Online gambling launched in Ontario last year and the marketplace is already filled with several competitors looking to take the lead. To sort through the chaos, IPG Mediabrands commissioned new research as a guide to help brands and buyers understand this cluttered new category.
The survey polled 1,001 people in Ontario over the age of 19. Of them, 766 had signed up for an online gambling service in the last three months, with 235 intending to do so for the first time. In addition to their behaviours, the study also looks at key strategies for brands to attract new users and keep current ones.
“The study showed us very clearly that everyone, from brands to buyers, needs to remember that the consumer journey for online gambling is chaotic, non-linear and hyper-individual,” said Chris Herlihey, head of insights at IPG Mediabrands. “Players primarily do research quickly and are ready to change their decision at any moment. The only constant in this market is change.”
Users are predominantly male at 55%. The predominant age group is 25- to 44-year-olds (61%), followed by those over 45 (27.9%) and those 19 to 24 years old (11.5%).
Consumer response to advertising changes depending on where the consumer is in their online gaming journey. Search ads are effective in driving awareness in this fragmented market, while video ads are impactful in the research phase. Overall, the most influential touchpoints that impacted a user’s decision about which service to use are Google (81%), YouTube (48%), Facebook (30%), Instagram (25%) and TikTok (19%).
The decision cycle for online gambling customers is less than one week for 41% of the market, with several touchpoints in a very short period, both online and offline. A significant driver for interest or consideration to sign-up is social interactions with family and friends. Before sign-up, search engines (89%) and videos (78%) are the top sources for research and information.
Common strategies that have been used for attracting new users have included recruiting bonuses, gambling group games and event experiences. At the sign-up phase, no single channel or consideration breaks ahead of another: online ads, search and positive word of mouth were all cited as decision factors by 22% of respondents, with traditional advertising close behind at 20%.
While existing users find content around gameplay, like tips and strategies, to be engaging and meaningful, retention is most impacted by security concerns and perceived fairness of games.
Online gamblers are highly likely to re-sign with their current provider (79%), but 43% of users have switched at least once for better odds, faster deposit and withdrawals, and fewer fees. To retain customers, brands must prioritize security, especially regarding access to payouts, data protection and fairness of games.
