BOSE Digital: How Fantasy Sports differentiates itself from other sports products
Speaking on the first day at the Betting on Sports Europe – Digital, Bjorn Fjellby, Co-founder of FanTeam, instructed delegates on how to effectively use fantasy sports as a complementary tool for sportsbooks to both acquire and retain customers.
Taking part in a discussion entitled Reducing CPAs with Fantasy Sports, which was sponsored by Scout Gaming, Fjelby explained: “It’s a player to player game… the user is not competing against the provider or the brands offering it but they are competing against each other which is why it’s regulated as a skill game in most parts of Europe.
“When you look at the daily fantasy sports scene today it has changed a lot since we started out in 2014, nobody was playing fantasy sports in Europe at that time, it was more season long games and we started to see big developments in the United States.
“I think it was back in 2007 the first real online fantasy game came into the United states… market leaders today are DraftKings and FanDuel… They have had a huge impact on the American scene and they have tried their hand in other places in the world but so far they are successful in the states.
“I think one of the reasons FanTeam and Scout have been able to get a good introduction into the European market is because of our willingness to localise. We’ve gone into different countries and we’ve looked at what sports are the favourite in that country, the interest in the user-base and where the focus has to be.
“If you look at traditional sportsbook acquisitions these days it’s becoming quite expensive, our latest round of research on the area before the Premier League started again and all the big leagues were back cost us around £171 to get a new player into the site and started generating value.
“£171 is quite the investment that you have to be sure the player will stick around so you can make money.”
Fjelby highlighted three key components on why fantasy sports acquisitions cost much less than a traditional sports bettor. He continued: “First of all, it is a bit of the differentiation part. Fantasy sports is still new in most parts of the world and is still young in development so by offering a fantasy sports product you are differentiating yourself from other sports products.
“If you look at the traditional sportsbook set up today, you’re competing against a lot of other similar offerings and even in local markets you have several players going after the same end customers.
“One of the great things about fantasy sports is that there are already existing communities that are highly focused on sports that you are offering. This is why selection and focus, when it comes to fantasy sports, is very important.
“One of the things that’s also helping our acquisition is that fantasy sports is not considered gambling or traditional gambling . Although you can play with money, the skill element is a different factor that makes a different type of user interested in the product as well.”
Joining Fjelby in the discussion, which formed part of the Market and Affiliation track at the event, sponsored by Bet365 Affiliates, was John Tsakalakis, Sportsbook Product Manager at Kaizen Gaming.
Fjelby’s thoughts of daily fantasy were echoed by Tsakalakis who noted how fantasy products aided Kaizen Gaming in 2019: “In 2019, fantasy products helped us to achieve much better acquisition goals resulting in an increase in 15 per cent for new customers in the period season fantasy started and was promoted by our marketing team.
“With engagements we had similarly encouraging results… 20 per cent more time was spent by fantasy regular players compared to a sample of other customers this made daily fantasy a very strong tool in our arsenal.”
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Source: SBC News