Category Archives: Marketing
Blame it on the fame? The role of celebrity endorsement in gambling advertising
Have any of you reading this ever visited an online poker site because of a celebrity endorsement? Would the presence of Ben Affleck or James Woods make you more likely to play poker? Commercial gambling has only relatively recently got in on the celebrity endorsement bandwagon mainly because gambling advertising has always been very restricted. When a poker company uses a celebrity endorser, they are signing up an image that is itself a gamble. At the very least, gaming companies should get what they pay for but it can all go horribly wrong. When a purple-bearded Billy Connolly was used to promote the National Lottery in 2002/2003, sales decreased. The adverts had high recall by the public but were hated by a large proportion of the British public who found Connolly highly irritating.
This is all goes to show that any gaming company wanting to use celebrity endorsement as part of its marketing drive has to carefully evaluate a celebrity’s image and reputation. Steps need to be taken to make sure the celebrity’s image and reputation matches the needs of the company. Sales can take a tumble especially if the celebrity used does something that compromises the company’s image. For instance, Vic Reeves drink-driving conviction wasn’t very good for the car insurance company he was promoting! However, in most situations, the relationship between the company and the celebrity will be mutually beneficial. The company receives all of the perks associated with the celebrity such as publicity, positive connotation, recognition, respect and trust. The celebrity – at the very least – benefits financially.
The advertising industry claims that brand recognition, recall and awareness are the most important outcomes of successful marketing campaigns. This, they believe, will result in greater sales and increased revenue. However, as with the Billy Connolly example above, this isn’t always the case. Celebrity endorsement is perhaps even more important in online commercial activities like playing Internet poker where identity, trust and reliability equate to potential punters. As a consequence, many online commercial enterprises appear to opt for short-term, high impact celebrity endorsement and ‘buzz marketing’ rather than investing for the long term. These types of marketing tend to create an instant image and reputation but may not necessarily be good for the company’s longevity. To be market leaders amid the competition, online gaming operators will need to couple strategic marketing with solid brand management.
Interestingly, a survey carried out by Marketing UK asked marketers from a sample of the top 1000 British companies which techniques they thought were the most successful in increasing sales and at building long-term relationships with customers. It found that celebrity endorsements ranked last, beneath things like loyalty schemes, sales promotions, and general display advertising. However, it doesn’t make sense to isolate celebrity endorsements, because they are just one of many marketing elements that are used in a successful campaign. What’s more, if marketers didn’t believe celebrities help in generating long-term sales and profits, they wouldn’t keep paying the large fees they command.
While the jury is out on whether celebrity endorsement is a sales winner, one question that has yet to be answered through research is, what type of gambler does a celebrity endorsement impress and/or influence in their decision play? Is it the novices, long-standing players, or both? Maybe different types of celebrities appeal to different clientele. For me, the most interesting development of the celebrity endorsement culture is how the big poker tournament winners have now become celebrities in their own right. For instance, the star after-dinner speaker at an academic gambling conference I was at in Lake Tahoe was World Series of Poker veteran Howard Lederer. This type of celebrity endorsement may be more appealing to players. The fact that someone has become a celebrity through skill and talent in an activity that gamblers are already positively predisposed towards suggests they will want to have more of a psychological association with these celebrities than those the celebrities who just happen to play poker as a hobby. Judging by the front covers of magazines like Inside Poker, the editors clearly believe that it is the big poker winners that sell the magazine rather than Hollywood A-listers or scantily dressed women.
Celebrity endorsements also tap into the psychology of ‘intrinsic association’. This is the degree to which the gambling activity is positively associated with other interests, people and/or attractions. Intrinsic association also taps into the psychology of familiarity and help explain why so may UK slot machines feature themes relating to television shows, films, popular board games, video games or celebrities. It makes punters feel they know something about the product before they have even played it.
Gaming companies have to ask themselves how much they are willing to gamble on celebrity endorsement in trying to carve out a niche in the market. Companies have got to be clear that they are targeting the right product with the right celebrity with the right message. It can be a long hard slog to shape an image or reputation but it can take just a few seconds of celebrity madness to destroy it.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Binde, P. (2007). Selling dreams – causing nightmares? On gambling advertising and problem gambling. Journal of Gambling Issues, 20, 167-191.
Griffiths, M.D. (2005). Does advertising of gambling increase gambling addiction? International Journal of Mental Health and Addiction, 3(2), 15-25.
Griffiths, M.D. (2007). Brand psychology: Social acceptability and familiarity that breeds trust and loyalty. Casino and Gaming International, 3(3), 69-72.
Griffiths, M.D. (2010). Celebrity endorsement and online gambling: Ten golden rules. i-Gaming Business Affiliate, June/July, p.64.
Griffiths, M.D. (2010). Media and advertising influences on adolescent risk behaviour. Education and Health, 28(1), 2-5.
Griffiths, M.D. & Parke, J. (2003). The environmental psychology of gambling. In G. Reith (Ed.), Gambling: Who wins? Who Loses? (pp. 277-292). New York: Prometheus Books.
Griffiths, M.D., Parke, J., Wood, R.T.A. & Rigbye, J. (2010). Online poker gambling in university students: Further findings from an online survey. International Journal of Mental Health and Addiction, 8, 82-89.
Wood, R.T.A., Griffiths, M.D. & Parke, J. (2007). The acquisition, development, and maintenance of online poker playing in a student sample. CyberPsychology and Behavior, 10, 354-361.
Zangeneh, M., Griffiths, M.D. & Parke, J. (2008). The marketing of gambling. In Zangeneh, M., Blaszczynski, A., and Turner, N. (Eds.), In The Pursuit Of Winning. pp. 135-153. New York: Springer.
“I can’t believe it’s not a flutter”: Are television quizzes and television game shows a form of gambling?
Yesterday the front page of the Mail on Sunday led with the story that “Hit game shows like Deal or No Deal and Play Your Cards Right could be forced off the air after gambling watchdog claims that they break the law”. I was interviewed at length for this particular story but as usual my long interview was reduced to a few soundbites. I argued that a lot of television quiz game shows feature different forms of gambling. Even if the contestant starts of with no money, once they have won some money in the programme, the money becomes theirs and they are (to all intents and purposes) gambling with their own money. I also argued that the boundary between gambling and games is blurring all the time and that there is a growing trend of convergence between gambling and other media.
Over the past decade I have written a number of papers on various forms of television gambling. I have noted that various interactive television (i-TV) services are increasingly being linked to actual television programmes. Over the last few years in the UK, there has been a significant increase in the number of television shows raising revenue through the use of interactive programming. One of the most popular methods has viewers call into the television show using a premium-rate telephone service to either answer simple quiz questions. I have argued that this form of television programming is gambling in another guise.
This innovative form of interactive viewing experience raises many questions about whether viewers are being exploited or whether such programming is just another enjoyment-enhancing dimension of the viewing experience. However, there is a fine line between customer enhancement and customer exploitation. Programmers will argue that when viewers ‘put their money where their mouth is’ the viewing experience is enhanced. This is very similar to the gambling industry’s maxim that ‘it matters more when there’s money on it’. However, callers are charged at a premium rate (usually between 75p and £1.50 per call) even if they fail to get through to register their answer. Typically, on failing to connect, callers get a recorded message saying, ‘Even though you haven’t got through this time, we still want you to be a winner’. There are two possible routes that i-TV gambling/gaming can take. Firstly, there is television quiz show participation, which may feature gambling and/or gambling-like experiences. Secondly, there is the option of using the television as a medium on which to gamble.
To grow fast in an evolving digital landscape, television companies are formulating strategies for targeting particular segments of the industry. Platform operators appear to be deploying consumer-driven applications such as gaming (including both i-TV participation quizzes and more traditional forms of gambling via the medium of television). An environment has been created where content originators and channel operators can innovate and profitably create interactive broadband content. I-TV is seen as a way of rapidly expanding gaming and gambling because of its naturalness and ease of use. I-TV gaming can span a wide range of activities. This includes non-gambling activities such as playing video games like Tetris on the television, playing along with game shows like Who Wants to Be a Millionaire? via television remote control, and directly gambling on sports events such as horse racing and football via television remote control.
I-TV quiz shows share many of the dimensions of i-TV gambling and also raise the same concerns when talking about vulnerable and susceptible populations. The combination of gambling’s impulsive nature, the general public’s appetite for quiz trivia, and the ubiquity of television may prove hard to resist for many viewers. There are two main reasons why i-TV quiz shows could be viewed as a form of gambling.
Firstly, at a very simple level it could be argued that in many i-TV quizzes, viewers are participating in a lottery. For instance, viewers are typically asked to call a premium-rate telephone line to answer a very simple question (e.g., ‘Rearrange the following letters to make the name of a top rock group—STOLLING RONES’). A winner is then chosen from all those viewers with the correct answer. This, to all intents and purposes, is a lottery. However, unlike lotteries, those participating do not know what their probability of winning is. Secondly, it could also be argued that viewers are staking money (through the cost of the premium-rate telephone call) on the outcome of a future event (i.e., whether they will get the correct answer). Such a scenario could be defined as a form of gambling.
Whether i-TV quiz participation is a bona fide form of gambling or not, there are a number of reasons why the social impact of i-TV quizzes should be monitored. For instance, i-TV quiz shows appear to be being introduced with little concern for the psychosocial implications that may affect a small percentage of the population. Bringing such activities to a television set in the home carries with it a special social responsibility. For instance, there are issues about consumer protection for vulnerable populations, e.g., adolescents, problem gamblers, and the intoxicated.
It could be argued that the viewers who participate in late-night and ‘through-the-night’ interactive quiz programming (like The Mint, Make Your Play, Quiz Call, The Great British Quiz) may be some of the most vulnerable and susceptible. These viewers are more likely to be those who do not work and therefore are on low incomes and can least afford to participate (e.g., the unemployed, the retired and elderly). Viewers may also be making decisions to play in an intoxicated state (as these programmes typically start just as people get in from an evening’s drinking) and/or in a state where they are not fully alert (i.e., at 3 in the morning). They may also be participating because they think their chances of winning are better in the belief that there are very few other people awake at 4 a.m. In fact, this latter point highlights the fact that no-one participating has any idea what the odds are of winning.
As there is little to stop innovative developments in i-TV gaming from moving forward, all interested stakeholders must start to think about the potential psychosocial impacts, and all companies (who, in effect, are gaming operators) must have social responsibility codes in place to ensure that viewers are not being exploited, that games are fair, and that there are protective measures in place for vulnerable individuals. I-TV gaming and gambling (including both i-TV quiz participation and more traditional i-TV gambling) are likely to bring about new and more immediate interactive opportunities. Viewers will eventually be able to make spontaneous bets during sporting events, everything from whether someone will score from a penalty in the World Cup final through to whether someone will sink a particular putt in the US Open Golf Championship.
A 2002 ‘white paper’ (Design guidelines for interactive television gambling) by Stephen Voller of TV Compass at least try to address some of the issues raised by the introduction of interactive gaming services. As Voller notes, when interactive gaming technology is brought into households, the operators have a duty to act responsibly. This applies equally to i-TV quiz participation. Voller has argued that systems that allow gaming access should have a particular requirement to provide controls that reduce the risk of gaming-related social problems. The six broad design criteria are access, reality checks, separate payments, messages, information, and self-exclusion periods.
In future, television viewers are more likely to participate in a much wider array of events than interactive quizzes and sporting events. This is likely to be via credit payment directly through their digital interactive service. This may include popular UK television events like betting on who will win the Eurovision Song Contest, who will be evicted from the Big Brother house, or who will pick up an Oscar. Such non-sport gambling may also bring in new clientele such as female television viewers. The take-up of i-TV quiz participation and/or i-TV gambling may also be very popular with those people who would not dream of going to a casino or betting shop. The use of i-TV quiz participation and/or i-TV gambling may help change people’s attitude about gambling by destigmatizing and demasculinizing it. These new types of gambling and gaming experiences could lead to a more social experience shared by clientele across the demographic spectrum.
The issue of i-TV quiz participation can also be framed more widely in a contemporary society that is increasingly governed by virtual processes. The kind of manipulation that is involved in getting people to respond to an event, even if they have to pay to respond, is achieved by offering a prize that the individual is very unlikely to win. In getting people to respond through this kind of process, the entrepreneurial operators are assured that they will have increased financial revenue through the money they raise by facilitating people to voluntarily behave in these ways. This opens up a discourse examining the ways that people are intentionally manipulated to behave in ways that cost while promising an improbable outcome. This may help us construct useful models which could help us understand and provide insight into gambling behaviours. It also invites discussion of what policies should inform the ways that media such as television and the Internet engage and prime people who have become ‘enchanted’ by a theatrical experience to behave in ways that, if not inevitable, are statistically predictable. There may even be factors of vulnerability that correlate with the likelihood that people will act that way.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Griffiths, M.D. (2004). Interactive television gambling: Should we be concerned? World Online Gambling Law Report, 3 (3), 11–12.
Griffiths, M.D. (2006). Interactive television and gaming. World Online Gambling Law Report, 5 (2), 12–13.
Griffiths, M.D. (2007). Interactive television quizzes as gambling: A cause for concern? Journal of Gambling Issues, 20, 269-276.
Griffiths, M.D. (2007). Interactive television quizzes as remote gambling. World Online Gambling Law Report, 6(4), 14-15.
Griffiths, M.D. (2008). Convergence of gambling and computer game playing: Implications. E-Commerce, Law and Policy, 10(2), 12-13.
Griffiths, M.D. (2008). Digital impact, crossover technologies and gambling practices. Casino and Gaming International, 4(3), 37-42.
Griffiths, M.D. & Parke, J. (2010). Adolescent gambling on the Internet: A review. International Journal of Adolescent Medicine and Health, 22, 59-75.
Griffiths, M.D. & Wood, R.T.A. (2000). Risk factors in adolescence: The case of gambling, video-game playing and the internet. Journal of Gambling Studies, 16, 199-225.
King, D.L., Delfabbro, P.H. & Griffiths, M.D. (2010). The convergence of gambling and digital media: Implications for gambling in young people. Journal of Gambling Studies, 26, 175-187.
Griffiths, M.D. (2011). Gaming convergence: Further legal issues and psychosocial impact. Gaming Law Review and Economics, 14, 461-464.
Design of the times: How does venue design influence gambling behaviour?
Research into how individuals react to the characteristics of a space has been a growth area over the last twenty years. In commercial environments, research has shown that desire to stay in a shopping environment is positively associated with layout and décor. Other features of the shopping environment have been studied including textures, floor layout, music and employee uniforms. However, much less is known about gaming environments.
A number of studies have been carried out examining the subject of casino atmospherics from the perspective of slot machine players. Leisure services (like gaming) usually want the player to spend longer amounts of time in the venue because the longer that they are in there, the more money they will spend. In 2003, Karl Mayer and Lesley Johnson (University of Nevada) asserted that casino operators have a number of aims. These are to get customers into the casino, maximise the overall gaming experience and keep players in the venue, and to get repeat patronage. The first aim can be achieved through such things as advertising, loyalty schemes and ‘word of mouth’ referrals. The second and third aims depend on may factors including the type of accommodation, the types of game offered, the opportunities to win, restaurant quality, customer-staff interactions, and casino ‘atmosphere’. From the player’s perspective, Mayer and Johnson argue that ‘atmosphere’ may be the most difficult to understand.
Bill Friedman has arguably conducted the most research on casino environments and his findings show that after location, interior design is the most important variable in increasing or decreasing the effect of the location. Friedman argues that casino design influences the decision of whether or not customers who are staying at competing properties will choose to play at another casino. His view on casinos is that design encompasses many features including the interior architectural dimensions, décor, game arrangement, traffic-flow pattern, focal points, lighting and signage. From a financial perspective, Friedman found that short line of sight, a maze-type lay out, and tightly packed congested gaming areas created higher player counts than those casinos with more spacious layouts. Mayer and Johnson’s findings suggest that casino atmosphere may be a much narrower construct than previous conceptualisations with floor layout and theme appearing to be the most important to players. Other studies have also reported that casino floor layout is an important factor in how players perceive casino atmosphere.
A study by Karl Mayer and colleagues (University of Nevada) reported that a casino’s atmosphere (which was a composite of casino theme, décor, lighting, noise levels, and smoke effects) had the most influence on player satisfaction. A follow up study by the same team examined casino atmospheric from a player perspective. The man-made physical surroundings of service settings have been referred to as ‘servicescapes’. Servicescapes comprise three important aspects, (i) ambient conditions (e.g., décor, theme, lighting, colour, noise, temperature, architecture, etc.), (ii) spatial layout and functionality (e.g., the way that seats, entrances, exits, etc. are arranged, i.e., the ‘built’ environment), and (iii) signs, symbols, and artefacts. Satisfaction with servicescape may also influence repeat patronage although satisfaction with servicescape appears to have a stronger effect on players’ desire to stay than on repeat patronage.
Anthony Lucas of the University of Nevada has done a lot of research in this area and has found that certain aspects of casino atmosphere are significantly related to player satisfaction including interior décor, navigation (i.e., floor layout), cleanliness, and seating comfort. Similar results have also been reported by Long Lam and colleagues at the University of Macau. They surveyed over 500 casino players in Macau. Overall, after controlling for betting outcomes, they found that gamblers were more satisfied when they gambled in an attractive environment. Satisfaction with the gambling environment was related to the person’s intention to revisit the casino. The study was also the first to examine both cognitive satisfaction and affective satisfaction. At its simplest, cognitive satisfaction relates to whether the casino met the gambler’s expectations, and affective satisfaction relates to the gambler’s personal feelings of positive emotion. Their research showed that cognitive satisfaction was most predicted by navigation, ambience, and cleanliness. Affective satisfaction was most predicted by navigation, seating comfort, and interior décor.
Another study by Lesley Johnson and colleagues examined ten elements of casino atmosphere (theme, décor, noise level, colour, ceiling height, lighting, temperature, floor layout, employee uniforms, and smell). Using factor analysis, five factors emerged (theme/décor, noise level, ceiling height, floor layout and employee uniform). Only three of these were significantly related to player satisfaction (theme/décor, employee uniform, and noise level in that order, i.e., theme/décor being the most important variable). Overall, in was concluded there was a direct linkage between atmospheric elements of casinos and player satisfaction – at least in slot machine players.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Friedman, B. (2000). Designing Casinos to Dominate the Competition. Reno, NV: Institute for the Study of Gambling and Commercial Gaming, University of Nevada.
Griffiths, M.D. (2009). Casino design: Understanding gaming floor influences on player behaviour. Casino and Gaming International, 5(1), 21-26.
Griffiths, M.D. & Parke, J. (2003). The environmental psychology of gambling. In G. Reith (Ed.), Gambling: Who wins? Who Loses? pp. 277-292. New York: Prometheus Books.
Johnson, L., Mayer, K. Champaner, E. (2004). A customer-based assessment of casino atmospherics. Gaming Research and Review Journal, 8(2), 1-10.
Lam, L.W., Chan, K.W., Fong, D. & Lo, F. (2011). Does the look matter? The impact of casino servicescape on gaming customer satisfaction, intention to revisit, and desire to stay. International Journal of Hospitality Management, 30, 558-567.
Lucas, A.F. (2003). The determinants and effects of slot servicescape satisfaction in a Las Vegas hotel casino. Gaming Research and Review Journal, 7(10), 1-19.
Mayer, K. & Johnson, L. (2003). A customer-based assessment of casino atmospherics. Gaming Research and Review Journal, 7(1), 21-31.
Mayer, K. & Johnson, L., Hu, C. & Chen, S. (1998). Gaming customer satisfaction: An exploratory study. Journal of Travel Research, 37, 178-183.
Oakes, S. (2000). The influence of the musicscape within service environments. Journal of Services Marketing, 51, 34-43.
“Well, while I’m here I might as well have a flutter”: Gambling venues and the use of intrinsic association
Back in 1978, Derek Cornish published a book that included the first review of situational characteristics in gambling. One of the characteristics – although not given an explicit name – was later termed by Dr Jonathan Parke (Salford University) and myself as “intrinsic association”. Intrinsic association basically refers to the degree to which the gambling activity is associated with other interests and attractions. For example, betting at a sporting event at which the gambler would normally attend anyway. In casino terms, this could refer to gambling on a slot machine as an ancillary activity to being in the casino for other reasons (e.g., being in there to see a live music show or boxing match, dining out with friends). Another variation of this is “proximity play”. This could be described as participating in an activity as a consequence of it being located next to something else that the person was doing (e.g., being in the casino primarily to play blackjack but going on to play a slot machine instead).
The association between gambling and sport also has implications, primarily the ability to class gambling as a subtype of sport that in turn leads to the attribution of social respectability. In his review, Cornish also argued that sporting interests may often act as a pathway to gambling. Individuals can be introduced to gambling in attempt to make the sporting experience more entertaining and enjoyable. Gradually, the enjoyment from betting at sporting events can transfer to into more familiar environments and to other types of betting. Sport is another way that gambling can expose itself, and provide the potential gambler with another opportunity to gamble if one did not previously exist or appeal. Therefore, in addition to be potentially being a pathway to gambling, association with sport is also a mechanism through which gambling can be made socially acceptable.
These other amenities (e.g., the provision of food) have the potential to prolong gambling activity. Jonathan Parke and I assert this is of particular importance to problem gamblers since they:
- Often gambling for long periods of time.
- Are often reluctant to leave a slot machine or the roulette table to get a drink or food, or go to the toilet as they are often chasing losses do not want to lose their lucky seat or favorite machine.
For instance, in a New Zealand study reported by Ralph Gerdelan, thirty bars that housed slot machines were compared with another thirty that did not. In the bars without slot machines, almost all of the clientele drank pints of beer. However, in the bars with slot machines, only 8% of the clientele drank pint measures. The main reason for this was that slot machine players did not want to leave the machines to go to the toilet in case someone ‘stole’ their machine. The gambling treatment specialist, Joanna Franklin has also reported that a proportion of her female clients had developed bladder problems as a result of their prolonged slot machine gambling, Again, these gamblers are holding off going to the toilet because they do not want to lose “their” machine, and allegedly damaging their bladder in the process.
There is currently no empirical evidence to show that offering refreshments prolongs gambling behaviour, and it could be argued that offering refreshments forces gamblers to take a break as they will eventually need to use the bathroom. Furthermore, if refreshments are offered in the form of a sit down meal rather than a take away option, then making use of such facilities would ensure a break from gambling behavior. Although a refreshed gambler may stay at a gambling venue for longer periods, engaging in a meal would offer a period of contemplation (i.e., a reflective time out) that could be useful for a vulnerable player. However, problem gamblers may be unlikely to spend money on a meal and may favour spending their money on gambling instead.
Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK
Further reading
Cornish, D.B. (1978). Gambling: A review of the literature and its implications for policy and research. London: Her Majesty’s Stationery Office.
Gerdelan, R. (2001, April). Problem gambling in New Zealand. Paper presented at the Innovation 2001 Conference, Canadian Foundation on Compulsive Gambling, Toronto, Canada.
Griffiths, M.D. (1994). The observational analysis of marketing methods in UK amusement arcades. Society for the Study of Gambling Newsletter, 24, 17-24.
Griffiths, M.D. & Parke, J. (2003). The environmental psychology of gambling. In G. Reith (Ed.), Gambling: Who wins? Who Loses? pp. 277-292. New York: Prometheus Books.