It will take OECD countries another 2.7 years to reach the pre-crisis level of economic output, according to the calculations of the International Monetary Fund (IMF). That is on top of the 5 years that have already passed since the beginning of the financial crisis.
So hard times are set to continue. However, some gambling operators are growing even in these difficult times. What strategies are they adopting to survive during these lean times?
The question is especially pertinent to gambling firms operating in Europe. Aside from Germany and some Scandinavian countries, disposable income of European households deteriorated in 2011 and will continue to do so until 2013.
Therefore, WHO made two bets, which it both won. The first bet was that new clients would spend more than their cost of acquisition and the second was that the other clients would increase their spend per capita.
WHO expanded the methods by which its customers can place bets, investing in mobile sports book and mobile gaming channels. It also innovated a range of its products and broadened in-play betting. For its efforts it can boast a +519% mobile gross win. Another key component to its 2011 success is its strategy to cross promote between its retail arm and its online business and transform its sports bettors into casino, poker and bingo players. The word that defines WHO’s approach is innovation.
Innovation also explains IG Index’s performance. The spread betting firm’s 3Q results show that global revenue increased by 1.5% despite revenue per client declining by 3%. In order to offset the declining spend of clients, IG Index increased the number of its active clients by 4.6%. This strategy is particularly evident in continental Europe, IG Index’s second largest market after the UK. Spend per client in Europe decreased by almost 18% but the number of active clients increased by 26.7%, with the end result that revenue increased by 4.2% for the quarter.
Where WHO and IG Index share strategies is offering customers access through mobile applications. IG rolled out apps for iPhone/iPad, Android, Windows Phone 7 and Blackberry. For the first six months of 2011/2012 financial year, 16% of IG’s revenue came from mobile transactions.
Of course, technological innovation is not limited to the big operators. If anything, smaller firms can be nimbler and more innovative.
Some operators, however, attempt to protect their markets by other means.
A more valuable approach would be to start emulating the successful strategies adopted by gambling operators in competitive markets.