To US media, an advertising bonanza may provide in the United States the recents moves toward legalising online poker, reported over the weekend Advertising Age, the marketing publication.
Heralding the marketing activity’s potential rise, the opinion of the publication is that for the advertising industry it could be the next boom. Numbers were also quoted from the H2 Gambling Capital, the respected online gambling consultancy. Simon holiday from the consultancy says in marketing over the next five years could be invested around $3.5 to $4 billion. It is more than has been spent in US on advertisement by General Motors in 2011.
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In the US, the Internet poker business could be generating by 2017 more advertisements than the insurance sector does.
Advertising Age also notes that the first to go online legally is likely to be Nevada, however, ten or more states also have online ambitions.
$1 billion is going to reach the online gambling market gross value, estimates Holliday, and over a decade it may reach over $13 billion.
“These companies’ single biggest cost is driving players to their sites,” the publication was told by him. “As there is a land grab, in the initial years on marketing and advertisement budgets will be spent 25 to 30 percent of company net revenues.”
Agencies and the digital media will be the largest beneficiaries.
The experienced online gambling executive, Mitch Garber, who also is the head of the interactive division of Caesars Entertainment, said:
“Very small was five years ago the combined spending of all based online gaming companies in online advertising. It limited itself to SEO for bringing in visitors to book online hotel rooms and return to the website. All this has changed dramatically. No question remains that on interactive advertising the industry will be spending more money and time.”
In his experience, Garber said, the most successful medium for attractive players is television, although his company will still retain advertising on billboards and magazines.
A search has been recently opened by Caesars Entertainment, reveals Advertising Age, for the overseeing of buying, search and media planning by a creative agency.
Demographically, for the young adult the Internet sector has great appeal and on that will probably be targeted much of the creative in new marketing, said one advertising executive, making a note that still in their twenties are most online gamblers. In contrast, above 50 is the average land casino gambler.
Their marketing budgets could be doubled by major land casino operators to succeed in the United States in an environment of legalized online gambling.
However, costly and time-consuming prove to be online gambling operations because licenses must be purchased by agencies in states in which casino advertisement is being supported by them. The agency executive also said that for one casino client alone, have already costs around $500,000.
In the event of legalization will also have to change the anti-Internet gambling policies of Google.
The managing partner and founder of the based in Las Vegas agency SK&G, John Schadler, said, “At the online sites’ inception there will be a rush to gain notoriety and market share. That will require to a great extent initial media spending and branding efforts.