Poll: What is the biggest growth opportunity for operators in 2017?
This week we ask how firms can overcome increasing competition and looming regulatory hurdles
EGR Intel’s series of industry predictions for 2017 has thrown up serious debate about how best to generate growth in a rapidly changing market.
The most common answer was of course M&A, with observers clearly impressed by the way Paddy Power Betfair and GVC have built into industry powerhouses.
Some experts suggested UK companies were particularly ripe for takeovers given the weakness of the pound, while others said there would be at least one ‘mega deal’ that brings a largely land-based business into the online space.
Other experts claimed a change in marketing approach was the best route to growth, with the industry shifting away from aggressive acquisition strategies to a more sustainable focus on retaining existing customers.
Mr Green CMO David Nordberg suggested his company could be headed down this route next year, explaining: “With so many markets being saturated and CPAs continuously increasing across the board, I believe operators will focus more on retention. Increased loyalty is key and can only be achieved through strong brand building.”
Another potential route for growth is the regulation of new markets. Brazil, India and Germany are considering a relaxation of their gambling laws and all three have substantial populations that could support a thriving egaming market.
Finally, experts argued that those in control of their own technology would have the power to generate growth and separate themselves through new products and innovation. Indeed, bet365 has already this year launched its Edit Bet feature in an effort to differentiate itself on cash-out.
As BetBright CEO Marcus Brennan put it: “Technology will enable innovation and differentiation and new blue ocean marketing and retention channels will emerge which can only be capitalised on by those in control of technology.
“Operators will build unique games and channels and truly differentiated products which they can market relatively competition free in clean blue oceans, the rest will be left swimming in a blood bath.
“Once one operator does it all properly it will be like Google arriving on the search scene.”
With that in mind, we want to know your thoughts. Given increasing competition, and a changing regulatory environment, what is the best path to growth for operators in 2017? Have your say here.