“There will come a time when operators will need to gradually reduce their spending to balance. At that moment, we feel we are the strongest.”
Thoughts John Caprowitz, Head Pen interactiveCreated as part of the “Leaders in Gaming” track session hosted by. gun this week’s SBC Digital North America ‘The decisions that game operators make now will affect future growth’.
He was answering a question from the session moderator Kathryn Rye (SVP and General Manager, USA, SG digital) The challenge of balancing the acquisition of new users in active states with the preparation for expansion in soon-regulated states.
“We are in a unique position because we have two distinctive brands and audiences,” says Kaplowitz. “We have the mychoice brand, we have loyalty members with 20 million cards, and we have a strong social media audience of 100 million through Barstool. They are very complementary and very complementary. They do not eat together.
“We have a different strategy than some of our competitors. We publicly want to be one of the most profitable operators as well as one of the largest operators in the United States. We’ve said that by leveraging two audiences, you can acquire customers at industry-leading acquisition costs, which gives us a lot of firepower.
“Our approach to marketing is a little different. Our key is” how to cut noise? ” The commercial will appear after the commercial. If you’re 30 and don’t consume much content on your TV, at some point you’ll think it’s noisy.
“Therefore, we focus on what we think is better, such as digital marketing, influencer use, talent-driven marketing, etc. because we have a connection with Barstool.
“The time will come when businesses will need to gradually reduce their spending to balance their balance. At that time, we feel that the power of our balance sheets will make us the strongest.”
Adam Green Brat, BetMGM The CEO agreed that there is an important balance between acquiring new users now and responding most quickly to the expansion of the US market.
“If you’re not in the market, you’re not in the discussion,” he added. “Therefore, ideally being there from day one is an absolute priority without compromise, but then the relationship between the amount you pay to acquire players and how much they leave in their lifetime. It will be a problem.
“For BetMGM, the inclusion of MGM in its name is an incredible strength because people associate it with one of the world’s leading gaming experiences like no other.”
Expanding the importance of understanding customer value, he states:
“The relationship between the amount of money you spend marketing through external channels and the value of the players who participate through those channels allows you to spend more effectively and becomes a recipe for victory over time.”
Another operator who follows this “winning recipe” Rush Street Gaming, Its president Richard Schwartz The explosive event of Igming in the United StatesOnce-in-a-generation opportunityIt explains that due to legal and compliance restrictions to date, it is one of the largest entertainment media that has been digitized 20 years behind most other media.
He states: Unlike sports betting, where entertainment is primarily outside the app (courts and sportsfields), casinos produce fun within the app itself. “
Regarding the efficiency of player acquisition costs, Schwartz said: And it was for New Jersey.
“All domestic markets, including the sportsbook-only market, are now recoverable within six months, which means we can invest more in marketing and make long-term profits. It’s very exciting for the business to do. “
Industry experts spoke on the GAN-sponsored Leaders in igaming track at SBC Digital North America, June 9-10, 2021. https://sbcevents.com/sbc-digital-north-america
Balancing short-term player acquisition and preparation for future market expansion
Source link Balancing short-term player acquisition and preparation for future market expansion