Gambling is a growing industry in Australia. In fact, one indication of its growth is the increase in the marketing efforts of gambling companies in the country. Last year, gambling companies have spent around $258 million on advertising in Australia. That’s equivalent to a 168% from their marketing cost from 2011 according to SMI numbers.
Strict TV Regulations
Regulators are already picking up their policies when it comes to broadcasting gambling related material. Prime Minister Malcolm Turnbull confirmed May of last year that the Government has issued a ban on gambling advertisement before 8:30 pm during live sporting events including five minutes before and after a game starts. The aim is to control the urge of the audience to bet.
Despite government efforts, online sphere remains an unchecked playground for many gambling firms. In fact, they have diverted a growing advertising budget online. Gambling advertisers have spent $39.5 million on digital marketing ads in 2017 in Australia.
That’s a significant 14.2% increase from what they have spent from the previous year. Given the stricter rules that are ready to roll out in 2018 which includes the ban on gambling advertising on daytime television, it seems that many companies are leaning towards an alternative which is the World Wide Web.
Vulnerable Groups at Greater Risk
Australian gambling firms have thrived from their advertising efforts. However, according to Dr. Sally Gainsbury of the University of Sydney and Deputy Director of the Gambling Treatment and Research Clinic, this isn’t a good thing for those at risk population.
She mentioned that “Unfortunately, those most likely to respond to online ads are those most vulnerable to developing problems, including with higher problem gambling severity scores, those who spend more money on gambling and gamble more frequently, as well as younger people, males, and those from ethnically diverse background”.
She added that “Although there are regulations about showing responsible gambling messages in advertisements, these don’t appear to apply, or be enforced for online ads. We see very few responsible gambling messages and warnings in social networking site posts by gambling operators and online warnings in social networking site posts by gambling operators and online ads”
According to SMI, things have changed how gambling companies approached digital marketing. Programmatic ad spending has increased more than twice in 2017 and in fact, represents 25% of all gambling advertiser’s digital ad buys.
The problem with programmatic is that it is an automated buying and selling of media with minimal human intervention. This allows companies to place their ads in digital channels with ease. In addition to this, it helps keep the cost down and also guarantees impressions on their target audience.
No New Customers but High Retention Rate
One of the things that can be said about gambling companies in Australia is that it is having a hard time getting new customers, especially in a relatively saturated market. However, gambling companies have effectively retained the habits of problem gamblers.
It is true that digital marketing has changed the way businesses introduce themselves to their audience. However, the same can be said about the gambling industry. And unfortunately, this isn’t a controlled environment, unlike the media.
