CMO Council Expert Views, November 09, 2021
What are the Biggest Marketing Challenges for US Casinos in 2022?
2020 was a devastating year for everyone. Businesses shut down left, right and center. Millions of people lost their jobs while others were even less lucky: they got infected or had a close friend or family member diagnosed with coronavirus.
Many of the challenges that affected marketers last year are still lingering around. Think of lockdown restrictions, and decreasing spending power: issues still affecting businesses across the country. Casinos in the US, in particular, are facing these challenges:
1—Creating Brand Awareness
Amid increased gambling legislation around the country, casinos are finding it incredibly difficult to stand out. The days when everyone traveled to Las Vegas to play slots and blackjack are gone.
Nowadays, there’s a casino in almost every state. Some states like New Jersey and Pennsylvania also permit online casinos. And due to that, brick and mortar casinos are facing stiffer competition than ever before.
There’s good news, though: the US gambling market is huge enough for all the casinos involved. All that is required is to define your brand and position yourself accordingly.
After all, gamblers choose casinos for specific reasons. They visit review sites like casinos.us not only to find the best USA online casinos but also find websites with their preferred payment options, bonuses and games.
2—Adapting to COVID-19
The coronavirus pandemic has impacted nearly every industry in the world. Brick and mortar casinos are no exception. In nearly every state, these businesses had to shut down temporarily to help fight the spread of COVID-19.
National lockdown mandates worsened the situation even further. Gamblers couldn’t visit their favorite casinos. In turn, this led to millions of dollars in lost revenues and mounting debts.
Online casinos have been a tad lucky. They didn’t need to shut down amid the pandemic. In fact, they welcomed significantly more customers in the past one year. Against that backdrop, marketers have had to change how they do their job.
First, 87% of casino marketers in 2021 are working remotely. That’s because their casinos are shut down or it’s the right thing to do to protect themselves and their families from the pandemic.
Second, marketers are now leaning toward online marketing. This might not be a big problem for online casino marketers. But teams not accustomed to Internet marketing are finding the new shift in tactics challenging.
3—Inadequate Resources
The third biggest challenge for casino marketers is a lack of resources. This might mean a small budget, lack of time, skills and tools required to grow a casino in these difficult times. Money is the biggest issue for brick-and-mortar casinos.
MGM Resorts, for example, lost $495 million in the third quarter of 2020—a 66% blow. Wynn Resorts, by contrast, has recorded losses in the past nine quarters. Fortunately, things are changing for the better.
Casinos are adjusting by reducing their marketing budgets, laying off employees and investing less in marketing tools. In the online casino space, neither money nor talent is a problem for marketers.
As we mentioned earlier, online casinos in the US have been recording soaring revenues since early last year. And as a result, they’ve hired more people and invested in more tools to grow their brands.
4—Generating Good Leads
In this age of Facebook and Google ads, it’s relatively easy to target the right audience. However, it’s expensive. The costs are projected to continue growing as the online gambling industry urges in the US.
For a small casino to succeed in the US in 2021, it’s paramount to figure out how to score new customers without spending excessively in advertising. One such tactic is by giving out quality bonuses and freebies.
Gamblers all around the world love freebies. This might be a handful of free spins to play a popular slot. Or it could be a 100% matched bonus that doubles a player’s first deposit. Freebies command attention and persuade potential customers to sign up for an account.
Freebies aside, the second-best method to garner good leads is by creating quality content. Every casino in 2021 needs a blog, an email marketing plan and accounts on all social media pages. That way, they can interact with potential customers on all major marketing platforms.
5—Producing ROI
According to a study by HubSpot, 21% of marketers in 2021 report producing Return on Investment as their second-biggest biggest challenge. The biggest challenge, as we mentioned, is generating quality leads.
So, why is it so difficult to generate leads and produce returns on casino marketing efforts? The marketing spectrum is changing constantly. There are changes in regulation, privacy laws, social media use and how gamblers bet.
For example, casino marketers now need to promote their businesses with mobile players in mind. That’s because over 50% of gamblers in the US bet on iPhone and android devices. On the other end, regulation is changing constantly.
Today, a state might limit gambling to land-based casinos. Tomorrow, online gambling could be legal. Another challenge that hinders marketers from achieving ROI is the lack of demand for a casino’s services.
Now, this is a problem every casino needs to solve by looking inwards. Some companies lose money by providing low-quality games. Others have non-existent customer service. As such, every operator needs to find out what’s ailing them and fix it to improve ROI.
6—Delivering Personalized Experiences
Another study by HubSpot found out 45% of marketers consider providing personalized experiences as a big challenge in 2021. That’s because it’s a system that requires the use of proper software and an in-depth understanding of casino players.
Every gambler in the US has unique tastes. However, it’s still possible to discover their specific interests. For example, some players relish one on one customer service through chat bots. In light of that information, it’s essential to feature a chat bot at your casinos.
Some players prefer to play slots over poker or blackjack. As such, your marketing tactics should help improve their slots gambling experiences. Overall, personalization increases customer loyalty and revenues.
Source: CMO Council: Biggest Marketing Challenges for US Casinos in 2022