Nielsen Research: Gambling Sector Pumps Millions into TV Advertising, But Lottery Spend Lags

This new commitment to TV advertising comes as the gambling industry confronts two interwoven trends: 1) the Millennial generation is maturing into the age at which previous generations have adopted gambling as a recreational pastime, and 2) they choose to participate in gambling through technology-enabled platforms: on-line, on-demand, and Mobile. This is a transitional period during which it is more imperative than ever that gambling companies capture this new generation. The focus on building brand awareness and expanding the customer base with young adults is driving TV advertising spend to new heights.

Group of teenager friends at the cinema watching a movie together and eating popcorn, entertainment and enjoyment concept

In a crowded television advertising marketplace, where commercials for every imaginable product and service bombard consumers with their “buy me” messages, it can be difficult for the gambling sector to be noticed. But many gambling organizations that understand the ever-increasing importance of both brand building and game promotion are taking to the TV airwaves like never before.

The UK gambling sector occupies the forefront of this phenomenon. It is using TV advertising to drive sales in one of the most heavily regulated markets in the world. According to a market study conducted by Nielsen, the global information and measurement company, £456 million was spent by UK gambling companies to promote their products via TV ads from 2012 to 2015. When lottery companies’ TV advertising costs are included, the figure increases to £631 million.

These figures demonstrate the effectiveness of TV advertising in the UK gambling sector. The Gambling Act of 2005 liberalized the advertising of gambling products on television. Previously, the National Lottery, football pools, and bingo games were the only gambling options that were permitted to be advertised on TV. Now, sports betting, online casinos, and poker are advertised on TV.

To gain insights into how the market has changed since the Gambling Act of 2005, the British communications regulator commissioned and published a study in 2013. The study reported that in 2006, the year before advertising was liberalized, there were 152,000 gambling advertisements on television. And 69.8% of the TV spend was made to promote Lottery products. In 2008, the figure increased to 537,000. Lottery’s share of the TV spend declined to 30.8%. In 2012, 1.39 million commercials of different gambling products were seen on British television, more than double the number of just four years before. And Lottery’s share of the TV spend declined to 25.6%. Lottery investment in TV advertising did not decline. But its share of TV advertising as compared to bingo, online casinos, and online poker has plummeted.

Bingo ads represented 38.3% of all gambling ads in 2012. Commercials for online casino games and poker options held a 29.6% share. Lotteries and scratch cards claimed a 25.6% share, and sports betting commercials accounted for 6.6%. So, as the TV spend by other gaming sectors skyrocketed, Lottery has lagged.

Responding to the growing popularity of Internet gambling, gaming companies have invested millions of dollars in improving their digital divisions. It may seem counterintuitive that so much money is still invested in TV advertising to advertise on the online medium. If the audience is migrating en masse to the internet, why is TV advertising spend increasing at such a torrid pace?

Because TV advertising still works. According to an analysis by marketing analytics provider MarketShare, television is still “the most effective advertising medium” and a major driver of growth in key performance indicators such as sales and new accounts. TV advertising has not lost its appeal. And gambling operators still consider it an effective means for attracting the attention of a wider gaming and sports betting audience.

A World Transformed by Uberification

Consumers don’t want to know how something happens, we just want it and then expect it to happen. The Uber Mobile app just works. We see the little dot coming closer to pick us up, and the phone number to call if we need to, and that’s all we need to know. We are not “interacting with technology”. We are only acting. In the mind of the modern consumer, we are interacting directly with the information it provides. There is no more distance between the human and the information than there is between the neural networks that instruct our legs to put one foot in front of the other and the motion that results from that instruction.

Uberification has another meaning. Business has traditionally been conducted by incremental improvements. If business were a poker game, it was being won by two pair one day, three of a kind the next, and four aces the next. But in business as in poker, a Smith and Wesson can be introduced to the game and beats all comers. Uber in the livery service sector may be the latest incarnation of a Smith and Wesson. What Napster did to the music and recording sector is another. Record labels ruled distribution. Then Napster, then Apple, then Pandora and Spotify completely obliterated this multi-billion dollar sector. And now Apple is the one that is adapting to Spotify. Another example: there are now more AirBnB rooms in Paris than there are hotel rooms. Like livery service, downloadable music, and guest rooms, transformative disruption is reshaping entire economies. Is government-gaming vulnerable to being Uberified? Where will it come from, how will it attack, what can we do about it? Better yet: How can Government-lottery be the Uberifier instead of the Uberified?

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Synopsis

Français
Nielsen Research : Le secteur du pari injecte des millions dans la publicité télé, mais les dépenses de loterie sont à la traîne. L’investissement en publicité télévisée au Royaume Uni n’a pas diminué. Mais la publicité des autres catégories du secteur des jeux de hasard, comme les casinos, les paris sportifs, le bingo, etc. a connu un boum. Cela se traduit par le fait que la part de la loterie dans la publicité télévisée dans l’espace de jeu (par rapport au bingo, aux casinos en ligne et au poker en ligne) a chuté, passant de 69,8 % en 2006 à 25,6 % en 2012. La génération du millénaire arrive à l’âge où les générations précédentes ont adopté le pari comme passe-temps. C’est une période de transition durant laquelle il est plus impératif que jamais pour les entreprises de pari d’attirer l’attention de cette nouvelle génération. L’accent mis sur la notoriété des marques et le développement de la base de clients grâce aux jeunes adultes conduit les investissements publicitaires télé vers de nouveaux sommets. £ 456 million ont été dépensés par les entreprises de pari britanniques pour promouvoir leurs produits grâce à des publicités télévisées, entre 2012 et 2015. En incluant les investissements télé des entreprises de loterie, le chiffre passe à £ 631 millions. Ces chiffres démontrent l’efficacité de la publicité télé dans le secteur du pari britannique. En dépit de l’explosion des médias en ligne, la publicité télé demeure efficace. Un monde transformé par l’Uberisation : Les affaires connaissaient traditionnellement des améliorations graduelles. Désormais, le marché est transformé par de nouveaux modèles commerciaux. Uber, dans le domaine du transport personnel, n’en est qu’une incarnation récente. Ce que Napster a fait dans l’industrie du disque et du secteur de la musique en est une autre. Napster, puis Apple, puis Pandora et Spotify ont complètement révolutionné l’industrie du disque et ses milliards de dollars. Il y a désormais plus de chambres AirBnB à Paris que de chambres d’hôtel. Comme les services de livraison, la musique à télécharger et les chambres d’hôtes, la disruption transformative remodèle des économies entières. Le jeu public est-il vulnérable à l’uberisation ? D’où viendra-t-elle, comment frappera-t-elle, que pouvons-nous y faire ? Mieux encore : Comment la loterie publique peut-elle être l’uberisateur et non l’uberisé ?
Español
Nielsen Research: La industria del juego inyecta millones en publicidad en televisión, pero los gastos de la lotería van a la zaga. La inversión de la lotería en publicidad en televisión en el Reino Unido no ha disminuido. Pero la publicidad por parte de otros sectores del mundo de los juegos de azar, como casinos, apuestas deportivas, bingo, etc., se ha disparado. Como resultado, la cuota de la publicidad de televisión de la lotería en el espacio del juego (en comparación con el bingo, el póquer y los casinos en línea) ha caído en picado desde un 69,8 % en 2006 a un 25,6 % en 2012. La generación del milenio está llegando a la edad a la que las generaciones anteriores adoptaron el juego como pasatiempo recreativo. Este es un periodo de transición y, por tanto, es más importante que nunca que las empresas de juego sean capaces de llamar la atención de esta nueva generación. Las marcas se han puesto como objetivo darse a conocer y expandir su base de clientes en el segmento de adultos jóvenes, y así están llevando a otro nivel el gasto en publicidad en televisión. Entre 2012 y 2015, las empresas de juego de Reino Unido gastaron 456 millones de GBP en anuncios de televisión para promocionar sus productos. Si incluimos el gasto de publicidad en televisión de las empresas de lotería, la cifra aumenta hasta 631 millones de GBP. Estas cifras demuestran la efectividad de la publicidad en televisión en el sector del juego de Reino Unido. A pesar de la explosión de los medios online, la publicidad en televisión aún funciona. Un mundo transformado por la “uberificación”: Los negocios, tradicionalmente, se han ido modernizando mediante mejoras graduales. Ahora el mercado se está transformando con nuevos modelos comerciales. Como ejemplo reciente está el caso de Uber en el sector del transporte de pasajeros. Otro ejemplo puede ser lo que Napster provocó en la industria de la música. Después de Napster Apple, Pandora y Spotify aniquilaron completamente la multimillonaria industria de la grabación musical. En este momento hay en París más alojamientos AirBnB que habitaciones de hotel. Al igual que ocurrió en el servicio de transporte de pasajeros, la música descargable y el alojamiento hotelero, la transformación disruptiva está cambiando las reglas del juego de economías enteras. ¿Puede ser susceptible de uberificación el juego estatal? ¿Desde dónde vendrá, cómo se atacará y qué podemos hacer al respecto? Mejor aún: ¿Cómo puede ser la lotería nacional el ente uberificador, en vez de ser uberificada?
Deutsch
Nielsen Research: Glücksspielbranche gibt Millionen für TV-Werbung aus, Lotterieausgaben hinken aber hinterher. Die Investitionen der Lotteriebranche in TV-Werbung in Großbritannien sind nicht zurückgegangen. Die Ausgaben für Werbung in anderen Bereichen der Glücksspielbranche, wie Casinos, Sportwetten, Bingo etc., ist jedoch rasant gestiegen. Demzufolge ist der Lotterieanteil an TV-Werbung im Glücksspielbereich (im Vergleich zu Bingo, Online-Casinos und Online-Poker) von 69,8 % im Jahr 2006 auf 25,6 % im Jahr 2012 gesunken. Die Millennium-Generation kommt nun in das Alter, in dem frühere Generationen Glücksspiele als Freizeitaktivität aufgenommen haben. In dieser Übergangszeit ist es wichtiger denn je, dass Glücksspielunternehmen die Aufmerksamkeit dieser neuen Generation gewinnen. Der Fokus auf Markenbekanntheit und die Erweiterung des Kundenstamms um junge Erwachsene treibt die Ausgaben für TV-Werbung in immer größere Höhen. Britische Glücksspielunternehmen haben zwischen 2012 und 2015 456 Millionen GBP für die Bewerbung ihrer Produkte im Fernsehen ausgegeben. Rechnet man die Ausgaben der Lotterien für TV-Werbung mit ein, dann steigt diese Zahl auf 631 Millionen GBP. Diese Zahlen belegen die Wirksamkeit von TV-Werbung der britischen Glücksspielbranche. Trotz des rasanten Anstiegs an Online-Medien, funktioniert TV-Werbung noch immer. Eine neue Welt dank „Uberifizierung“: In der Vergangenheit wurden Unternehmen durch schrittweise Verbesserungen aufgebaut, heute wird der Markt durch neue Geschäftsmodelle verändert. Uber als Anbieter von Taxi-Leistungen ist nur ein jüngeres Beispiel für diese Entwicklung. Was Napster mit der Musik- und Plattenindustrie gemacht hat, ist ein weiteres Beispiel. Napster, dann Apple, dann Pandora und Spotify haben die mehrere Milliarden schwere Plattenindustrie überflüssig gemacht. Heutzutage gibt es mehr AirBnBs in Paris als Hotelzimmer. Wie bei Taxis, downloadbarer Musik und Gästezimmern können solche Innovationen ganze Wirtschaften transformieren. Läuft der staatliche Glücksspielsektor Gefahr „uberfiziert“ zu werden? Woher kommt die Gefahr, wie wird sie zuschlagen und was können wir dagegen tun? Besser noch: Wie können staatliche Lotterien der „Uberfizierer“ statt der „Uberfizierte“ sein?

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