Maximising First-Time Depositors: How Blocking Invalid Traffic Can Cut Customer Acquisition Costs

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Understanding the Scope of the Challenge

The online sports betting industry is massive, with around 5,000 companies generating $50 billion in annual revenue. As the industry matures, the focus has shifted from growth at any cost to a more balanced approach that considers both CAC and customer lifetime value (LTV). With average LTVs around $2,500 and CACs near $400, operators are aware of optimising every dollar spent on user acquisition.

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In the highly competitive world of online sports betting, attracting new customers isn’t just important—it’s essential for staying ahead. But with the rise of invalid traffic, including non-converting users and sneaky bots, acquiring first-time depositors (FTDs) is becoming increasingly challenging and expensive. 

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The good news? There are strategies to overcome these hurdles, and they can make a significant impact on your bottom line.

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The Invisible Enemy: Invalid Traffic

Invalid traffic is more than just a nuisance—it’s a budget killer. Whether it’s real users who click on your ads but never convert, or bots that have no intention of doing so, this type of traffic drains your marketing budget and distorts your campaign performance metrics. However, by understanding and addressing this issue, you can reclaim wasted ad spend and improve your customer acquisition strategy.

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A Case Study in Success - BetVictor

Kevin Lloyd, head of paid search at BV Group, shared insights into how his company has successfully partnered with TrafficGuard to tackle invalid traffic. By auditing their Google PPC campaigns, BV Group identified a significant proportion of preventable threats, including bot traffic and non-incremental clicks. By eliminating these, they reduced their CAC significantly, allowing them to reinvest savings into acquiring genuine users and ultimately boosting their ROI.

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Practical Tactics for Marketers

Matt Sutton, TrafficGuard's Global COO, emphasised the importance of user identity validation and setting thresholds to minimise invalid traffic. By analysing user behaviour—such as the frequency of clicks from a single user—operators can exclude non-incremental clicks and focus on attracting new customers. Additionally, the use of shadow campaigns allows operators to bid lower for returning user traffic, further optimising ad spend.

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In conclusion, Invalid traffic presents a significant challenge for online sports betting operators, but it can be effectively managed with the right strategies. By partnering with solutions like TrafficGuard, operators can ensure that their ad spend is directed towards genuine users, reducing CAC and maximising LTV. Optimising ad campaigns will be vital to staying competitive and profitable as the industry continues to grow.

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Ready to slash customer acquisition costs and drive up ROAS? Contact us!

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