Is the Online Gambling Market Tailored Correctly?
Depending on whom you ask, marketing may be seen as more of an art form than a science. When designing a product or service, companies must ask themselves who their audience is, what would cause their target market to use their brand, and why it is important to know their buying habits? In the world of online gambling, it has long been held that the younger generation, Gen Y or millennials are responsible for the bulk of the gambling transactions.
This is certainly the case with many of the top online casinos that are streamlining their marketing strategy towards mobile customers. However, the numbers show that the biggest purchases are not coming from mobile devices, but rather from laptops and home computers. This has given marketers serious pause for thought, and made them reassess exactly who is spending the most online. Is it the right choice to dedicate all their efforts to a target market that are unlikely to spend a lot, or should companies be focusing their efforts on the older generation who have the money?
For marketing and convenience purposes all of the major age groups have been categorised and lumped together. The older generation are known as the Baby Boomers. These are people who were born between the years of 1946 to 1964. Following them is the Generation X group, which includes anyone born between the years of 1965 and 1984. Millennials or Gen Y includes those born between 1985 and 2002. The youngest generation from 2003 onwards, and those of non-purchasable age are known as Gen Z.
Marketing for Millennials
The three generations that have the purchasing power, namely Gen X, Baby Boomers and Millennials are vastly different in their purchasing habits and financial status. Currently, Millennials make up the bulk of the workforce and are the target audience of most companies. They are, in fact, the first generation to grow up with technology fully integrated into their lives. From a marketing point of view, they are one of the most diverse generations to date.
Millennials are so diverse and hard to pin down that what works for certain groups are shunned by others. Unlike Baby Boomers or Gen X’s, Millennials are not easily swayed by strong marketing campaigns. They are more likely to be influenced by a good review from a friend than any other form of advertising. Once committed to a product though, they can be extremely loyal.
One of the most important factors to consider with millennials is their propensity to splurge only on specific items or experiences. They lead adaptive lifestyles that are not reliable as a major cash market. They are also more likely to recommend a product to others or share their experiences online, which is a great marketing tool.
The Buying Power of Baby Boomers
On the other side of the spectrum, we have the Baby Boomers. While modern companies tend to disregard them as a major target market, they hold up to 70% of the buying power. Television, emails and online search engines influence Baby Boomers. They are fiercely loyal to a particular brand and difficult to sway with trendy tech and social media. Most of their buying is done through online shopping on a home computer or laptop. While the percentage of Baby Boomers involved with online gambling is smaller, they have a much greater percentage of disposable income.
Gearing Towards Gen X
Somewhere in the middle, you have the Gen X’ers. This is a group of people that grew up alongside technology and fully understand it, while still having traditional idea and home values imparted to them by their Baby Boomer parents. The Gen X group bounces between the latest trends and traditional forms of communication. They are now the higher earning market group and one with a firm hold on technology. Gen X’ers know what they want and place a lot of value in function and experience. In terms of online gambling and spending, they are not quite as active online as millennials and not as flush as Baby Boomers.
Dedicating a marketing scheme to the younger generation is a risky play, especially considering you would be losing out on the Baby Boomers who prefer the more traditional forms of technology. These potential cash cows are making the big purchases and should be seen as extremely valuable. It is possible to link them in to the marketing strategy and not alienate the younger generation. On the other hand, focusing on the millennials and Gen X group is a move towards the future.
Baby Boomers will soon fade into the bracket of unemployed or retired, with Gen X becoming the “older generation.” Locking in the Gen X group and Millennials is key to a financially stable future for the online gambling industry. If it means sacrificing a small, if somewhat expensive target market, it could be the most productive way of moving forward.