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GAMBLING INSIGHTS AND OPPORTUNITIES IN OOH

JULY 2017

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SECTOR TRENDS

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A QUICK OVERVIEW OF THE GAMBLING INDUSTRY

• It is a £13.8billion industry consisting of varying sectors

– arcades, betting, bingo, casino, lotteries and gaming machines.

• 100,000 employees

• 8,788 betting shops.

• 176,410 gambling machines.

• 583 bingo premises.

• 147 casinos.

• 1,729 licensed arcades.

• £1.7billion contributions to good causes from the National Lottery.

• £231.8million contributions to good causes from large society lotteries.

Source: UK Gambling Commission

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ONE THIRD OF GAMBLING TRANSACTIONS ARE ONLINE

• Almost half of those who gamble have

used an app to do so. It is expected that every gambling platform will have a mobile app in 2017.

• Of those who gambled online in the last 6 months over 42% do so at least once a month increasing to 55% among men aged 25-44.

• Almost 25% gambling takes place in the workplace or one the move, whilst OOH

This marks a great opportunity for brands to tap into an audience whilst they are in their daily routines to/from work and OOH in evenings.

Source: UK Gambling Commission

and Exterion Work.Shop.Play

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PEOPLE THAT GAMBLE ARE MORE LIKELY TO BE MALE, 25-44, C2DE AND LIVE IN LONDON

Source: TGI 2017

Scotland

9%

Yorkshire

10%

North East

5%

Wales

5%

North West

13%

East Midlands

6%West Midlands

8%

East

7%

London

21%

South & South East

10%

South &

South West

5%

1 out of 5 live in London but they are also more likely to be living in Scotland (i112) and the North

West (i114)

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KEY 2017 GAMBLING TRENDS

• Mobile gaming will keep growingIt is expected that every gambling platform will have a mobile app in 2017

• Online gambling will benefit from

Freemium modelConsumers can trial a product for free before making a commitment or even a deposit

• eSports will keep growingAnalysts expect eSports to surpass $1 billion revenues in 2017

• Offering differentiation will rely on

providing a unique experience

through the use of content

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THE GAMBLING ADVERTISING MARKET IS WORTH £334M

Scratchcards £1m

Bingo £60mSports £127m Lottery £86m

Casinos £54m Poker £5m

Source: Nielsen Apr 2016 – Mar 2017

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EVEN THOUGH OOH EXCELS AT REACHING GAMBLERS, IT ONLY MAKES UP 2% OF AD SPEND

TV

47%Digital

25%Press

17%Direct

Mail

5%

Radio

4%OOH

2%

Source: Nielsen Apr 2016 – Mar 2017

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WHY OOH?

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OOH IS THE MEDIUM TO WHICH AUDIENCES ARE MOSTLY EXPOSED TO THROUGHOUT THE DAY

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

% R

ea

ch

OOH TV Radio Press Cinema

Only TV overtakes OOH around 8PM but on average people that gamble are 68% more exposed to OOH compared to TV

Source: TouchPoints 2016

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ALL OOH FORMATS OVER INDEX AGAINST A GAMBLING AUDIENCE

Roadside 6s, 39%,

123

Roadside 48s/96s,

45%, 116

Bus stops, 49%, 115

Phone kiosks, 21%,

135

Bus interior, 27%, 123

Bus supersides, 33%,

109

Taxis, 20%, 138

Airports, 18%, 132

TCPs, 14%, 118

UG, 18%, 119

Rail, 18%, 121

Malls, 23%, 117

Supermarkets, 42%,

112

Convenience stores,

23%, 124

Clus/Pubs, 19%, 151

Motorway service

stations, 17%, 133

Washrooms, 24%,

123

Cinema foyers, 19%,

126

90

100

110

120

130

140

150

160

0% 10% 20% 30% 40% 50% 60%

Ind

ex

Exposure

Source: TGI 2017

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OOH AND TV COMPLEMENT EACH OTHER

Source: TGI; Field and Binet 2013

90

95

100

105

110

Heavy Medium Light

OOH indexed against light TV

viewersIn

de

x

Light TV viewers are more likely to travel and therefore be more exposed to OOH

Most effective channels for Brand Building

TV and OOH stand apart in delivering Brand Building, through actual

profitability and ROI through brand-related advertising.

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OOH IS MORE EFFECTIVE IN ADDING INCREMENTAL REACH AT HIGHER LEVELS OF INVESTMENT

30

46

30

47

0

20

40

60

80

100

£100K £200K

TV TV + OOH

73 7780 84

0

20

40

60

80

100

£800K £1M

TV TV + OOH

626967

75

0

20

40

60

80

100

£400K £600K

TV TV + OOH

0% +2% +9%+9% +9%+8%

% R

ea

ch

• All scenarios resulted in increased combined reach

• Highest gains in reach at medium to high levels of investment

• Threshold of £600k to achieve a +9% increase in reach

Low investment High investmentMedium investment

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COMBINED DELIVERS GREATER AUDIENCES

49.2%Press reach

77.4% OOH reach

84.2% Combined reach

60% of Light Press Consumers are medium / heavy OOH Consumers

OOH Delivers 35% Incremental Reach

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Source : TGI – Any OOH / Any Newspapers – weekly reach.

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OOH DRIVING PEOPLE ONLINE - CASE STUDIES

+24% sales

uplift from optimised or contextual planning

+44% contextual

DOOH driving behavioural

change

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FLEXIBILITY OF DOOH - TARGETING KEY TIMES / EVENTS WITH HIGH BETTING INTEREST

• 83% of those who have gambled in the last month agree that they are likely to gamble on specific sporting events and 66% say they enjoy a sporting event more if they’ve place a bet on the outcome.

• 50% of those audience also think gambling can be as much about the people that you are with as the bet itself increasing to 68% of Londoners showing the social side to gambling is a key draw.

• Nearly 90% of those who have gambled in the last month agree that gambling can be a dangerous habit. Brands therefore need to be cautious in their messaging and ensure that

they are using relevant, contextual content to target their audience .

Source: Exterion Work.Shop.Play

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TARGETING BETTING OCCASIONS SUCH AS ELECTION, WIMBLEDON, FOOTBALL AND OSCARS

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CASE STUDIES

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CAMELOT SCRATCHCARDS

“Putting everyday winning into

context”

Mix of pre-written and live

digital content

More than 300 bespoke ads

served

Results:

• Unique buyers up 50%

• Biggest sales week in 6 years

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MCDONALD’S - CONTEXTUAL OOH: MONOPOLY GOLDEN CHANCES

– Strong visibility and effect of whole OOH campaign

– A fifth of target audience saw the digital OOH; correlation with digital OOH locations and then playing the promotion

– People who saw the DOOH were more positive towards the promotion and likely to engage

– This group were also more likely to visit store, more likely to play, more likely to play more often

– Strong impressions of the contextual nature of the ads and to take action

– Digital OOH effect vs static against key metrics of Visit, Play, Frequency and Intention = +14%, with 4% to 24% range

Source: Talon Dipsticks