It’s been just over a month since the implementation of the new 28 percent tax slab on gaming, and businesses are grappling with assessing its impact.
The ongoing festive season further complicates the analysis, as it remains unclear whether players are avoiding participation due to the higher GST or are simply preoccupied with the festivities.
In an exclusive conversation with Storyboard18, Gunnidhi Sareen, VP Marketing, Head Digital Works provides insights into industry adaptations, ongoing experimentation, and the brand’s commitment to responsible gaming. Sareen also sheds light on the transformative impact of their ambassador SRK on the brand. SRK has single-handedly propelled brand awareness, seeing a remarkable 25 percent surge since his association.
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How has the implementation of changes in GST since October 1 affected the dynamics of the industry?
It’s been about a month now, and I believe every day brings new learning. We are still in the observation phase as an industry. I notice that every player is experimenting with new things, such as the offerings provided to customers and the type of engagement we drive on the platform. It continues to be a dynamic environment, playing a vital role in addressing biases and staying competitive with other players.
While it’s too soon to draw definitive conclusions, we are navigating through the ongoing festival season and shopping festival, making it challenging to assess the impact accurately. However, one clear point is that we are committed to ensuring our customers receive what they deserve, emphasising on great gameplay and value. Our daily endeavour is to provide consumers with the best possible experience.
it will likely take a couple more months to gain real insights, stability, and a clearer understanding of what’s truly happening in the market.
A recent Lumina report says government regulations are shaping the gaming industry. Do you agree?
Government regulation plays a significant role in shaping any industry, and the gaming industry is no exception. When the government provides input and regulates certain aspects, it instills a sense of trust and credibility in the industry. This trust is essential for the growth and acceptance of platforms within the market.
For instance, the deduction of TDS on withdrawals is a direct result of government taxation. This not only ensures compliance but also adds credibility to the industry. As a consequence, people tend to trust platforms more when they see government involvement in regulation.
In the long run, the establishment of trust and credibility is beneficial for the gaming industry. It encourages more individuals to choose these platforms for leisure activities, contributing to the overall growth of the industry. As trust is built, we can anticipate an increase in the number of customers engaging with the platform during their leisure time throughout the day.
You have had an interesting strategy for your campaigns by always running two campaigns simultaneously, one on your offerings and the other on responsible gaming. How has it helped?
Responsible gaming is a cornerstone of our marketing strategy, designed for long-term success and positive brand positioning.
We believe that emphasising on responsible gaming not only benefits us as a brand but also contributes to setting the right standards for the entire industry. Our commitment extends beyond mere statements; we actively position ourselves as a responsible platform, fostering trust through realistic and relevant communication.
In contrast to advertisements predominantly focused on winnings, we prioritise on highlighting the gameplay experience. Our goal is to establish our platform as a multi-gaming destination that values skill and professionalism. When selecting a brand ambassador, we chose someone who embodies the values of our brand—self-made champions who epitomise professionalism and skill.
This long-term strategy aligns with our broader brand interests. Recognizing the importance of regulations, we actively support measures that align with our values. We aim to position the gaming sector as one that sends out positive messages beyond just celebrating winnings.
How has having SRK as brand ambassador helped in this endeavour and in achieving your overall marketing targets?
Inclusion of SRK in our campaigns, urging players to ‘play responsibly,’ adds a layer of credibility and resonates with our audience. People tend to trust and believe in celebrities like Shahrukh Khan, whose popularity transcends regions. Since the launch of our first awareness campaign, we’ve witnessed a significant uptick in consumer engagement, with our brand gaining a 25 percent increase in overall awareness.
Alongside engaging SRK, what are the other key marketing strategies that have worked for your brand, especially in the post pandemic era where interest in gaming has gone up manifold?
A critical aspect of our marketing strategy of course, is having a robust brand ambassador, someone like Shahrukh Khan, whose popularity spans across regions. While his appeal is broad, it’s equally vital to establish local connections. We regularly engage with influencers on a quarterly basis, ensuring a diverse set of voices that resonate locally. When we initially launched the SRK campaign, we collaborated with influencers, including actors from the south, who actively promoted responsible gaming on their social media platforms.
Connecting at a local and regional level remains a priority, and we continue to tie up with influencers at local events. This approach, combined with influencers who can communicate in the local language, strengthens the brand’s connection with the audience.
Videos featuring influencers from different regions are a significant part of our social media strategy. By collaborating with influencers from states like Gujarat, Maharashtra, Karnataka, Rajasthan, and Delhi, we aim to reach a wider audience and create a strong brand affinity.
As you rightly pointed out, the online gaming industry witnessed solid growth post-pandemic, with more people turning to online platforms for entertainment. To ensure our brand preference continues to grow, we recently tied up with a few CCL (Celebrity Cricket League) celebrities, recognizing the importance of staying relevant and engaging with a diverse audience. We also engaged with Pro Kabaddi League, Pro Volleyball League, Big Boss Marathi and Kannada, South Indian International Movie Awards (SIIMA), Premier Hockey League (Telugu Talons Sponsorship) and in Ghoomer in the form of in-movie branding. All of these helped.
We observed a substantial improvement in our brand scores and organic searches in the recent fiscal year.
You recently launched a poker app. Is marketing poker any different from marketing real money games or rummy?
Poker stands out as a unique and niche game, with a market that is still in the process of growth. While our goal is to expand the market and grow our business, poker remains highly targeted. For high-value poker players, we strategically choose specific channels to reach out to them. On the other hand, for low to mid-value players, we actively engage with poker communities on platforms like Facebook and Discord.
Being part of these communities allows us to promote our features and create awareness about our offerings. Targeted campaigns, such as running ads on high-value CTV or online platforms, help us reach our specific customer base. Although the funnel for poker may be narrower compared to other games, the precision of targeting ensures a more effective approach.
In terms of marketing strategy, running a big bang ATL (Above The Line) campaign for poker might be perceived as less effective than for fantasy markets, considering the unique nature of the poker market.
You mentioned actively working with influencers? Since this is a new space all together what are the kinds of checks and balances in place while you work with these influencers?
When considering partnerships with finance influencers, we adhere to a set of guidelines that prioritise transparency and responsible messaging. Initially, we assess their existing engagements and the kind of audience engagement they garner. Subsequently, we work on building content that aligns with our values—content that is relevant, realistic, and transparent to the consumer, conveying the right messages.
Our influencers focus on discussing the gaming experience, showcasing different formats, and consistently emphasizing responsible gaming practices. Regardless of the content, they always conclude with a message about responsible gaming, reinforcing the importance of playing responsibly. This self-regulation approach is tailored region-wise, ensuring that the chosen influencers align with our messaging strategy.
Moreover, our influencers are required to clearly announce any paid promotions, reinforcing transparency in their collaborations with our brand. This direct and straightforward approach ensures that the messaging is in line with our brand values and resonates well with our target audience.
Lastly, what are the key focus areas for A23 in the coming months?
One of the most important aspects of our strategy is responsible gaming, encompassed under the umbrella of ‘A23 Cares.’ Our commitment extends beyond marketing communication. For instance, our app incorporates a section that empowers users to set limits, providing them with a tool for self-management.
We are continuously enhancing our features to fortify our commitment to responsible gaming. This isn’t just a short-term strategy; it’s a long-term commitment that we plan to uphold for years to come. Our goal is not only to promote responsible gaming among our customers but also to set a strong example for the entire industry.
In addition to our focus on responsible gaming, we have recently launched a new product, poker, which is poised to become our second-largest revenue stream. This strategic move aligns with our ongoing efforts to diversify and grow in the market.