Specialist publication analyst Imogen Gurman of IGB comprehends the role of personalisation in driving success in the sports betting and online gambling sectors, as well as the increasing significance of artificial intelligence in shaping the future of the gambling industry.
The next step in the evolution of games and media
One term that is causing a lot of discussion in the gambling industry is personalisation. It is widely used in various aspects of the industry, from targeted advertising to customised betting options. It is also associated with new trends and technologies aimed at addressing issues such as retaining players, enhancing customer experience, and managing online data effectively.
For artificial intelligence (AI) experts who have been working in the field for a while, personalising betting and gaming experiences is seen as a natural progression. Chris Reynolds, CEO of Epoxy, a company that offers AI and machine learning solutions for personalisation in the betting and gaming sector, believes that these advancements have been present in other industries such as television, music, and e-commerce for a long time.
Customers have already become accustomed to personalised features on websites and apps. A study conducted by Betting Hero in 2023 showed that 80% of customers find personalised offers and bets valuable, while 75% struggle to navigate non-personalised applications.
Adoption of new technologies is a challenge
Surprisingly, personalisation is not advancing quickly in the gambling industry, as operators struggle to navigate technical and organisational challenges. These obstacles are hindering the widespread adoption of AI-driven personalisation. According to Epoxy co-founder Jason Angelides, the slow progress can be attributed to the need for prioritisation, a cohesive organisational structure, and technical expertise within companies. He highlights that the industry recognises the value of personalisation but integrating it across all aspects of a business is complex.
Angelides also points out that traditional barriers, such as the segregation between sportsbooks and casinos, need to be reevaluated to fully embrace AI technology. Many operators are now grappling with how to effectively leverage AI and personalisation to benefit both themselves and their customers. Experts suggest that focusing on personalised communication at the initial stage of interaction with clients can have a significant impact on various aspects of the business, including customer retention and responsible gaming practices.
Changing the “look what you got” mentality
According to Alex Kornilov, the founder and CEO of Betegy, who provides advertising solutions to iGaming companies, artificial intelligence has the potential to shift the focus away from a negative mindset in the gambling industry's marketing strategies. After working on data visualisation in the sports industry, Kornilov realised that the sports betting sector had a pressing need for innovative ways to present intricate data like odds, statistics, and match schedules. Transitioning to the betting industry, he observed that consumers responded more favourably to personalised, dynamic advertisements compared to static ones. Betegy utilises data to create tailored ads based on the player's preferences, from the sports they enjoy to the teams they support. By closely monitoring the performance of these ads and the player's value in terms of retention, the company strives to enhance customer engagement and satisfaction.
AI takes us to the next level
According to Kornilov, for deep segmentation and sorting of offers, AI is the only right solution, especially in betting, where everything needs to be taken into account - from the type of sport to the match schedule and odds before and after the game.
“The depth of the product is very deep, so you need to connect a lot of data points to the system so that the advertising you serve to your audience is relevant and scalable,” adds Kornilov.
With the help of artificial intelligence, brands will be able to gain much more detailed visibility and analytics needed to understand how effectively their marketing is performing. Perhaps in the future, the old joke: “Half the money I spend on advertising is wasted!” The problem is that I don’t know which half!” will begin to lose its relevance.
“Currently, the acquisition strategy for every brand, especially in the US, is to spend money and see what happens, what customers come. This strategy leads to a lot of uncertainty at the brand level and the inability to truly determine what works and what doesn't. This is why, for example, there was an “acquisition crisis” last year. If we buy a player for 300 bucks, and his lifetime value is 10 bucks, how long can we keep this kind of work in the red?” says Kornilov.
Creating an image of a client-gamer
As every operator knows, the challenge of growing revenue and running a successful business doesn't begin and end with acquiring players: retaining customers and increasing their lifetime value is also critical.
This is where Epoxy's Chris Reynolds believes AI-powered personalisation can deliver the best results.
Using analytics, it will be possible to mine partner data to segment customers based on any number of variables: their betting preferences, bet acceptability, risk, player's ability to become a VIP client, player's ability to leave, favourite teams, favourite players, favourite bets, favourite bets and so on.
According to Reynolds, this data can be used in a variety of ways to improve customer experience, increase retention rates, reduce churn, and overall increase engagement.
Refusal of the complexities of choice
One particularly powerful way to use data is to create user experiences. Personalised websites and apps cater to customers' betting and gaming preferences, similar to many popular streaming services and commerce sites.
There is evidence that this type of interface can increase app engagement and reduce churn: In a recent Betting Hero study, 21% of New York City bettors cited “the ease of placing their favourite bets” as the top reason for returning to their favourite betting app.
Personalisation also helps combat a phenomenon in human psychology known as “choice overload,” which describes the feeling of overwhelm that people get when they are faced with too many options.
In e-commerce, choice overload can cause people to leave an online store without making a purchase, and in betting, a player can feel overwhelmed and leave without placing a bet.
In theory, removing sports that players aren't interested in and creating personalised recommendations will streamline the customer journey and steer them towards the bets they're most likely to make. In other words, a streamlined and personalised experience is about minimising choice.
