Some of the latest reports concerning the online bingo sector show that after bucking the credit crunch for so long bingo sites might finally start feeling the pinch. In the last quarter of 2008 online users increased just 1% which is down significantly on the 10% increase the market experienced in the previous quarter.
The on going recession is a clear impact on the performance of online bingo. With more people unemployed or facing the prospect of unemployment people are cutting back on their spending, especially on non essential items like internet bingo.
Recession is not the only problem however. After years of growth more and more bingo sites sprung up in an attempt to cash in on the massive popularity of bingo. As a result the online bingo market has now reached a saturation point. Before long many bingo sites will be closing down as they fail to compete with the bigger competitors. We will also see many sites merge and other bought out in an attempt to solidify market share.
The fact that growth in online bingo games slowed in the last 3 months did not come as much of a surprise to some. Some see the lack of advertising in the last quarter of the year as a reason for a lack of new customers. With Christmas falling in the last quarter bingo sites are simply unable to match the advertising spend of the high street companies in the last few months of the year. Companies spend millions each in advertising and marketing leaving the vast majority of bingo sites unable to buy advertising space or to make it cost effective enough.
All eyes will be on the figures for the first quarter of 2009 to see if the slow down is a mere blip or a sign of things to come.
