eGaming marketing: Spain is different 24/02/2010

Willem van Oort, founder, GranViaOnline

THIS post’s title, 'Spain is different', was the slogan was used in the ‘60s to promote Spain as a tourist destination. But it also applies to the business of online gaming in Spain. 

In the ‘70s, before slot machine regulation appeared, clever businessmen quickly moved into this space and when the regulation came, were well positioned to dominate this market. 

We now have a similar situation for online gaming: local and international operators are operating in a legal limbo. They are trying to make a return on their investment, and know that in the long term they will have to adapt to a new regulatory framework. 

The situation makes marketing for gaming in Spain a challenging business: here a few reasons why. 

At this moment, it is possible to buy space with most of the online media owners in Spain, and since there is an economic crisis in Spain, rates have become more competitive, and sometimes performance based.  Google PPC is the only method that can’t be used in the absence of a legal framework. 

The affiliate market, however, is relatively small and underdeveloped, with the exception of one large network and a few very professional sportsbook affiliates.  

Most of the gross gaming revenue is generated in Sportsbook (US$174m, 2009, according to GBGC) but with poker and bingo being roughly a quarter of that each, and the same relative share not reflected in the affiliate marketing share of the media pie. 

Spain’s economic problems are deep, and this has affected online spend. Customers like local versions of products and services, to create familiarity and trust, and getting this wrong affects payment methods and retention techniques. 

As a result, reaching the Spanish online customers have to be different than those employed in other countries. For international operators this is a challenge in their marketing structure, and some operators have responded well to it, others not. 

The introduction of Poker in Spain has shaken up the online industry, and growth will be affected to a large extent by the change of regulatory environment.  But in the short and medium term, good results can be achieved for those who can adapt to being ‘different’ in their marketing, since ‘Spain is different’ 

Willem van Oort is founder of Madrid-based egaming marketing company GranViaOnline.
  

Thoughts? EGR welcomes pitches for blog posts of 300-400 words on topical issues in egaming. Email online editor Jon Parker for details.

Thoughts? EGR welcomes pitches for blog posts of 300-400 words on topical issues in egaming. Email deputy editor Stephen Carter for details.

Posted: 24/02/2010