Which may explain why the casino haven of Macau last year overtook Las Vegas for the first time in terms of gambling revenue.
The city state’s gaming spend surged by 22 per cent in 2006, thanks to the launch of seven new casinos. With several more players eyeing expansion, there is no sign of a slowdown in sight.
Macau’s booming development is spreading the wealth across a number of industries (if not punters) and agencies are not missing out. For Hong Kong’s beleagured agencies, the budgets can be considerably more lucrative than typical accounts in the city.
“It’s a new growth category,” explains BBDO Hong Kong CEO Clara Wong, whose agency — in tandem with PHD — recently won the US$1.5 million advertising business for the upcoming Ponte 16 entertainment complex. “The returns will be more lucrative.”
For Wong, the situation is reminiscent of the mid-’90s, when new telcos scrambled to market in Hong Kong, sparking a string of new accounts for several local agencies.
At present, both the Venetian and Galaxy casinos are believed to be reviewing their creative requirements, the former after hiring Publicis barely a year ago. Recent months have also seen David and OMD pick up briefs from the Crown and Venetian, respectively and, with new launches planned from the likes of Stanley Ho, Las Vegas Sands, PBL Melco and Genting — agencies could be forgiven for thinking that the good times are back again.
“If they want to get a fair market share, they have to invest in advertising,” says OMD Hong Kong MD Jackson Kwok. “Competition is becoming more intense and all the casino brands are looking for agencies.”
Winning casino business is one thing, but servicing the accounts –it appears — is another altogether. Understandably, Macau’s gaming operators are targeting the surging pockets of China’s new rich – but strict regulations mean that they are unable to promote gambling in the mainland. Kwok points out that agencies must promote the brand’s other offerings — almost all of the foreign casinos come complete with hotels and restaurants — although the exact rules surrounding even this kind of advertising remain unclear.
“It really depends on local regulations,” says Kwok, “At the end of the day, you have to promote your brand, without attracting negative feelings from the local Government.”
Kwok adds that mass media remains a critical component because consumers still have trouble telling different casinos apart. While casino purses are expected to be lucrative at launch, it is this factor that may prevent too much drop-off afterwards. But casinos are, by their nature, fairly difficult to differentiate via advertising — indeed many rely on customer service and ambience to carve out their own niche.
“The Las Vegas operators have it down to a science, in terms of how to retain people in the casino and make them spend money,” says Wong. “The role of the communications is really to create hype and an excitement level beyond just gaming.”
Kwok too seems relatively unconcerned about the role advertising will play in promoting casinos. “It’s very lucrative. Chinese love to gamble but, eventually, the biggest winner will be the casino business.”
