The challenge of auditing marketing performance

Australasian gaming businesses typically spend between 15 percent to 40 percent of their revenues on marketing. Yet the return on marketing expenditure often defies measurement. Part of the difficulty lies in effective delineation of the marketing function. Without a holistic understanding of the scope of marketing, and appropriate metrics with which to measure its effectiveness, companies will continue to struggle with determining the return on marketing activities. As the British physicist Lord Kelvin observed, “When you can measure what you are speaking about, and express it in numbers, you know something about it!” In today’s hypercompetitive Asian gaming environment, where marginal revenue generation is tough and pressure to control costs is intense, it is imperative that marketing-related operations are systematically audited. The gains from such an exercise most definitely warrant the time and expense involved in carrying out the audit. Gaming business is a service business and marketing audit for...

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