ITSELF TO THE WORLD
IN AN INDUSTRY THAT IS CONSTANTLY UNDER THE
MICROSCOPE, reputation matters. But how can the gambling industry shift an outdated stigma and better showcase the positive work that is going on behind the scenes?
BY LUCÍA GANDO
It’s quite difficult to pick just one word to describe an entire industry. But when assessing the current state of play of the betting and gaming sector, panellists at the SBC Summit Latinoamérica chose to describe it as “controversial“.
This was something that caused quite a stir among attendees during the ‘LatAm Leaders - Breaking down the barriers of Latin America’ discussion, which was moderated by Cristina Romero, Partner at Loyra Abogados.
The panel session, which took place at the Seminole Hard Rock Hotel & Casino in Hollywood, Florida, assessed the latest developments from across the sector - taking inclusion, diversity and corporate social responsibility into account.
The panel agreed that highlighting industry innovations in order to stay in line with current values can afford the sector a better reputation. This is especially true given its “controversial” nature and the mainstream rejection experienced from other sectors, such as the
government and the banking industry.
Lourdes Britto, General Director of Apuesta Total, believes that it’s important to report that the gambling industry is one of the most regulated sectors at a global level and that it’s showing significant progress by creating new job opportunities and training young executives.
“Being a young industry, we work a lot on executive development, especially in Latin America. Training is very important because the industry grows much faster than the number of executives does,” she said.
This sentiment was echoed by fellow panellist Mara Ares, CEO of Ares Gaming Labs and Richmedia. She underlined her view that by including employees with diverse backgrounds - in terms of gender, age and location - the gambling industry has disrupted the technology space and brought in new, innovative perspectives. This, Ares said, is something that is hardly taken into account as an emerging market in the region.
“We need diverse perspectives, greater flexibility. We also need to move the debate forward and take into account the needs of different audiences.”
A shift to online
According to Ares, the pandemic has accelerated this disruption even further, allowing for new collaborative methods and enabling companies to expand their workforce through remote working practices.
She pointed out: “Being able to count on leaders around the world and being able to give many people the chance to develop professionally is something we focus on. We must highlight the importance of team building, developing the capacity of the groups within our inclusion and innovation plans.”
In response to Ares, Lenin Castillo, Online COO of Logrand Entertainment, shared the brand’s experience in Mexico during the pandemic, where it had to quickly adapt its entire business model to the online space. At the time, the government ruled that all land-based betting venues were to remain closed to prevent the spread of coronavirus.
“Thanks to our DNA, as new technologies are integrated, we were able to change our internal operations. And we achieved this thanks to the team’s diversity,” he said.
He brought the discussion back to fostering diversity - both within his company and at a general level across the industry.
He warned that to truly be an inclusive industry, a new business culture needs to be implemented across the board - one that considers, and implements, different views and perspectives and offers sufficient training and professional development opportunities.
The goal is for this to not only be a concept, but to consolidate the daily execution that contributes to a modern, flexible, inclusive and sustainable industry.
Lenin Castillo, Online COO of Logrand Entertainment
Reputation matters
As all the panellists agreed, one of the biggest challenges is to showcase the positive side of the gambling industry - a sector which has long come under scrutiny from the wider public. This is despite the fact that betting is one of the most popular forms of entertainment.
The moderator drew comparisons with the alcohol industry. This is a sector that, despite its widespread criticism, has transcended its “bad reputation” through strong advertising campaigns.
Romero said: “They have great advertising, always protected by integrity frameworks, like ours. I think we should continue on this path, we are trained to do so, and we should stop being overshadowed by mainstream industries.
“In this industry, you can also see how there are many women in high-level positions, and every day more young professionals in Latin America are interested in the sector. However, we continue to be very bad at making ourselves known.”
The Logrand representative agreed
Lourdes Britto, General Director of Apuesta Total
Mara Ares, CEO of Ares Gaming Labs and Richmedia
Cristina Romero, Partner at Loyra Abogados
on this point and stated the need to be “consistent in advertising how we work internally to reflect what the industry is like”. He added that this is achieved through “clear policies, regulatory frameworks and accountability”.
Logrand has set out on a path to change its reputation by joining the United Nations Global Compact on sustainable and socially responsible policies.
In doing so, the operator has committed to generating annual reports where it announces its best practices and collaboration - reporting on the number of jobs it generates, and actions that benefit society such as anti-money laundering activities, among other things.
Another way to achieve this, according to Britto, is to strengthen the relationship with the sports sector. “We’re an industry that not only lives because of sports, but also contributes to it,” she said.
“Being seen as an industry that contributes to society is extremely important for us to be sustainable, and we have the opportunity to position ourselves correctly if we know to positively communicate everything we contribute.”
Additionally, she referenced Peru where 10% of the revenue from landbased casinos is directed to sports, something that “no one is aware of”.
“That’s why communication is key. With sports betting, we now have an opportunity to improve perception, because it’s an industry that contributes a lot,” she said.
Britto also assured that “everyone has the responsibility to report what’s being done”, no matter where they operate. The collaboration between industry members is key, despite the competition between companies, as in the case with the Peruvian Sports Betting Association (APADELA).
Romero highlighted Britto’s comment and added that by understanding how the industry works, there are better chances of executing cooperative work, since “there are regulatory and legislative elements that are better than in many other industries”.
Although it is considered that Latin America should stop looking at Spain as an example, with many believing that the market there has lost its transparency, there’s an element that should be emulated in the way of more data to discuss with regulators.
“In Spain, we have a project called the Annual Gambling Report, which has been used to discuss official matters with regulators, financial entities, and create discussions in universities or hospitals that work with addiction issues, among other things. If you have data, it’s easier to debate and report,” she said.
To conclude, Ares said: “Participating in these debates, which is what we aim for, makes us value the information that circulates to share knowledge and achieve a better position before regulators, business people and society in general.” •
RETABET: COMMUNICATION AS A STANDARD FOR INDUSTRY GROWTH IN LATIN AMERICA
PABLO VIANA, LATAM MANAGER AT RETABET, assesses the changing regulatory landscape across the continent, taking into consideration what more mature markets such as those in Europe have done right, but more importantly, what they have done wrong
BY FERNANDO NOODT MOLINS
The igaming and sports betting industry continues to grow in Latin America, but some countries are struggling to pass their own regulations. Meanwhile others are beginning to take their first steps.
After a successful roll out of sports betting in Colombia, which is already starting to reap the benefits from a regulated market, we are seeing more jurisdictions such as Peru and provinces in Argentina follow suit - with their gaming sectors now up and running.
Countries like Chile and Brazil have yet to catch up, despite having the potential to generate millions in taxes for the state coffers. As a result, the industry still awaits any updates on what may happen there. This is especially true when considering the ongoing regulatory push in Brazil that has had everyone on the edge of their seats, more so since Luiz Inázio Lula Da Silva came out on top in the presidential election, beating Jair Bolsonaro. According to Viana, there are a lot of companies trying to get noticed in the igaming and sports betting industry, a sector that as of late has been both competitive and thriving. He has high expectations for this trend to come “with developments in its regulation”.
“There’s no doubt that regulation will give more value to the industry and attract investment from big companies into the market,” he said as he highlighted the hard work that RETAbet is currently doing “to become one of the first operators to get a licence in the Peruvian market” after Law 31,557 was enforced.
While trying to draw upon lessons in European markets, he puts Spain as a “mirror for a large part of Latin American jurisdictions” - a market which has largely been dominated by the Royal Communications Decree.
The new rules were a big project from the Minister of Consumer
Affairs, Alberto Garzón, and set major restrictions on the private gambling segment’s advertising capabilities since its enforcement in 2021.
“The decision of the Ministry of Consumer Affairs to limit advertisement generated a great controversy among every related industry, including operators, agencies, sports teams/leagues, media, and more,” he said. “Everyone should be able to play by the same rules.”
Viana also voiced his concerns over “differences between advertising rules for private and public gambling”, and emphasised his company's will to “comply with every requirement” and its drive to “work side by side with public institutions”.
This is something that he considers to be “essential to improve revenues, protect consumers and encourage investment”.
Still, this is no news for the industry as Italy imposed similar restrictions on gambling advertising and set an all-out ban on sports sponsorships from January 1, 2019.
Despite major opposition from giants such as Serie A, the top football competition in the country, or the Italian Football Federation, the government did not give in and deprived the industry of major exposure opportunities and Italian sports from what would likely be a large revenue stream.
The Spanish Royal Decree and the Italian narrative has since found its way to Chile, where an igaming and sports betting sponsorship ban is gathering momentum - having already received major support from the Chamber of Deputies.
The bill would prevent the betting and gaming sector from supporting sports events and teams, something that Viana was largely critical about. “I’m not in favour of prohibitionism. I don’t think it’s the right way, but a sound regulation with reasonable terms is,” he said. “Banning ‘the problem’ is the easiest and quickest way governments usually take.”
However, he considers partnerships with sporting organisations as “necessary” to get enough brand exposure, “especially in an environment where most companies are 100% digital”.
RETAbet’s LatAm Manager also insisted on the importance of “continuing to propose communication channels” and dialogue with the authorities and called upon operators to “reflect on what has led certain governments to take such decisions”.
He added: “In Peru, we are members of the Peruvian Sports Betting Association (Apadela), the main group for sports betting operators, which seeks to work on a fair and responsible regulation.”
According to Viana, “the industry is blowing up in Latin America”, which is why he thinks it makes sense for brands to look for exposure in the sporting world.
He emphasised how regulatory projects across Latin America have prioritised advertising: “This is an open industry. There’s no monopolies, so many brands compete against each other. That makes margins for companies much lower, creates more aggressive marketing battles, a more attractive offer for customers and, therefore, a higher economic dynamisation.”
Other advertising restrictions that have taken over the regulatory landscape in Europe include limiting promoting user acquisition and retention tools like bonuses or contests.
I’M NOT IN FAVOUR OF PROHIBITIONISM. I DON’T THINK IT’S THE RIGHT WAY, BUT A SOUND REGULATION WITH REASONABLE TERMS IS CHILE OR BRAZIL HAVE YET TO CATCH UP, DESPITE HAVING THE POTENTIAL TO GENERATE MILLIONS IN TAXES FOR THE STATE COFFERS
“It makes sense to have a fight over a share of the market,” Viana explains, noting that it "results in greater promotions for customers and a lower margin for the operator”.
“Every operator must have defined KYCS strategies and a responsible bonus strategy,” he stated, pointing out that “tools to conduct promotional campaigns or discounts like those from other segments are being excessively restricted”.
In regards to what companies should do to prosper in the different Latin American markets, he believes that each one will follow its very own strategy, "based on the requirements of shareholders or their management bodies". •
