Optimove iGaming Pulse - September 2019
While headline KPIs for sports remained broadly stable on the prior month, September saw a 14% (YoY) fall in average monthly revenue per player, ostensibly due to bonuses being increased over the year, according to the latest data from Optimove’s iGaming Pulse
As summer and vacations come to an end, September finds the industry gradually inevitably easing itself back into its year-round routine.
The upside is the European football leagues have now kicked off, and we are now into the second calendar month of action which began in August.
The Champions League has also reached the group stage, generating more interest for bettors and fans.
In September, the average single deposit amount remained steady at €28 with the number of monthly deposits per player holding at 8.2, equating to an average deposit generated per player over the period of approximately €230 (€28 x 8.2).
Another similarity between August and September can be observed in the retention rate KPI which remained steady at 70%.
The new player retention rate increased from 42% to 46% (a 10% increase month over month), probably an effect of the similarity between September and August in terms of sporting events coverage (European football leagues, Champions League and even US Open Tennis), all of which began in August and continued through September.
It’s interesting to see that for countries with teams that unexpectedly qualified for the Champions League group stages, like Red Bull Salzburg from Austria, have a higher overall retention rate than others as well as experiencing the aforementioned increase in the new retention rate.
What’s also interesting to see is that although the monetary values remained broadly similar, the profit margin increased by 1%. This can be explained the fact that this is affected by match results, tending to increase with a run of unexpected outcomes.
Turning to year-on-year (YoY) activity, following two relatively balanced consecutive months, average deposit amount decreased by 13% and monthly deposits per player increased by 9%.
In straight math, the total monthly deposit amount per player adds up to -4% YoY. However, we can see a decrease of 14% YoY in average monthly revenue per player.
Since the margin KPI remains more or less stable, this could be the result of bonuses and other special offers being increased over the year, as net revenue is the gross gaming revenue minus bonus costs.
In casino, we can see an 8% YoY decrease in average deposit amount per player, and another steady hold month-over-month (MoM).
Monthly number of deposits increased by 5% YoY and decreased marginally by 1% MoM.
The casino retention rate showed an upward trend of 2% YoY, while the new retention rate increased 6% YoY and 9% MoM. The conversion rate increased 28% YoY and 3% MoM (see below).
KPI close-up: Pareto Principle
The Pareto Principle, also known as the 80/20 rule, is a concept originally developed by Italian economist and social scientist Vilfredo Federico Damaso Pareto and used describe an imbalance in input and outcome in which 20% of the customers create 80% of the profits.
According to legend, Pareto thought of the idea after observing that 20% of the pea plants in his garden yielded 80% of the crops.
The Pareto Principle doesn’t have to be an exact 80/20 ratio, but the discrepancy between resources invested and results generated is used as a KPI in gaming to illustrate what percentage of players/bettors generate most of the revenue.
Omer Liss is Optimove's director of strateic services, helping leading marketers optimise their customer retention strategy. As a marketing data scientist, Omer has vast experience consulting clients, analysing their customer data and revealing actionable, data-driven marketing insights. Omer holds a BSc in Industrial Engineering and Management, specialising in Information Systems.
About iGaming Pulse:
iGaming Pulse is an industry benchmark tool for the gaming sector. iGaming Pulse enables gaming operators to accurately assess their overall performance against industry-wide key performance indicators.
Its figures are updated on a monthly basis. It enables gaming operators to gain a clearer understanding of how their KPIs compare against the rest of the industry, broken down by geography and game type. This type of data, which is made publicly available for the first time, provides operators with the ability to conduct comparative analysis and derive insight into how their performance compares with industry averages.
iGaming Pulse comprises of data collected from over 200 online casinos and sports betting companies, including industry giants and boutique operators, providing an accurate, statistically significant sample of the industry. Access to this information is vital for operators that are limited to only their own data. Optimove’s iGaming Pulse is now fully accessible, ensuring operators will have a clearer overview of how they compare to the industry.