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Gambling Insights & Trends
April 2011
Adam Goodman
Vertical Insight Manager
Contents
Market Environment
Gambling Market Environment
• Problem gambling among young people, particularly online, is emerging as an issue the
industry needs to be seen to be addressing.
• Operators may need to break the link between smoking and gaming, rather than find
(generally unsatisfactory) ways of sustaining it, if they are to reverse the impact of the
smoking ban.
• Growth in sports betting has been unaffected by integrity issues around ‘spot fixing’ but a
widening of corruption into the match results that drive the mainstream market could be
more damaging.
• With current economic conditions having punctured the idea of gambling as recessionproof, operators may need to work hard to re-instil the participation habit in lapsed
players as conditions improve.
•
A maturing of the under-25 demographic that leads participation
rates for most products could help extend gambling’s core
demographic over the next five years.
Source: Mintel
Market Size and Forecast
UK online and interactive gambling market size, by value and volume, 2005-14
2500
• Average weekly spend of
around £10 per head
4.5
4
2000
• Some operators report revenue
per player coming under
increased pressure in 2009
3.5
1500
£m
2.5
2
1000
1.5
1
500
0.5
0
0
2005
2006
2007
2008
2009
(est)
£m
Source: Mintel
2010
(fore)
2011
(fore)
m adults
2012
(fore)
2013
(fore)
2014
(fore)
m adults
3
• Trends towards online
consumption and advent of
mobile gaming expected to
raise sector’s share of all
gambling revenues above 10%
Market Size and Forecast
Net expenditure on land-based gambling, 2006-2011*
• Consumer spending on
land-based gambling
peaked in 2005-06, but
should remain above £7
billion a year in 2010-11.
10
9
8
7
£m
• The combined impact of the
smoking ban and the
introduction of the Gambling
Act caused the biggest
single-year fall in market
value in 2007-08.
6
5
4
3
2
1
0
2006
2007
2008
2009
*year to March 31
Source: HMRC/Gambling Commission/National Lottery/Mintel
2010
2011 (est)
• Competition from online
gambling and the on-going
impact of the recession
continues to restrict the
market’s potential for a
return to growth.
Gambling AdSpend
Gambling operators’ UK adspend, 2006-2010
• Monthly average adspend is
currently above that of 2008
and 2009 as operators compete
for share in a maturing market.
160,000
140,000
120,000
• Mainstream gambling sectors
such as football pools, lottery
and bingo consistently spend
most on advertising, reflecting
the breadth of the leisure
market in which they compete
and more casual nature of their
customer base.
100,000
£000
80,000
60,000
• Television and press advertising
receive the most adspend in a
reflection of their ability to reach
the mass market that
mainstream operators seek.
40,000
20,000
0
2006
2007
* Projected
Source: Nielsen Media Research/Mintel
2008
2009
2010*
Gambling Spend by Media
* Internet does NOT include Search spend. Display only according to Nielsen
Source: NNR adDynanix : Jan – December 2010
Traffic and Demographic Trends
Gambling Search Traffic KPIs
Traffic
• Searches for gambling and gambling related
terms increased by +38% in 2010 compared to
2009.
• Searches for gambling terms increased by
+31% Jan & Feb 2011 v Jan & Feb 2010.
Insights:
• Mainstream gambling sectors such as
football pools, lottery and bingo consistently
spend most on advertising, reflecting the
breadth of the leisure market in which they
compete and more casual nature of their
customer base.
1. Microsoft Advertising Intelligence Tool
Gambling Demographics and Daily Trends
Saturday has been the largest traffic driving
day over the last 2 months (Jan & Feb) – this
is mainly aligned with football betting terms.
Potential incremental targeting opportunities
would include up-weighting target campaigns
on certain days of the week e.g. football on
Tuesday, Wednesday & Weekends.
The 25 – 34 and 35-49 age brackets are the
main age groups for traffic with 29%. This
age groups are the target age groups
across gambling terms.
Gender breakdown tends to focus on Males
– however by gambling product this
changes i.e. Bing = Females, Sports Betting
= Males.
1.Microsoft Advertising Intelligence Tool – December 2010 to Feb 2011 data
Network Demographics
• The majority of the impressions and clicks
occur in the age groups of 18 to 24 year olds.
• Conversions however peak in both the 18-24
and 25-34 year old group. Across the network
the females tend to convert higher than males
but this could be attributed to the tendency for
Bingo advertisers to appear over the last few
months
• Sports betting, poker and casino advertisers
have a more male demographic skew.
Source: Microsoft Media Network : July 2010 – Dec 2010 - % of all IMP/CLK/Con
Network: Time of Day
• Gambling related impressions increase
strongly in the very late evening, peaking
towards the very last few hours.
• The % of Actions related to gambling
network activity peak during 10pm-11pm
timeframe.
• Impressions increase steadily throughout
the day and key activity found after work
hours (6pm onwards)
Source: Microsoft Media Network : July 2010 – Dec 2010
• Advertisers should maximise on activity
from 12pm through to 2am the following
day where possible – as this is where the
majority of activity has resulted in actions
being taken i.e. conversions.
Display Advertisement Publisher Location: Ad Impressions
v Unique Visitors (Gambling)
•
Microsoft sites have continued to delivered a high number of unique visitors for Gambling advertisers. Although Microsoft
sites displayed -16% less Ad Impressions than Yahoo!, Microsoft Sites delivered +21% more Unique visitors
•
eBay sites delivered the majority of Ad Impressions, 135% more impressions than Microsoft advertising but only delivered
an extra 25% Unique visitors.
Source: ComScore adMetrix : February 2011
Display Advertisement Publisher Location: Reach and
Frequency (Gambling)
•
Microsoft Advertising delivered the second highest reach of Ad exposed users. eBay had a 19.2% share of Gambling
Ad Impressions and with a reach of 40%, Microsoft sites received only a 8.2% share of Ad Impressions yet still
managed to deliver a reach of 32.4%.
•
Microsoft sites have both an enormous reach but also enable advertisers to increase the number of unique visitors to
sites above many of the major competitors.
Source: ComScore adMetrix : February 2011
Top Gambling Advertisers (Feb 2011)
Source: ComScore adMetrix : February 2011
Industry Insights
How do people gamble?
Gambling activities (study July 2010)
•
Male interest in the life-changing
jackpots of National Lottery draws has
risen during the recession, while
women have maintained their regular
patterns of play.
•
Sports betting could soon become the
UK’s second most popular gambling
product,
•
The downscale nature of the gaming
machine player base – particularly in
betting shops – could leave it
vulnerable to an upsurge in
unemployment rates.
•
Casinos’ efforts to segment their
brands to appeal to distinct audience
groups are being limited in their
impact by continued restrictions on
venue numbers and locations.
•
Bingo club operators have succeeded
in diversifying their customer base but
have not yet benefited from growth in
the popularity of the online game.
Don’t know
None of these
Play an electronic gaming machine in a betting
shop (eg electronic roulette)
Placed a bet on fun events
Play the football pools
Gamble online
Gamble in a casino (excluding
amusement/jackpot machines)
Play bingo in a licensed bingo club
Play poker (either in person or online)
Play a fruit/amusement machine/game
(excluding those in betting shops)
Placing a bet on a sports event (eg horse racing,
football etc)
Buy National Lottery instants scratchcards
Play other Lotto draws (eg Thunderball, Hot
Picks, EuroMillions, Daily Play)
Play Lotto weekly draws (eg Saturday,
Wednesday)
0
Base: 1,917 adults aged 18+
Source: Ipsos MORI/Mintel
10
20
30
40
50
Where do people gamble?
Methods of gambling, (study July 2010)
•
Gambling in mainstream retail
outlets is female-led, suggesting
that increases in Lotto ticket
purchasing seen among men have
primarily boosted sales online.
•
Growth in sports betting may be
bringing more affluent punters into
LBOs, but shops in the southern
half of the country appear
vulnerable to defection online.
•
Online gambling’s attraction to
operators stems from its status as
the only mass market activity in
which participation peaks among
the most upscale and wealthiest
demographic groups.
•
Sports venues have significant
potential for growth, particularly as
technology begins to enable their
more affluent gamblers to bet
remotely from the stands.
Don’t know
None of these
Other (eg charity event)
By phone
Casino
At home with friends/at a friend’s home
At a sports event (eg horse/dog racing, football
match)
Online
In a betting shop
Retailer (eg supermarket, newsagent)
0
Base: 1,917 adults aged 18+
Source: Ipsos MORI/Mintel
20
40
60
80
Gambling repertoires
Number of gambling activities participated in, July 2010
• UK adults tend to gamble on a
small collection of preferred
products and in a limited number
of locations.
6%
• Ease of access is a key
determinant of patterns of play,
making venues offering multiple
gambling products best placed to
attract custom.
21%
42%
No activities
30%
One activity
2-3 activities
4+ activities
Don’t know
Base: 1,917 adults aged 18+
Source: Ipsos MORI/Mintel
• Online gamblers are considered
least mobile as they have best
access to the widest range of
activities. Land-based players
have to move between venues to
get the same level of choice.
Gambling Segment Performance
Net expenditure on land-based gambling, by sector 2006-2010*
• New product, higher stake/prize
limits and increased marketing
have helped the National
Lottery, gaming machines and
casino sectors increase their
value.
4,000
3,500
3,000
2,500
£m
• Although sports betting is
showing triple-digit growth, its
share of overall sector value is
still too small to outweigh the
decline caused by reductions in
horse and greyhound turnover
and profit.
2,000
1,500
1,000
500
0
Betting
Football
pools
2006
Casinos
Gaming
machines
2008
*year to March 31
Source: HMRC/Gambling Commission/National Lottery/Mintel
Bingo
2010
National
Lottery
• The bingo sector has been the
gambling market’s biggest loser
in recent years, having failed to
recover from the hit it took in the
immediate aftermath of the
smoking ban.
How often do people gamble?
By gender, age and social grade
“Which of these best describes how often you do each of the following activities? Place a bet or
gamble (not including national lottery)”
Base: 1000 online respondents ages 16+ GB
Source: nVision Research 2010
Household expenditure on gambling
In millions, volume of spending (at constant 2006 prices) and value as a % of total household
expenditure (2010 data based on Q1, Q2 and Q3 only)
Source: Consumer Trends, National Statistics/nVision, 2010
People Gamble more than going to the gym?
% who claim to do each at least once a month
“Which of these best describes how often you do each of the following activities?”
Source: nVision Research, 2010
Base: 1,000 online respondents aged 16+, GB