Awaken Casino Revenue through Market Diversification

From a marketing perspective, the 2018 National Indian Gaming Association (NIGA) Convention held in Las Vegas this past April provided great insight into an industry that is agile and quickly adapting to new technology.

The complexity that seems to be inherent in many aspects of gaming operations is now pervasive at all levels of marketing as new digital technologies become more precise and more available. Indeed analytics and the promise of increased player knowledge through big data were core topics at most marketing sessions and generated both optimism as well as a measure of concern among session attendees.

The use of big data, loyalty programs and calculated reinvestment, with their great potential to court members, were a prime focus for presenters. And on-premise hyper-targeting showed an amazing glimpse into the future of marketing for casino resorts.

However, as the day’s presentation went on, one question kept coming up from attendees. “How do I grow market share in a market that I’ve already tapped out?” This is to say, we’ve tried everything and we’re still looking for new ways to increase membership and revenue. 

Surely, there are many routes to this solution. Here‘s one that may not be as high tech but has its own measure of complexity – market diversification. In this case, diversifying marketing programs to reach Hispanic consumers who are not currently gaming at your casino or enjoying your resort amenities.

For many marketing teams representing casinos outside of the Southwest and Western U.S., the idea of creating Spanish-language campaigns may seem unnecessary. However, population trends have shown rapid and significant Hispanic growth in traditionally non-Hispanic population centers in states such as Georgia, Minnesota, Kansas and the Carolinas. While population growth is important, it’s the potential economic impact of the Hispanic consumer that should raise eyebrows. This means that advertisers in these regions must quickly gear up and understand how to reach these groups with messaging that is accurate, compelling and culturally insightful.

In most industries, from consumer packaged goods to healthcare, marketing to Hispanics is no longer recommended, it is absolutely necessary. According to a 2018 Nielsen report, Hispanic consumers are key drivers for growth across a vast majority of industries in the U.S. In fact, the 57 million Hispanics in the U.S. (the vast majority of whom are of Mexican origin) exert tremendous buying power, which is expected to reach $1.8 trillion in the next three years. This data is widely publicized, but there is more to this than population growth and spending. There is also a cultural revolution taking shape. 

Hispanic influence in entertainment hit new highs in 2017, as Hispanics from diverse backgrounds representing the film, music and television industries demonstrated impressive influence and dominance. And these figures are more than singers, actors and entertainers… they are media strategists, business leaders, producers and directors.

So why are these facts so important to the gaming industry? It would seem that the answer to the market growth dilemma is already living in your very neighborhood. They are the multigenerational Hispanic family… with an emphasis on the word “family”.

When it comes to entertainment, such as restaurant visits, movies and leisure travel, Hispanics generally prefer to share these experiences as a family, or at least as a group. This holds true for everything from vacation cruises to a trip to the local steakhouse. This cultural insight can be incredibly important economically if your casino offers resort amenities and restaurants. 

According to a recent report by Univision, Hispanics are driving restaurant traffic and dollars spent per visit in quick serve and casual dining settings nationally. What’s more, Spanish-dominant Hispanics also showed higher than average eater checks overall.

Although gaming has traditionally been marketed as entertainment for adults, the case for courting multigenerational Hispanic families grows exponentially when you consider that Hispanic Millennials, who represent the fastest growing part of this segment, are early adopters of and over-index in technology and video gaming. This characteristic is incredibly important when one considers the challenges of filling the void of diminishing players across the entire industry. This was evident at NIGA 2018 as a number of companies presented their crossover video game-style innovations at the expo center.

So as to not paint an overly optimistic portrait of the promising economic potential of this demographic, marketing to this group is not without its challenges and is precisely why a more intensive understanding of the culture is warranted. Hispanics are known to be reluctant to participating in programs that require sign-up, or in this case, player membership. This has been well established and recognized as a barrier to inclusion in the healthcare and insurance industries. These are deeply rooted attitudes that may be grounded in the idea of exclusivity and privacy (i.e., identity sharing).

This cultural perspective could present a particular challenge for casino marketing programs that hinge on data gathering and tracking through Player’s Club memberships. This may also make casino marketers reconsider the idea of marketing the benefits of Player’s Club membership to this group altogether. But this isn’t to say that targeting this audience is a lost cause, the magnitude of their buying power is enough to warrant a deeper and more meaningful engagement strategy to court this demo.

Many casinos have already started down the path to marketing to Hispanics and are making inroads by developing bilingual advertising, booking Hispanic entertainers and diversifying food and beverage offerings to appeal to Hispanic preferences. But much more can be done to attract the lucrative Hispanic consumer, make them feel welcomed and appeal to their innate sense of brand loyalty to generate return visits.

Perhaps the most important recommendation for casino resorts is to sell the total family experience. Hispanics are attracted to family entertainment and marketing teams that develop strategies that appeal to this characteristic will have taken a big first step. This means positioning the franchise as having something to offer for every member of the family. A perfect scenario would include gaming for adults, organized and monitored activities for younger children, networked video games for Millennials as well as entertainment for grandparents. While many casino resorts have many of these offerings already in place, the key to driving adoption among this demo is in how they are marketed.

Translated campaigns that are essentially mirror campaigns designed for the general market will more than likely miss the mark. This is extremely important to understand before spending valuable advertising budgets. Therefore, it is highly advisable to work with a specialist team that uses cultural intelligence to design messaging that will awaken brand affinity before the target ever reaches the front door.

This goes far beyond selling the same amenities, using the same creative with a translated voiceover. Transcreation, the practice of using cultural insights to develop unique messages that appeal to the heart and soul of the Hispanic consumer in a way that is meaningful and relevant is absolutely essential.

The data and the impact of the Hispanic consumer are undeniably substantial and it is time for advertisers who have never ventured into this realm to break down administrative barriers, extend an invitation and start a new relationship.