he shaky global economic climate throughout ‘08 and ‘09 has set 2010 up as a “sink or swim” year for online businesses. Throughout the past 18 economy-bashing months the Online Bingo Industry has bucked the trend, experienced growth and is still expected to yield nearly us$ 2 billion within the next 2 years. “Online Bingo industry to yield us$ 1.97 billion by 2012” affirmed GBGC.
However, growth in 2010 will not come without major warnings and market conditions are far from perfect. It’s a fact that established online bingo markets such as the UK, Spain and Scandinavia have experienced a leveling out of player numbers. All of this coupled with the giants of Online Bingo strategically picking out smaller brands for purchase means that 2010 will also be full of consolidation.
The Online Bingo Industry in 2010 is set for cut-throat market conditions, increased competition and a huge demand for innovation, differentiation and the identification of new markets as hundreds of operators and thousands of skins target the same lucrative Online Bingo player base.
Tough challenges lie ahead for the entire Online Bingo fraternity. Where are all the players? Which markets promise the best returns? And who will strengthen their position through clever buy-outs and M&A activity?
“In 2008 it is estimated that the global online bingo market (outside the US) grew by 45 % and generated us$ 1.2 billion of gross gaming yield. Online bingo is forecast to grow strongly over the next few years reaching us$ 2.3 billion by 2012, implying a CAGR of 17%” H2GC, 2009
The next 12 months are a vital time for operators to assess business models, look closely at corporate strategy, implement the most rewarding marketing tactics and to scale up. “The recession has been kind to the still blossoming online bingo industry, with growth topping the us$ 1 billion dollar rate and looking to grow by a further 60 % in 2010,” according to TheBingoFinder.co.uk.
The savviest of operators will move into new markets armed with as much information as possible including clear online marketing strategies, a deep understanding of domestic brand migration and winning partnerships with platforms and networks already on the ground. This is no time to ignore the massive changes that your Online Bingo business is set to encounter in 2010.
“There is one word on the collective lips of the online bingo industry at the moment, and that word is consolidation,” said TheBingoFinder.co.uk. It’s a ‘make or break’ year for Online Bingo businesses. The biggest – most profitable – online bingo operators understand the importance of marketing innovation, expanding to new European markets, sizing up for consolidation and securing market share. Question is, which challenges will be tackled first?
All of the above challenges and issues will be discussed in greater detail at 5th Annual Online Bingo Summit & Awards, which will take place at London’s Victoria Park Plaza on June 8th – 9th.