As competition heats up in regulated markets the old CPA model used by marketers is outdated. Now a new approach is starting to be used. Cost Per Session could be the most important KPI for 2020.
Sportsbook and Casino Marketing - Cost Per Session KPI for 2020
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Online Sportsbooks and Casinos
Cost Per Session:
The Most Important Marketing KPI in
Betting for 2020
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Let’s face it, the CPA and the Lifetime Commission
model is flawed (across all marketing channels). It
simply doesn’t reflect the reality of how customers
use your site/app.
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The assumption that once a customer deposits the
advertising/acquisition team can wash their hands is
not sustainable anymore.
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As marketers in betting, the game has changed from
fighting your competitors over every new customer to
fighting over every session.
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Don’t believe me? Well, some of the top affiliates are
now pushing revenue per session deals.
(If the affiliates are at it, then you know something is
going down)
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Also, the Tier 1 operators with the best ATL
strategies have known this for years and have been
tracking session traffic through utm parameters and
regression analysis of TV/ATL campaigns.
What delivers repeat traffic
● Social
● PPC
● SEO
● TV
● Print
● Sponsorship
● Affiliates
● Programmatic
● Viral
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In Fairy Tale Land
We got them to deposit so they will bet with us
forever and ever.
Oh, and CRM will send emails. That’s all it takes.
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In The Real World
By default, your customers are going to place their
next bet with your competitors.
What are you going to do about it?
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Outdated
CPA < LTV
2020 Approach
Total Accumulated
Advertising Spend and
Promo Costs < Net
Revenue From All
Sessions
Ultimate Objective of Acquisition Team
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Factors To Consider
Profit/Loss for each session
Event-triggered sessions
Marketing channel and session quality
Promo/incentive costs
VIP tiers and reactivations
Positive ROI (Ad Spend Current Customers - Session Profit)
Re-evaluate performance
CRM costs (You should assign costs for every customer interaction)
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Factors To Consider
Profit/Loss for each session
Event-triggered sessions
Marketing channel and session quality
Promo/incentive costs
VIP tiers and reactivations
Positive ROI (Ad Spend Current Customers - Session Profit)
Re-evaluate performance
CRM costs (You should assign costs for every customer interaction)
Your Marketing
Budget needs to
include all of these.
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So how does this work in Practice?
Session 1
First Deposit -
PPC
Session 2
Direct -
Hold £25
Cost £0
Session 4
Social -
Hold -£100
Cost £12
Session 4
Affiliate
Hold £50
Cost £15
(@ 30%)
Session 4
CRM Email
Hold £20
Cost £5 (promo)
CRM Charge £1
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Practical Implications
1. Custom audience on Social Essential
2. Lifetime Pathway Modeling must be taken seriously
3. Trading and Marketing must work hand in hand
4. CRM and Acquisition goals must be aligned
5. More spending to bring back VIPs
6. Marketing team needs data faster - (Embed Your data team?)
7. Scope for further AI targeting and bidding (will work better on a
transaction level than CPA level)
14. “You can get marketing resources and expertise that
will help you to grow your sports and casino websites.
Simply drop us a line.”
Paddy Casey, Co-Founder, The Unit.
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About The Unit
The Unit is a revenue maximisation and advertising
agency for the betting sector. Everybody who works at
the agency has worked for a sports betting or casino
operator.
We have experts in marketing, UX, design, and
development at your disposal.