The sports betting market in the US is booming. In 2020, it was estimated that Americans spent over $35 billion betting on sports events. As more states allow sports betting, companies need to acquire and retain loyal customers.
Currently, the market for online sports betting is more competitive than ever, with a wide range of versatile features bettors look for in a site to make them want to invest. This also means that sportsbooks are becoming increasingly complex to run. Various factors go into developing a successful betting site, from security to payment methods.
If you're a newbie looking to make it big in the lucrative sports betting industry, here's everything you need to know to succeed.
Strategic Localization
Most of the country's leading companies in the sports betting industry, such as DraftKings and FanDuel, are responsible for over 80% of the market in New Jersey. However, other companies are starting to challenge these dominant players in order to gain more market share.
Other states are expected to follow suit despite Nevada's dominance in the sports betting market. In the next couple of years, sports betting will be legal in more than half of the country. In June 2018, New Jersey reported revenue of $1,089 million from its sportsbook operators.
Overcoming Barriers to Entry
Despite the immense potential of the sports betting industry, it's not easy to enter. Due to the complexity of the regulations in different states, startups are often forced to navigate through a vast network of legal and compliance teams. The two leading companies in the market, DraftKings and FanDuel, are owned by large public companies. These companies have the necessary resources to manage the multiple aspects of the industry.
One of the biggest challenges for new entrants in the sports betting industry is differentiating themselves from the competition. Most platforms offer the same services but don't have the necessary resources to analyze the data and find out what their customers are most interested in. This is why startups need to develop a comprehensive strategy that analyses data and makes relevant offers.
One of the most effective examples of this concept is the partnership between two companies, WSC Sports and FanDuel. The two companies could deliver in-game highlights to their customers in real-time through this partnership. The technology used by the two companies uses AI to analyze live sports broadcasts and identify events that happened during the game.
Media Deals and Sponsorships
Sponsorships and media deals are becoming more common as the sports betting market continues to grow. Due to the increasing number of new entrants and the rapid expansion of the industry, partnership deals are becoming more effective ways to raise awareness of new platforms.
In 2020, almost all of the sports betting ad spend went to TV broadcasters. While most of the total ad spend in the industry is allocated to the two leading companies, DraftKings and FanDuel, new entrants are expected to continue growing in the coming years. According to a study conducted by market research firm Kantar, the combined media spend of these two companies in January-September 2020 was over $154 million.
Promotional Offers
Sports betting promotional offers are a vital part of the industry's growth as they allow companies to stand out from the crowd and attract more potential customers. They can also help them become an integral part of the sports betting industry.
According to a study conducted in 2020, over 28% of US players consider good promotional offers a key differentiator when choosing a sportsbook.
A new sportsbook in the US called Vigtory is trying to disrupt the traditional industry by offering a 50% discount on bets. The company is focused on high-rollers who are typically more likely to spend a lot of money on sports. Its goal is to attract these individuals by offering significant savings on the vig.
Expansive Access to Services
One of the most important factors that a company must consider when it comes to establishing its operations is the availability of wide-reaching access to services. Due to the increasing popularity of online betting, the company must have a strong mobile presence. Besides providing a compelling and engaging gaming experience, having a second screen experience is also very important to keep sports fans engaged and entertained.
Behavioral Marketing
Instead of focusing on the pages a customer visits, behavioral marketing focuses on the actions a user takes on a website. This method allows companies to identify their potential customers based on their specific actions. Some of the measures that this type of marketing can perform include the length of time a user spends viewing a particular product ad and the number of times they search for a particular word.
In the sports betting industry, behavioral marketing can be used to acquire new customers in a personalized manner. For instance, in the case of Chalkline, the company has been able to analyze the various passion points of its users to identify which ones they are most likely to engage with.
Through this method, the company can then use the collected information to send personalized messages to its potential customers. This type of marketing is ideal for the customer's expectations since it allows companies to identify their ideal customers based on their actions.
Get A Pay Per Head Software For Your Sportsbook
Over 20 years of experience providing bookie sites with versatile PPH bookmaking software has allowed Ace Per Head to integrate many features that are most important to bettors and bookie agents alike. Ace Per Head's packages start at $10 per head, which is flexible depending on the bookie's choice of features. Additionally, Ace Per Head offers an unprecedented six weeks free for bookies to test the software for themselves before making a decision.
Bookie operators can reduce costs by making a package deal with Ace Per Head, which allows them to get more for their money. Besides the various perks of participating in a PPH service, the package also includes other services that are typically much more expensive for agents.
Looking for sportsbook business ? One of the most important factors that an aspiring agent should consider when establishing their business model is the cost of doing business. With a pay per head service, an aspiring agent can start saving money while still providing their customers with the best possible service. Ace Per Head also offers six weeks free to its customers to see if they are satisfied with the PPH software.
For more information on their suite of services, contact them through chat and call.
About The Author
The author is an experienced sportsbook consultant. Having provided operations and market trends analysis services over the past 15 years to some of the biggest betting sites in the world, he has been associated with Ace Per Head for five years.
