Analysis: Smaller operators search for mobile edge
With industry consolidation accelerating, mobile remains an area where operators without scale can still make an impact
As the summerâs two M&A sagas continue to rumble on debate over whether industry consolidation could freeze out small to mid-size operators has begun to develop.
Assuming the agreed merger between Ladbrokes and Gala Coral proceeds and a resolution is found to 888 and GVCâs ongoing tussle over bwin.party, the sector is going to look very different in 2016 to what it does today.
An eGaming Review poll in August found that 58% of readers believe that scale will be more important than ever going forward, and that smaller firms run the risk of being either gobbled up by industry heavyweights or left behind altogether.
However, for those small operators looking to stay a step ahead, mobile provides a key battleground where, as we have seen, size doesnât necessarily equate with success.
STAYING AGILE
There is no doubting that the traditional bricks and mortar giants are now doing a far better job on mobile. Operators like William Hill, Ladbrokes and Gala Coral have identified the need for agility and flexibility on the channel, and are beginning to deliver genuinely innovative products.
But the operational challenge remains considerable. In the meantime smaller, mobile-centric operators like LeoVegas have an opportunity to snatch market share from bigger rivals.
LeoVegas has shown with its successful entry into the UK that deep pockets are not the only requirement to make a splash in a competitive market. A focused marketing spend combined with an industry-leading product is arguably more important in the mobile age.
Digital marketingâs lower entry barrier versus traditional TV spots presents an opportunity to reach new audiences, and innovations like Twitterâs in-tweet âbuyâ button are only going to open up more possibilities for firms with the right expertise.
Even as the industry enters another round of consolidation, there is still plenty of room for nimble, agile operators providing the type of mobile product punters crave – regardless of size.