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Online Casinos vs. Social Casino Games
Understanding the Differences between Online Casino Gamblers and Social Casino Game Players
The explosive growth of the social gaming market � with 300 million active users per month at Facebook alone (source) � has put this domain on the radar of online casino operators interested in tapping into this trend. On the other hand, because only about 2% of social gamers are paying players, social gaming operators are looking towards the $30.3 billion online casino industry (source) to figure out how to better monetize their player base. In a sound bite: Social games have the reach, while online gambling has the money.
We believe that there is extensive opportunity for these two domains to accelerate each other�s growth. Let�s take a close look at how players differ between these domains and see what implications the differences have.
Research Methodology
Before delving into the data presented here, it�s important to understand the context of where it comes from. We are a software company � our Optimove application helps marketers and retention experts in both online casino and online social gaming companies (among other industries) increase customer spend and lifetime value. Our experience and data in these two fields gives us a deep, unique perspective of the demographics and behavioral patterns of players in both domains.
Please note that all the figures presented here are generalized averages across numerous game types. Despite this, the overall differences in player behavior are very apparent.
Social Gamers are MUCH More Engaged
Our study shows that the level of player engagement in social domains is much higher than in online gambling. A very active social player typically plays every two days, on average, as opposed to a very active gambling player who typically plays once every four days. Thus, active social players exhibit twice the engagement levels!
Another interesting fact is that 60% of single-payment social players (known as one-time-deposit, or OTD players, in the gambling realm) will continue to play for fun after their one-time payment.Contrast this with the online gambling space where only 7% of OTD players continue to play after their initial deposit amount is gone. We can thus say that social OTD players are nine times more engaged, since they continue to play even though they do not put any more money into the game.
Another important engagement statistic to compare is survival rate, where we see that social gamers are 6.25X more engaged: in social games, 50% of players are still active after six months, as opposed to only 8% in gambling.
There are two main reasons why online social gamers are much more engaged than online gamblers:
More Frequent Interaction
In online gambling, players play via a downloaded PC app or on the website. In order to interact with the game, the player has to specifically go to play, or to receive an email reminding him about the game. In other words, the game is �out of sight, out of mind� most of the time. On the other hand, social games tend to be visible while the player is doing other things in social networks, such as interacting with friends on Facebook. Furthermore, he might be drawn back into the game when seeing his friends playing or after spotting a status message from the app.
Another important factor is the fact that approximately half of social gamers play on their mobile devices, wherever they are, whereas mobile gambling has yet to catch on (possibly because gambling apps are not permitted in the large app stores).
Higher Motivation to Play
In gambling, the player plays to win and to get some kind of a rush. If he wins big, he will usually cash out and might reduce his engagement levels in the near future. In social gaming, there are many more aspects of social/fun engagement which motivate the player. The player wants to compete in the game, to go up in levels, to beat his friends (leader board) and to interact with them by sending gifts.
Proving the impact of the social factor, we have discovered that players with more than a 100 friends are worth 50% more in lifetime value (LTV) terms. When looking at the top social segments (a combination of number of friends, virtual goods sent and messages sent) we see an 80% higher LTV.
The �funs� (non-paying players) database is massive and super important in social because it contributes to the social effect. The fun players are a part of the social ecosystem (I might put in some money in order to beat my fun friends). The social player wants to be virtually rich! Moreover, in social, there is always something happening. You can claim a bonus every few hours. In gambling, if you don�t intend to deposit, you have no reason to come.
Additionally, the perceived value returned by a deposit/payment is often greater in social games: whereas a gambler who loses his money has nothing left, the social gamer may have had a more enjoyable playing experience, reached a higher game level acquired new equipment and so forth.
Beyond Engagement: Other Behavioral Observations
Conversion Rates
We find a huge difference in conversion rates between social gamers and gamblers. In social, the average conversation rate of free players to paying players is about 2%, while in online gambling it is around 18%. This 9X difference is due to the fact that the database of non-paying social players is much larger (there could be millions of MAUs), resulting in a lower conversion rate. In gambling, the player comes to the web site for a specific purpose, he knows why he is there and consequently the conversion is higher (this is related to the platform issue discussed above).
https://www.optimove.com/blog/online-casinos-vs-social-casino-games
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