I was reading more about the McKinsey Report commissioned by the Jockey Club this evening. I came across what I think is something that is a little bit disconnecting.
Keep in mind I am just a dumb horseplayer, so I expect I am probably missing something.
The report calls for an increase in spend for TV coverage, to try and drive eyeballs to our sport. That's cool. Revenue can come from eyeballs over time by cultivating them - even with interruption marketing. It's a mass market strategy, and that's fine.
However, on takeout, it appears that strategy is completely turned on its head.
"I think we heard a lot from our most important customers that the
pricing of the product is a little bit too high. But, in general, we
thought a better way to deal with it - because of the regulatory
environment - was to give targeted rebates to our best customers as
opposed to a general reduction in takeout."
Instead of mass marketing to bettors - who supplies us with about nine out of every ten dollars of non-slot revenue - they have decided to target market.
So, if you want to watch on television, turn it on. If you want to fund the sport and get what your everyday slot machine gives you in value, you have to find an ADW that might or might not be legal in your state, learn the game, bet over $10,000 a month, call the owner of the ADW, and negotiate a rebate.
Like I said, I'm just a dumb bettor, but can anyone tell me why we'd want to spend millions mass marketing to people who will not give us revenue, but spend nothing target marketing to those who might?
Most Trafficked, Last 12 Months
-
Auckland Reactor is coming to the US from New Zealand and he landed in the barn of the very sharp Kelvin Harrison. I don't think many w...
-
Have you seen the RCI's recent push to change the narrative on drugs and racing? The story they tell is accurate, and has been for some...
-
Back in the early 1990's I got my first real job. I was a pretty much an office gofer for a mining consortium. One day a gentleman cam... -
Yesterday on twitter there was a conversation about why some people are withholding money from Keeneland this meet. A simple question, with...
-
Elmer Patzer walked up to a betting machine and started popping in tickets to see if he won. All of a sudden, whamo, he cashed for $6.5 mill...
-
Horses opening with 10k to win on them, at smaller venues lately? I have not been playing too seriously the past two days, however I did che...
-
Every time I flip on twitter someone is annoyed that NBC is tape delaying some of the events for prime time television. Columnists have join...
-
Canterbury Park - the small Minnesota track that lowered takeout last year, only to raise it this season - concluded their meet recently. Th...
-
Good morning folks. On Awful Announcing, columnist Matt Zemek tore a hide off ESPN for what he thinks is the dumbing down of tennis cover...
2 comments:
Oh, so basically what they do today? The everyday shlub who goes to the track pays retail while those who bet via an ADW get rebates.
Hey PTP,
I think by mass marketing the sport and focusing on the non-bettors, they're trying to generate altenate areas of revenue such as racehorse ownership. With syndicates taking up most of the advertising on all HPiTV programs, the sport wants people who are not so savvy with betting, (but still enjoy trying, like me) welcomed into the industry via alternate routes.
I don't think they're implying that bettors are no longer important in the long-term plan, but I believe they realize that there will always be gambling and that now is the time to attract all walks of life.
They're trying to diversify the product to become attractive to the 'everyday housewife', the 'doctor', the 'truckdriver', etc. Syndicates lay claim to the fact that you don't need a tonne of money or time to enjoy racehorse ownership and become 'part' of the industry.
However, I do believe that the sport does rely heavily on chaps such as yourself to generate revenue, and programs should be implemented in the long-term plan to educate people in this particular area of the business.
Standardbredgal
Post a Comment