YouGov: How betting spend is linked to promotional offers

In a custom research study conducted by YouGov for our recent webinar, Stay Ahead of the Game, we made an interesting finding. Bet365, which made a promotional £5 offer for the Champions League Final, logged a significant spike in the number of UK bettors that ended up using the sportsbook compared to the number of bettors who had intended to use the site in the lead up to the game.

While 42% of monthly bettors in Britain had said they planned to use bet365 to place a bet on the Liverpool versus Real Madrid game on 28 May, 50% ended up using the sportsbook. But this uptick was not seen among gamblers who spent over £5, with a lower 40% of bettors saying they eventually used bet365.

This data suggests low-spending bettors are more swayed by promotional offers than high-spending bettors. Indeed, 41% of those wagering £10 or less on the match strongly agreed they waited to see if their existing provider offered a free bet or special offer before placing a bet versus only 29% of those who wagered over £10. To gain a more nuanced view of the topic, we need to dive into the data that explores brand loyalty.

Enticing offers

Our data from Global Gambling Profiles shows that those who spend more on gambling each month (all categories) are more likely to say they ‘look out for special promotions that give away free bets’. Just over a third (37%) of those that spend under £15 on bets monthly say they look out for special promos that offer free bets, compared with 55% of those that spend over £100.

But if those gamblers who spend more on bets each month (excluding those that spend very high amounts, who make up a smaller portion of the overall pie) are more likely to look for free bets, the question remains: what kept higher-spending punters from flocking to bet365’s promotional offer on the Champions League Final? The answer may lie in the fact that those who spend bigger amounts are more likely to only use gambling sites that offer loyalty schemes.

Just under one in five bettors (18%) that spend between £1-£15 on bets each month show a preference for websites that offer loyalty schemes. Of those that spend more than £100 on all bets each month, the proportion of consumers who say they look for websites that offer loyalty schemes rises to 34%.

This could mean that while high-spenders look for free wagers more often than the low-spenders, they are more likely to look for those offers on the websites and sportsbooks that reward them for their loyalty or simply use the free bet without switching their main activity to that provider. Looking again at Champions League Final bettors, almost a quarter (23%) said they placed a bet with more than one provider, but this rises to well over half (58%) for those who wagered over £20 on the match, plus one in five (20%) of this higher-spending group opened a new account specifically for this game. That means sudden promotional offers on a different website might have a less pronounced effect on them.

Attracting the high-spending type of punter might require brands to offer consistent offers that keep them coming back. Our research shows that promotional free wagers can be used more effectively to draw in younger low-spenders and those that weren’t expecting to bet on that specific event, but these customers may end up being less loyal, so there needs to be clarity about lifetime value and the likely payback period. Perhaps, bet365 had one eye on new customer acquisition ahead of what might be an even more competitive environment around this autumn’s FIFA World Cup.

Having worked for YouGov for over a decade, Oliver Rowe has advised companies including Tesco and Barclays on their reputation management. He now brings that experience to a sector which includes the betting and gaming industry in his role as global sector head for leisure and entertainment.