GPWA Times Magazine - Issue 39 - November 2017

COVER STORY In terms of customer engagement, it’s amazing.” Those who promote the lottery will see customers with a longer lifetime value. Creating a database of long-term players and ensuring a steady income is simple with the lottery, as one factor keeps players coming back: the jackpots. “Jackpots are a built-in and natural driver of the sales of draw games. Properly planned and executed marketing programs to communicate rollovers and drive excitement are something that smaller society and commercial operators can only dream of,” said Lawrence. According to a study by Lottovate, the secondary lottery comes with advantages not available with real-life purchases, such as the ability to save tickets, store favorite number combinations and buy subscriptions to lotteries. These players tend to be older, near the 35-44 age group. Of those interested in using digital lottery products, 60% have a smartphone and 96% have previously made digital purchases – it seems all they’re waiting for is the right product. Although these users seem primed to buy secondary lottery tickets, there may be roadblocks. “Lottery is mass market in the greatest sense of the word and needs to have broad appeal. Lottery players do not consider themselves to be gamblers,” said Lawrence. Which means a bit of thinking outside the box will be required. The secondary lottery and other gambling verticals can be integrated, provided you do it deftly. For instance, many bingo players have taken to playing slots during downtime, and a lottery player may similar- ly be enticed to play a hand of poker or a round of slots with some careful nudging. Lawrence suggests promoting a distinct brand and focusing less on flashy bonuses. “In addition, the lottery’s existence is dependent upon raising money for good causes or government programs, and so there is a limit to how far marketing investment and prize payouts can be taken. As a result, you are more dependent on establishing a compelling brand andmaintaining a certain status in the market, rather than using tactics such as high payouts, bonuses and promotions,” she said. THE NEXT BIG THING IN GAMING? The jury’s still out on how far this vertical will go. “It’s a tough one, because the gameplay is totally different,” said Gardiner. “In the casino, you’re getting instant gratification, and you’ll be playing anything from a few minutes to a few hours, whereas with lottery you’re placing a bet and waiting on the results. While lottery players are a lot more loyal and the lifetime is a lot longer, the volume of wagers is a lot lower. On the other hand, I think lottery is seen as more socially acceptable form of gambling, so it’s higher volume with a lower value than casino. I’d say it probably balances itself out,” she said. Those who adopted the lottery early are now seeing great rewards, according to Wendy Lawrence. “For those who have invested, they are now enjoying revenues of anywhere between 15% and 50% – the upper level enjoyed by lotteries who can offer gaming verticals other than just lottery,” she said. Though retail remains the primary method by which lottery tickets are obtained, the confluence of digital availability and the rise of smartphones and tablets have gone far in making an impact on lottery presence. HOW DO I START? Fear not – many of the old rules still apply if you’re dealing with players of all casino verticals. “‘Content is King’ for most affiliates, and since lotto is so popular throughout the world and there is pretty much a draw and jack- pot win daily, therefore there is a wealth of fresh content available,” said Gardiner. Shorter-term drawing periods have also been on the rise, en- abling players to find out if they’ve won within a span of minutes. That thrill of instant gratification goes a long way to- ward making them stick around. The time-sensitive element can cre- ate excitement and an opportunity for some creative marketing maneuvers. Gardiner continued, “The niche, although growing, is still so untapped for most affiliates, and so there a greater share of traffic to go around, making now the perfect opportunity to attract and drive traffic. Overall, it is not dissimilar to other verticals in terms of marketing techniques.” W W W . G P W A T I M E S . O R G 24 Of those interested in using digital lottery products, 60% have a smartphone and 96% have previously made digital purchases