How Tribal Gaming Operators will Drive ROI in 2020
As marketers, we always tout the ability to react quickly to changing trends and environments. Part of this is not only looking at the past, but predicting what the future will bring. With 2020 budgets on the horizon, we should consider where current trends will take us in the coming year and prepare accordingly.
Have you FULLY embraced digital media? Many properties have yet to fully embrace digital media to the level that it is being received in the market. Time spent on digital devices will surpass TV for the first time, and it doesn’t look like it will stop growing. Properties continue to lag in budgeting appropriately for this trend. Digital budgets should be comparable to TV and higher than radio in 2020. More emphasis should also be placed on the mobile-friendliness of your website since over two-thirds of digital use is on a mobile device and that continues to grow.
Bottom Line: Digital is not a trend; it is the new normal.
Are you leveraging your existing database to its fullest extent? Many casino properties do a fantastic job of using their databases effectively in direct mail, but they haven’t adopted tactics to extend that use of information effectively into the digital advertising world. Leverage tactics such as IP targeting to reach core players and utilize the lower cost of digital to increase frequency to this valuable audience. Messaging can be unique as you know exactly who the audience is.
Bottom Line: Digital dollars should be allocated to drive an increase in trips from existing guests.
Are you prepared for the cord-cutters? More users have begun to cut the cord and move away from pay TV services. By the end of 2019 it is predicted that there will be more cord-cutters than people who never paid for TV services. With more options to get their favorite content digitally, reliance on traditional cable services will continue to shrink. According to eMarketer, over the next two years over-the-top TV (OTT) users will more than double to 35.1 million, up from 16.6 million this year.
Bottom Line: Ad spend should be adjusted accordingly to account for the increase in OTT. Broadcast dollars should focus on live events and programming viewed by gaming’s core demo, and allow OTT and its no fast forward option to deliver video viewing.
How will social media advertising evolve? Facebook will continue to remain the strongest platform to target gamers in social media. Ad growth will remain consistent in the coming year, despite the fact that time spent with the platform is flat. Facebook is struggling to keep up with the changing digital world, but advertisers will remain in the immediate future. If Facebook doesn’t continue to evolve, they could see ad dollars drop.
Bottom Line: Facebook remains an efficient and inexpensive method to reach and communicate with guests.
What role will artificial intelligence (AI) play in advertising? As AI continues to grow and evolve, reaching the advertising space will still take some time. The category will move beyond the “Hey Google” and “Hey Alexa” to be more integrated into everyday devices. While the “Speaker” platforms will continue to grow, you’ll see more and more integration into things like TVs, coffee makers, beds, cars, computers, door locks and home appliances. The relevance to advertising still remains to be seen until it is baked into more places and clear technology vendors lead the way.
Bottom Line: The applications of AI are exciting to consider, but we’re not quite ready to recommend significant advertising investment in the category.
Year over year, there continues to be significant changes in technology that shift the world of advertising. As you begin looking forward to your 2020, hopefully you’ll consider incorporating some of these concepts into your marketing plan.