Gambling market challenges in 2020 and how to overcome them

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Gambling market challenges in 2020 and how to overcome them
Image by romanov from Pixabay

In recent years the online gambling industry is steadily growing. This positive trend in return comes with its own obstacles and companies need to constantly find new ways to overcome them, especially in 2020.

With such a fast growth the online gambling industry is one of the leaders when it comes to advertising and marketing. The ongoing pandemic that crippled most industries across the world in fact has a somewhat positive effect when it comes to online gambling. Bookmakers are taking a massive hit in revenues, while for online casinos it’s exactly the opposite. With the lack of events to bet on bettors are turning to slots and other casino games, significantly increasing the overall revenue in this sector. This also led to the increase of online casinos without ID required.

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The steady growth, even without the current pandemic, means that the competition in this sector is constantly growing. This means that operators now battle each other to take a piece of the market. This is done with innovative marketing campaigns and improved advertising methods with the end goal being a successful realization of the overall strategy.

The 5 biggest marketing challenges for online casinos

Setting up an online casino is very easy. All you need to do is invest some money and you’ll have your own casino set up and running within 4 weeks. But getting that casino to be a successful and a profitable one is a whole new ball game. Operators need to overcome many obstacles along the way to ensure profit in revenues in the long run.


Legislation

In the past legislation wasn’t really an issue for online casinos. You could open a casino offshore, get a weak operating license and operate in almost all world countries. Today this is not the case. The awareness for online gambling is higher and governments are cracking down on operators. This results in new and ever changing legislation to which online casinos need to adapt.


With the latest changes the governments of the UK and Spain announced that casino logos were no longer allowed to appear players T-shirts as a mean of advertising. At the same time the German Association asked for bigger control when it comes to payments of gambling companies. They can serve as a mean of advertising, since a casino can promote fast withdrawals. Norway also got on board with legislation, due to the increase in gambling addiction among its residents. These countries and many more across the world are imposing strict rules when it comes to advertising and acquiring an operating license.

Ad restrictions

A mayor impact on the operations of online casinos is the ongoing trend of decreasing advertising time for betting companies. This is brought on by a global trend of increase in gambling addiction. Even though no study has shown a clear link between advertising and addiction, the decrease in gambling ads is done as a mean not to put additional pressure on a player with a gambling problem.

This leads to a diminished choice on how a casino can promote itself legally. For example, in many countries online casinos and bookmakers are not allowed to be associated with a sports team or a sports organization and place ads on TV or radio. This leads to an increase of advertising on social media. But these ads don’t bring in the same results as users can block specific ads or get no ads at all.

This is why many operators have turned to streaming services like Twitch and Youtube. These services still don’t have such strict rules and operators can reach a broad and targeted audience. They can also strike deals with famous streamers and advertise on their channel.

Competition

Having a healthy competition is a welcome element in every sector as it leads to a higher quality offer and better terms for the end user. But in a sector like the online gambling industry we can see a massive number of operators flooding the market and struggling to stay afloat.

In many cases this is due to a wrong approach in marketing and a unique selling proposition. Many operators don’t use the USP in the right manner, leading to a long term diminish of revenue. The USP is a crucial part of every advertisement showing the customer the main selling point why he should choose one service over another. With such a fierce competition in the online gambling industry having the right USP is a must.

Predicting client behavior

This is the hardest part of any marketing campaign, regardless if it’s for online gambling or any other industry in the world. Predicting the behavior of potential customers is a daily routine for marketing companies, but it’s virtually impossible to do it right.

By analyzing the needs of users and what they’re influenced by marketers can create a campaign that can predict their needs. This isn’t an easy thing to do as each person is different. Recent analysis was done on zoomers, which started with the basic elements that influenced them.

These include the gadgets they owned, the games they enjoy the most or even celebrities that influenced them. With these parameters in place marketers can predict the behavior of a potential client at an early age and create a successful marketing campaign.

Building a brand

Brand awareness is not an easy thing to do by any means. Every online casinos needs to follow a strategy of their own which separates them from the rest. This can be done by sending a message to players in order to connect on a more human level. The message can be anything like full legality, fair games or something else.

With the use of messages in the general strategy the operator connects with players on a deeper level. They don’t have to use any illegal methods in order to advertise and can slowly build their reputation. This helps build the strategy for the future and bring in more players to their ranks.




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