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How is MGM making $ from myVegas?

Discussion in 'MyVegas' started by Julie888, Mar 18, 2013.

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  1. Julie888

    Julie888 High-Roller

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    If this has been asked and answered, please just point me to the thread.

    They are giving away -

    rooms
    suites
    shows (this can help fill a theater)
    food
    ....

    They have big billboards in Vegas.
    Some company is managing a very active site.

    This all costs lots and lots of money. Yes it is advertising. Are all those folks that are going to use their winnings going to put, as a minimum, the amount of their rewards back into their properties?
     
  2. sco5123

    sco5123 VIP Whale

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    Take business away from competitors?
     
  3. Oskee2001

    Oskee2001 Low-Roller

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    Well this helps in a number of ways. One is consumer engagement...you're exposing people to your brand everyday in an interactive manner. This build their brand by having people get invested in the game. Say you win a night...now maybe you'll stay all four nights of your trip at aria instead of Cosmo, for example. Or you win show tix...maybe you'll come for dinner or stay and gamble after the show. Or you win drinks, maybe you'll stay for dinner, etc. bit overall it's marketing and experiential PR.
     
  4. BlueSkadoo

    BlueSkadoo VMB Sweetheart

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    I agree with Oskee, but also think they are generating some of the goodwill they may have killed with the Mlife revamps. Additionally, they are using MyVegas winners to do word-of-mouth. "Wow friends on facebook, I got free tickets to go see Love in las Vegas from a facebook game! You should go check it out." Word-of-mouth by a trusted friend is worth more than any other type of marketing.
     
  5. Oskee2001

    Oskee2001 Low-Roller

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    ^absolutely right. I'm in PR myself and what you try and do is make a good impression with influencers, who spread the word. We are the influencers in this case.
     
  6. greekjim

    greekjim Low-Roller

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    I know I shouldn't complain but they need to offer more then the 5 of each reward they release each day, I got 140,000 reward points and can't use them cause they are sold out everyday
     
  7. Auggie

    Auggie Dovahkiin

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    I think one also has to take in to account how most of the rewards are ones that will encourage or garner additional spending by the end user.

    The best example is free rooms: giving away a room during the week isn't that much of a cost to them since the room is likely to have been empty anyhow, and somebody is unlikely to show up for a 2 night stay at one of their properties and not spend money in the casino, dining or shows.

    Same thing with most of the food deals: food generally has a pretty high markup (usually 250-350% of its cost), some are likely to buy drinks to go with their meal and it has the end result of getting people in the door of the casino.
     
  8. Julie888

    Julie888 High-Roller

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    I can understand the food if its in a buffet, etc. If it's in one of their lessee restaurants like Circus Circus Steakhouse, aren't they going to have to return most of the cost to them, perhaps less a slight %?

    Nothing on this green earth is going to make me hang around CC and play no matter how great the dinner is. I can see this working in the other casinos.

    I hadn't realized they were only giving away five of each reward per day.

    Free rooms I can understand too. Suites seem excessive. I would think they would get more by giving these to confirmed players.

    It just seems to me that any costs involved will have to come out of somewhere and that's usually from all the players.

    This game certainly has attracted attention.
     
  9. StormHawk

    StormHawk High-Roller

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    It's just like a regular comp. It gets you in the door. Sometimes people are tight asses and just use the comp and split, but usually they spend money. Marketing 101.
     
  10. mike92009

    mike92009 Tourist

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    Don't forget, there are some people buying chips. Who knows what percentage of players are dropping $5 - $199...
     
  11. SH0CK

    SH0CK Stylin' and Profilin' Quasi Tech Admin

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    That goes towards MyVegas.

    MyVegas and MGM Resorts are 2 separate companies and only have a licensing agreement between the two.
     
  12. lpearl

    lpearl Tourist

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    Also, because of the freebies, when people choose their vacation destination, they may pick Vegas over LA or Phoenix, or whatever.
     
  13. Julie888

    Julie888 High-Roller

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    There were lots of logical reasons listed. I think this makes the most sense.

    As many of us know, once the Vegas love hits we're hooked and have to keep returning.
     
  14. leo21

    leo21 VIP Whale

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    Look, I wouldn't have stepped foot in any MGM casino if it hadn't been for the game outside of seeing the conservatory. I had a free crepe, I bought a drink to go with it. While I was in Aria, I spent some time gambling there. Bear in mind I had no intention of ever stepping foot in City Center ever again. While waiting for my reservation for tea at Bellagio, I spent some time gambling there too. If someone gets a room through the game, imagine the gong and food business they may do. That's how they are getting revenue and more importantly a potential return customer. MGM is not funding the game - they have revenue streams like the other FB games. And I wonder if MGM is completely providing the rewards for free or if Playstudios is having to help fund them.
     
  15. Grid

    Grid VIP Whale

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    Yup this is exactly what they HOPE will happen. Than there are players like me. I go to vegas 3-4 times a year. I almost always stay at MGM properties anyway. My rooms are always free and I dont pay for many meals out of pocket. So why do I play?

    My next trip I have 2 nights comped at Aria + $75.00 in free play due to my gambling. So I play MyVegas to get 2 tickets to Zarkana for free. I'm spending 1 night at NY NY to take advantage of a nice corporate offer there. So I'm getting the $75.00 Sporting House credit from MyVegas.

    So I'm already in the door. But I'm playing the game, for free, to get some extra comps. I'm afraid its people like me that are going to be the demise of this game :cry: But I'll take advantage while its still there :Þ
     
  16. Nevyn

    Nevyn VIP Whale

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    1) Advertising expense

    2) Player tracking and driving to their loyalty program. They get you to join their program, see your habits and what rewards motivate you, etc.

    3) Upsell. Not everyone just goes midweek, or is willing to switch hotels. You get the free room for the cheap nights, but I bet a lot of redeemers then pay for a friday or saturday at the same property. Likewise, a lot of those small food comps are not all you'd eat there.

    4) Facebook demographic data on their market.

    Also remember that this doesn't cost as much as you think.

    We think of show tickets and hotel nights as being their face value, but they don't cost mlife much to give away in either case unless it would otherwise be sold out. The food comps have a bit more cost, but most have pretty healthy markups as well.
     
    Last edited: Mar 19, 2013
  17. CrazyCanuck

    CrazyCanuck Tourist

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    Nothing new to add as far as ways to make money. More people in their doors, more switching from other casinos, upsells etc. etc. etc. As pointed out most comps are very cheap to provide relative to their face value, also we have no idea what the cost-revenue sharing relationship is between MGM and Play Studios.

    From a marketer's perspective the information they gain from this game is GOLD! It requires you to have a facebook account and an mlife account both of those systems are among the best in the world for tracking activity and spending habits (It's almost creepy if you look into it). I can almost guarantee that mlife is carefully tracking how much the game costs them vs. how much revenue it brings in through various streams. If after time (years) they aren't making more than it costs the game will be phased out but I suspect they're doing pretty well on it.
     
  18. Royal Flusher

    Royal Flusher Savvy Gambler

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    I think its a long-term play to position themselves (both companies) for when online gambling is legalized in the US.
     
  19. VegasL0ver

    VegasL0ver Low-Roller

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    If you get a free room though myVegas, you still need to pay the resort fee, right?
     
  20. Grid

    Grid VIP Whale

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    People are reporting no. They waive the fee. Which sucks since as a gambler some places comp my room and stick ME with the fee!
     
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