Years ago, the betting and gaming market in Brazil was almost untapped. But the Brazilian scenario has evolved very quickly. We currently have around 450 online sports betting houses operating in the Brazilian market. In football, betting sites also sponsor most clubs in the country.
Does this mean that the market has reached its full potential? No, this is just the beginning. There is an immense range of possibilities to be explored in Brazil. The market is in full growth and the trend is for great expansion.
Sports betting is growing by 11.5% each year. In 2020, a year marked by economic difficulties due to the pandemic, the global market was valued at US$ 59.6 billion. The figures could reach up to US$ 127.3 billion in 2027.
In Brazil, the scenario is very promising. According to Ibope Monitor, the ten largest betting sites in Brazil invested almost US$ 12 million in advertising in the country in the first half of 2020. In the same period in 2021, the investment rose to US$ 75.7 million.
The sites that operate in Brazil estimate that gaming can move up to R$ 100 billion (US$ 19.25bln), after the regulation of the sector.
Personalized marketing and not just focused on football are good alternatives
In recent tournament seasons, more and more bookmakers sponsor football teams, championships, invest in naming rights, and commercials in stadiums and on TV. Football is the passion of Brazilians, so it is natural that, at first, operators' investments should focus on it.
But we cannot forget that the houses offer a multitude of other sports. This is a point that can be explored by marketing actions, after all, most spectators today really enjoy eSports, MMA, American football, and others.
With the regulation, we envision the possibility of working on the marketing of other verticals such as casinos, for example. Everything will depend on the scope of the regulation.
Support from local firms with market intelligence in gaming and betting can greatly help operators
What sets a successful iGaming marketing campaign apart? Each operator has its specific demands and attracts different audiences. In the midst of so many new players operating in this environment, it is essential that the marketing of each betting site is personalized. It is a mistake to think that an operator's marketing should be limited to sponsoring a team or championship and seeking engagement via "fan partner". Of course, these are worthwhile initiatives, but there is much more to explore these days.
Upon arriving in Brazil, operators must consider a broad tropicalization strategy. This term refers to something much broader than what is initially thought. Brand marketing material needs a lot of attention. It's no use thinking that working with Brazil is simply using stereotyped images. It is not well-regarded to approach themes such as carnival, half-naked women, or Carmen Miranda to attract the public here.
It is necessary to understand that Brazilians are one of the great powers in internet engagement. The public needs to be nourished daily with information and the brand's presence on social networks and news sites, bringing relevant content to the country.
For an operator to stand out from the crowd, amidst so many sports betting sites that want to make a profit in Brazil, the solution is to rely on the assistance of local companies that know the industry and the Brazilian public in depth.
For everything to work out in a genuinely regionalized operation, it is necessary a lot of partnership, help and local experience that convey the tranquility of doing a job well done. Thus, the risk of error in market planning is actually minimized, accelerating business growth. Good local partnerships are key for betting companies to take off. After all, both operators and customers deserve quality and differentiated options in our sector.
Natalia Nogues
Partner at Control+F5
