Key Strategies for Early Profitability in Market Expansion

Setting the Stage for Success

Entering a new market or launching a new iGaming or betting brand presents a maze of challenges and opportunities. Drawing from my rich experience of market expansions, I aim to demystify the process, guiding you through the initial crucial steps of setting up tracking and KPI alignment, alongside selecting the most effective marketing channels for a robust start.

Crafting Agile Marketing Frameworks

In the whirlwind pace of our industry, yesterday’s successes hardly predict tomorrow’s victories. An agile marketing strategy is paramount, allowing for swift adaptations and explorations. Whether you’re managing campaigns in-house, outsourcing to agencies, or employing a hybrid model, the agility to pivot is your ally.

Building Your Tracking Infrastructure

The cornerstone of any marketing strategy is a well-oiled tracking system. Proper tagging, consistent tracking rules, and campaign naming conventions lay the groundwork for insightful data analysis. Ensuring seamless data flow into your Data Warehouse and setting clear KPIs for each funnel stage are your first orders of business.

Synchronizing Goals Across the Board

Alignment between departments and with senior management on KPIs and targets is non-negotiable. This alignment eliminates confusion and streamlines efforts towards common objectives. It’s a critical step that should precede any marketing expenditure.

Choosing Your Battleground: Marketing Channels

The dilemma of selecting the right marketing channels often pits “branding” CMOs against “performance marketing” CMOs. With a focus on profitability and given the constraints of a limited budget, the key is to gather an initial player base rapidly to glean insights on player value and optimize CPA targets.

The Pitfalls of Overdiversification

The urge to diversify across multiple channels, driven by a fear of dependency on giants like Google and Meta, often leads to diluted efforts and squandered budgets. A focused approach, prioritizing channels with proven bottom-line contributions, is essential for controlled growth and cost efficiency.

A Case Study in Focused Optimization

A client faced with skyrocketing CPAs and stagnant growth serves as a testament to the power of focused channel optimization. By pausing underperforming channels and doubling down on Google, Meta, and affiliates, we saw a dramatic reduction in Cost per First Time Deposit (FTD) and a subsequent rise in acquisitions.

Expanding Horizons with Strategic Investments

Once a solid understanding of player value was established, we cautiously ventured back into prospecting channels, armed with incrementality tests to gauge their true value. This strategic expansion not only boosted acquisitions but halved overall CPA—a testament to the efficacy of methodical, data-driven marketing.

Conclusion: A Blueprint for Measured Expansion

The golden rule for entering new markets is clear: measure everything. Activities that can’t be evaluated through last-click attribution or incrementality tests should be sidelined. In subsequent discussions, I’ll delve deeper into optimizing each marketing channel for scalable, profitable growth, drawing on the strategic and tactical lessons learned from years of navigating the complexities of market expansion.