MAR 26 DE NOVIEMBRE DE 2024 - 07:41hs.
Yuri Campos, Director of Media & Growth at Samba Digital

How sports betting regulation will influence the media landscape in Brazil

With the edition of Provisional Measure (PM) 1.182/2023 that regulates sports betting in Brazil, the issue of marketing and advertising for operators is unknown at this time. How will they look and what can they do to engage users? To answer these questions, GMB spoke with Yuri Campos, Director of Media & Growth at Samba Digital, one of the most relevant international sports and entertainment agencies that works with leagues and bookmakers in Brazil and in other key markets.

Samba Digital does everything from custom e-marketing strategies, to guiding their customers step by step through their process of internationalization. Every day, they reaches over 10 million fans using tried-and-tested industry processes. Using over 15 years of local experience, the company also finds regional partners for top customers.

Key competences of Samba Digital are Content production (Videos, photography, interviews, articles), Content translation (portuguese, spanish, english, chinese, indonesian, arab…), Partnerships (clubs, media, companies), Fan engagement (Facebook, Twitter, Instagram, Weibo, Wechat, Line ...) and external acquisition (SEO, campaigns, wiki), among others.

In this exclusive interview with GMB, Yuri Campos, Director of Media & Growth, analyzes how sports betting regulation will influence the local media landscape and his agency's role in helping companies develop their businesses in Brazil.


GMB - How do you analyze the issue of advertising by sports betting houses at this time when the Provisional Measure that regulates the activity was presented by the government to the National Congress?
Yuri Campos -
The regulation of the activity, although burdening bookmakers, can result in an environment of normality in the business environment in advertising and this brings a beneficial perspective. Currently, many advertising vehicles operate with parallel value tables for the segment and from the moment the market is under the light of regulation, such practices will be unjustifiable. Another possible consequence could happen in the influencer marketing market, due to greater predictability in the pricing of advertising actions.

However, it should be noted that many sports betting companies will have to adapt their financial departments to operate in the domestic market, and this change will require preparation from both marketing teams and advertising agencies.


The sector has defended and even sought partnerships – including with Conar – to establish an Advertising Code of Ethics. Do you understand that this disposition of bookmakers is positive?
It is a natural and extremely positive path. This market started operating through self-regulation and, with the expansion of the industry, the segment itself realized that such methods are unfeasible. In a highly competitive environment, if all competitors are under the prism of the same code of ethics, predictability and medium and long-term planning will be rewarded.

Is it legal, from a legal point of view, for a Provisional Measure or an accompanying Ordinance to define how and where an advertising campaign can be carried out?
You see, if we take as an example the last Provisional Measure that amends Law 13,756, sanctioned in 2018 by then President Michel Temer, which prohibits managers, coaches, referees and football players from placing bets, we note that the decision taken via PM has the objective of protecting the consumer itself by removing the agents directly responsible for the result of the games, in this case it is pertinent.

In addition, when approaching technical issues, the regulation project itself paves the way for Conar to regulate the way in which advertisements by bookmakers occur, which is also consistent since it is something common in Brazilian advertising culture.

Can the sector be required to comply with advertising rules even if it establishes self-regulation for its campaigns? Does Samba Digital already adopt the criteria established by Conar and how will this work be for Samba's customer bookmakers?
We see a great opportunity in this scenario, as we are in constant contact with the media platforms and main market agents, which will naturally enhance Samba's visibility before the most serious brands in the industry, therefore, working under the criteria established by Conar is important and at the present time already gives us credit.

However, when we talk about the sector as a whole, it is obvious that there will still be means of advertising operating on the margins of regulation, since media buying can be transnational. The issue is that such practices will no longer be advantageous after media outlets adjust pricing for this industry within the standards of a duly regulated market.

What are the main points that a self-regulating betting industry should consider when drafting a Code of Ethics?
Basically, codes of ethics are established so that people understand what are the rights and duties of a professional group in relation to its attributions and responsibilities.

In the digital lottery segment, self-regulation is currently simpler, as the operating rules are less complex.

When we talk about sports betting, there are variables in these products such as betting on corners, cards among others for football, total points, assists, blocks for basketball and so on, in an infinite number of possibilities and, in my opinion, one of the main obstacles is related how to coherently assess such possibilities in a safe way for the final public.

Bookmakers have shown themselves – with few exceptions – to be very willing to seek out best practices in their advertising. Are they doing it correctly?
I believe so! Of course, we have to take into account the volatility of this market; if we use the year 2023 as an example, a few months ago giant entertainment platforms such as Spotify and Twitter did not operate in the segment and have been adapting to this.

The consequence of this is the need for adjustments and mastery by the marketing teams to these new tools in a very short period and, in general, we observe that there are many successful cases. When reflecting on the theme, we also observe that even the means considered more traditional media, such as OOH (Out Of Home), have undergone formidable transformations. In 2023, you watch your favorite game or take the bus and right there it is a screen with the odds in the present time related to the events that is happening, and that is incredible!

Samba Digital carries out several studies focused on the presence of bookmakers on social networks. Does anything change in the agency's methodology with the future regulation of the sector?
Normally, the methodologies we adopt are based on customer conversion indicators, the famous KPIs. At this point, the process will not change, as the foundation is similar to that adopted for clients seeking performance or brand recognition.

However, there will be a considerable change in media negotiation and this will depend on the suitability of the segment in the market, which will be positive, as it will bring a condition of normality in the market.

What is the importance of the conversion funnel in media campaigns and what can Samba Digital contribute to appropriate actions for proper engagement?
Fulfilling the entire journey of the conversion funnel, above all, is an exercise in resilience for the client's digital marketing teams, and we at Samba seek to develop strategies that are transparent, showing how the client's investment will be used in the knowledge stages of brand, consideration and engagement within campaigns. When we talk about digital media activation, except for influencer marketing strategies, not considering the three stages of the funnel has been proven over the years not to be a good path.

 



How does Samba Digital analyze data from a campaign to understand the effectiveness of the action taken by a bookmaker?
We define goals with customers before the start of the campaign and normally this process takes place after sharing sensitive information such as registrations, average ticket, among others. Before the project starts we set realistic goals.

During the course of the project, we sought to work in an environment with easy access to communication with customers so that we could make decisions on campaign optimization more quickly and carried out weekly alignments. We know that teams are made up of professionals from different places and having a short time for both the Samba team and the client to be on the same page is very important.

Digital influencers have occupied many spaces in the dissemination and promotion of bookmakers. In your opinion, are they doing it correctly?
According to publications by research institutes such as Statista and Hootsuite, there are 500,000 influencers in Brazil and consumers consider them essential for making purchasing decisions. Well, when looking at these numbers, it is impossible not to identify more hits than mistakes made by these professionals.

However, these marketing actions demand production and service structures from agencies and greater formalization of labor relations and contractual support. I believe that these last points are currently the most important to determine the success or otherwise of such endeavors.

How should bookmakers guide these influencers when they don't have an agency specialized in the subject, since many sites simply hire an influencer just because he has thousands of followers?
For bookmakers that do not have specialized partner agencies, firstly, I would recommend that they look for partners, mainly because these companies usually have a distance from the cultural and business environment of the region to be worked on, and investing in media without understanding these two points it is difficult to succeed.

Even so, for bookmakers that seek to carry out these actions internally, the ideal is within the investment for influencer marketing, spreading their actions among different profiles that communicate their brand values. Now, in 2023, it is unlikely that big influencers will have annual contractual commitments with bookmakers and this leads to the second recommendation, which is not to believe in the illusion that immediacy will sustain a healthy environment of results.

What to expect from this disclosure format? Is it possible to reconcile immediate and long-term returns for campaigns of this type? How can Samba Digital guide bookmakers to implement successful campaigns?
Within influencer marketing, we have to consider the possible returns of both brand awareness and conversions and, in addition to the influencer profile, we need to understand the particularities of each of the social media platforms. Understanding these issues is critical to achieving both short-term and long-term success.

In addition to these points, Samba Digital has been operating in this market for many years and this acquired experience has allowed us to expand our network of business partners and consolidate work processes, which are very important factors in addition to planning consistent with the briefing. and the reality of the client.

As for communication between agency and client, what needs to be taken into account?
Today, technology platforms have greatly facilitated communication between teams and this is an element in which agencies have to be flexible and work wisely since we are talking about a multicultural work environment.

In the not too distant past, demands were centralized in a commercial service (or service group) and these transmitted these messages internally. Tools such as slack, asana, among others, reconfigured this professional profile within the agencies, who began to mediate conversations between the agency's teams and the client. In this way, if today there is a problem with a pixel on the client's website, for example, a working group dedicated to the topic is opened and directly connected to professionals capable of solving the problem on both sides.

As a result, professionals from different areas of a communication agency needed to develop external relationship skills, even more so in an increasingly remote environment.


Source: Exclusive GMB