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Customizing marketing campaigns to target high-value players

Introduction

The gambling industry is a very diverse and innovative field that is on a constant pursuit for innovation and improvement when it comes to capturing the interest of the high rollers. It has become very common for these companies to use personalized marketing strategies in order to make their customers have a good time and to keep them coming back. But to customize such campaigns one needs to know the player’s behavior, interest, and how much he is willing to spend. This is where the roles of machine learning (ML) and artificial intelligence (AI) come in to play. Using these technologies as the input, gambling companies are able to gain insights from large datasets to create specific plans that will enhance the players’ participation and overall profit.

Challenges

There are however several challenges that affect the realization of the potential of the personalized marketing campaigns. First, the large amount of data collected from players makes it labor intensive and difficult to identify patterns and trends. Third, player behavior and interests are not fixed; they vary and depending on the game, or the platform that they are using. This makes it hard to monitor the changes and make changes to the campaigns as well. Fourth, there is the issue of data privacy as well as the issue of legal requirements especially in the light of existing regulations. Finally, it is rather impossible to measure the ROI of such campaigns since it is quite challenging to directly link the revenue generated to the particular marketing activities.

AI Solutions

There are ways that AI and ML solutions can be used to address these issues. There is a large amount of player data that can be analyzed by AI algorithms to identify trends and similarities. This makes it possible for companies to use machine learning models that can predict the behaviour of players in the future based on the past activities. In addition, AI can help in the automation of the process of developing personalized marketing campaigns, which in turn will help to save time and the possibility of errors that may occur in the course of the work. For example, BetBuddy, a company that is a part of Playtech, applies AI to analyse players’ behaviour and develop targeted interventions. Similarly, Kindred Group collaborated with Featurespace in order to implement real-time Risk Management and Fraud Detection System (ARIC) based on machine learning to improve the understanding of customer’s behavior and thus enhance the marketing strategies.

Benefits

There are several advantages of applying ML AI in the process of modifying the marketing strategies to suit the specific needs of the gambling industry. It makes it possible to engage the customer more deeply and create unique experiences for them. It makes the process of campaign customization easier and effective by eliminating the need for a lot of manpower. It supports better decision making through offering data on players’ behavior and the effectiveness of the campaigns launched. It also has the potential of increasing revenue by identifying the high spending players and targeting them with the right offers. For instance, Gamesys, an online gaming company stated that they enhanced player engagement through the implementation of AI-enabled personalized marketing campaigns.

Return on Investment

It is rather difficult to measure the ROI of AI-powered marketing campaigns since attribution is a rather complex process. However, the data indicates that they can greatly enhance the return on investment. McKinsey’s research states that personalization can yield a return on investment of five to eight times the marketing investment and increase sales by at least 10%. Additionally, Optimove has stated that their clients have enhanced their customer’s spend by 150% through the utilization of their AI-powered marketing solutions.

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