23 / 60
were fine with older, more cluttered Whole Foods
stores offering a confusing array of products at higher
prices. Relying too heavily on demographics to define a
consumer base is fundamentally flawed.
The same is true within
lottery and gaming. There are
segments of people that span
demographics (age, ethnicity,
income, etc.) yet want the
same
product
experience.
However once a product is
developed, communicating it
to those interested may require
customized marketing messages
and communications channels.
To better illustrate, let’s go back
to our example of Pop n’ Pak
and consider that the product
developed meets the experience
criteria desired by the Friend
segment and the criteria for gift
giving occasions among less engaged segments, such
as Acquaintances. With the product solidly developed
on consumer motivations, how do we let these types of
people know it is available in the market? This is where
demographics may play a part. When we consider some dominant characteristics of these segments and we acknowledge that there are in fact generational skews with media consumption, we can explore a number of ways to market the product. One example is the following:CONCLUSION
There will always be those who doubt the motivational
segmentation approach—people who are not sold on
the idea that a 24-year-old Millennial could be seeking
the same product experience as
a 42-year-old mother of three.
But circular conversations are no
place to live and so as a growth
organization, Scientific Games
uses consumer motivations
as our foundation. There will
always be randomness in the
population. We would rather
accept what we can control and
focus on moving the movable
and doing the doable as a one-
stop-shop for one consumer and
his/her one wallet.
My hope is that in 2020, a quote
in a
PGRI
article will read, “2020
is the year that the industry optimized play across [insert
segment name here] and thus returned billions more to
good causes.” That is whenwewill know the conversation
has changed.
All copyrights, trademarks and service marks are owned by their respective owners in the United States and elsewhere. © Scientific Games. All rights reserved. Sources: 1 http://brandamplitude.com/segmentation-made-simple 2 Bolton, Robyn.“Whole Foods’Misguided Play for Millennials.” Harvard Business Review . May 14, 2015 SG proprietary ONE Segmentation Study, 2015 PRODUCT DEVELOPED ON MOTIVATIONS Key Characteristics to Consider for Marketing 16% Decides game purchase prior to entering store 13% Hispanic 15% 18-29 Years Old 96% Active on Facebook 83% Engage with YouTube 44% Use Twitter 21% Decides game purchase prior to entering store 59% Female 50% 50-69 Years Old 96% Active on Facebook 43%EngagewithYouTube 8% Use Twitter Marketing Considerations: Traditional media and Facebook campaign, placement skewed female, call to action to head to store with purchase in mind. Marketing Considerations: YouTube commercial(s) using humor in English and Spanish, Game alter Tweet through proximity marketing upon entering store, point-of-sale in English and Spanish to disrupt shopping and convert to purchase.“2020 is the year
that the industry
optimized play across
[insert segment
name here] and thus
returned billions more
to good causes.”
www.jumbointeractive.com partners@jumbointeractive.com The world’s first lottery app for the Apple watch. There are things you want to be told about immediately. Winning th lo tery is one of them.ments and $45.6 million in entry fees.
The limited research on the issue indicates that skill, or an edge
of some kind, is important to winning. Analyses of the Fantasy
Sport business by publ cations lik Bloomberg magazine have
shown the odds of recreational players actually winning are very
small. Professionals have already developed personalized algo-
rithms to put together winning lineups. These Fantasy “sharks”
can quickly identify athletes the public is likely to pick, and
know the upside odds for less-favored players. In the first half of
the 2015 Major Leag e Baseball seaso , 91% of Daily Fantasy
Sports player profits were won by just 1.3% of players, Sports
Business Journal reported. In the cease-and-desist order to Fan-
Duel and DraftKings, New York attorney general Eric Sneider-
man, stated that DFS is a “multibillion-dollar scheme intended
to evade the law and fleece sports fans across the country.”
THE BUSINESS OF FANTASY SPORTS
Based on investors’ most recent funding terms, DraftKings and
FanDuel are each worth over $1 billion. DraftKings was TV’s sin-
gle biggest advertiser the opening week of the NFL season. And,
according to Bloomberg News, the DraftKings and FanDuel fan-
tasy sites generated $60 million in entry fees for the NFL’s Week
1, twice the amount of money Las Vegas sports books handled.
FanDuel has a marketing deal with the National Basketball As-
sociation and, separately, multiyear partnerships with 13 NBA
teams. D aftKings has deals with the National Hockey League
and Major League Baseball. The National Football L ague does
not have an agreement with the fantasy sports websites. However,
five teams have marketing deals with DraftKings and 16 teams
have similar arrangements with FanDuel. The Patriots’ Tom
Brady and Rob Gronkowski each has a sponsorship deal with
a fantasy sport site. Cowboys owner Jerry Jones and the Kraft
Group have stakes in DraftKings.
The Chicago-based Fantasy Sports Trade Associ ti n says 56.8
million people from the United States and Cana a participate
in l agues, spendi g an average of $257 a year on daily fantasy
sports and $162 a year on traditional season-long Fantasy Sports
contests. Total FS and DFS wagers in the U.S. and Canada are
estimated to end up being around $27 billion in 2015.
According to recent estimates by Eilers Research gaming ana-
lyst Adam Krejcik, DraftKings alone has spent an estimated $224
million in marketing this year, while FanDuel spent $97 million
(prior to Oct. 31). That translates to respective customer acquisi-
tion costs of $190 per user for DraftKings and $110 for FanDuel.
DFS entry fees are expected to reach $3.7 billion in 2015.
■