New research conducted by the charity, GambleAware, concluded that 80% of the betting companies marketing budget goes to an online ad. Despite the controversy surrounding sponsorship contracts for sports clubs and TV ads. The report indicated that this kind of ad represents only 15% of the British gambling companies marketing budgets!
On the other hand, Regulus Partners made another study. Which concluded that sports betting companies' budget for marketing has increased by 55% since 2014.
Types of Online Ads
The online ad takes many different forms, perhaps the most famous of which is providing cash bonuses to their players. Despite that, it is hard for some players to generate real cash from these bonuses, but overall, casinos pay a lot of money for the winners. On average, the player can get 8,000 EUR if he played in a casino or bookmaker for a year. Also, gambling companies give a share of the profits to affiliate marketers.
The licensed casinos in the UK or any other country can create ad campaigns in search engines. You may have seen a lot of casinos top search results with AD tags. Also, these sites can use global gamblers' forums to promote their brands and offers.
It is worth noting that social networks and video sharing websites prohibit gambling companies from run ad campaigns. However, they can create pages, post promotional content, and get in touch with potential customers but without running ads.
Therefore, it seems that the betting companies has innovatively used the Internet to promote their products and reach their target customers.
UK campaigners demand banning TV betting ads and they ignore online ads even though they are spent on five times more!
Could Teens Be a Victim of These Ads?
A report by the UKGC concluded that the number of gamblers between the ages of 11 and 16 has quadrupled in just 3 years!
In addition, there are a lot of players who win lotto prizes while they are underage. Therefore, it was important to know the source from which these children knew the gambling sites!
The report indicated that 60% of them saw at least one betting ad on the Internet! This large percentage raises many questions; How and why were underage players targeted? What measures can be taken to protect minors from all forms of online gambling?
One in 8 children who take part in the survey indicated that they follow the news of betting companies through at least one social media platform.
In a press release, GambleAware reviewed its research and announced the following conclusions:
- The UKGC should take care of online marketing more than TV marketing.
- Protecting children and excluding underage players should be a priority at all gambling sites.
- It is important to raise awareness of problem gambling among teens in schools, clubs, and online.
Betting Companies Marketing Allocation by Activities
The committee provided a detailed explanation of the money spent on the ad as follows:
- Over $610, 48% of the money goes to online marketing.
- Affiliates get 19% or 191 million dollars from gambling companies.
- Companies spend on social media 191 million dollars, which is equivalent to 10% of their ad spending
- Spending did not increase much on the TV ad, as the percentage is still 15% as it was, which is equivalent to 300 million dollars.
- Even the value of sponsorship contracts has decreased and reached only $60 million. It is worth noting that most of the English Premier League and Second Division teams have sponsorship contracts with sports betting companies!
Mark H., President of GambleAware, stated: “While sponsorship and ad contracts are of great financial importance to football clubs, it is important to protect minors from gambling.”