Measuring Success: Key Metrics for Analysing Sports Betting Ad Campaigns

Launching an ad campaign without the right metrics is a bit like stepping into the ring with a heavyweight boxer—blindfolded. You might get lucky and land a few punches (or clicks, in this case), but chances are you'll get knocked out (financially speaking) before you even see it coming.

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That's because, in online sports betting, success hinges on more than just flashy campaigns and catchy slogans. Your sports betting martech stack can be award-winning, but without knowing what to look for, your efforts may be wasted. It's about knowing what to measure, when, and how to interpret these measurements to make strategic decisions. However, even though we have more data and tools at our disposal than ever before, companies are still getting it wrong. Wells Fargo is one notable example of how using the wrong performance metrics can have some pretty disastrous consequences. 

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Metrics are important. They help us understand our results and objectives and steer us in the right direction for success. However, like in the case of Wells Fargo, without the proper framework for analysis and interpretation, metrics can easily lead us astray.

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So, let's explore the metrics that will not only keep your ad campaigns in the game, but also make them contenders for the hall of fame.

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Sports betting metrics you should be using

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The following metrics are important in determining if your users are loyal and recurring. Tracking these will also offer insight into how different groups interact with your business, giving you valuable data to take forward into campaign optimisations. Here are some metrics you should consider tracking:

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Metrics regarding deposits and withdrawals

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1. The total deposits a user makes in a specific time period
2. The total withdrawals  a user makes in a specific time period
3. The average deposit amount  a user makes in a specific time period
4. Number of players who have only made one deposit  and the increase in % (This indicates where your retention efforts need some work)
5. The number of players with X or more deposits (and increase in %)

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Metrics regarding bets places

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1. The total number of bets (and increase in %)
2. The number of bets per channel (mobile, desktop, etc.) 
3. The number of single bets
4. The number of combi bets
5. The number of system bets
6. The total stake in a given time period
7. The average stake in a given time period
8. The total bet returns in a given time period

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Freebets & bonuses

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1. The number of accepted bonuses
2. The number of rejected bonuses
3. The number of free bets in a given time period
4. The total stake from free bets
5. The average stake from free bets
6. The total returns from free bets

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Pro tip: Metrics related to payments, like total deposits and withdrawals, play a crucial role in determining the effectiveness of your marketing activity on user financial transactions. Payment processes are particularly important in betting operations, significantly affecting the overall customer experience. Additionally, by looking at indicators like the average amount of deposits, you can gain a good understanding of your users' overall confidence in your platform.

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Of course, every company requires its own unique set of performance metrics depending on its needs and objectives, but these are some of the key ones you should be aware of when planning and managing your marketing activity. 

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Essential performance marketing metrics to measure

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Sports betting comes with its own set of metrics fit for its business models, but it's important to make sure you’re accurately tracking the basics too:

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Conversion rate: The conversion rate is the percentage of visitors who complete a desired action out of the overall visitor count during a certain timeframe. Calculating your conversion rate is simply the number of conversions divided by the number of visits. For example, if you had 80 conversions from 1,000 visits, your conversion rate would be 8%, as 80 ÷ 1,000 = 8%.

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Customer acquisition cost: Customer Acquisition Cost (CAC) represents the overall expense incurred to gain a new customer. This includes all costs associated with your marketing initiatives and any other marketing-related expenditures required to attract an average new customer. The CAC formula is calculated by dividing the total expenses incurred in attracting new customers (your marketing costs) by the total number of new customers gained within the timeframe those funds were spent. For example, if you spent £4000 in one month and your number of new customers is 1000, your CAC is £4.

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Customer lifetime value: Customer Lifetime Value (CLV) is the total value a customer contributes to your business throughout the duration of their association with your company. This metric is important as retaining current customers is more cost-effective than obtaining new ones. 

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Bounce rate: Bounce rate is the percentage of visitors to a website who navigate away from the site after viewing only one page without taking any action. A high bounce rate might suggest that your site's landing pages aren't engaging or relevant to visitors, while a lower bounce rate indicates that visitors are more engaged and likely to explore more of the site. To get your bounce rate, you should divide the total number of single-page sessions by the overall entries to the website and then multiply the result by 100 to convert it into a percentage. For example, if your home page receives 10,000 visitors this month, but 5000 leave without clicking on a second page, your homepage's bounce rate would be 50%. Bounce rate in GA4 differs slightly to previous versions, so it’s important to keep on top of how this metric is tracked. 

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Churn rate: The churn rate (or the attrition rate) is the pace at which customers stop doing business with your company over a certain period. Calculating the churn rate is relatively straightforward. You must divide the number of players that have left by the number of players at the start. For example, if you started in January with 2000 players and 500 decided to leave at the end of the month, your churn rate is 0.25%. 

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FAQ

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How do industry-specific factors, such as changes in sports betting regulations or the emergence of new competitors, impact the effectiveness of the recommended metrics for analysing sports betting ad campaigns? Are there any adjustments or additional metrics that advertisers should consider in response to such changes?

Industry-specific factors like changes in sports betting regulations or new competitors can impact the effectiveness of recommended metrics. For instance, regulations may alter user behavior, affecting deposit patterns or bonus uptake. New competitors can change market dynamics, influencing metrics such as customer acquisition cost. Advertisers should adapt metrics and strategies accordingly.

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What methodologies or tools are recommended for accurately tracking and analyzing the suggested metrics, especially considering the complex nature of sports betting platforms and the large volumes of data involved? Are there any particular challenges or best practices associated with data collection and interpretation in this context that readers should know?

Accurate tracking and analysis of metrics require robust methodologies and tools. Advertisers can use advanced analytics platforms tailored to the industry's needs. Challenges such as data privacy regulations and integration across channels must be addressed. Employing machine learning or predictive analytics can uncover valuable insights, helping advertisers make informed decisions and optimise campaigns.

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Now you've got your marketing metrics in place, why not follow these sports betting industry experts to up your game even further. Learn more about how sports betting marketers can optimise their budgets with TrafficGuard.