Casino Advertisements Catering to Customers
What they're doing to get your attention and your business
By Sarah Bleau, Insight Reporter
Ad featured in Memphis Magazine, May 2010
Casinos are raising the stakes when it comes to their marketing campaigns.
To be exact, in 2008, Harrah's Entertainment put $13.5 million down on advertising, according to their own website.
"This is a sophisticated American business," says Andy Meyers with The University of Memphis Gambling Clinic.
Meyers says that grocery stores are trying to apply casino advertising techniques to their ads to bring in business. They're not the only ones.
"There's a lot of Public Health people who want to use these kinds of strategies to get people to eat healthier and engage in activities that are healthier," says Dr. Marla Stafford, chair of The University of Memphis Department of Marketing and Supply Chain Management.
Catering to your desires
It isn't only the way casino ads look that attracts customers. Experts says it's the personalization and services casinos provide.
"While we do our share of advertising, our marketing budget is focused on direct marketing to existing customers," says David Strow, Boyd Gaming Director of Corporate Communications.
Boyd Gaming owns Sam's Town Tunica in Mississippi, as well as 14 other casinos including six in Las Vegas.
Direct marketing includes offers of complimentary rooms, meals or show tickets, free slot plays, and invitations to trips or tournaments. Boyd Gaming uses e-mail and traditional mail to send out these offers.
"Gross revenues include the estimated retail value of rooms, food and beverage, and other goods and services provided to customers on a complimentary basis," according to Boyd Gaming's annual report.
The estimated cost and expenses of providing these promotions are then charged to the gaming department and deducted as promotional allowances.
According to the report, in 2008, the company spent $92,271,000 on complimentary room, food and beverage as well as other promotions. This amount is up more than 16 percent from 2007.
More than 50 percent of the total promotional allowances in 2008 went toward food and beverage.
Experts say casinos are willing to sink tens of thousands of dollars into direct marketing campaigns because they contribute to the "experience" of visiting the casinos.
Mass market advertising, like the advertisements on television and in magazines, are designed to create a fantasy for the viewer, imagining what they could experience if they go to that casino. According to Stafford, these are considered transformational advertisements.
This means people will want to experience what they see others experiencing in the advertisement. Stafford says casinos are an "experience service." The service they provide is one that focuses on the consumer's experience at the facility. That is why casinos use "transformational advertising."
"They're trying to get you to feel like what it will be when you're there," Stafford says. "Go here, you'll enjoy a fine dinner just like they're doing."
No dice on gambling in advertisements
Today, it's not uncommon to see television commercials showing people gambling, but before June 1999, gambling in advertisements was prohibited. Casinos could only advertise nongaming resort features.
It was becuase of the Federal Communications Act of 1934 that displaying gambling activity in advertisements was banned. Over the years, lotteries, horse and dog racing and Indian casinos became exceptions and could advertise without restraint.
This wasn't an issue only with commercial casinos, but with the advertising industry and the media. They believed that the act violated First Amendment rights and wanted the ban to disappear.
After conflicting decisions among circuit and district courts, the U.S. Supreme Court overturned the ban on commercial casino advertising in June 1999.
Nowadays, casinos are spending milliolns of dollars on mass market advertising that features pictures or video of people gambling with slogans saying things such as "Winning happens here" or "Just good winning."
Today, in the game of marketing, casinos are going all in to win your business.
To be exact, in 2008, Harrah's Entertainment put $13.5 million down on advertising, according to their own website.
"This is a sophisticated American business," says Andy Meyers with The University of Memphis Gambling Clinic.
Meyers says that grocery stores are trying to apply casino advertising techniques to their ads to bring in business. They're not the only ones.
"There's a lot of Public Health people who want to use these kinds of strategies to get people to eat healthier and engage in activities that are healthier," says Dr. Marla Stafford, chair of The University of Memphis Department of Marketing and Supply Chain Management.
Catering to your desires
It isn't only the way casino ads look that attracts customers. Experts says it's the personalization and services casinos provide.
"While we do our share of advertising, our marketing budget is focused on direct marketing to existing customers," says David Strow, Boyd Gaming Director of Corporate Communications.
Boyd Gaming owns Sam's Town Tunica in Mississippi, as well as 14 other casinos including six in Las Vegas.
Direct marketing includes offers of complimentary rooms, meals or show tickets, free slot plays, and invitations to trips or tournaments. Boyd Gaming uses e-mail and traditional mail to send out these offers.
"Gross revenues include the estimated retail value of rooms, food and beverage, and other goods and services provided to customers on a complimentary basis," according to Boyd Gaming's annual report.
The estimated cost and expenses of providing these promotions are then charged to the gaming department and deducted as promotional allowances.
According to the report, in 2008, the company spent $92,271,000 on complimentary room, food and beverage as well as other promotions. This amount is up more than 16 percent from 2007.
More than 50 percent of the total promotional allowances in 2008 went toward food and beverage.
Experts say casinos are willing to sink tens of thousands of dollars into direct marketing campaigns because they contribute to the "experience" of visiting the casinos.
Mass market advertising, like the advertisements on television and in magazines, are designed to create a fantasy for the viewer, imagining what they could experience if they go to that casino. According to Stafford, these are considered transformational advertisements.
This means people will want to experience what they see others experiencing in the advertisement. Stafford says casinos are an "experience service." The service they provide is one that focuses on the consumer's experience at the facility. That is why casinos use "transformational advertising."
"They're trying to get you to feel like what it will be when you're there," Stafford says. "Go here, you'll enjoy a fine dinner just like they're doing."
No dice on gambling in advertisements
Today, it's not uncommon to see television commercials showing people gambling, but before June 1999, gambling in advertisements was prohibited. Casinos could only advertise nongaming resort features.
It was becuase of the Federal Communications Act of 1934 that displaying gambling activity in advertisements was banned. Over the years, lotteries, horse and dog racing and Indian casinos became exceptions and could advertise without restraint.
This wasn't an issue only with commercial casinos, but with the advertising industry and the media. They believed that the act violated First Amendment rights and wanted the ban to disappear.
After conflicting decisions among circuit and district courts, the U.S. Supreme Court overturned the ban on commercial casino advertising in June 1999.
Nowadays, casinos are spending milliolns of dollars on mass market advertising that features pictures or video of people gambling with slogans saying things such as "Winning happens here" or "Just good winning."
Today, in the game of marketing, casinos are going all in to win your business.
Casino Adversting Catering to Customers (Video) Click on the YouTube video below to hear more about what Dr. Marla Stafford has to say about casino advertisements and see other examples of print and video casino ads.
Ad featured in Memphis Flyer, June 10-16, 2010