MAR 23 DE ABRIL DE 2024 - 19:51hs.
Propmark website report

Advertising accelerates branding in Brazil’s betting market sector

The sports betting segment has been gaining muscle in Brazil for at least six years. Between 2018 and 2020, investments in the sector in the country jumped from R$2 billion (US$386m) to R$7 billion (US$1.35b), of which 70% were directed to football betting. The expectation is that virtual bookmakers will double their revenues in the country in 2021. Last year, they made available a budget of R$42.66 (US$8.25m) million for advertising actions. The forecast for this year is that the volume will rise to R$139.5 million (US$27m).

The main operators in the country are Sportingbet, Betfair.net, NetBet, Betsul, Midnite, Betsson, Betboo, Bodog, Sportsbet and Txbet, among others. But the champion in traffic, with a monthly flow of 126.5 million, is Bet365, according to a survey by SemRush from May 2021.

Between 2018 and 2020, investments in luck in the sports betting segment jumped from R$2 billion (US$386m) to R$7 billion (US$1.35b), of which 70% were directed to football betting, according to a survey carried out by the WTAG agency, which serves the NetBet brand, which made its presentation to the Brazilian market through the campaign “The will to win cannot be lacking. Play along with ZR11 on NetBet.”

“With this campaign, we have taken NetBet to a new level, valuing the presence of our brand throughout Brazil, always with the participation of Zé Roberto, who is an example of dedication, growth and victory, characteristics that translate what NetBet is all about,” details Marsio Schneider, marketing manager at NetBet.

The expectation is that the virtual bookmakers will double their revenues in the country this year. An analysis by Euro Monitor on the resources destined to the media of these advertisers in the Brazilian market shows that in 2020 they made available a budget of R$42.66 (US$8.25m) million for advertising actions. The institute's forecast for this year is that the volume will rise to R$139.5 million (US$27m). Pay TVs concentrate 56% of investments, digital has a share of 32% and open TVs a share of 1.7%. In the United States, according to Ad Age, the amount from betting on the media is US$ 35 billion.

SBT and Grupo Globo channels are sponsored by Sportinbet and Betfair.net in sports broadcasts such as Copa América, Libertadores, 2022 World Cup Qualifiers and Bazilian Seria A, for example. It's a new lode for advertising agencies to explore. They are giving didactic cards to educate the Brazilian consumer on how to use these betting channels.

“We had some advertising phenomena during the pandemic, such as e-commerce and pharmaceuticals. The novelty is that the bookmakers make available to agencies and media an unprecedented resource. We are extending NetBet and the performance of the London-based brand is visible. We used the player Zé Roberto in the first campaign and the response was immediate,” highlights executive Lucas Feltes, CEO of WTAG.

 

 

The bookmakers are also present on the shirts of the main clubs in the Serie A of Brasileirão, including Flamengo, Atlético Mineiro and São Paulo. Corinthians signed an agreement with Galera Bet, based in Israel and Cyprus, for around R$40 million (US$7.75) for a five-year commitment. These advertisers are also buying advertising boards at stadiums at major sporting competitions.

The detail is that prospecting for these businesses extends beyond Brazilian borders. Some agencies are proactive, but these advertisers engage the market and promote competition to define their marketing communication providers.

But how can these bookmakers, which are not based in Brazil, manage to operate in the country even with the current legislation, which prohibits gambling in the country? They wait legal definition. The expectation is that the definitive approval of Law 13.756, which authorizes the opening of the betting market in Brazil, currently with Caixa's monopoly, will make this segment grow vertically, which makes use of expedients to activate business in the country.

With the occasional help of advertising, global companies in the segment are building branding in the country. Also, they don't break the law. Because campaigns do not promote the brand's core business. But knowledge, information, entertainment and directing to websites abroad, which receive bets and can only be consolidated by an international credit card.

Receiving the prize is guaranteed by the fixed odds system, which provides for the reward of the amount wagered. Experts calculate that, with the approval of the law, Brazil will benefit from the taxes generated. The Ministry of Economy and BNDES work for regulation. In Latin America, Brazil is the only country without a law, as happens in Uruguay, Paraguay and Argentina.

In the past, Loteria Esportiva da Caixa made some millionaires, such as Edu da Loteca and the budget dwarves. But the game fell into disrepute. According to Amir Sommogi, sports marketing consultant, the regularization may make bookmakers expand their scope.

“Sponsorships in the European Union amount to 3 billion pounds. The segment represents 2% of the GDP of these countries. With marketing, you could explore product licensing, discounts, etc. Like the NBA Pass in the United States, which generates bonuses and income for clubs. We have two types of bettors: the professional and the one who likes to play. Those who take it just to have fun are the ones that matter,” highlights Sommogi.

Opportunity

According to Marcelo Namura, vice president of media at Bold agency, which serves Betsson, it is an expressive volume of money that reaches the market with bookmakers. “The great expectation is for the legal framework. While the license does not come, the last three years were dedicated to the construction of the brands' territories. Sponsorships to clubs generate some resources, but bets do not yet. Now is the time to engage suppliers. Some contracts are linked to performance,” reports Namura, who started working with Betsson in January 2021. According to him, the agency is hired for the time being onshore.

 

 

“The moment is for building awareness. Betsson has a license to explore horse racing in Rio Grande do Sul. Today we are a fantasy game similar to Cartola FC. Football, however, is brilliant. This year we launched Betsson FC, hosted at the Ibis club, but it is not a betting platform. In fact, this choice was an amazing experience. The so-called worst club in the world has an audience and a history. Helping Ibis is positive and has value beyond the cash investment. The brand is also present in regional markets during the Copa America. Are we going to get offshore? Certainly yes, but the time is not yet. Football is adhered to by 62% of Brazilians. It's a new niche,” adds Namura.

“Ibis may be the worst team in the world on the field, but when it comes to generating conversations, engaging and producing humorous content to talk to those who like football, they are champions,” explains Daniele Marques, partner and CCO at Bold .

Specialized in the B2G (Business to Gamer) segment, Druid started Midnite's full service communication, for now in the fantasy game universe, last week based on the ‘It's time to win’ concept. The agency secured the deal by winning a pitch promoted by the advertiser. London-based betting platform Midnite plans to "still bring the gaming community closer to their favorite games."

Claudio Lima, CEO of Druid, is excited about the arrival of Midnite. “We will focus in this phase on gamer influencers such as @brunogameplay, @djoko, @velhovamp, @thedarkness, @lindinho and @gio with lives and actions on Facebook and Instagram. Games are widely used by gamblers. The segment is very competitive and with similar deliveries, which is why advertising is relevant to generate differentiation and be a decision factor. We are just getting started. It's time for mass media. Our look is 360º from games. The online betting segment is increasingly relevant to the advertising market as a whole and being able to do innovative work with the launch of a platform as surprising as Midnite is even more interesting for us,” argues Lima.

 



“We have a lot of work to be done to launch Midnite in Brazil, especially when it comes to a country in love with games and sports, which attracts many eyes from other players. We will bring innovation, not only focusing on the user experience when placing your bets, but also encouraging you to challenge yourself as a gamer, with our exclusive product, Cashmode. We are very happy to have a partner like Druid, who deeply understands the consumer and will make all the difference to build the evolution of sports betting concepts in the country,” justifies Diego Tagliaferro, marketing director at Midnite.

Ogilvy has been serving giant Befair.net for at least four years. The latest campaign, Fezinha, launched about a month ago, “brings elements of Brazilian culture, such as typical instruments and funk beats on the soundtrack and a footballing language,” as the agency's statement points out.
 

Source: Paulo Macedo - Propmark