Where Have the Younger Players Gone?
It is well known in the lottery industry that as players are aging it is getting progressively more important and at the same time more difficult to attract young players. The million, or perhaps billion, dollar question is how to attract younger players to the lottery.
Is it possible that they are simply not interested in gambling? No, the last few years have seen a remarkable growth in the popularity of poker, especially in the USA. Why has poker succeeded so well while State, Provincial and National Lotteries continue to struggle to attract young customers?
The answer is that very few lotteries "speak the language" of younger players. While poker tournaments are televised on ESPN and Celebrity Poker is being televised on the Bravo Network, traditional lottery operators have been slow to follow suit.
Lotteries cannot attract young people using the standard casino imagery that has worked well in the past. Instant tickets need to be designed with more youthful designs that appeal to younger audiences.
Although this strategy is new to the lottery, it is not untested. The private sector has already made the leap. Marketers understand that they must adopt a new tone and style for Generation X and Y-ers. This becomes clear when watching commercials on MTV.
The fact is that young players have a different set of values then the previous generation. They have their own ideas of what is "cool" and what attracts them. The lotteries' ability to understand this younger market will determine their success going forward.
Case Study: Tattoo
The Israel Lottery wanted to create a ticket that could attract young people. When we approached this challenge we came up with the idea of a "Tattoo" ticket. We chose Tattoo because it is a theme that is appealing to a young audience in Israel. Also, it gave us the opportunity to design an unusual instant ticket. The results were impressive. Designing an Instant Ticket specifically for a younger market succeeded in generating impressive sales and bringing young players.
Outdated tickets use color combinations that have not been updated for years. When these combinations become unfashionable they are no longer attractive to innovators and early adapters, segments that tend to be younger. Although they may sell well to the usual players, they are not successful at attracting new players.
The challenge is to design tickets for each target market. Tickets that sell well with younger people may not sell well to older people. To be successful today, lotteries must have at their points of purchase a variety of tickets, something for everyone. The comparison can be made to an ice cream store. Although vanilla and chocolate have always been popular, it is the stores that offer a greater variety that succeed. Their success comes from the fact that while still attracting fans of vanilla and chocolate, they also get business from those consumers with different tastes.
Peddy Mergui
CEO
