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2nd Annual Online Bingo Summit - An Overview Of The UK's Online Bingo Market And Its Future

Online Bingo Summit 2007Over the course of the 2 day summit, there was a lot of general information and discussion on the state of the industry in the UK. Rather than focus on one of the more specific areas to follow, this report looks at a range of stats, opinions and thoughts about both the current state of the market place and the direction it will be going in the future.

One of the first and most striking stats dropped at the start of the conference was that there was now nearly 200 (198) online Bingo sites with a UK focus. This shows an incredible growth in online sites - the number is derived from the number of sites in the UK Which Bingo directory. I think one or two older sites still listed in their directory may have closed their doors since, but it's still a marked increase and a massive figure. Given the amount of sites set to appear in coming months, it won't be too long before the 200 figure is a distant memory. I think at the time of last year's summit, there were less than 150 sites listed.

From my time playing the game online, it came as no sup rise to hear the customer base is still a very female dominated one. One figure mentioned was that there are around 250,000 people who've tried the game online. I'm not sure how many of them could be classed as regular players, but that's a pretty astonishing figure on its own. Further to that, roughly 80 - 85% of regular online Bingo players were women. Compare that to land based Bingo, which can claim around 3 million players and has a much older average age. The online version attracts a majority of its players in the 20 - 45 age range.

It's good to see this younger demographic embracing the game, and it offers encouragement that the land based game can get beyond its grandma stereotyping. It wasn't mentioned at the conference, but I spotted a stat earlier that ties in with this and mentions that around 48% of Gala Bingo's new members are in the same younger age bracket. I've said in the past the game is appealing to young players, but the industry has done little to embrace or break down the barriers for them. This kind of gives credence to that opinion, and I'm not surprised so many younger players are doing it online - free from the worries inherent in attending a club for the first time.

The Importance Of Standing Out In A Saturated Market

At one point the question was asked 'Does the UK need another online Bingo site?' and the answer was a resounding yes. Given the saturation of the game online, the general opinion amongst a number of the panelists was that there is still a massive untapped audience, thanks to Bingo's mass market appeal. The recent sponsorship of Emmerdale by Party Bingo and the success of The Sun's online Bingo offering were held up as examples of how the game could tap new areas.

This in turn brings us to the importance of brand. Time and time again the importance of brand was raised, both as a means of giving existing online Bingo sites a means of gaining trust, and as a further device for extending the reach of the game. The general consensus was that more and more non-gaming brands will start adding Bingo as part of their online presence. We've already seen examples of this with the likes of Woolworths and Ann Summers Bingo, and it will be an ongoing trend.

As well as brand being a means to enticing new players to the game, celebrity endorsements offered another means of less known brands being able to give themselves an advantage in a noisy market. There was some discussion to the effectiveness of these strategies, and the potential downfalls involved in them, but the feeling was such partnerships added to the appeal of the brand and were a success for those doing it.

The Smoking Ban And The 2005 Gambling Act

One thing that had been heralded in the press the last year was the effect the smoking ban would have on the online game this year. So far, it would appear that the expected rush online due to the implementation of the ban has not appeared. Growth has remained fairly steady and people are still attending the clubs. However, it's thought the coming Winter may play a part in persuading more regular Bingo players to stay at home and try the game online.

Alongside this, the new relaxed advertising laws that came in on the 1st of September with the 2005 Gambling Act will help raise the profile of the game amongst non-players. The amount of adverts for Bingo on the TV this year has already helped towards that end, but even more are expected to use the TV as a channel to reach these new players in the coming years.

The act was seen as a positive, if badly implemented and poorly constructed set of regulations. The benefit of white listing sites in respected jurisdictions will help the respectability of the game in the eyes of the audience. Unfortunately many sites have been discouraged from coming to the UK thanks to the expensive tax regime put in place by Gordon Brown as Chancellor. There is a considerable amount of opinion that the bill represented a missed opportunity.

Looking To The Future - Consolidation and Innovation

Going forward, a number of expectations are in place for the market. Already this year there have been examples of consolidation in the online Bingo space, and this is set to continue. Examples such as Cashcade buying the Think Bingo/Herotech chain of sites and 888.com buying the Globalcom Network are fitting examples of this. More online gaming companies are expect to buy themselves market share in this competative arena. As Bingo operators grow over the next year or so, it's expected the strategy will also stretch to the purchase of portal and related communities alongside gaming sites.

We'll touch on the Network vs Standalone debate in a later piece, but one thing that came up across a number of panels was that unless you're a big brand and have deep pockets, you're better off avoiding launching a standalone site. The state of the market is such that it's become so saturated now, that any new providers would have their work cut out to differentiate themselves from the rest. Given a buoyant and growing market, this seems contradictory, but given the amount of sites already out there and due to come online, it would make it difficult for a new standalone to reach any level of liquidity and recognition and appeal above established brands.

With marketing budgets expected to rise considerably the next year on both TV and online campaigns for many in the market, the need to stand out as a destination site is paramount. Any new sites expecting to do this will find their lives difficult unless they can offer something that captures the playing public's imagination. Although, like in the case of The Sun - if they already have a considerable existing customer base and loyalty, this can provide a shortcut to make a new stand alone venture a success.

Amongst all this, the online Bingo player is becoming more sophisticated and less loyal. Many have multiple accounts at a number of online Bingo sites, and will move around them as they enjoy value for money, and want to get the most for their money. This means picking up bonuses at other sites and going where extra money is available. Added to this, there is a growing awareness of what a network is, and the generic offers and bonuses available at them. To keep these players, sites will need to offer a unique and compelling series of offers and incentives to bring the roaming players back.

In the future, the levels of differentiation to the market place that sites can offer will be a key indicator of the likelihood of continued success. Given the static and simple nature of Bingo, innovations to the gameplay, such as bonus games like Jackpot Joy's The Price Is Right Bingo and extra special big prizes like Gala's Kerchingo will become an important means of standing out. As a result we can expect to see more developments in prizes and means of winning them appear.

New forms of online link style games and bigger bonuses will also appear. Gala's Kerchingo game is a fine example of a link up of different properties by just one brand - uniting online, retail and TV audiences in one game. Other big brand sites will need to be seen to do something similar, whether within house or maybe between brands. In offering these big prizes, sites will have to be seen to have achievable mechanisms for winning them. These big, winable prizes will provide sites with a great means of leveraging the appeal of their offering to both new players, regular players and nomadic players alike.

The Industry Missing A Trick?

Despite the rosy outlook, personally there were points which for me hint at the potential for innovation in the marketing of the game, but were somewhat dismissed. It's fair to say there was some hesitancy in embracing the modern internet phenomenon of social networking and web 2.0. A couple of members stress that online Bingo was web 2.0 in its purest form, and there was some complacency that this area was not really one the providers need concern themselves with it to much outside of Bingo.

I can't help feeling this is a mistake - already a number of people are using social media channels as a means to promoting their sites and services. With a bit of careful thought and planning, these channels could be a strong means of promoting the games. In fact, if the providers are missing the point, many of their users are not. The example mentioned during the Sun Bingo panel of a film posted by users showing one of them winning a jackpot is a potent example of what the sites should be looking at.

I'll end up with another stat that for me shows the potential for innovation in the game, provided the right people go out and get creative with their plans and marketing. In the UK, there are still 35% of the population who are not online. This is a massive slice of potential players that could be accessed by canny providers with a bit of investment. And who knows? Maybe that last stat turned a head amongst one of industry people sat listening, and during the 3rd Annual Online Summit, they'll be discussing how one Bingo operator turned ISP and hardware provider to capture just that market.

All 2nd Online Bingo Summit Articles

 

Author: David Lloyd - October 2007

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