Using the Big Data technology in online gambling
In 2017, the IT industry shows a great interest in Big Data technologies. This concept is now widely applied in various online areas. The experts of the leading aggregator and software provider in the gaming industry, Slotegrator, made a research and figured out what this new technology can bring to gambling operators.
What is Big Data?
The term of Big Data is nowadays widely used in Internet marketing.
With the help of Big Data, you can easily operate with large amounts of data. In other words, it deals with a wealth of information, which cannot be processed in a usual way.
Let's take a look at the statistics to understand why the usage of special systems for processing digital information increases every year.
According to the IT giant, IBS, by 2003 the world has accumulated 5 exabytes (EB) * of data. By 2008, the volume had grown to 0.18 zettabyte (ZB) **; by 2011, up to 1.76 zettabytes; by 2013 - up to 4.4 zettabytes. In May 2015, the total amount of data exceeded 6.5 zettabytes
As said in the report "The Data Age 2025"prepared by analysts of IDC, there will be about 40-44 zettabytes of information in the world by 2020. By 2025, this volume will be 10 times larger.
The dynamics of digital information growth in the world.
* 1 EB = 1 billion gigabytes;
** 1 ZB = 1024 exabytes.
What problems does the Big Data technology solve?
The Big Data technology can cover many areas dealing with a huge volume of various information, which is constantly being updated. It can solve many important tasks for online casinos:
- Collect useful information for gambling: about gamblers, competitors, legislative changes, requirements of regulators, new games, etc.
- Store and digitize the received data in order to process and analyze it.
- Structure of piecemeal data.
- Analyze a huge amount of information with the help of built-in processing algorithms.
- Form various analytical reports.
Thus, the main aim of the Big Data technology in the gambling industry is to achieve maximum efficiency in processing of data. It allows to monitor the current situation in the field, as well as to successfully implement new products and services, which leads to increasing competitiveness and development of the gambling projects.
How to use the Big Data technology in the gambling industry?
Information is the main tool that helps successfully create a marketing strategy and forecast growth for a business. Data analysis has long and successfully been used to determine the characteristics, interests and preferences of the target audience, forecasts of the consumers’ activity, etc. Thus, the Big Data technology has become the most accurate marketer's tool assisting them in creating a successful company.
Currently, the gambling industry is in the process of consolidating the market. The influence of competitors and the pressure of regulators increases daily. Therefore, gambling institutions need to constantly implement fresh and effective solutions and seek new opportunities for interaction with the target audience.
Today, the Big Data technologies are successfully used by various betting and gambling companies: bookmakers, software developers, operators, game content providers and platforms.
Till today, the Big Data technology has successfully solved some very important issues in the gambling industry.
- To solve the marketing and advertising tasks.
- Interface and navigation.
- Bonus and prize policy.
- Gambling stock and much more depends on the findings of the information analysis.
- The Big Data technology helps to accurately identify the behavioral and demographic characteristics, as well as the preferences of the target audience, as the results show. It will allow:
- to attract more clients to their gaming houses;
- more successfully retain the regular customers.
- Moreover, collected data helps to determine the chances and the number of payouts in certain online casino games, and to generate more accurate predictions of sports outcomes for bookmakers.
- With the help of Big Data, you can solve not only marketing problems, but also security issues that have always been relevant to the gambling business and influenced its profitability and success. Thanks to analysis of behavioral factors, it is easy to identify a player who has fraudulent intentions.
- The analysis of the behavioral characteristics and preferences of players helps to identify gambling addiction at an early stage among visitors of gaming houses. The fact that online casino operators take part in this activity contributes to the growth of a social responsibility and the formation of a positive reputation of gambling establishment.
What information about online casino customers is collected by analytical technology?
The main marketing tasks of any gambling project are to engage new and retain active players. Therefore, first of all, it is necessary to classify all visitors into different groups to create the most effective methods of communication for each of them.
With the help of Big Data technology, online casino operators can easily and quickly evaluate players and classify them according to various criteria.
Usually, collected data about players is stored in the system in the following order:
- Socio-demographic characteristics: sex, age, education, occupation, etc.
- How users navigate the site, how much time they spend and on which pages.
- Information about financial transactions of players.
- How much money players spend on each game.
- How much time they spend on each game.
- Various preferences: games, payment systems, visiting hours, devices etc.
- How the players react to various promotions, large prize funds, bonuses, etc.
- Whether they use chats to communicate with other players.
- Whether they contact support service: how often and for what reason.
- Statistics of losses and winnings.
Examples of successful integration of the Big Data technology into the gambling business
The first to apply Big Data technology in the gambling industry were bookmakers. Bookmakers make profit on the chances of winning, which they themselves establish. Therefore, it is very important for them to have the maximum information.
That’s why, bookmakers quickly applied Big Data as a means of managing their projects and an effective way to increase profits.
It's no secret that nowadays many online casino operators also collect large amounts of data about their customers. However, so far very few of them use this information to segment players to influence them with the help of promotions, bonus programs and personal offers.
Nonetheless, there are success stories of gaming houses using the Big Data technologies to increase the effectiveness of their marketing activities.
Station Casinos and Harrah's are the examples of successful practical integration of Big Data. These companies believe that a personalized approach to players provides a better feedback and gives better results.
Thanks to changes in its marketing strategy, Station Casinos increased a retention rate of visitors by 14%.
In the betting field, the British bookmaker, Paddy Power, was one of the first to integrate the Big Data technology. The growth of online rates along with the development of business, has led to the accumulation of hundreds of terabytes of data.
At first, the management had no idea what to do about it, then they adopted the technology of data storage and analysis; and their management gained greater access to analytical information.
Thus, IT managers who controlled data management earlier, now have more time to focus on strategic goals.
One more successful example of using the Big Data technology is the Betegy Internet portal. According to the creators, Betegy helps successfully predict the results of 90% of all matches of the English Premier League. Analysis of input is conducted through a complex algorithm that takes into account all possible factors that may affect the game: whether it is the birthday of the coach or the day of the match. Twenty one football leagues all over the world already use the Betegy forecasts.
Still, online casino operators and bookmakers are not the only ones who use Big Data in gambling. Players are also actively involved in this process. For example, the SharkScope service provides analytical information to gamblers, thus increasing their chances of winning.
This is the world's largest online poker database: it accumulates a huge amount of data from millions of poker games that are played daily. Players can use it to track poker statistics and improve their tactics, avoiding financial losses.
Big Data technology is used by SharkScopre with the TokuDB engine to optimize database performance.
Conclusions: prospects for using Big Data in online gambling
As for today, Big Data technologies have a great impact on the gambling industry, and it doesn't matter who uses it - gamblers or operators.
The impetuous development of the gambling market leads to the accumulating of the huge volumes of unprocessed information; nevertheless, the future development of business directly depends on the efficiency of using this data.
The experts of Slotegrator note that the amount of data in the gambling segment is constantly growing. And what is considered great today, tomorrow will be normal, and the day after that will turn into something small. Therefore, it is important for operators to apply the latest technologies for effective business management in this tough competitive environment.
Gambling operators are only taking the first steps on the way to Big Data, exploring its opportunities. Yet, those who have already realized the full potential of Big Data, make full use of it.