Targeted advertising is not just effective in increasing response rates and lowering your cost per acquisition. Depending on the industry you operate in, it is also quintessential for brands to remain socially responsible and adhere to rules and regulations related to advertising. In such scenarios, attracting and retaining consumers requires a multi-step approach involving many techniques, including behavioral targeting.
Online sports betting is an industry that demands careful targeting practices both to stay in line with state regulations and to gain an edge in the competition. Speedeon helped a leading online sports betting provider strategize, target, and increase customer acquisition with its tactful data-led marketing efforts.
The Essence of Targeted Advertising
Targeted advertising encapsulates a brand’s ability to reach the right audience at the right time. With targeted approaches, your marketing campaigns will reflect the behavior, preferences, and traits of the people who ultimately consume your ads. These targeted ads are strategically positioned to reach a well-defined audience interested in the product or service.
On the contrary, a ‘spray and pray’ marketing technique will target anyone and everyone. It leads to a lower ROI because the audience reached includes audiences who aren’t interested. While you may reach customers using this method, the cost of acquisition will be higher. The marketing waste (spend) will also be high.
Navigating the Complexities of the Online Sports Betting Industry
The online sports betting industry is a hyper-competitive market due to the large number of operators in the playing field. The companies aiming to get their share are investing heavily in targeting advertising to enhance their brand presence and attract customers. This only adds to the challenge of surviving and profiting within this market.
Besides the competition, the betting providers also have to tread carefully when it comes to advertising their services. When implementing behavioral targeting practices, they have to abide by the rules and regulations of the industry as outlined by the state’s legal system. The regulations mandate that their behavioral marketing campaigns don’t target vulnerable populations. These include those underage and those who have faced gambling-related addictions in the past.
However, the industry is also ripe with potential, with more and more customers increasing their spending in betting.
The Case in Point
A new state had granted approval and legalized online betting services. This new territory was a great opportunity for businesses to acquire new clients. Our client, a major sports betting provider, was looking for the best way to capture the interested segments in the new area.
While our client was a big player, the competition was still a hurdle, with a wave of other betting operators rivaling for a share. Legislation alone doesn’t guarantee success in the market. It was a matter of swift action and efficient targeting, while staying compliant to the regulations, to reach the right audience.
With no time to spare, the Speedeon team got to work immediately. Thanks to our treasure trove of consumer data, we were able to pull out a solid strategy for the betting provider to make a grand entrance. Our team was experienced in handling time-sensitive projects and delivering them at the right time. So, the curated mailing program would be ready for execution in as little as a few days.
Behavioral Targeting for Sports Betting
As we mentioned above, targeting customers for online sports betting requires a careful approach. In this regard, demographic and behavioral targeting tactics play an important role in identifying high-value prospects.
Data on behavioral characteristics of online sports bettors will give you an in-depth understanding of the ideal customer to attract. For example, the frequency of bet places can help you determine if the person is an occasional bettor or an ardent supporter of a particular team or game.
Behavioral data, coupled with demographic data such as age, income, wealth status, and gender, can help you determine the segments that are ideal and more likely to spend on your betting services. More effectively, the data sources can be applied to craft predictive modeling for next level performance.
Speedeon’s Approach to Target the Right Audience
Upon in-depth analysis, our team concluded that a multi-touch mailing strategy was the best targeting technique. For this purpose, we created a model of the ideal consumer using existing users from similar territories as the seed.
A multi-touch mailing strategy is where the brand sends a series of mail pieces, spaced and timed strategically to persuade customers to complete a task or take action without being too overwhelming. Oftentimes, customers don’t respond to the first piece you send them. Brands follow up with more pieces and a variety of formats to maximize response.
Our first touch of the multi-touch mailing strategy was applied to a broad audience. This was to introduce the brand to a larger volume of the consumers within our model. This included not only those deemed extremely valuable, but also potential customers that are expected to have a lower LTV (lifetime value). Essentially, we spread our bets to reduce risk (pun intended). We then initiated our second touch, this time only targeting members of higher deciles in the lookalike model with relevant ads. This ensured that high value prospects received a higher volume of pieces and higher cost mailings.
Our Bets Paid Off
Our betting service provider’s entry into the new market was a soaring success. It was able to achieve and exceed its key performance objectives. The overall campaign delivered an impressive lift over control, both in campaign response and users placing bets. Targeting high-value customers had a dramatic impact on the success of the campaign specifically. Besides the high conversion rates, the cost per acquisition for the top deciles was 40% lower compared to the general target.
The results of data-backed behavioral targeting with predictive analytics helped the company secure a leadership position in the new state and win a new fanbase!
Take Your Big Leap with Speedeon
Speedeon is a leader in strategic marketing campaigns and data-driven audience modeling. With our best-in-class third-party data, we help advertisers create high performing audiences that exceed expectations. Whether it’s online sports betting or finance, we got you covered!
Looking for a brand-new strategy to achieve your goals? Place your bets with us and you will not be disappointed. Connect now for a consultation!
