An online makeover has seen bingo reinvent itself to attract a wider audience. Jenni Shuttleworth talks to two key players in the industry about the reasons behind the game's appeal and how its success is likely to continue
A testament to its ongoing popularity, the game of bingo in one form or another has existed for centuries. Bingo as we know it today in the UK has been played for around 50 years, attracting players because of its sociable nature, low-cost stakes, regular prizes and potentially huge jackpots.
“Bingo is ingrained into the UK culture. Since the game was first introduced in central Europe and subsequently into the UK, it has gone from strength to strength. The transition from bingo halls in the 20th century to online bingo in the 21st century has been a major development in UK bingo history,” Neill Whyte, head of bingo at Microgaming, told iNTERGAMINGi. Whyte has been head of bingo for two years and Microgaming launched a stand-alone bingo product in early 2009, during which time the game has evolved even further and continued to attract a more diverse range of player. “Online bingo started soon after the expansion of the internet into people’s homes and is changing the face of bingo as we know it. It is making the game accessible to more and more people who are enjoying it from the comfort of their own homes,” said Whyte.
Bingo software developer Virtue Fusion Alderney was founded as a small operation almost a decade ago at the fledgling stage of online bingo’s development. Now a Playtech company after an acquisition earlier this year, the company has a client list that includes Ladbrokes, William Hill, Bet365, Boylesports, Paddy Power, Mecca, Crown Bingo, Virgin, Sky and Bauer Publishing. Its network accommodates 30,000 players every day and drives total stakes of more than €100m each month. Virtue Fusion CEO Bob McCulloch told iNTERGAMINGi: “There is certainly a broad overlap of players who would have taken part in traditional offline bingo and those who now play on the internet, but the move to online has provided the platform for a wide range of new user groups to enjoy bingo too.”
The bingo industry today has changed beyond recognition and has expanded to become a market that is now worth hundreds of millions of pounds. Whyte told iNTERGAMINGi: “I think quite simply that the appeal of bingo has grown due to the fact that online bingo is so easily accessible with recent advances in technology; in addition to the variety of games and options available to players, suited to all different requirements and playing habits.
“The social interaction is appealing to most players, with the ability to chat when you want, 24 hours a day, all of which makes bingo more appealing to a wider audience. Not forgetting the fact that you can play in the comfort of your own home, the appeal of winning and playing multiple games simultaneously, means that there is something for everyone,” continued Whyte.
This increase in players is observed in terms of the numbers of both white collar professionals and younger people who are now part of the bingo-playing population, but don’t necessarily fit into the stereotype that comes to mind when we think of a bingo player. These new players have been brought in by the ease and convenience of playing when and where they want to. The attraction of being part of an online community is also a major factor to consider when asking why bingo is attracting a wider audience. The popularity of online communities and social networking sites like Facebook is why software developers, including Virtue Fusion, have integrated social networking tools to their bingo offering.
Whyte from Microgaming commented: “With the introduction of online bingo and the opportunities to win big prizes, the demographic of the player has changed and the game is now more appealing to a wider audience. More and more promotions are being offered that target specific types of people and with the significant marketing budgets being used to promote the bingo rooms, online bingo is now mainstream.”
Online, the concentration of bingo’s popularity is in Europe, with the UK showing the highest numbers of players. Historically though bingo has global appeal. “Outside of the UK there are hotspots in mainland Europe such as Italy and Spain, and in Scandinavia,” said McCulloch. “Many new markets are in the process of regulation so, of course, we have our eye on developments in a number of different places. South America is one such area, but the legislative issues will need to be sorted out there first,” he continued.
According to Whyte, by looking at the history of bingo it is easy to identify the regions where people like to play in order to see where the next big market for online bingo will be. “This, however should only form the starting point of any investigation into the true potential of a market,” said Whyte. “Every market has an element of potential but ultimately the decision to invest will depend on the operator’s appetite for risk,” he added.
Although the number of bingo players is highest in the UK, McCulloch believes that there is still a lot more to come from the market. “The UK market has not yet reached saturation, so there is a lot more to be seen in this country yet. Newly regulated markets have barely got going, and there are a number of others that could easily match or outstrip the UK in terms of size in the future when that process begins elsewhere,” he said.
Whyte agreed, commenting: “While the UK has matured there are still signs of growth. The regulating markets are becoming more important within Europe and will continue to offer growth for those software providers and operators able to gain licences.”
As long as the bingo market continues to grow and the number of players keeps increasing, the sector will remain healthy. However this is not necessarily good news all round as it also means that the competition between online bingo sites is becoming more intense and there is a need for differentiation in a crowded marketplace where players are bombarded with offers of free play and sizeable jackpots. “With the volume of sites out there, certain players are more mobile than perhaps they once were in choosing the destination of their bingo session,” said McCulloch. “Operators must offer diverse and innovative games to their players,” he continued.
It is evident that there are more and more bingo sites launching all the time and some figures suggest that there are currently more than 250 bingo brands in the UK alone. “Competition is fierece,” said Whyte. “The majority of those bingo brands are being powered by the same software provider and so content, as well as look and feel, are very similar. The same product, the same features, the same network games, and the lack of configuration mean that the battle for bingo business has been based on marketing and branding.”
This alone is not enough to separate sites however, and according to Whyte, operators need to look at other areas to create the appeal and value that players crave. “To do this effectively,” he said, “it is important to understand your existing player groups and why they choose to stay at your site. By doing this you get to know the DNA of the type of player that you are trying to attract and keep. Only then can you understand what will appeal to them and give them the value they seek. Once the player dynamics are understood, acquisition strategies can be developed and targeted content can be created.”
Whyte continued: “As with player acquisition, operators should focus on player retention, lifetime values, and ‘time on device’, in order to be competitive in a market that is becoming tougher and tougher to survive in. In order to drive an effective retention strategy, it is critical for each operator to understand the lifecycle of their players, and more importantly which players are at which stage.”
According to Whyte, every player has a lifecycle which can be identified by the characteristics and playing patterns that each one exhibits. Whether they are a long-term high value player or a newcomer, by analysing the player’s journey, operators can implement tactics to extend it. “There is no silver bullet to extending a players lifecycle; but understanding who your players are, when they like to play, the games they like to play, and the incentives that they respond to, will give any operator a head start in defining the right strategy.
“Understanding where a player is in the lifecycle is not just an end in itself; the knowledge gained must be put in to action. Bingo side games for example are not just important from a player value and revenue perspective. Players who play both bingo and side games have an extended lifecycle versus players that just play bingo,” said Whyte.
There will of course be many challenges facing the bingo industry in the coming years, and standing out from the crowd by thinking outside of the box will continue to be one of them. The challenge will be for operators and software providers to differentiate their bingo offering from the run-of-the-mill games and services that we see so much of. Innovation and investing in terms of product, content, promotions and marketing is key to staying ahead of the competition.
“With a global recession still ongoing and regulated markets opening up, configurability and flexibility of the products supplied by the providers will also play an increasingly larger role in allowing bingo operators to differentiate themselves,” said Whyte. “Being different in both look and feel, as well as configuring content to specific player groups and markets, allows operators to explore competitive advantage that they have never had before,” he said.
Going forward, it looks as though bingo will continue to thrive but operators and software providers will be faced with difficult decisions about opportunities offered in new markets. “One of the more recent trends that we in particular have been involved in has been the development of branded products,” McCulloch told iNTERGAMINGi. “Acquiring licenses for such ventures requires a certain level of financial commitment but the Deal or No Deal, Big Brother and Goldenballs games we created were very well received and they are a big part of our plans. More recently we were approached by Meccabingo.com, official online gaming partner for Britain’s Got Talent, to provide a game based on the hit TV show and featuring signature elements from it. With the programme attracting peak audience figures close to 20 million people in the UK alone, the potential for bingo is exciting when tapping into such resources.”
However, while as a society we have seen a shift towards all things online, there is still very much a demand for land-based bingo, according to McCulloch. “Some Virtue Fusion clients, like Mecca, have found that it is possible to successfully offer both products with one complementing and benefitting the other and the brand in general.” He continued: “The online market has taken its cues from the offline product, which has proven to be so well loved. While some internet players might have transferred over from the bingo halls and clubs, it is fair to say that there are many others who have started to play online that would not have played the land-based game. As a result, the market itself has welcomed new players, and this is a dynamic experienced across all gaming products.”
Recent government statistics indicate a 30 per cent decline in the number of bingo halls in the UK alone, most likely due to the smoking ban and a global recession. Whyte commented: “This decline in visits to bingo halls contrasts to the phenomenal growth over the past few years in online bingo. Is it fair to say that online bingo has caused this contrast? No.” He continued: “To some extent there has been some crossover where players would now prefer to play online than in the bingo hall but if anything online bingo has opened up to a completely wider player demographic who are younger and have never played bingo before and certainly not in a hall. It is interesting when you look at the stats and they tell you that players under 45 years of age make up between 50–60 per cent of the online population.”
As with anything in the online gaming industry, those who adapt will survive but whatever happens in the online bingo industry, it seems that, for the foreseeable future at least, land-based bingo halls are here to stay. The key for online and offline bingo is to work in synchronisation with each other. While online bingo is blossoming, land-based is where the story began and this will surely remain a key component of the bingo market.
