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Drop the Laptop & Come Out With Your Hands Up

In Australia recently, on-track rules for laptops were changed. For some time they were not allowed at all on racecourses, however,  bettors can now  bring their computers with them to the track.

But there are a few conditions.

Andrew Twaits, who is Australia’s Betfair head, looks at the new rules on his widely read blog.

Some of the conditions Racing NSW has decided to include in their “internet access” approval process rival anything the Chinese government could come up with as part of its internet censorship policy. They include requirement for punters to:

• allow Racing NSW to install special monitoring software on the laptop;

• only use the approved laptop when on a NSW thoroughbred race course;

• only use the laptop to access approved wagering websites (i.e. no racing information sites and no emails); and

• pay Racing NSW an unspecified annual monitoring fee.

In other news, the track announced that they will be providing, for on course phone calls, two dixie cups and a piece of string.

Twaits concludes with what probably will happen: “As long as these new local rules of racing remain in place, Racing NSW will be giving its core funding base – the punters – yet another reason to stay away from NSW race courses.”

Quick Notes:

I did get another chuckle, this time from our friends at PETA. Watch out for them if  they land Sex.com.  You heard it at R2 first!

We spoke of Foursquare in an article below. They are growing like a bad weed, signing almost 100,000 customers in 10 days.

Nice infographic from Mashable about Twitter. Is anyone shocked that “pointless babble” is such a big slice of the pie?

Posted in Industry.

NTRA “Volcanic,” Hits #8 on Google

On Saturday, the NTRA was all set to launch NTRA Live!, the first webcast in a series hosted by Randy Moss and devoted to top-class racing. Heavily promoted, Saturday’s live video was to feature the 2010 debuts of champions Rachel Alexandra in the New Orleans Ladies Stakes at the Fair Grounds and Zenyatta in the Santa Margarita Handicap at Santa Anita. The stream was to start at 6:00 PM ET/3:00 PM PT, and as that time neared and passed, thousands — tens of thousands? — attempted to access ntra.com, only to be met with blank or slowly loading pages. Minutes went by and mocking tweets appeared, but the NTRA site — apparently crushed by the traffic jam — did not.

So, how many people tried to visit ntra.com on March 13? Google Trends hints that the number may have been unprecedented for the site. Queries for “NTRA” reached #8 on Saturday’s overall hot search terms list, spiking near the webcast’s start time — a pattern termed “Volcanic” by the search engine:

Google Trends for March 13, 2010
Click to view larger image

One thing was proved by the debacle (for which NTRA president Alex Waldrop apologized last night): There’s interest in watching racing’s stars online.

Posted in Industry. Tagged with , , , .

Some Monday Video

We hear a lot about advertising racing via traditional means. Immediately, for television, we think a big ad agency or a high budget is needed to be effective. This ad, I think, proves that no matter what you sell, or whom you hire, creativity trumps just about everything. This ad has gone totally viral and might just be the most replayed PSA ever created. I wonder if there is anyone this creative in our business? One would think there would be.

Since we deal with many of these statistics each day here at r2, our second video is the history of all things net. I found it really well done, and some of the stats are eye-opening. It is hard to believe that with all this going on, ADW betting over the internet for racing is still below 20% of total wagering. Is the glass half full, or half empty?

Posted in Industry.

Social Media Battle – Rachel vs. Zenyatta

Back in November we looked at internet searches for Rachel and Zenyatta to see how the Internet horse of the year votes were being tallied in terms of popularity. Rachel won that fairly easily. We surmised at the time that Rachel seemed to be popular in east coast cities and Zenyatta in west coast ones.

For about a year now, more and more companies are scanning message boards, twitter, Facebook, blogs and other social media avenues using software, or consulting firms. One easy way for us to do similar, with whatever we’d like (free! But not quite as accurate mind you), is to use socialmention.com. It is a simple search based tool which scans the web for such mentions. It also adds some interesting statistics on sentiment, passion and reach for brands or keywords.

So, let’s check it out for the two protagonists in the Apple Blossom, Zenyatta and Rachel Alexandra.

The sentiment index is fairly good. For every one bad mention, there are three good ones for a 3:1 ratio. If your followers are passionate (represented by the passion number above) that means they are likely to tweet or post often positively about the item in question. Zenyatta’s followers are pretty passionate! If you look at some subsets, these stats seem to hold well for blogs, news and mentions.

How about Rachel?


Once again these Rachel fans kick some butt. With only 26 “bad” mentions to 212 good, the 8-1 ratio dwarfs Zenyatta. The passion index is less than her rivals’, but if all those Zenyatta fans had to counter all the Rachel ones, I would think it would explain that pretty well.

Posted in Industry.

Betfair Develops Interactive TV Betting

This past month saw the initial release of “Betfair TV” where, using the Yahoo! Interactive TV widget engine, it allows punters to watch the game, and bet right on a television set.

Personally, we’ll start with football and build up to a multi-sport widget. We’ll also develop casino games. Our ambition is to have an appropriate subset of the full sweep of a gambling portfolio available on television. It’s not practical to have 250 different slot selections on a television, it’ll be a subset of that. Televisions have the advantage of being 42 inches, or 50 inches or so; whatever size screen it is, it’s usually the biggest and best quality screen in the house. The exciting thing is, if this platform is as successful as we think it might be, we can then bring real drama to the way that we present casino games. Putting the level of animation and video quality already seen online into a television widget will make it that much more of an invigorating experience.

More here.

To watch the TV in action, check the Reuters news story on Youtube here.

Posted in Industry.

Seabiscuit – An Original Social Marketer

I was watching a television piece on the recently concluded Olympic games which showed the torch relay, and how it visited town upon town, all across Canada. Some folks might think such a relay to be simply symbolic, however it does much more than that from a marketing perspective. The torch visited towns, big and small, and it was at times carried by major celebrities, people in church groups, charity group participants, and many other social and community groups. The almost 30,000 mile journey created buzz for the Olympics along the way, and at each stop (sometimes in the middle of the night) local newspapers, television and townsfolk were all promoting it in their own way.

This simple principle of marketing happens with many successful ventures, and it tends to be often planned.

In Buzzmarketing, Mark Hughes speaks of the American Idol phenomenon. As most know, American Idol visits city after city, lines-up virtually everyone in huge lines (even terrible singers), offers press passes for local media for a behind the scenes look, and more.

One would think it would be much easier to schedule several days of auditions in LA and New York instead, and weed out some of the dead weight. They would still get a good crop for the show, and could hand-pick a few duds for the William Hung factor. However, they don’t do this because the buzz created by visiting each city, and having tons of people audition, is vital to its success. The people who audition will tell friends and family, and those friends and family will watch the show, and tell more friends and family. The local media buzz in each of these cities ensures human interest stories about the local auditions are promoted on TV, in print and radio, and then replayed on Youtube and other web-media outlets at a later time. If it was economical to audition in 1000 cities I am sure they would, because each city, and each person helps.

A show like American Idol was built to succeed from the very beginning, because of networking and foresight.

I thought about this for a time, and realized, did we not have the same thing happen with the biggest match race in thoroughbred history, War Admiral and Seabiscuit? In Seabiscuit, An American Legend, the author spoke of the zig-zagging train journey for the Biscuit between California and Maryland (in total he traveled over 24,000 miles by train in his career). Along the way the train would stop, and the horse would be greeted by regular folks, including a bevy of reporters. This of course provided built-in marketing for the race.

It was reported in the book that bookies in New York could not come even close to setting proper odds for the race, because “95% of the wagers were on War Admiral”. It seems the east coast had their horse, but in the end the odds were much different, and it is relayed several times in the book that the Biscuit was America’s choice to win.

Could it be because fans and media, at whistle stop after whistle stop for twenty-some thousand miles, saw and could touch their hero, and spread that message through their own networks like a virus that he was their worthy choice? Could it be that this race was the most listened to race ever, because of this old-time social networking? Was Seabiscuit (and the race itself) more popular than by all rights he should have been, because of this journey?

We are a month away from the Rachel-Zenyatta race.  We complain and lament that the major media is pretty much ignoring the race, not giving it the respect it deserves.  But buzz does not happen by accident. The few times it is not planned and actually succeeds, is the proverbial lightning in a bottle.

We certainly will not see Rachel and Zenyatta on a whistle-stop tour by train, but I would submit we need a metaphorical train ride and some planning of such, to make this event as electric as it should be. If we look to Seabiscuit – the match race marketer – we might all learn a thing or two.

Posted in Marketing.

More Competition Coming Online

Buying and selling positions on celebrities, television shows, presidential candidates and the like have been happening for some time now on the Internet. It is not at all uncommon today to see CNN or FOX News quote what a certain item is trading at on Intrade relating to a story they are doing. As of right now there are very few legal ways to bet these markets, but they are coming.

The Cantor Exchange is one such place (it is waiting for regulatory approval). Scheduled to start trading in April, this exchange will focus on (among other things) a movie market.

“Soon, everyone —I mean, everyone — will be able to bet on the boxoffice, and make or lose lots of money on the outcome.”

They will be using the web as it should be: to viral market buzz. It is speculated that studios, as part of their advance marketing, will try and use a service like this to create buzz about a new film, making sure it is trading at a fairly high price. This would be nothing new. It has been speculated that some presidential candidate supporters have done similar on intrade in the past.

Markets like this struggle for volume, but with studios encouraged to participate (and creating inefficiencies at the same time), it sets the table for a ready-made market; one which the public will participate.

Betting via the internet has been left to horse racing alone in the past few years (legally anyway) and this is yet another new competitor for online betting dollars. With a foot in the door it is not out of the realm of possibility that Cantor can build a brand, economies of scale, and foster more and more political connections whereby if new forms of wagering are allowed for a trading market, they will be first past the post.

This, to my knowledge, is a first for the US in a very public way. In Canada, it was announced recently that governments in Quebec and British Columbia, are looking at online poker, so the ship appears to already have sailed north of the border.

It has struck many web observers who are race fans as flummoxing that racing has not used their monopoly to expand into some of these areas earlier this decade. Betfair had been growing with similar bets and it looked to be a revenue driver of some sort for racing overseas over 8 years ago. Using racings political clout to get regulatory approval for a betting market, where they could easily expand into Oscar betting, sports betting, presidential betting and so on should they get things approved as Cantor appears to have gotten done, would have given racing a new revenue source in North America. This would have been cutting edge of course, and in a growth betting sector, unlike slots money which is becoming watered down and older. As well, they would have already staked ground in the sector and if new entrants pop up they would have a hard time cutting into racings markets, because of the volume and goodwill gained by being first in the space.

It is water under the bridge now perhaps, however it still brings up a couple questions for racing.

* If Cantor can do this for movies, what stops TVG/Betfair from doing it for racing?

*Would some enterprising racing organization make a move in this sector, and could they succeed if they started right now by setting up a racing exchange? For example, if Kentucky is not giving racing slots, could Keeneland and CDI be approved for such an exchange as a political act of goodwill from lawmakers? With a built -in betting market and customer base (eg horse race bettors enjoy the chase and are much like other sports bettors) they would be far ahead of any onshore competition.

Those are clearly questions out of our scope, with this space guarded by myriad state and federal laws. However, if Cantor can get it done for something like box office receipts, perhaps this is something we should learn more about.

Posted in Innovation, Marketing.

Five Across on the Four, From Space

On the International Space Station, the internet was installed. An astronaut made the first “tweet” from space, while connected. I don’t know if twitter paid him or not, but they should have. How much would TVG pay for an astronaut to make the first horse bet from space? I don’t know, but we should find out; it would be pretty cool.

Where do visitors of the Paulick Report go to most after visiting his site? Answer below.

Ustream has been pretty popular, and growing. Today they had close to 700,000 viewers for the Tiger Woods press conference.  There should be more horse racing on this site, in my opinion, but either our customer base does not fit the user demographic, or there simply are not enough horse fans out there playing the races. I would guess it’s a little of both. There is some Latin-American racing on there, which I find a little odd. Who did I find that out from? Who else, Sid Fernando. If an obscure race, with obscure horses, with obscure pedigrees are racing, chances are Sid knows about it.

Speaking of Latin-America, the CEO of Sportingbet says watch out for this area of the world to be the next betting market. Is racing prepared for that?

Where do visitors of Equidaily.com go after visiting that site? Answer below.

Anyone watching the Olympics online? I have been at Vancouver2010.com. For virtually any event, you can get split times, scoring and more all in real time. It is a fabulous experience, and I often keep it going while I am watching anything with judging on the television. It amazes me how we can get such awesome data-power for the olympics, but we can not seem to get anything close for racing, with data and data innovation being vital to the sports existence.

Equibase did add weather and track condition via an RSS with mobile capability to their scratches page this week. That’s a good thing. I hear through the grapevine they are getting many hits a day for this service.

Answer: According to Hitwise, the leading website for downstream visits from the Paulick Report is……… bloodhorse.com. Interesting, considering. As for our friend Seth, they read his site, then its off to drf.com.

Posted in Industry.

A Slightly Depressing Chart

I am doing a little research this evening with a category tool which shows historical, and projected interest, in an item. You can also compare items with this tool, between parts of each category. When I compared sports interest to racing interest (standardized data) it gave me this:

One may think it is a malaise about something gambling related, rather than just the pure sport of racing. So I tried poker, just to see what would happen, in a cross category test:

Then I tried a bet seller, instead of a betting game.

And last, a sports related fan game:

There is growth out there, but racing is clearly having a tough time grabbing a slice of it.

Posted in Industry.

Search Branding – the Super Bowl and the Kentucky Derby

Many companies want to know how the consumer perceives their product or brand, or what interests them about it, or alternatively what they might not like. To find out the answers to those questions one can assemble a focus group, spend money on a survey, among other things. But I think the both the aggregate and snapshot we get from web searches is as good as any of them. Using what we learn from web searches can help us brand better. After all, if people are searching for something, they want information on it, and answering their concerns, or their interests is a paramount goal.

Case in point, the Super Bowl. Vanessa Fox looked at the top searches yesterday for the big game.  She learned that most people were asking the same question, “what time is the game?” In fact, with a little bit of datamining we can see each year this is the top trending search term on game day. However, as Ms. Fox showed, sites like NFL.com and CBS do not provide content as well as they could for this term, and voila – traffic is sent elsewhere. It pays to keep on top of these things as eyeballs are king, and our customers need to find our branded pages to get our message through.

If we look at overall searches for the Super Bowl, after the main terms are taken out, the following are top searches for the game and these can provide us with branding go-to items:

Super Bowl Parties

Super Bowl Recipes

Super Bowl Commercials

Every NFL site branding this game (or if you run a Super Bowl website) should have dedicated pages to these items. The Super Bowl is more than a game, it is branded as an experience. Parties, recipes and commercials should be promoted heavily.

Now, let’s switch to the Kentucky Derby to see if we can learn anything. These are not “near post time” searches, but overall searches:

This gives us some good clues, most of which those of us inside racing might know, but might not promote well enough. Taking gambling aside (sites like DRF handle those well) and looking at the masses, we can see just what gets them going about the Derby.

Kentucky Derby Fashion – NBC shows what horseplayers think are the “goofy” red carpet activities. This might be goofy to someone sitting at home watching race replays, building a track profile, and doing a dosage study. But it is not to the masses. Promoting the fashion angle is huge for the general public.

Parties – As Jess pointed out on her blog, parties for the Derby are cool (minus the picture of course).  “Kentucky derby infield” is also a search. There have been changes to policy via infield activities recently. This is an area that needs to be made a priority perhaps.

Packages/Travel – A big seller.

The response to this has been good from racing. Kentucky Derby Party has their own website, focusing on many of these issues. Notice the site is tailored to the female demo, and this is probably a good idea. The only suggestion is perhaps they should get that countdown clock updated; “Kentucky Derby Date” and “Kentucky Derby Time” are both key search terms. Showing “0′s” across the board on the clock – not good.

We often hear gripes from inside racing about selling the Derby (or the Oaks) along non-traditional lines. The searches seem to prove that this angle is not a waste of time – it’s built on sound principles.

As we go deeper and deeper along the tail we can see more and more searches which people are interested in, like “museum”, “pictures” and “memorabilia”. Tailoring web content to the long tail can help us get our message out.

As the race gets nearer we can use search to find the hot items, just like super bowl start time, and market to that. Search is a real-time focus group and we can use it to our advantage.

This takes care of a big day, like the Derby. But what about small tracks running each night, or races like the West Virginia Derby and others of a similar ilk? Seeing what your on-track customers are searching for can help you make these events better, and it should be part of each tracks market research.

Posted in Marketing.