Marketing is the key to success in Latin America

The international egaming industry is beginning to open its eyes to the emerging opportunities present in Latin America, with operators and suppliers in Europe’s mature markets jostling for position as new territories edge towards regulation.

However, this rush for new business will not see all be successful. A strong gaming offer will be important, but the real key to success will be delivering an effective and adaptable marketing campaign in-line with the requirements of this diverse market.

The current climate

The move towards egaming regulation is picking up pace across the region. Colombia is one of several countries demonstrating its willingness to embrace a modern regulatory framework and establish itself as an attractive jurisdiction.

Noting its intention to block illegal gambling websites in November 2015, regulator Coljuegos was swift in publishing draft regulations and the technical standards required for operators, issuing the country’s first sports betting licence to Wplay.co in June 2017.

And despite suffering a number of false starts, there are promising signs that Brazil is edging ever closer to full regulation of online gambling.

The rich promise of the Latin American market is now far more tangible than it was ten years ago, but it will require streamlined and adjusted marketing efforts to truly unlock it.

We are likely to see a battle emerge between land-based incumbents who wish to make the jump to digital, and European and Asian entrants keen to grow their customer base in new territories. Both sides will need a strong understanding of this customer base if they are to succeed.

An eye for detail

Respecting the regionalisms of Latin America will be decisive in the success of any broader marketing strategy. Treating Latin America as a homogenous region that will respond favourably across the board to a pan-regional, one-size-fits-all marketing blast is unlikely to be the first step on the path to success.

Tied into this requirement is a need to operate on a flexible platform that can respond appropriately to the demands of players in different regional markets. The central reality for offshore operators is that rolling out the products that brought them success in Europe will not be enough to conquer what will be a fiercely competitive marketplace.

Marketing must be delivered in real-time, and must be personalised the preferences of customers in Colombia, Brazil and beyond.

As such, all international operators targeting the Latin American market will need to craft a bespoke offering attuned to the requirements of local consumers.

From ensuring the relevant markets for different sporting events are front and centre of your landing page to having the optimal data solution for prioritising the aforementioned marketing material will be of undeniably crucial importance in enhancing both retention and revenues.

This is arguably more important for European operators entering Latin America than those who have successfully entered Asia, where English and Spanish football remain hugely popular. Latin America’s key markets boast their own hugely popular leagues, that will need to be placed front and centre of any marketing campaign.

Opportunity knocks

Significant opportunities can be found in the mobile space in Latin America. According to a 2016 study global mobile data firm GSMA Intelligence, smartphone adoption is continuing apace, with mobile internet usage expected to grow 50% by 2010, bringing the total to 450m. And yet, according to H2 Gambling Capital, a mere 20.9% of gross gambling win in Latin America is being generated by the mobile channel in 2017.

In light of these figures, there are clear and targetable possibilities in the mobile space for operators to consider in Latin America, and both they and platform providers should keep them front of mind when planning their regional marketing campaigns.

As with Asia, we may see the online gaming boom skip the desktop stage in Latin America, and marketing campaigns will need to reflect this reality.

Operators should not expect any easy ride as these new markets regulate. The opportunity is obvious, but it will require a creative approach to marketing, and likely a significant spend, to capitalise.

R. Franco Digital CMO Rubén Loeches