Market Intelligence Report: 3rd Annual Online Gaming (Exec Summary)

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INTERNATIONAL ONLINE GAMBLING AND BETTING INTELLIGENCE REPORT January 2013 to December 2013
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    21-Oct-2014
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The introduction to the 2014 Stickyeyes iGaming report. The full report looks at SEO and PPC for the top 100 brands within the market. This 3rd edition now includes international markets and a wider array of bettting types.

Transcript of Market Intelligence Report: 3rd Annual Online Gaming (Exec Summary)

Page 1: Market Intelligence Report: 3rd Annual Online Gaming (Exec Summary)

INTERNATIONAL ONLINE GAMBLING AND BETTING INTELLIGENCE REPORT

January 2013 to December 2013

Page 2: Market Intelligence Report: 3rd Annual Online Gaming (Exec Summary)

EXECUTIVESUMMARY

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WHAT WILL YOU GET FROM THIS REPORT?• In-depthmarketanalysiscoveringperiodJanuary2013toDecember2013.

• Acomprehensive“who’swho”inonlinegamblingandbettingwithintheUK.

• AnanalysisoftheonlinegamblingkeywordlandscapewithintheUScoveringthesubverticalscasino,poker,bingoandsportsbetting.

• DetailedinsightintothedevelopmentoftheonlinecasinosectorwithinkeyEuropeaninternationalmarketsincludingSweden,ItalyandSpain.

• Over200individualpiecesofkeyinsights&over100piecesofstatisticalinterpretation.

• Analysisofthetop300onlinegamblingoperatorsacrossthetop200onlinegamblingkeywords,spanningfivecountries.

WHAT QUESTIONS DO WE ANSWER?• Whichbrandsarethemarketleadersandwhichkeywordsaredrivingmarketvisibility?

• Whatareonlinegamblingoperatorsdoingtoachievemaximummarketshare?

• Whatisthesizeofopportunitywithinkeyinternationalmarkets?

INTRODUCTIONWelcometoourthirdmarketintelligencereportfortheonlinegamblingindustry.Stickyeyeshasbeenworkingwithonlinegamblingclientsformorethan15yearsandwebelievethatourunparalleledsectorexperiencehassignificantlycontributedtothevaluewehavedrivenforourclients.

Sinceourlastreport,publishedinJanuary2013,theonlinegamblingmarkethasexperiencedsignificantchange.AseriesofalgorithmupdatesthathavebeendesignedtoimprovethequalityofGoogle’ssearchengineresultspages(SERPs),havedecimatedthekeywordrankingsformanyofthemosthighprofilebrandswithintheUKmarket.Theresultofthishasbeentheradicalre-shapingofourclickshareindexandwenowseenewleadersacrossmanyofthemainsubverticalsincludingcasino,pokerandbingo.

Thisyear’sreportalsoextendsitsanalysisintoarangeofinternationalmarkets.WithDelaware,NevadaandNewJerseydevelopinganonlinearmtotheirgamblingmarkets,thisreportassessestheimpactoftherelaxationofonlinegamblingrestrictionsanddiscusswhatthismeansintermsoftheshapeandcompositionoftheUSSERPs.

OuranalysisdrawsattentiontothefactthattheexistinglevelofregulationhasmeantthatthecurrentkeywordlandscapeintheUSisstillanuntappedandimmaturemarket.ThismeansthatmanyUSgamblingSERPsareoccupiedbyadiverserangeofgamblingrelatedwebsitesthatvarysignificantlyintermsofqualityofcontentandproductoffering.

ThereportthenaddressestheonlinegamblingmarketwithintheEurope,analysingtheEuropeanUnion’sapproachtotheharmonisationofEUwideonlinegambling,itsattemptstoensureacompetitivelevelplayingfieldamongnationalgovernmentsandeffortstoensurecompliancefrommembernationswithEUcompetitionlawonthefreemovementofgoodsandservices.ThereportconcludeswithananalysisofthegrowthoftheonlinecasinomarketinseveralkeyEuropeanmarketsatdifferentstagesofdevelopmentintermsofmarketliberalisation,namelyItaly,SpainandSweden.

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44 EXECUTIVE SUMMARY

UK MARKET: EXECUTIVE INSIGHTS• Consumerexpenditureononlinegamblingandbettingwillbreakthroughthe£2.5billionbarrierin2013,asmanyofthe

leadingoperatorscontinuetorecorddouble-digitrevenuegrowth.

• Thesportsbettingmarkethasgrownby79%since2009andremainsthemostdominantformofonlinegambling,accountingfor45%ofallrevenue.

• Intermsofrevenue,thefootballbettingsegmentcontinuestomovefromstrength-to-strength,growingby35%since 2010.

• Revenuefromremotesportsbetting(i.e.onlineandmobileplatforms)hasgrown29%,whileoverthecounter(OTC)bettinghasdeclinedby2%.

• Searchenginesarebecomingoneoftheprimarybattlesfieldsformanyofthetopgamblingbrandsandthisisreflectedinthegrowthofadvertisingexpenditurewithinthisarea.Since2009,onlineadvertisingwithintheareaofsportsbettinghasmorethandoubledfrom£4.6millionin2009to£10.8millionin2012.

• WilliamHillhasmaintaineditspositionasmarketleaderwithinUKonlinegamblingandbetting,recordingonlinenetrevenuegrowthof18%duringthefirsthalfoftheyear2013.Thisisalsoreflectedwithinthebrand’sshareofbrandrelatedsearchimpressionvolume,whichhasincreasedfrom19%to23%during2013.

• Searchimpressionvolumeforsportsbettinghasgrownby18%since2012,whilecasinohasincreasedby15%.Ofthetop10phraseswithingenericonlinegambling,bingocontinuestohavethehighestvolumeofsearches.Onlinecasino(18.11%)hasovertakenpoker,withthekeywordcasinointhirdplace12.13%.Newentrantsintothetop10includethekeywordsbingosites,blackjackonlineandonlinebingo.

• Throughout2013Googlehascontinuedstrengtheningthequalitysignalsthatunderpintheiralgorithmwiththeintroductionofupdatesandrefinements,includingPandaandPenguin.Theresultisthatmanyofthetopbrandswithinorganicsearchhaveseendramaticdropsintheirrankings,withonlyasmallnumberofbrandsbeingabletomaintainconsistenttop10positionsthroughout2013.

• Virtuallyallthemainsub-verticalswithintheUKonlinegamblingmarkethavebeenimpactedbyGoogle’supdates,withcasino,pokerandbingoexperiencingthemostdramaticchanges.

• OneofthemosthighprofilescasualtiesofGoogle’salgorithmupdatein2013hasbeen888,whichsawrankingsdropfor manyofthemostimportanttermswithinonlinegamblingincludingthephrasescasino,onlinecasino,pokerandonline poker.

• OthercasualtiesofGoogle’supdatesforvarioushighprofilekeywordsincludeCasino770,Bet770,SpinPalace, Gambling.com,TombolaandCheekyBingo

• PaddyPoweristhenewleaderwithincasino,whileBwinParty,viaitsflagshipbrandPartyPoker,leadstheorganicpokersubvertical.PokerStarsandFullTiltPoker(partofTheRationalGroup)areinsecondandthirdplacerespectively.

• Ladbrokesledthebingosubverticalformuchof2013,overtakingpure-playbrandslikeFoxyBingo,CostaBingoandCheekyBingobutthisdominancehassincebeenchallengedbyGala,whichlettheverticalduringthelatterstagesoftheyear.

• WilliamHillisthenewleaderoftheorganicclickshareindexforsportsbetting,closelyfollowedbyPaddyPower.Howeverthislead,coupledwithanaggressivePPCstrategy,makesWilliamHillthedominantforcewiththismarket.

• BothBwinandLadbrokeshavesignificantlystrengthenedtheirpositionswithintheonlinesportsbettingsubverticalandtheynowsitfirmlywithinthetopten.

• Thesportsbettingsubverticalfootballremainshighlycompetitive,whileonlinebettingcomparisonsiteslikeOLBGaredominatingtheorganicclickshareindex.MeanwhilebettingoperatorslikePaddyPowerandWilliamHillaredevelopinganaggressivePPCstrategyinordertomaximiseexposure.

• Withanaggregatedclickshareof20.59%,WilliamHillhasmaintaineditsleadwithinthesportsbettingsubverticalforhorseracing.However,itsleadwithintheorganicindexhasbeenerodedbyRacingPost,whichnowsitsinsecondplace,just 0.17%behindWilliamHill.Anyshiftinorganicrankingsorforeitherofthesetwobrandscouldresultinreshapingofthelandscape.

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US EXECUTIVE INSIGHTS• TheUSonlinemarketforgamblingremainsheavilyregulated,resultinginanimmaturemarketintheUSonlinegambling

keywordlandscape.ThismeansthatmanyofUSkeywordSERPsareoccupiedbyadiverserangeofgamblingrelatedwebsitesthatvarysignificantlyintermsofqualityofcontentaswellasproductoffering.Despitethisregulation,anumberofstateshavestartedtodeveloponlinearmstotheirgamblingoperations.ThemostnotableexamplesareDelawareandNevada,withNewJerseyfollowingsuitinNovember2013.

• TheUSonlinegamblingmarketcomprisesoffourkeysub-verticals;casino,poker,bingoandbetting.Themostcomplexsub-verticalisbetting,whichalsocomprisesgenericsportsbettingaswellasfootball,basketball,baseballandhorseracing.

• ThecasinoverticalhasthelargestsearchimpressionvolumeandispotentiallythemostlucrativekeywordmarketforthefledglingUSmarket.Ofthese,thekeywordsforcasino,slots,pokerandrouletteareprimarypowerhousespotentiallydrivingsignificantvolumetothoseinhighrankingpositions.

• TheUScasinosubverticalisrepresentativeofthismarketimmaturityandissubsequentlydominatedbyaffiliates,aswell asfreeorlowqualityflashcasinogames.FoxwoodsandRiverCasino,whicharelandbasedoperations,aretheonlyUS commercialoperationthatarevisiblewithintheorganicclickshareindex.ThePokermarketisdominatedbyinternationalbrandsPokerStars,FullTiltPokerandPartyPoker.Thebingoindexexhibitssimilaritiesaswiththecasinomarket.ThemoststrikingfeatureofthegenericbettingsubverticalisthatitisdevoidofanyindigenousUSlandbasedcommercialgamblingbrands.

EUROPEAN MARKETS (ITALY, SPAIN AND SWEDEN): EXECUTIVE INSIGHTS• LiketheUS,onlinegamblingwithintheEUislefttoindividualmemberstatestoregulate,leadingtoadisjoined

market withinEurope.However,overthepastseveralyears,theEuropeanCommissionhasmadenotableattemptstoharmonisetheonlinegamblingsectorbetweenmemberstates,whichcouldultimatelyleadtoagenuinelyEuropeanonline gambling market.

• Italy,whichstartedmarketliberalisationin2006,hasasearchmarketingclickshareindexthatismadeupofablendofthelocalItalianoperatorsaswellasinternationalbrandslike888,WilliamHillandPaddyPower.Interestingly,asignificantamountoftheclicksharewiththeindexistakenupbyaffiliatestylesitesthataredirectingtraffictopaid,onlinereal-moneybrands.

• AlthoughtheSpanishindexconsistsofamixtureofinternationalandlocalbrands,clickshareisheavilyweightedtowardsinternationaloperators,with888beingtheleadingbrand.TheSwedishonlinecasinomarketisledbyBetsson,whichhasaclickshareof24.20%.IncontrasttobothSpainandItaly,internationalbrandsdohavethesamelevelofpresencewithintheclickshareindex

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ABOUT THE AUTHORSPhilipMcGuin,HeadofInsightandMarketResearchatStickyeyeshas15years’experienceintheareasofonlinemarketing,performancebasedleadgenerationaswellas,dataanalysistechniquesincludingwebmetrics,portfolioscorecarding,attribution,econometricsandstatisticalmodelling.HehasworkedbothclientandagencysideforarangeofsectorsincludingpublicbodiessuchasEuropeanParliament,EuropeanCommissionpromotingtheEU’spolicyonInformationandCommunicationTechnology(ICT)aswellastheDepartmentofTradeandIndustry(DTI),marketingpolicyone-Government.HealsohasextensiveexperienceintheprivatesectorasHeadofMarketingforanenterprisesoftwareprovideraswellastheHeadofOnlineMarketingforoneoftheUK’sfirstprivateonlinehighereducationtrainingproviders.PriortohiscareerintheprivatesectorPhilipworkedasadoctoralresearchfellowinEconomics,Politics,PublicPolicyandAdministration.

ABOUT STICKYEYESStickyeyesisaninternationaldigitalmarketingagencywithapedigreeinsearch.

Ourservicesinclude:SEO,PPCanddisplay,social,PRandcontentprovision,consultingandinsightanddesignanddevelopment.

Weworkwithmanyofthelargestgamingcompaniesonaninternationalbasisandmanyofourteamhavegamingoperatorexperience.We’reproudofourabilitiesandbelievenootheragencyhasourstrengthanddepthofexperience.OurworkwithgamingcompaniesrangesfromoneoffmarketreportstoascertainopportunitylevelsfornewbrandsorproductsthroughtofullservicedigitalmarketingtomaximiseROI.

OurpedigreeinthegamingindustrywasrecentlyrecognisedattheUKSearchAwardswherewewonfourawardsincluding‘BestUseofSearchinGaming’andthecoveted‘BestAgency’award.

Ifyouwouldliketodiscusshowwecanhelpyoupleasecontactus,we’llstartwithadeepdiveintoyourperformance,howthatcomparestoyourcompetitorsandwhereweseegapsandopportunities.

www.stickyeyes.com

Paul HillSales Director0113 391 [email protected]

WANT TO KNOW MORE?IfyouhaveanyquestionsonthefindingsorwouldliketospeaktooneoftheteamaboutmaximisingtheROIofyoursearchandsocialstrategiespleasecontact:

DISCLAIMERTheinformationcontainedinthisreportisforreferencepurposesonly.Althougheveryefforthasbeenmadetoensureaccuracyofdata,theanalysisisStickyeyesowninterpretationandthecompanycannotbeheldliableforanysubsequentbusinessdecisionsimplemented.The contentofthismarketintelligencereportremainsthecopyrightofStickyeyes.Permissionisgivenforthereporttobecirculatedwithin

your ownbusinessforinformationbutitscontentshouldnotbereproducedwithoutprioragreement.

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