Mia Gardner | 18 Dec 2018
This flies in the face of the constant complaints that television and radio are inundated with gambling calls to action, as traditional channels are only receiving 20% of company advertising budgets.
The report was compiled Regulus Partners at the request of UK charity GambleAware. It reflected a total marketing spend of £1.5 billion in 2017, a 56% increase over the three years prior.
Of the total costs to companies, only 15% was spent on television advertising, while the balance was used for sponsorships, affiliate marketing, and direct online marketing. The television spend is much smaller than originally anticipated, which pays no credence to the constant complaints that this traditional form of entertainment is overstuffed with promotions.
£747 million was spent on direct online marketing and £301 million on affiliate marketing, £60 million on sports team sponsorship, which doubled over the last three years, and social media marketing increased three-fold to £149 million over the same period of time.
The UK lotteries spend £88 million down by £3 million from 2014 but half of the amount was used to pay for television marketing. This means that lotteries use television advertising significantly more than sportsbooks or casinos do.
Affiliate market only experienced a 2% increase since 2014.
Regalus accumulated the data from various companies’ public financial reports as well as trading data. The company has acknowledged that the report's figures may be slightly off. However, it certainly does provide an overview of where this marketing industry is going.
CEO of GambleAware Marc Etches said that more attention must be given to online gambling marketing and that Internet providers and social media companies must act to protect vulnerable people and children.
Last week the United Kingdom Gambling Commission UKGC released its Young People in Gambling 2018 report. The report showed a small increase in underage players, which the UKGC termed as low when compared to historical figures. The report also included the 16-year-old age group for the first time which would make the numbers falsely appear higher year-on-year.
The report also examined the role of skins betting and loot boxes on youth gambling numbers.