Should Operators Have Brand Ambassadors in 2018?

Posted by Harry Kane on Friday, August 24, 2018

Slashing the maximum betting threshold for fixed-odds betting terminals (FOBTs) was thought to represent a watershed moment in the UK gambling industry, particularly in terms of safeguarding vulnerable gamblers and changing the perception of the market.

However, the decision of the government to postpone the implementation of this regulatory change until 2020 has been met with scorn by some, despite the assertion that this will help operators to make a successful transition and potentially save a significant number of jobs.

Even accounting for this transitional period, market leading brands like William Hill have still seen their finances impacted by the introduction of an FOBT cap. In fact, the brands’ latest financial report showed a £915 million accounting charge applied in relation to the cap, while its profitability also declined by 13% when compared with 2017’s figures.

To compensate for this, William Hill has re-evaluated its marketing strategy and appointed sporting icon and World Heavyweight champion Anthony Joshua as its new brand ambassador. But is this a good move, or does it represent an outdated marketing approach in the current climate?

How has William Hill Responded to its Declining Profits?

In some respects, the decision to appoint Joshua as a brand ambassador represents a logical progression for William Hill.

After all, the brand has worked with the former Olympic champion indirectly for more than two years now, thanks to its ongoing relationship with Eddie Hearn’s Matchroom Sport.

As part of a sweeping announcement on August 3rd, William Hill confirmed that they had struck a deal to work with Joshua directly, in a bid to leverage the sportsman’s status as a global icon and significant role model for a younger demographic.

The fruits of this agreement will be evident at Joshua’s upcoming title defence against Russia’s Alexander Povetkin on September 22nd, where William Hill branding will be prominent throughout the venue.

At the same time, Joshua will attend various media events in the guise of his brand new role, while also utilising his huge online and social presence to promote the company among his fanbase.

From a wider perspective, this announcement is one of several that William Hill have made as part of an exciting new marketing drive. To this end, the brand has also confirmed that it will enter into a number of ground-breaking partnerships in the burgeoning U.S. market, which is continuing to grow in size with every new state that legalises virtual gambling.

This shift in approach has undoubtedly been inspired in part by the decision to cap FOBT betting thresholds, while the impact of Brexit is also encouraging operators to seek out lucrative opportunities outside of the EU. The question that remains is whether or not this remains a viable strategy, especially as the use of brand ambassadors has become considerably less popular in recent times.

A Two-pronged Approach – But will it Yield Results?

In truth, William Hill’s new marketing strategy represents a decidedly two-pronged approach, focusing specifically on the use of a brand ambassador in the UK and claiming a larger share of the growing American market.

It’s hard to argue with the latter part of the strategy, particularly following a ruling in May that deemed the Supreme Court ruling the Professional and Amateur Sports Protection Act of 1992 (PASPA) unconstitutional. This has paved the way for states across the U.S. to enter the online gambling market, with Michigan, New York and California all considering bills to legalise virtual gaming in the near-term.

With a base already established in Nevada, it makes sense that William Hill should look to leverage this in regions markets throughout the U.S. This progressive strategy will depend on the brand’s ability to provide risk management and proprietary technology to specific casino operators in the U.S., while it will also enable them to work with both on and offline brands.

This offers immediate access to a market that could be worth up to £17 billion per annum, and in this respect the brand may well blaze a trail for others to follow in the future.

While William Hill’s American outreach may be considered as a progressive marketing move, however, the decision to appoint Anthony Joshua as a brand ambassador is arguably outdated. Although this was once common practice in the virtual gambling world, it has become far less popular over the course of the last two years as the marketplace has continued to evolve.

The PokerStars brand embodies this trend better than most, as it once employed an army of sporting icons as key ambassadors across the globe. This included tennis star Rafael Nadal and the former Brazilian footballer Ronaldo, while Neymar Jr. and Cristiano Ronaldo also worked directly with the brand more recently.

PokerStars have shifted their approach significantly since these halcyon days, as they begin to focus on establishing themselves as a responsible gambling institution that reflects a mature marketplace and the needs of inexperienced players.

In many ways, this completes an evolutionary cycle for the company, who initially strived to target customers by leveraging the appeal of professional poker players as aspirational brand ambassadors. As the novelty appeal of the market waned, PokerStars began to target a wider audience by appointing celebrity brand ambassadors and tapping into their vast and prolific social followings, generating significant online traffic in the process.

This approach has become increasingly ineffective over time, with online poker income having declined by 28% between 2010 and 2016. Given this and the UKGC’s drive to prioritise responsible gaming as one of its strategic objectives through 2021, it’s little wonder that many brands are moving away from celebrity ambassadors and placing greater emphasis on the experience enjoyed by players online.

The Bottom Line

Poker is unique in the online gambling market, of course, in so much that the revenues generated by table games and virtual slots continue to grow at an exponential rate.

Still, it’s hard to escape the idea that celebrity brand ambassadors are increasingly redundant in the modern age, particularly given the depth of the trust issues that exist in the market and the drive to create a tangibly fairer and more transparent gambling experience.

We must also consider the maturity of the marketplace, which is home to an increasingly knowledgeable consumer base. As we saw during the World Cup, online casino operators did not feature among the most engaging brands on social media, and this is largely due to the fact that players now boast greater awareness of the market and are less inclined to interact with companies in the digital space.

Ultimately, the decision of William Hill to appoint Anthony Joshua as a brand ambassador cannot be considered as a negative. Whether it proves to be effective is another issue, of course, and one that will only become apparent over time.