Betting on New Customers: Are Returning Users Damaging Sportsbooks’ CAC Strategies?

October 31, 2023
Posted by
TrafficGuard

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In the fast-paced, highly competitive world of sports betting, operators have to ensure they’re maximising Return-On-Investment (ROI) in their digital marketing campaigns. The challenge is to target new customers and not waste budget on returning users that they’ve already engaged.

Campaign spend within sports betting should be laser-focused on driving customer acquisition and making every click count, but with existing users inadvertently driving up Customer Acquisition Costs (CAC), this is becoming a huge challenge. Predictions from Statista suggest that the online gambling market will consist of over 233.7 million users by 2027. This makes it imperative to protect against existing customers from draining budget and free up budget for new customers

If a sportsbook doesn’t have visibility into the traffic it’s generating through its ads, it could be losing millions to users who are already engaged and using its site. Returning users need to be managed to ensure sportsbooks can make the most of their budgets and gain new converting customers.

Returning Users and ROI  

What percentage of your digital marketing budget is engaging returning users through your ad as an entry point? The chances are this number is very high. We recently saw a company where 97% of their spending on branded keywords was linked to clicks from existing customers which drained their budget and meant they saw close to no new conversions.

Repeat clickers and returning customers, who navigate to your site using ads, rather than organic search results, are driving up the cost of genuine new clicks from first-time depositors. Although these are enthusiastic and engaged customers, they are clicking on your ads excessively and driving up your CAC and Cost Per Acquisition (CPA). This ultimately dilutes your campaign’s effectiveness and wastes spend on engagement that will never convert.

The Secret to Success with Custom Validation Rules and Shadow Campaigns

To drive the performance of sports betting advertising efforts, companies can set custom validation rules that limit the number of times a user clicks on a paid ads campaign. Once that threshold of clicks is met, the users are stopped from seeing that campaign for a set period of time, helping to eliminate the high CPC rates sportsbooks experience.

This effectively means that once the threshold is reached the user is precluded from seeing ads and will only see the brand’s organic listing on the Search Engine Results Page (SERP). Alternatively, by implementing shadow campaigns, an operator can create a duplicate of the existing brand keyword campaign in Google ads just for these returning users who are precluded from the original brand keyword campaign. So, rather than being shown the organic listing these users will see a paid search ad on the SERP but at a lower cost to the advertiser.

Shadow campaigns are a powerful tool that allow advertisers to take appropriate actions to protect their brand, optimise their marketing efforts, and ensure compliance with marketing strategies. By using custom verification rules and shadow campaigns, budgets are saved for genuine users who are more likely to convert resulting in maximised ROI.

Transforming and Optimising Campaigns

No sportsbook wants returning users burning their marketing budgets. In a market that is growing ever more competitive, it is vital that advertising traffic is controlled for businesses to capture more ROI across campaigns. By implementing shadow campaigns, sportsbooks will uncover a new level of visibility to minimise CAC and maximise new customer engagement.

It’s time to unlock unparalleled success, optimise your PPC campaigns to their fullest potential and transform your Google Advertising strategy.

Richard Metcalf is the Global VP, Sports Betting & Online Gaming, at TrafficGuard, an international platform provider for detecting, mitigating and reporting on digital ad fraud. With over twenty years of experience in Sales and Business Development in the digital industry, Richard strives to achieve the highest level of results for the team. He has represented brands as their public face, managed entire sales cycle processes and delivered solutions to stakeholders to ensure business growth and develop the teams around him.

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