Maximising digital for lotteries Richard Bateson Commercial Director February 2015.

Maximising digital for lotteries

Richard BatesonCommercial Director

February 2015

2Camelot Global Services Limited©

Confidential and Proprietary - Commercial in Confidence

• Understanding the opportunity

• How to maximise the opportunity

• Focusing on consumer demand as well as fulfilment

• Top five tips for successfully managing player lifecycle

Agenda



Understanding the opportunity



Unprecedented uptake in mobile



Gartner, 2014

Unprecedented uptake in Smartphones…



Morgan Stanley Mobile Internet Report

Mobile is where it is going…



• More people have mobiles in the world, than have toothbrushes

• There are FIVE times as many mobiles in the world as there are PCs

• 90% of text messages are read within THREE MINUTES of being

received and 70% of mobile searches lead to action, within ONE hour

• Time spent on mobile apps is dominated by gaming and social

networks

• Mobile internet access in 2014 exceeded PC internet

• Almost 50% of tablet owners use the device while watching TV on a

DAILY basis

• Three quarters of people will leave a mobile website if it doesn’t load

within 5 seconds

And even quirkier…



Marketing opportunities are endless…

• Marketing benefits are almost endless… digital

allows us to know and target our players like

never before



•Falling net revenue returns

•Declining participation

The Lottery Industry….






• Lotteries are well-suited to digital. Players often don’t play due to

convenience and CNBB factors!

• Lotteries are mass-market. Digital is mass-market and mobile is driving

this more and more

• Lottery markets are typically mature. A new approach is required to

unlock younger players. Digital offers an answer to unlocking a new

audience

• Established digital and mobile lottery channels have proved successful

in markets where it is allowed to operate properly

• Adjacent industries have gathered significant value through mobile




How to maximise the opportunity



3 guiding principles for maximising the opportunity

1. Change to a retailer mind-set with your digital activities

2. Management of the Player lifecycle

3. Adoption of digital tech processes, tools & people

How to maximise the opportunity

Camelot Global Services Limited© Confidential and Proprietary - Commercial in Confidence

1) Change of mind-set to that of a retailer

Actively drive digital connections

Flexible technology solutions

Test & learn - improve

One-to-One Player interaction

Anytime, Anywhere access

Optimize POE media

Requires channel agnostic perspective, investing in accessibility and convenience

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=rpgkXGsixCwkyM&tbnid=cR8gN0C7q2S79M:&ved=0CAUQjRw&url=http://palamas.info/the-parish-in-transition/&ei=sTyCUrSWIeaW0AWo9ICADQ&bvm=bv.56146854,d.d2k&psig=AFQjCNEwFeFJOrgmw4_hZ4ZwTVMq78LO1A&ust=1384353324980097

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ErayeUf3-BYeLM&tbnid=Rpdkvb9tSPPUtM:&ved=0CAUQjRw&url=http://www.carkoon.com/blog/nhtsa-introduces-new-crash-test-dummy-child-safety-seat-evaluation&ei=zj2CUpvqDIWY0AWjkYD4Bg&bvm=bv.56146854,d.d2k&psig=AFQjCNHPYrjd8YCVTcrthOmX_1wsEnEoCw&ust=1384353590694862

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=uoMjn7U_j2aiRM&tbnid=oEmDqwd-sGWV-M:&ved=0CAUQjRw&url=http://www.maurilioamorim.com/2013/01/how-to-form-a-great-partnership/&ei=-D2CUuLlCvDY0QXz64DIDA&bvm=bv.56146854,d.d2k&psig=AFQjCNHXoKnqooAvhm-QLD28DhQGAlJ6hA&ust=1384353645976226

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=twk7VmHTq8JHTM&tbnid=MZOvnEjGkuZFLM:&ved=0CAUQjRw&url=http://www.stickeruk.co.uk/uk-union-jack-flag-map-design-4122-p.asp&ei=hz6CUpyrPMis0QXZs4CQBw&bvm=bv.56146854,d.d2k&psig=AFQjCNGGHRJ1RpplptK0tTS5wwEmOUE1rA&ust=1384353782912982

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=BRSilcJj6JuMeM&tbnid=P8HrCWyABb-89M:&ved=0CAUQjRw&url=http://toandwith.com/understanding-the-media-mix-lessons-from-personal-finance/&ei=5LKDUpzuOsbO0QXRxYGgDQ&bvm=bv.56343320,d.d2k&psig=AFQjCNElQJZjf1gy2nt42CrqjfDl0NJvMw&ust=1384449096530478


2) Management of the Player life-cycle

• Display ads • SEO / PPC• Email• Affiliates• Partnerships• Social /Viral• Response/ROI

Analysis

ATTRACT

• Email• Search• Promotions• Usability• Merchandisin

g• Player

Support• Response/ROI

Analysis

CONVERTRETAIN

GROW• Targeted

Communication

• Personalisation

• Community• Loyalty• Campaign

Management• Site

Performance• Trigger

campaigns• Segmentation

• Data Analytics• Web Analytics• Predictive

Modelling• Campaign

Management• Response/ROI

Analysis• Usability

Invest and focus on player life-cycle management… need to focus on targeting the right players and their LTV


3) Adoption of digital tech, processes, tools and peopleKey to achieving the first two objectives is having the right enablers: Processes / Tools / People (The Enablers)

Analytics Campaign Management

Personalisation/Relevance

Building a forensic understanding of the player

Operational insight

Digital channels should enable quicker reaction to player insights

The Challenge lies in making these insights actionable

Challenges of technical legacy

• Understanding play motivations and sustaining regular play

• Game awareness and perceptions• Optimal win experiences• Individual games evaluation

and optimisation• Identifying and assessing the

real competitive set

Multi-channel Media ROI



Case study UK:New iLottery platform



In 2014 Camelot launched its own iLottery platform in the UK… why?

The old platform could not provide the technical agility needed to under-pin future growth plans

• Limited ability to optimise site engagement and path to purchase

• No adequate mobile capability

• Often the longest lead time in game development and commercial planning

• Dependent on vendor roadmap, rather than of lottery operator requirements/future needs

• 2 or 3 releases a year, requiring the business to work in waterfall methodology

• Difficult to integrate with third party tools and systems

• Expensive to run and test

Requirement from the sales and marketing team to develop a platform with a world class player experience (in-line with wider e-commerce market), whilst reducing costs, protecting players and maintaining highest levels of integrity.



What did the new UK platform offer the lottery that the old platform could not.

• An open, service-orientated web platform

• Designed and built using latest methods and technologies

• Approach allows re-use of components and infrastructure where necessary

• Web services platform can be integrated with any host lottery system; designed to be multi-language, multi-currency and multi-jurisdictional

• Responsive web application allows easy access across mobile, tablet and desktop

• Supports both draw-based and instant games

New platform went live in September 2014 with 6 million live player records and a new PC, mobile and tablet rendered iLottery channel.



What have the results been in the UK?

• Sales - Digital sales are currently tracking 12% up year on year

• Total digital sales were up 13% in December 2014 v December 2013

• New registrations for the year is currently at 995,000 – up 21% year on year

• DBGs were up 6.5% in December 2014 v December 2013

• IWG sales have set new records since the new website went live - recently recorded £7.6M in a week

• Total IWG sales are up an average £1.4M (56% ) per week since launch

• Mobile - Mobile sales are up 68% year on year and Mobile (smartphone only)

• Now accounts for 20% of all digital sales

• The range of 17 new MIWGs has seen IWG penetration of interactive players rise from 17% pre iLottery to 25% post iLottery

• 29% of MIWG players are completely new to the category

Sales at record levels for both PC and mobile…



Focusing on consumer demand as well as fulfilment



• Having the best digital offering is nothing if you don’t have a

reason to use the channel

• Lotteries drive footfall and engagement from their core ‘a

chance to dream offering’

• The task for the next generation of lottery games is to create

new content that pushes entertainment and taps into new need

states…

• The indirect competition is ‘gentrifying’ our brand!

Focusing on consumer demand as well as fulfilment


Lotteries have the toolkit today…


Lottery in the future… need to better map and align propositions against player needs


Instant Win Games are important – for cross sell and player value and are likely to evolve into the Next Gen Lottery game.

In the UK 29% of players of MIWG are new to the category



Top five tips for successfully managing player lifecycle



1. Get the basic right

2. Get close to your data

3. Build the right segmentation

4. Mobile at the heart of your strategy

5. Test and learn

Top five tips for successfully managing player lifecycle



1. Get the basic right

• Don’t get distracted by the latest fads – you must have the

basics in place first before you start on the cutting edge stuff

2. Data

• Get close to your data. Big data & advanced analytics MUST

DRIVE business decisions. You must have access to your data

3. Segment your player base

• Target your activities around your player understanding and

serve the right activities (promotions, comms etc.) against

proven player insights

Top five tips:



3. Segment

• It’s crucial to focus efforts to build the right segmentation up front

• It should become the framework for the player lifecycle strategy

• Each life stage should address player mind/need state and

objectives

• Look after the most valuable players – work out where you will

get bang for $, ie what is better 10% new player uplift v 2%

spend increase on active players

Top five tips:



4. Mobile

• The future for lottery. In the UK 60% of traffic online comes

through mobile. A responsive site is a must, and investment is

required to get it right

5. Test and Learn

• The environment must encourage this culture – do 100 things

1% better, even if it means the odd failure on the way

Top five tips:



In conclusion



• Mobile and iLottery is here and it is only going to get bigger

• All lotteries must start to focus on iLottery and adopt a retail mind-set

• Focus on targeting the right players and LTV

• You must have the right:

• Processes

• Tools (technology enablers)

• People

• Focus on the basics and get the foundations right, focus on your data

and player targeting. Have a platform that allows for mobile and T&L

In conclusion

Maximising digital for lotteries Richard Bateson Commercial Director February 2015.

Documents

proprietary commercial

mobile slide

confidence lotteries

mobile understanding

mobile apps

mobile website

mobile searches

mobile lottery channels