Of all the buzzwords creating a stir in the gambling industry, personalisation is both one of the most prevalent and the hardest to define. From targeted advertising to personalised betting offers, the term has been used as a catch-all for new trends and technologies aimed at solving the industry’s persistent issues: reducing churn, enhancing the customer experience, and making sense of the avalanche of online data.
For those who have navigated the realms of artificial intelligence (AI) and personalisation long before the current hype, the personalisation of betting and gaming products is a natural next step. “We look at this as the next step in the gaming and media industry,” says Chris Reynolds, CEO and co-founder of Epoxy, a provider of AI and machine learning (ML)-driven personalisation solutions in the betting and igaming sector.
“Whether it’s TV, music, or ecommerce, the application of advanced technology to generate greater insights into user behaviour, streamline workflows, and derive key metrics like customer lifetime value – these technologies have been employed for a long time,” Reynolds adds.
To further highlight, evidence from a 2023 study by Betting Hero showed that 80% of bettors rated personalised offers and bets as “valuable” or “very valuable.” Moreover, 75% found non-personalised apps cumbersome to navigate. Despite this, industry adoption remains slow, hindered by technical and organisational challenges.
“I think it is an issue of prioritisation, organisational structure, and technical expertise,” opines Epoxy co-founder Jason Angelides. “The industry recognises the value proposition, but large-scale implementation is challenging, and many existing priorities take precedence.” He also emphasizes the deeply entrenched systems, such as the siloing of sportsbooks and casinos, that need to be rethought. “A large majority of organisations are fragmented both operationally and technically,” he adds.
Identifying where AI and personalisation can add the most value starts at the very first stage of the customer journey and can impact everything from retention to harm reduction. Alex Kornilov, founder and CEO of advertising solutions supplier Betegy, believes AI can shift the “see what sticks” mentality prevalent in gaming marketing. His background in data and visualisation revealed that personalised, dynamic advertising resulted in significantly higher engagement than static, generic ads.
Betegy’s data-driven solution customises advertisements to individual player preferences, from their favourite sports to the teams they follow, and tracks the outcomes over time. Kornilov underscores that such deep segmentation is only possible through AI, noting its critical role in the multifaceted world of sports betting.
As brands adopt AI, they can achieve a more detailed understanding of their marketing effectiveness. The old maxim, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half,” may begin to lose its relevance. Kornilov points out the dire need for effective customer acquisition strategies, which has become increasingly apparent following last year’s acquisition crisis in the US market, where the cost of acquiring a player vastly outpaced their lifetime value.
Beyond customer acquisition, the challenge of retaining customers and increasing their lifetime value is paramount. AI-driven personalisation can play a crucial role, according to Epoxy’s Chris Reynolds. Through their insights tool, Epoxy segments customers based on variables like bet preferences, risk tolerance, and VIP potential.
. This data enhances client experiences, boosts retention, and reduces churn.
Epoxy’s innovative approach, dubbed ‘Betflix,’ crafts personalised betting and gaming interfaces, mirroring the tailored experiences offered by popular streaming and ecommerce platforms. Such an approach could significantly improve user engagement and reduce churn, as evidenced by a Betting Hero study where 21% of New York bettors cited the ease of placing favourite bets as their main reason for app loyalty.
Personalisation also alleviates the phenomenon of choice overload, where users become overwhelmed by too many options. By relegating irrelevant sports and offering personalised recommendations, the customer’s journey is simplified, guiding them to the bets they are most likely to place.
While generative AI tools like ChatGPT have garnered much media attention, experts argue that predictive analytics hold greater potential in the gambling industry. With extensive data on user preferences and behaviour, operators can predict future actions, from marketing effectiveness to betting habits. This technology is already used in sports to monitor player health and performance, predicting injuries and declines.
For the gambling industry, predictive analytics can preempt player churn, allowing CRM teams time to re-engage the customer meaningfully. It is a complex task unmanageable by humans, requiring advanced tools, big data analytics, and AI.
AI and personalisation also offer innovative solutions for reducing gambling-related harm. Mindway’s GameScanner leverages AI and neuroscience to spot potential problem gamblers early, enabling personalised interventions. According to Gaming Laboratories International, GameScanner has a high reliability rate, classifying 88.5% of identified players correctly.
Rasmus Kjaergaard of Mindway highlights the next step: using sophisticated tech to empower operators to take more effective action against problematic gambling behaviours.
Although AI and personalisation hold immense promise, the gambling industry is still at the beginning of this transformative journey. Justin Le Brocque of Yolo Group acknowledges the necessity of personalisation but identifies manual implementation as still often more effective. However, he notes rapid technological advancements and Yolo’s active integration of AI technologies.
Looking ahead, experts foresee AI-driven personalisation revolutionising live betting and multimedia experiences, with products like BetVision from Genius Sports paving the way. By leveraging live data, operators can create compelling stories around sports events, enhancing fan engagement.
As we move forward, it’s anticipated that AI will become integral to the gambling industry, breaking down silos and converging media and sports betting into a unified experience. AI is not just a competitive edge but a strategic imperative, urging operators to embrace these advanced solutions swiftly to stay ahead in the rapidly evolving market landscape.
