Part 3: Marketing and affiliates
15-20 % of all new customer acquisitions in Denmark come through the affiliate channel, according to Better Collective’ s Claus Jansson
last couple of years it has been powered a lot by online casino and by new brands such as LeoVegas entering the market and investing a lot in marketing.”
A marketing-led surge One of the main arguments behind entering a newly regulated market is the opportunities it offers when it comes to further advertising and marketing.
Kim Olsen, general manager for Denmark at one of the market leaders Kindred, is clear about the main driver of growth.“ Although our product has been improved significantly, it is clearly marketing – and especially the right digital media mix – that has driven growth.”
Peter Weinreich, Danish country manager for LeoVegas, makes the point that the advertising market is“ competitive” at present, partly of course because of the entry of
his own company into the market in late 2016 although there was a pre-World Cup hiatus at the start of the year.
“ Right now everyone is taking a breath before the World Cup,” he says.“ But we have seen a
With affiliates there are conversations about tax – who pays – and compliance. Controlling your affiliates around compliance is so essential
Peter Weinreich, LeoVegas couple of new operators enter the market. That will encourage more spending.”
Richardt Funch, global head of sales at EveryMatrix which has a mix of white-label and platform and game licensees among its 15 Danish operators, says that the point about such new market entrants as LeoVegas and more latterly Mr Green, is that they“ don’ t go into a market without meaning it.”
“ So there has been some significant marketing spend from both these operators,” he adds.“ That of course increases the attention on the market and others seem to follow. Then you have the growth provided via new players and marketing being an important key driver. There is no doubt that when new operators such as these enter the market it has a positive effect.”
For all the talk in the online gambling world about product innovation, Funch makes the point that“ a big marketing budget will always put you in a very good position for success.
“ At the end of the day, the product is like a street of bars and it is all about the customer experience and the service.”
Spil over effect At the top of the list of big spenders is, of course, Danske Spil, which because of its lottery business is perhaps the country’ s top advertiser across all sectors. Data from Gallup Adfact, given in a recent presentation by global advertising group MediaBrands, showed that Danske Spil was the biggest advertiser on television by some
16 Denmark: Insights and data on Europe’ s pioneer model for igaming regulation