How personalization can set iGaming companies free from high CAC

iGaming companies looking to outpace the competition and reduce customer acquisition costs will need to move beyond the top of the funnel and focus more on post-click experiences.

Director of Marketing, Dynamic Yield

Estimated to reach $196Bn by 2022, the iGaming industry is booming. With advancements in legislation, increased mobile usage, new technologies being introduced, and activities like sports betting exploding in popularity, the rapidly transforming landscape has generated a wealth of opportunity. But as a new generation of players further saturates the market, operators and game providers alike will need to find a way to outpace the competition. 

In an expectation-driven economy, eCommerce, Travel, Financial Services, and Media brands have all begun modernizing their digital marketing efforts to meet the demand for more individualized experiences. No industry has gone untouched, including iGaming, where the stakes are even higher – players wagering their hard-earned cash demand to see their preferences, interests, and intent reflected as they engage in different activities in real time. Made exceedingly more difficult by the plethora of odds and outcomes, only through personalization can operators effectively deliver the right game content based on the player’s in the moment needs. 

But doing so will require the industry shift away from such a heavy focus on acquisition, taking into account all aspects of the gaming experience, beyond just the top of the funnel. 

The post-click blues 

In a highly commoditized space with similar game content and payment options, many operators are spending the majority of their budgets on driving players into the funnel, be it via paid media, SEM, or affiliate marketing. However, once on-site, relatively little investment is made in getting them to convert. If those in iGaming seek to lower their acquisition costs and achieve economies at scale, the key lies in optimizing their incoming traffic.

iGaming's top of funnel state of mind

Impact of spend on acquisition vs optimizing various post-click experiences

To illustrate how personalization can lower paid media costs and improve customer acquisition efforts, let’s take a look at the following hypothetical situation: 

A visitor who clicks on an ad is taken to the homepage. Instead of serving the same generic experience across audiences, the operator leverages the referring domain from an affiliate site, for example, to surface the appropriate messaging and promotions. 

Generic homepage experience vs homepage tailored for affiliate traffic

Further down the funnel, a time-based offer is triggered, generating excitement and encouraging the same user to sign-up and redeem it before the promotional period ends. 

Basic metrics for an iGaming site

Now, let’s say the result of optimizing and personalizing this experience produces a 10% conversion lift and 10% boost in average revenue per user:

Boost in metrics from personalization

As you can see, even small lifts in some KPIs can lead to big outcomes. In this case, a 21% increase in annual revenue could be attributed to an additional $31.5M dollars, which iGaming companies can apply back into the top of the purchase funnel. 

A bet worth making

Much like the way consumers now expect their online shopping, travel, banking, and media experiences to be personalized to their interests, preferences, and needs, gameplay must too evolve. With smart investments made in personalization, platform providers and operators can better resonate with individual players, influencing every stage of the funnel – not a gamble, a guarantee.