Optimove: Five insights into US player behavior
In this article, brought to you by Optimove Pulse, senior director of strategic services Jonathan Inbar examines how operators can use notable trends in US player behavior from last year as a guide for 2024
September brings KPI peaks
September ignites excitement for US sports enthusiasts with the NFL season kick off and baseball winding down the season heading to the playoffs. The data shows both September 2022 and 2023 proved to be optimal periods for igaming operators to engage, reactivate, and attract players.
Metrics, including a peak conversion rate (57%), retention rate (74%), and reactivation rate (6.3%), surpass even the fervor of March Madness. Additionally, the new retention rate (retention rate of players converted in the previous month, at 36%) sees a notable upward trend, surging in the months following September due to an influx of new players entering the space.
September also shows a drop in number of deposits
With each new NFL season, a substantial influx of new, casual players eagerly participate by placing bets on their favorite teams or specific games. However, despite the initial surge in activity, new players typically exhibit a transient engagement pattern, refraining from consistent participation or placing high bets.
Consequently, after a brief period of active betting, they tend to become inactive, contributing to a subsequent decline in the average number of monthly deposits. The new season’s excitement wains with diminished activity.
Conversion rate and new players follow major sporting events
If an operator is eager to convert new players, September emerges once again as the opportune month, boasting an impressive conversion rate spike in the US at 38.5%, surpassing the global average of 27.9%.
While peak sporting events, like March Madness (36.1%) or the NFL playoffs in January (32.9%) attract a surge of new players, harnessing this influx demands a strategic retention approach. The challenge lies in retaining these fresh participants, as they exhibit a tendency to churn swiftly without a well-crafted retention strategy in place.
US trails rest of world in live betting, leads in pre-game bets
US players prefer pre-game bets rather than live betting compared to the rest of the world (ROW). In 2023, 55.4% of US players’ bets were placed on pre-game bets, compared to the ROW’s 39.8%.
Conversely, just 44.6% of US players’ bets involved live betting, compared to 60.1% ROW. This trend suggests US operators have untapped revenue potential in live betting.
The preference of US players for pre-game bets over live betting can be attributed to a combination of behavioral factors and regulatory constraints.
Firstly, the relatively underdeveloped nature of product features in the US market for igaming compared to more mature markets might limit the attractiveness of live betting options. Many igaming brands in the US are still in a startup phase, and their product offerings may not be as advanced or diversified as those in more established markets.
Additionally, the regulatory landscape in the US varies state-by-state, and not all states have fully opened up to online gaming, contributing to a preference for pre-game bets. Behavioral tendencies, coupled with the evolving nature of the US gaming industry, play a significant role in shaping the betting preferences of US players.
New player surge: Upward trajectory in the US, downturn across the globe
Using December 2022 as our baseline at 100%, we analyzed the growth trajectory of the US market in comparison to the global landscape.
Notably, the US trend exhibits a consistent upward trajectory, marked by notable spikes around key events such as the NFL Playoff and Super Bowl in January (134%), the NFL season opening day in September (169%), and the escalating momentum of the NFL regular season in November (172%).
In contrast, the ROW trend has yet to exceed the December 2022 benchmark. This underscores the untapped potential for growth in the US market, a prospect set to expand further as more states join the burgeoning landscape.
Jonathan Inbar is the director of strategic services at Optimove, a leader in the data analysis and strategic marketing arena. With more than seven years of experience, Inbar has perfected his expertize in navigating the complex world of data analytics. He leads a dynamic department of data analysts whose research and insightful consultations are indispensable to marketing teams.