In the ever-evolving iGaming industry, the thrill of discovery is equally matched by the presence of complex challenges that every brand faces, on a global scale. Each twist and turn represents an opportunity, but it can also reveal a new obstacle standing between iGaming businesses and their ultimate success as a business.
The rapid growth of this industry, fueled by technological innovation and shifting consumer preferences, presents an attractive vista for game developers, marketers, and acquisition managers alike. Yet, as they navigate through this expansive sector, they must be equipped to tackle challenges that are as unique as they are intricate.
In this post, we’ll take you through four of the most formidable challenges in iGaming and provide 4 key strategies to overcome them.
We’ll help you turn each challenge into a catalyst for growth, preparing your business for a journey to the heart of iGaming success.
CHALLENGE 1: REGULATION
Navigating challenging regulations and the ever-changing landscape is nothing new in the industry, but it presents opportunities for quick adaptation and seizing advantages.
For instance, the UK’s whistle-to- whistle and television ban opens up opportunities for influencer and YouTube advertising, while US state laws and the LATAM market continue to evolve.
As marketers and industry professionals, staying informed of changes and leveraging the right channels and audience data can provide organisations with a competitive edge against established and emerging competitors.
iGaming marketers face the constant challenge of adapting to regulatory shifts.
By being proactive and aware, marketers can effectively navigate this dynamic landscape, ensuring their organisations thrive amidst ongoing challenges and opportunities.
CHALLENGE 2: BUILDING TRUST
Brand loyalty remains a critical focus in the industry. Although we enjoy high engagement rates, retention rates are thought to be lower than the 72% consumer market average.
Building loyalty through trust aids in retaining casual, regular, and VIP customers while attracting new ones.
Consider the challenges of building trust with different generations— personalised content and rewards, an emphasis on responsible gambling, and data sharing with users.
Instead of viewing these as obstacles, see them as opportunities.
According to a study in International Gambling Studies, promoting responsible gambling can boost perceptions of an operator and its loyalty program without affecting player spending.
Thus, consider using dynamic content on education or responsible gambling for specific customer segments to improve acquisition and retention, rather than traditional strategies like free rewards.
CHALLENGE 3: AD FATIGUE
Advertising oversaturation has led to audiences feeling bored or annoyed with ads, especially during and post-COVID.
Despite targeting and spreading brand awareness through various channels, consumers often feel put off by certain brands. Surveys by HubSpot & Ipnos revealed 54% of respondents aged 18-24 disliked gambling ads and their potential brand implications.
However, considering ad frequency and impact provides room to enhance consumer experience with relevant advertising.
Research by The CMO Club and Simulmedia showed 55% of respondents valued frequency and relevancy as top factors in bad ads, and those seeing an ad 6-10 times were 4.1% less likely to buy a product than if seen 2-5 times.
Therefore, delivering relevant ads based on buyer intent and contextual journeys, analysing data points for adjustments, and introducing frequency capping can limit negative impact and minimise ad spend waste.
Running the right campaigns, at the right times, at the right level of frequency, to the right audience, in the right channel is the key to unlocking the true power of your ads.
CHALLENGE 4: ROI
Depending on who you ask, some are of the view that advertising spend in the iGaming world is slowing, whereas some argue you need to be at all time highs to remain competitive.
There is no arguing with the fact that in recent years, we have spent huge sums on advertising and marketing, such as a $425 million increase in TV ad spend according to Nielsen.
Even though overall spending is looking to slow down in advertising, there are still areas such as Connected TV that are expected to grow significantly according to Forbes.
So how do we tackle ROI in an industry where the competition is always looking to hike up marketing budgets?
Smart decision making and technology hold the key in helping us achieve this better.
Data driven decision making when it comes to contextual targeting ads, content designed to reach the core of a certain psychographic – driving personalisation at the centre of
what we do.
Technology advancement will also help us when improving real-time bidding strategies.
AREAS THAT CAN IMPROVE ADVERTISING EFFECTIVENESS:
1 DATA
Shifting your first-party data to a programmatic advertising platform allows you to understand your customer’s segments, trends, and changing needs. This can trigger campaigns for engagement or retargeting.
Leveraging a deep third-party data pool is invaluable for discerning emerging trends and preferences for various markets or geographies.
Programmatic advertising platforms provide these insights more efficiently than implementing a costly and time-consuming DMP technology yourself.
2 TARGETING AND PERSONALISATION
Harness the power of data to elevate your creative optimisation in personalised advertising experiences.
By targeting users based on existing data, as well as specific demographic and psychographic information, you can ensure that your outreach is both timely and relevant.
Choosing the right channel and crafting the perfect message will not only engage your audience but also help reduce ad fatigue strategically.
3 REAL-TIME BIDDING
Many programmatic advertising platforms are iterating and improving AI algorithms for optimum automatic ad-buying intent, reducing the need for human inputs, and thus reducing errors.
With this intent running across new formats of advertising such as video, private marketplaces, programmatic TV etc, it allows for more efficient buying based on campaign parameters and audience reach.
Combining this with frequency capping will allow you to truly drive efficient campaign outcomes.
4 ANALYTICS
The use of PA gives an in-depth view into analytics of campaign performance and ad-tracking.
These insights will allow you to understand what channels, creatives and targeting strategies are driving the best results, with a view on refining campaigns and improving ROI.
Combining AI alongside this for bidding alternating bidding strategies can again, greatly impact cost efficiencies.
NEXUM3 engages in this exact type of partnership with clients in order to deliver a robust and transparent campaign, providing clients with direct access to the on-going execution, analytics and results required to run highly effective campaigns.
Get in touch with the team today, and book your strategy session, and let’s open the doors to unlocking your brands full potential.