Betting Online in the UK
September 4 2001
Thomson Intermedia has recently published a detailed investigation into the marketing and advertising strategies of the key players in the UK online betting industry.
Some of the key findings include:
- Although betting has traditionally been a volume business, in which customer acquisition has been important, online betting companies now need to build strong brands and consumer trust in order to ensure loyalty in an increasingly crowded and competitive market.
- Many key players' communications strategies are currently based on direct response advertising. However some new entrants, for example Paddy Power, are now focussing on building a brand based on fun, trust and consumer friendliness.
- Advertising expenditure tends to be concentrated on press, online and sponsorship executions with little or no activity through more powerful brand building channels such as television, radio or direct mail.
- Levels of brand awareness differ between players from a high of 88% to a low of 6% awareness. Advertising is rated positively for all players, although the most positively rated advertising was that of Paddy Power, the newest entrant into the UK market.
- Over a quarter of respondents have placed a fixed odd bet over the past 12 months, and of these 26% bet online at least once during this time.
- The biggest perceived advantages to online betting are that it is convenient and it bypasses the need to go to a betting shop.
According to Charles Ilsley, Research Director at Thomson Intermedia's Research Division, "From the research that we've conducted, it is evident that the future for the online betting industry is positive, with the potential market expected to experience huge growth with the increasing penetration of new distribution channels such as interactive TV and third generation mobile technologies. However, the success of individual companies within this market will depend on their ability to build relationships with customers through strong brands and diverse product offerings."
The Online Betting Report follows Thomson Intermedia's reports into the marketing and advertising strategies of Internet banks and mobile phone networks. Next in the series are reports that analyse the low cost airlines and the luxury cars markets.
All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.
