The advertising and marketing budget of Germany’s gambling companies has increased three times over the past 5 years. This was recently revealed by Research Tools, a market research company.
It highlighted that this expenditure mainly came down to promotions of casino websites, including the best German online casinos of 2019, by their operators. The study made its conclusions from digital records maintained by AdVision, an independent media observer. AdVision discovered that the German gambling operators had spent € 401 million on these ads in the fiscal year ending May 31
Heavy investments in online casino segment
Talking about the annual increase, the online casino segment increased its’ marketing and advertising budget by over € 70 million. Research Tools also made an observation that sports betting contributed close to 20% of the total ad volume over the year. In addition, this particular segment was growing from a far lower base compared to online casinos. The ad spend of the German state lottery companies was also found to be comparatively lower than the private operators. Close to 10% was contributed by the televised lottery draws, to the entire ad spend. Class lotteries involving draws made over different game phases, contributed less than 5% of the entire volume.
TV continues to enjoy the number one spot
On an average, 64 different brands promote their gambling offers each month, a significant increase from 47 last year. In fact, 12 out of those 64 operators spent in excess of € 10 million, with 5 of them contributing almost half of the entire ad spend. Wunderino, Malta-based operator and Unibet of Kindred Group are two brands that significantly increased their ad spend over the last year. The recently launched BildungsChancen Lotterie, looking to raise funds for education purposes, also invested majorly.
Television continued to be the primary advertising medium, by quite a big margin. To put things into perspective, television ad spend was close to 80% of the entire spend. These ads were focused on excitement and fun surrounding online gambling, giving the players a chance to win big. Sports books took help of sports legends like Diego Maradona, Oliver Kahn etc. to promote their offers.
Arrival of a new treaty next year
The Research Tools study factored in ads placed in 190 special journals, 500 consumer magazines, 65 daily newspapers, 45 TV channels, 71 radio channels and 500 webpages.
While new countries are liberalising their online gambling and betting laws, 16 federal states of Germany recently ratified the Third State Treaty on Gambling. This treaty which will be operational from January 1, 2020 to June 30, 2021, allows for operators to apply for sports betting licenses, and will ban in-play betting and online casinos. In addition, a 5% turnover tax will be imposed on operators and there will be a € 1000 monthly limit for the players.
Hesse state’s Regional Council of Darmstadt, which is responsible for issuance of sports book licenses, has made it mandatory for operators to shut down all casino offers, in order to receive sports betting licenses. Niedersachen has also put payment blocking measures into place. On the other hand, PayPal has altered its terms and conditions to ensure that no payments are processed for the unlicensed casino portals in Germany.