Major Gambling Brands Adverts Halved On IPR-Infringing Websites
The EGBA has reported that advertising by major brands is down by 55% following an EU initiative against websites that infringe intellectual property rights. The European Gambling and Betting Association has announced that advertising revenues to IPR infringing websites and apps were down by 50% from major gambling brands. A study which was conducted by the European Union’s Intellectual Property Office found that while overall advertising revenues to these sites were up by 26%, EGBA members more than halved their spend.
European Gambling and Betting Association report major brands’ advertising spend on IPR-infringing websites down. ©dimitrisvetsikas1969/Pixaby
What was the study about?
The study looked at the amount of revenue that websites and mobile apps that infringe IPR were generating from advertising. The total worldwide revenue from the monitored websites was estimated to be EUR 912.7, with the revenue for the monitored apps to be EU 57.1 million. The EUIPO says that these figures highlight a serious issue. The issue is that websites and apps that infringe IPR have multiple revenue streams. Their revenue does not only come from their counterfeiting or piracy activities, but also from getting legitimate brands advertising on their websites. It is understood that most of this advertising by legitimate brands is done so unwittingly because the internet advertising ecosystem is very complex.
“I’m pleased to see consistent and significant, year-on-year progress by Europe’s major gambling brands, including our members, to reduce the placement of advertising on IPR-infringing websites and apps. But there is still more work to do, and we encourage Europe’s gambling operators, and their advertising affiliates, to play their part by ensuring their advertising, and its placement, is conducted in a responsible way. We look forward to continuing our cooperation with the European Commission and other stakeholders, at EU-level, to reduce IPR-infringing online advertising.”– Maarten Haijer, Secretary-General, European Betting and Gaming Association, press release
The EUIPO found a significant decrease
Looking at the IPR-infringing websites and mobile apps the EUIPO reported a significant decrease in major gambling brands contributing to advertising revenues in this area. There was a fall of 55% from 18% in the first quarter of 2021 to 18% in quarter 4. This leads on from a previous 20% decrease which occurred in 2020. The study found that in 2021 advertising from all gambling brands (so not only those it classed as major brands) had also decreased by 3% from quarter 1 to quarter 4. Looking at the mobile apps that were monitored for the study, it appears that gambling accounted for less than 1% of the advertising impressions.
The top sectors for advertising impressions on websites, from all brands, were Arts & Entertainment (43%) (including gaming), followed by Gambling (25%), Technology & Computing (13%), and Shopping (11%). Arts and Entertainment was the highest spend sector on these websites in ten EU countries plus the UK. In five EU countries, (Czech Republic, Estonia, Lithuania, Portugal,and Spain) the gambling sector was the highest ranked. On mobile apps, Gambling was ranked seventh in terms of impressions.
Very welcome progress
The EGBA has said that it welcomes the progress that has been made in recent years by the major gambling brands. The EGBA does not, however, represent all gambling brands. It says that it is also aware that the gambling industry as a whole is accountable for 25% of the total advertising impressions on IPR-infringing sites and mobile apps. Therefore, there is still considerable work that needs to be done by the entire gambling sector to ensure that advertising revenues do not support IPR-infringing online content.
Over the last few years, the European Commission and the EGBA have been working closely with various cross-industry parties at an EU level. This work has been done within the framework of a Memorandum of Understanding which aims to limit this kind of advertising. Recent work has included cooperation to fight. counterfeiting and piracy. It is a voluntary agreement that has been facilitated and coordinated by the European Commission. The EGBA encourages all gambling operators to join it and asks its members to sign up to the MoU and follow its aims.
What is a classed as a major brand and who are the EGBA?
A major brand is one that has a strong search engine presence and that is included on top advertiser lists by agencies and authorities. Essentially they are known household or business names and are regarded as the premium platforms, operators, and products. Within the gambling industry, they are the regulated operators, and in the European market are members of the European Betting and Gaming Authority. They include names like bet365, Betsson, and Entain.
About EGBA
The European Gaming and Betting Association is the trade association that represents the online gaming and betting operators who are established, licensed, and regulated within the EU. The association is based in Brussels. Members include bet365, Betsson Group, Entain, Flutter, Kindred Group and William Hill.
Aims of EGBA
The EGBA works with both national and EU regulatory bodies as well as other stakeholders. The aim is to create a well-regulated online gambling market that offers consumers a high level of protection while taking into account the realities of the internet and the demands of online consumers. EGBA member companies have to meet the highest regulatory standards. In 2020 these companies held 234 online gambling licenses providing services to 29 million customers in 19 different EU countries. At the current time, EGBA members account for 36% of Europe’s online gambling gross revenue.
“EGBA is committed to promoting responsibility and driving standards in Europe’s online gambling sector and we encourage other companies to join us – and be part of the solution, not the problem – by adhering to responsibility initiatives such as the MoU. This initiative proves that greater cooperation at EU-level can benefit the sector and how it is able to respond to the challenges it faces, including on advertising”– Maarten Haigner, Secretary-General, EGBA, press release
