A lot of money can be made in the online casino industry. In fact, it is a $30 billion industry which is set to increase to $40 billion by the year 2015. But the problem that most online casinos experience is the high cost of getting new players to play, which is around $200 per customer.
Although it is way less expensive to get free social media casino and poker players to play (about $1 or $2), since real money is not wagered in these free online casino games, less revenue for the industry is generated (about $1.6 billion in 2012). Therefore the most logical business solution is to try to convert free social media casino players into real-money online gamblers. This would indeed help online casinos further boost their revenue.
Some pioneers have tried to seize this opportunity; however they have fallen short. Why? Because the characteristics and motivations of social media casino players are different to those of real-money online gamblers.
Social media casino players Vs Real-money online gamblers
Turning social media casino players into real-money online gamblers may be difficult and not the smartest business idea. Social media players value the low-cost entertainment that is provided by these free online casino games, while real-money online players enjoy the sensation of upping the stakes with real money.
The demographic factors of social media casino players are also very different to those of real-money online players. Social media players are essentially just like social gamers, with the majority of them being women that are 40 years and older. This demographic doesn’t fit the usual profile of the average online gambler. Social media players may also be restricted in terms of their geographic region and local restrictions and regulations, thereby further restricting them to enter the world of online gambling.
Most of the apps that social media players enjoy are free slot machine and poker games. Unlike real-world slot machine games, these freemium online casino games provide the players with a stress-free playing experience as real money is not gambled. This fulfills the players’ needs of being entertained at a relatively low cost. On the other hand, real-money online gamblers enjoy the stress of increasing the stakes and would rather play to win real money than waste their time on freemium casino games that don’t earn them anything.
Consider a different approach when incorporating social media casino and poker games into the casino business…
While it is true that social media casino and poker games bring in significantly less revenue to the casino business, it might still be a worthwhile investment to consider in the industry. It may be a good idea to maintain a presence and incorporate social media casino and poker games into an online casino company as it may help with brand recognition and customer retention. This also gives players a choice of entertainment options which allows customers to engage further with your brand, whether they play online real-money games, or free social media casino and poker games.
So, the take home message is not to see social media casino and poker games as a limited source of revenue. Instead, incorporate it into your casino business to further build your brand profile and retain your customers.
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