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Maximizing ROI in iGaming: A Deep Dive into Non-Standard Geo-Targeting Through Influencer Marketing (Part 1/2)

Published

5 months ago

December 27, 2023

Reading Time: 5 minutes

Here’s a quick take on influencer marketing in iGaming: it’s all about making waves in the digital world. Popular social media stars teaming up with iGaming brands make them not only well-known, but also more trustworthy. Influencers have got the followers, the trust, and the know-how to get people excited about gambling and betting online. In this article, Anna Zhukova, Team Lead of iGaming vertical at Famesters will delve deeply into smart influencer marketing strategies for this business vertical.

Here are some of the key components of influencer marketing for iGaming brands:

Engaging the Crowd: Influencers are superstars at grabbing the attention of different players – from those who play just for fun to the serious high rollers.
Building Trust: When an influencer gives a thumbs-up to a game or a particular online casino, their followers listen. It’s like having a friend recommend your favorite new game.
Finding the Right Fit: Picking the perfect influencer is key. They need to align with what the iGaming brand is all about.
Staying in the Lines: iGaming has got rules. Influencers need to play by them to keep things cool and compliant.
Performance Metrics and ROI: Tracking the success of influencer campaigns through metrics like reach, engagement, and conversions is crucial. This data helps in refining strategies and ensuring a high return on investment.

In short, influencer marketing in the iGaming industry is a trust-building powerhouse: it is a nuanced and effective approach, leveraging the power of influential personalities to build brand trust, engage diverse audiences, and drive business success within a regulated framework.

And here’s another great power that influences the final results of an influencer marketing campaign: geo-targeting. It’s about hitting the right audience, in the right place, at the right time. Here’s why you can’t do iGaming marketing without geo-targeting:

Audience Segmentation: It’s all about hitting the sweet spot with each region’s unique gaming tastes and cultural vibes. Tailoring content to specific areas means more impact and appeal.
Regulatory Compliance: Different areas, different rules. Geo-targeting keeps campaigns on the right side of the law, dodging legal headaches.
Localized Content: This is where you speak their language, literally. You have to adapt to local dialects, cultural hooks, and region-favorite games to ramp up engagement and conversions.
Cost Efficiency: It’s about smart spending. Better focus your efforts where they count, avoid wasting resources, and watch your marketing budget deliver more.
Data-Driven Decisions: You can use geo-targeting data to get the lowdown on what works where. This insight sharpens resource allocation, boosting your ROI.

Understanding the iGaming Industry

The iGaming industry, encompassing online gaming and betting platforms, has witnessed exponential growth in recent years. A surge in digital technology adoption and the rise of mobile gaming have been pivotal. The industry’s growth trajectory is marked by technological advancements, expanding into new markets, and an increasing acceptance of online gaming as a mainstream entertainment option. This evolution has opened doors to vast opportunities but also posed unique challenges.

According to Statista, the global iGaming market is expected to reach a revenue of more than $107 billion in 2024.

Traditional marketing methods in iGaming face several hurdles. The biggest is the evolving regulatory landscape, with different countries imposing varied restrictions on gaming advertising. Additionally, the traditional one-size-fits-all approach struggles in a market where gamers’ preferences are as diverse as their geographical locations. There’s also the challenge of ad fatigue, where conventional advertising methods no longer capture the audience’s attention as effectively.

To navigate these challenges, the iGaming industry is turning towards more innovative, targeted, and engaging marketing strategies. Personalization and use of data analytics are becoming increasingly important. Brands are now focusing on creating more immersive and interactive marketing experiences that resonate with their audience on a deeper level.

Influencer marketing is now one of the most powerful tools in the iGaming industry. It leverages social media influencers’ reach and credibility to promote betting and gambling platforms and products. This approach taps into the influencers’ engaged audiences, offering a more authentic and trustworthy promotion method than traditional advertising. Influencers can create content that resonates with their followers, whether it’s through live-streaming games, tutorials, or reviews, thus providing a more organic and engaging way to introduce products to potential customers.

Statistics underscore the impact of influencer marketing. For instance, 66% of marketers using it say that influencer-generated content performs equally or better than branded content. Also, on average, brands earn $5.78 for every dollar spent on influencer marketing.

Understanding the iGaming industry today means recognizing the shift towards more innovative, personalized, and influencer-driven marketing strategies. The industry’s growth is paralleled by the evolution of marketing techniques, with influencer marketing standing out as a key player in engaging and expanding the iGaming audience.

Non-Standard Geo-Targeting

First, you need to understand the tiers in global market segmentation. There are three of them. Understanding the economic and audience characteristics of different tiers is crucial for effective global marketing. Each tier offers unique opportunities and challenges, and selecting the right one depends on a company’s budget, target audience, and industry regulations.

Tier-1 Countries: The Premium Market

Characteristics: These are the most developed countries with strong economies and a wealthy audience.
Why They’re Attractive: Businesses target these regions due to the high purchasing power of the audience. This means greater potential for sales and revenue.
Consideration: Advertising in these countries can be quite expensive. Brands should be prepared for higher marketing costs.

Tier-2 Countries: The Balanced Choice

Characteristics: These are developing countries. Their economies are well-developed, but the audience’s purchasing power isn’t as high as in Tier-1 countries.
Why They’re Attractive: They’re a strategic choice for businesses seeking a solvent audience without the high costs associated with Tier-1 markets.
Ideal for Certain Industries: Tier-2 countries are particularly suitable for advertising sectors like betting, forex, and binaries, which might be restricted in Tier-1 countries.

Tier-3 Countries: High Reach, Low Cost

Characteristics: Often referred to as ‘third world countries,’ these nations have weaker economies and lower-income populations.
Advantages: Advertising costs are low, allowing for broad coverage even with smaller budgets.
Target Audience: These regions are often targeted by industries like gambling, forex, and betting. These sectors appeal to audiences seeking opportunities for ‘easy’ income.

Now let’s take a closer look at the peculiarities of each tier and the countries in it.

High Costs in Tier-1 Markets: A Matter of Solvency

User Solvency and Payback: In Tier-1 markets, users generally have higher purchasing power, which can lead to better payback for businesses. However, this comes with its own set of challenges.
Regulatory Hurdles: A significant issue in these markets is the stringent regulation around gambling products. While launching campaigns on platforms like Facebook may not require a license, working with influencers often does.
Licensing Complexities: Licenses such as MGA (Malta Gaming Authority) or Curacao are necessary for simply working in European countries. However, they don’t authorize advertising in these geographies and targeting users in them. Plus, obtaining advertising permissions is a very complex process.
Influencer Marketing Challenges: Tier-1 influencers, earning well from less risky advertising options, often steer clear of gambling promotions. Finding one willing to collaborate without a license is rare.

Businesses eyeing Tier-1 markets need to be prepared for higher costs and stringent regulations, especially when incorporating influencer marketing into their strategies. While the financial returns can be significant due to the high solvency of users, navigating the regulatory and licensing requirements adds complexity.

In contrast, Tier-2 markets offer a more accessible and flexible environment for certain types of promotions, including those in the gambling sector. Transitioning from the complex landscape of Tier-1 markets, Tier-2 geographies present a different potential. The regulatory environment is typically less stringent, and the cost of marketing is more manageable compared to Tier-1.

In the next article, we will make it clearer how the countries from different tiers can be connected, what role influencers play in this, and most importantly – how exactly non-standard geo-targeting can be used to reach more solvent audiences with cost-effective strategies. Stay tuned!

Author: Anna Zhukova, Team Lead (iGaming) at Famesters

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Navigating Bitcoin’s Impact: SOFTSWISS’ iGaming Industry Overview

Published

26 seconds ago

May 17, 2024

George Miller

Reading Time: 4 minutes

In March 2024, Bitcoin soared to a historical high, nearing 70,000 euro per coin. How does this impact the iGaming market? Being a tech company with over 15 years of experience and an innovator in crypto iGaming software development, SOFTSWISS shares anticipations in its quarterly crypto analysis.

Over 220 brands powered by the company engaged in crypto transactions during the first quarter of 2024, which is 12% higher than the previous quarter. SOFTSWISS experts analyse the data gathered from crypto-friendly brands by employing extrapolation, comparative, and correlative analysis.

iGaming Market Overview: Unveiling Anticipated Growth

The size of the global online gambling and sports betting industry is expected to rise significantly and exceed 170 billion euro by 2032, according to Statista. Based on SOFTSWISS data, the iGaming market has demonstrated a stable pattern of growth year after year.

In absolute terms in euro, the Total Bet Sum grew by 5.8% in the first quarter of the year compared to the last quarter of 2023. Analysing the year-on-year increase, comparing Q1’24 with Q1’23, the growth is more impressive, showcasing a 47.2% boost.

Simultaneously, the Total Bet Count, both fiat and crypto, displayed a slightly larger gain in the first quarter of 2024 compared to the previous quarter, surpassing 6.1%. The indicator’s year-on-year boost is much more notable, revealing a 57.2% increase.

The popularity of iGaming in recent years has been fuelled by its global reach and accessibility due to constant technological advancements. On one hand, the quality of internet connectivity continues to rise, while on the other, new payment methods are emerging, simplifying payment procedures.

The in-depth quarterly analysis, ongoing since the beginning of 2022, reveals that fiat bets are undergoing more substantial growth compared to crypto bets. In Q1’24, the Fiat Bet Sum increased by 6.9% compared to Q4’23, while the rise of Crypto Bet Sum was at 2.4%.

The more active growth of fiat bets led to a slight decrease in the share of crypto. In the first quarter of 2024, the crypto share in the Total Bets Sum settled at 24.4%, decreasing by 0.8 percentage points (p.p) compared to the last quarter of 2023.

What is the State of Crypto in iGaming?

Analysing crypto bets, it is crucial to highlight that almost 93% of them are facilitated through the in-game currency conversion tool, which is gaining traction. This mechanism allows operators to engage players with cryptocurrency assets in games initially tailored for fiat only. Operators that adopt such options are gaining more competitive advantages in the market.

While the Q1’2024 Crypto Bet Sum shows a moderate 2.4% growth compared to the previous quarter, the year-on-year analysis demonstrates a 20.8% increase. The Crypto Bet Count remained unchanged in Q1’24 compared to the previous quarter’s indicator. Simultaneously, the metric increased by 21.3% year-on-year. The figures speak volumes, showcasing a consistent interest among players in crypto gaming.

“The lack of a substantial increase in the number of crypto bets during Q1’24 can be partly attributed to the significant rise of the Bitcoin exchange rate during this period, leading players to be more cautious with their crypto bets. This trend mirrors the situation in the first quarter of the previous year when the Bitcoin exchange rate surged following a decline at the end of 2022,” comments Vitali Matsukevich, Chief Operating Officer at SOFTSWISS.

What Distinguishes the Average Crypto Bet?

The average crypto bet increased to 1.71 euro in the first quarter of the year from 1.66 euro in the last quarter of 2023. This growth correlates with a significant strengthening of the Bitcoin rate during the first quarter of 2024.

The average fiat bet remained steady at around 0.81 euro in Q1’24 and Q4’23. The average total bet stayed constant since the second half of the previous year and is equal to 0.93 euro.

Notably, the average crypto bet is double that of fiat. This indicates that digital currencies are preferred by higher-income players.

Why Did Bitcoin’s Share Drop?

The Top Five most operated digital coins in iGaming have remained stable during the last two years with minor changes in ranking order. The top still includes Bitcoin, Ethereum, Litecoin, Dogecoin, and Tether.

In Q1 2024, Bitcoin experienced a significant decline of 9.4 p.p. compared to Q4 2023. This could be attributed to the bolstering Bitcoin exchange rate and players exercising a more cautious approach towards it.

In contrast, the shares of other digital coins have increased. Ethereum and Litecoin showed growth of 4.0 p.p. and 3.8 p.p., respectively, during the same period. Simultaneously, Dogecoin rose to fourth place in the ranking, leaving Tether behind.

Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, summarises: “The benefits of employing digital currencies, such as fast transactions and anonymity, still attract many players. Embracing cryptocurrencies in iGaming can boost operator profits despite their volatile nature.

As the Bitcoin rate is expected to strengthen after the Bitcoin Halving, the average crypto bet and projected gains may see a notable impact. During such promising times, it is crucial to have reliable and experienced partners to navigate the path to success.”

About SOFTSWISS

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform, and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

The post Navigating Bitcoin’s Impact: SOFTSWISS’ iGaming Industry Overview appeared first on European Gaming Industry News.

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Betano and SL Benfica renew partnership for 3 more years

Published

11 hours ago

May 16, 2024

George Miller

Reading Time: < 1 minute

London, Athens, Malta, May 16, 2024 – Betano, sponsor of Sport Lisboa e Benfica since the 2021/22 season, has renewed its sponsorship contract with the decorated club for three more years. Kaizen Gaming’s premium sports betting and online gaming brand was the first brand to occupy the sleeve of the official SL Benfica jersey and will remain as the ‘Official Betting Sponsor’’ until the 2026/27 season.

“We are thrilled to extend our partnership with Benfica as we embark on this exciting new chapter together. From working closely with ‘The Eagles’ over the past years, we’ve witnessed first-hand the club’s unwavering dedication to excellence both on and off the field, which is matched only by the support and enthusiasm of its fans. By renewing our support for Benfica we reaffirm our ongoing commitment to Portugal, the country’s football fans and its prestigious sporting institutions as well as the offer of premium, entertaining and safe betting experiences”, said Julio Iglesias, Chief Commercial Officer at Kaizen Gaming.

“We are very excited to renew our partnership with Betano, a leading sports betting brand, which continues to show a strong commitment to football on a global level. This agreement not only reinforces our successful collaboration, but also allows us to offer innovative experiences to our fans. The presence of Betano on the sleeve of our shirt symbolizes the importance of this partnership and is vital for our international growth and to consolidate our global presence“, added Bernardo Faria Carvalho, Director of International Expansion, SL Benfica.”

In addition to the display on the official jersey, the contract between the two entities involves a set of mutual features and endorsements. The sponsorship agreement also extends to the sleeve of the B team’s shirt and also the Under-23 team, which plays in the Liga Revelação.

The post Betano and SL Benfica renew partnership for 3 more years appeared first on European Gaming Industry News.

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WA.Technology to offer odds for Centurion FC events

Published

11 hours ago

May 16, 2024

George Miller

Reading Time: 2 minutes

WA.Technology, the iGaming and sports betting B2B platform leader for emerging markets, is thrilled to announce that it will offer betting odds for Centurion FC events to operators, starting with the upcoming event in São Paulo on May 18th.

The event, a historic MMA event marking the return of Gabi Garcia – one of the most successful female competitors of all time – for a rematch against Barbara Nepomuceno, will be filled with must-see fights, including the second 80kg 4-Man Tournament of this year’s Grand Prix series.

Dave Hickey, Director of Sports Operations at WA.Technology, remarked, “We are thrilled to be able to offer betting odds on Centurion events. The Centurion brand’s impressive growth is a journey we are proud to support. Our Risk & Trading team meticulously compiles these odds by analyzing an array of factors, including the fighters’ professional and amateur records, their current form, and the quality of their past opponents. We also incorporate firsthand insights from attending numerous Centurion events. This comprehensive approach allows us to craft odds that meet the high expectations of discerning MMA bettors with precision. For the upcoming event, our operators will feature competitive odds, including 1.05 on fan-favorite Gabi Garcia, enhancing the excitement and engagement for bettors.”

Roberto Gallo, President of Centurion FC, commented, “Having this event covered by WA.Technology represents another huge step forward for CFC; we are looking forward to seeing what the future brings for us.”

The upcoming Centurion FC event promises not only top-tier martial arts competition but also a unique betting experience. WA.Technology’s sportsbook platform is designed with precision for both players and business operators. The company’s comprehensive solution offers over 500,000 pre-match events and 360,000 live events annually, covering 125+ sports and virtual sports. Tailored to enhance user experience and operational efficiency, the platform includes full customization capabilities, advanced data analysis, risk management, and dedicated trading strategies to ensure a fully licensed, custom-branded sports betting experience that’s not only mobile optimized but also casino compatible.

The post WA.Technology to offer odds for Centurion FC events appeared first on European Gaming Industry News.