There are, undoubtedly, many ways to turn your idea into a successful business. One of the most popular strategies is running promotions such as offering discounts or something extra to those who may be willing to buy something or subscribe to a service.
Consumers Now Expect Something Extra
This culture of giving consumers something extra has become even more apparent since the advent of online marketing. One industry where promotions have become a standard practice is casino gaming. Today, there are online casino offers and promotions to suit players of all persuasions. New customers can get something extra, such as slot spins and bonus credits when they make an initial deposit. Existing customers can play for daily jackpots, claim prize drops, and take part in weekly giveaways.
Casino companies use promotions as one of their primary marketing tools for two reasons. On a macro level, online gambling is a competitive industry. According to Statista, online gambling, as an industry, was worth $95 billion in 2023. By 2028, forecasts suggest that it will be worth $138 billion. This revenue is generated by thousands of different sites operating in hundreds of countries around the world. Keeping ahead of the pack isn’t easy, which is why operators are often fighting to offer the biggest and best promotions.
On a micro-level, promotions are such a big part of the gambling industry because results are never guaranteed. Casino players know this. Even the best mathematical move won’t yield a positive return every time. Players are drawn to offers that can help offset the impact of what mathematicians call negative variance. Players don’t rely on these bonuses, but it’s nice to have them. That’s why online casino operators use them as a primary marketing tool.
Stats Support Promotions
From the gambling industry to the business world as a whole, research supports the idea that promotions are a great way to increase engagement. Research by Gerard Tellis, a professor at the University of Southern California, shows that reducing prices can increase sales. After reviewing data from 367 brands, Tellis found that the average price elasticity of demand for companies who reduced their prices was -1.76%. This means that, for every 1% a company lowered the price of a product, sales increased by 1.76%.
John Philip Jones notes in a Harvard Business Review article that increased advertising in conjunction with promotions can increase a company’s sales by 0.22% on average. Jones states that this is a short-term effect but it’s an effect, nonetheless. Some experts argue that promotions devalue a brand’s image. This is based on the idea that consumers see promotions as a clear attempt to generate sales. However, the counterargument in today’s business economy is that promotions are synonymous with digital marketing.
The online gambling industry is a microcosm of the internet as a whole with regards to competitiveness. Businesses now have more access to consumers which, in turn, makes every market more competitive. That’s why promotions, including social media campaigns, have become a popular tool. Promotions won’t always have a positive ROI but, as a general concept, they’re a great way to drum up more business.