Americans spend thousands of dollars on lottery tickets and scratch-offs each year, but due to COVID-19, lotteries saw sluggish ticket sales and smaller jackpots. Many lotteries had to find new ways to increase revenue and build their target base to help revitalize sales.
Tapping Into a New Market
Traditionally, lotteries have a challenging time attracting the 18- to 34-year-old demographic. This group has been brought up on smart phones and gaming consoles, doing much of their gaming through apps. So how does a lottery tap into this market and increase ticket sales? By going digital!
In New Jersey, a 2016 law authorized third-party companies to register to sell lottery tickets online, with the New Jersey Lottery officially working with its first courier, Jackpocket, in December 2019. In 2021, the state added Lotto.com as a second authorized partner.
The ability to purchase tickets online gives other groups who may not frequent convenience stores often the ability to participate in the lottery and follows suit with many other services like food and liquor delivery or online grocery shopping. According to a recent report by Global Industry Analysts, the pandemic helped accelerate the growth of online lottery sales. The report estimated that the U.S. online lottery market will hit $2.3 billion by the end of 2021. In 2020, the market saw a 25.7% increase in year-over-year revenue.
What’s the Catch?
Similar to sports gambling apps, there are regulations these services all have to abide by. For example, ticket couriers must verify the purchaser’s age through a software built into their system to ensure that all account holders are 18 or older. Platforms like Jackpocket and Lotto.com are also required to make sure that people outside of the state are not purchasing tickets illegally through geo-location each time they place an order.
Does Lottery Marketing Need to Change?
This new avenue offers a convenience that younger lottery players appreciate. And while using out of home and tv are still viable options for marketing lottery games and sales, with the newfound digital purchasing options, bringing the marketing to digital is an obvious route to take.
The ability to target within digital tactics gives a Lottery at least three different ways to hit potential customers:
- Interest Targeting – Focusing on those who have shown interest in gaming, betting
- Retargeting – Bringing those who have either visited the purchase sites or related sites back to complete their purchase
- Geotargeting – Serving up ads to potential targets when they are near a convenience store that offers tickets or a restaurant that is participating in on-site gaming
And these are just a few of the benefits of using digital to target customers. As the digital landscape continues to evolve, so will the offerings available to marketers.
Revitalize the Product, Revitalize the Marketing
As the media agency of record for the New Jersey Lottery, Marketsmith has been utilizing digital marketing for some time now and continues to adapt to the changing lottery landscape. In addition to standard digital and traditional tactics, we’ve also implemented influencers, on-site promotional events, and sponsorships to help boost sales and build the target base. Want to learn more about our cross-channel media strategies and how we can help your brand? Let’s talk!