Localization: The key to acquiring US market share
In contrast to the established land-based sector in the US, the igaming market remains in a transformative state. Its evolution is fueled by ever-changing audience preferences. As more of the nation’s players move from casino floors to the digital realm, only agile providers will be primed to capitalize on the region’s significant potential.
COMPLETE iGAMING spoke with Games Global Executive Vice President – New Strategic Business and Strategic Initiatives – Mark MacCombie to find out why suppliers must localize their approach and align with market trends to avoid falling behind the competition.
What are the key considerations for a supplier looking to acquire market share in the US?
One of the most influential factors determining US performance is, of course, the quality of the product. The US market is a meritocracy – those companies that champion real innovation and strive for perfection with consistency will eventually establish brand recognition. Increasingly, we are seeing prospective customers creating their own studios and building products in-house, making it pivotal to deliver a solution with a point of differentiation that is unavailable elsewhere. With most brands operating cross-state, solutions must be flexible and cater to the unique quirks of each individual market.
While the focus often falls on the product, a bespoke approach to customer relations is equally important and facilitates success in the US. Operators want a partner that understands their commercial goals and business needs, not a one-size-fits-all solution lacking inspiration and market relevance. By maintaining a client-centric mindset, being cooperative and easy to work with, and tailoring solutions that speak to the US market and the customer’s needs, suppliers can position themselves for sustained growth.
How do customer preferences differ in the US, given its history of land-based casino prioritization?
The land-based sector has a long-standing history in North America and still has a major influence over the market. Many of the most prominent US brands have a strong position in the retail market, leveraging land-based exposure and player affinity to provide synergy online.
For suppliers entering the igaming space, it is vital to build a deep understanding of land-based dynamics and player preferences, and use this expertise to bridge the gap between brick-and-mortar and online casinos. For example, simple land-based mechanics and jackpot features translate effectively and resonate online, so Games Global’s studio ecosystem crafts purpose-built products that align with these trends.
What market trends have influenced US strategic development?
Again, comprehensive knowledge of the market is non-negotiable when it comes to commercial development. According to Eilers & Krejcik, slots account for roughly 80% of the US market, so developing a content portfolio that services this demand harbors less risk than developing a niche product.
Within the slots vertical, a data-centric approach to performance analysis will help inform future plans – we look at key metrics such as session time, average stake, number of spins per player, and player retention rates, all of which create a holistic overview of the features, themes, and mechanics that are trending positively in the market.
However, despite the current dominance of slots in the online market, a recent increase in the demand for table games and a gap in the market for live dealer experiences mean there is huge untapped potential in a lesser-explored vertical. Being early adopters in this space could reap rewards. Regardless of the vertical, the catalyst for US market penetration is consistent iteration and innovation, as well as a tailored approach to optimizing solutions that focuses on emerging trends and customer feedback.
How important is localized content in driving US market progression? Do the games created specifically for the US outperform content with a European/global focus?
Localization is the cornerstone of success in most markets, particularly in the US, where the intricate betting landscape continues to shift based on its turbulent regulatory framework. Games Global emphasizes a local presence, with the US team focusing solely on driving growth in this market alone. This ensures we remain abreast of significant market developments, can adjust in real time, and establish open lines of direct communication with our US partners.
When it comes to engineering products that resonate, working closely with US brands provides clear insight into what their audience is searching for, whether it is tried and tested franchises or IP content centered around iconic brands.
Trying to shoehorn games that have succeeded elsewhere across the globe into the US is not necessarily the best course of action. Instead, suppliers should design and develop solutions tailored specifically to the US player to ensure a more optimal market fit. Games Global is blessed with an extensive studio network, meaning we can select the best-performing titles expected to strike a chord in the US, as well as build and launch purpose-built games at speed to capitalize on trends.
Given the turbulent nature of the US market as it matures, how can providers optimize their approach to remain competitive?
It is important to approach the market with humility – never assume you know it all. Learn and innovate, attack every opportunity with an open, forward-thinking mindset, and strive to be the best partner you can possibly be. Rather than churning out the same content that others are already creating, which will only cannibalize existing products, respond to customer demands, align with market trends, and harness the power of data.
Games Global is incredibly excited about the potential growth opportunities in the US. We are uniquely positioned to deliver new ideas to the market thanks to our studio ecosystem, and we remain ready, from a compliance perspective, to move quickly when new states regulate. The US market is distinctive and rich with opportunity, thus, to remain at the forefront of the nation’s promising gaming scene, it is imperative to break new ground in localized product development, foster meaningful relationships with partners, and adapt to the ever-changing nature of the environment.
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