The high penetration of the internet in all sectors of the population and the latest mobile technology have allowed online casinos to have an exponential growth valued, according to The Business Research Company, at 565.4 billion dollars.
This growth has been possible thanks to the high availability of accessible mobile applications in all parts of the world, easy access to online gambling, cultural approval and legalization. In addition, the endorsements of many celebrities and corporate sponsorships at regional and global levels have also been key factors for the growth and development of the market.
The online casino market
Online casinos are living a golden age. According to data from the General Directorate for the Regulation of Gambling, during 2020 the industry grew by 13%, following the same trend in 2021.
In recent years, the main companies and platforms in the sector have merged into large commercial groups with the aim of increasing their participation and market niche, considerably increasing their profit margins.
It is estimated that the online gaming industry will have a CAGR (Compound Annual Growth Rate) of 11.49% between the years 2021 and 2026, so it can suggest that the coronavirus pandemic had a positive influence on the gaming industry in terms of of growth.
As main market penetration strategies, we find advertising, incentives for the player such as welcome bonuses, and the reduction of obstacles to access the platforms, thus achieving advantages over the competition. Although the fact of reducing the barriers to access to the platforms may seem like a good short-term strategy, if these platforms are not able to increase their offer, as an alternative they can offer games that are much more attractive and combine them with other complementary products or promotions. in order to attract and retain more users.
Market development strategy is understood as the promotion of existing products or services to new customers or the launch in a certain area of the market where there is no presence yet. In this line, it is very important to establish very clear business parameters in such a way that it is possible to have the capacity to adapt to all new market trends, in addition to having the capacity to adapt in those places where online gambling is still in process. growth due to external factors such as legislation (very high tax burdens) or cultural constraints.
Alternative growth channels
The use of alternative channels is one of the best market development and business development techniques. The vast majority of online casinos already use more than one platform to work on their marketing strategies.
Email marketing, social media, and commercial websites are the top three marketing channels used by online casinos, with email marketing and social media usage standing out above the other. Another possible strategy is offline marketing, which despite being online businesses, can contribute very positively to its growth.
Market segmentation in the iGaming industry is fundamental because it allows for a very precise identification of all the opportunities and strengths of the business. Segmentation implies a very exhaustive study of all the data that is collected from users, and thus be able to efficiently profile customers and adapt the content of the platform to their needs and preferences.
From our TTH Gaming casino consultancy we are dedicated to advising and providing guidance, both nationally and internationally, on the development of projects, operations management, investment profitability and all kinds of solutions in the world of casinos. You can easily contact us if you want to consult any question related to our services on our website.