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In today’s marketplace, inclusive marketing’s success is hardly surprising. It reflects America’s ever-growing diversity. In 2020, the U.S. Census Bureau projected multiracial, Hispanic and Asian American populations would be the fastest-growing racial or ethnic groups over the next several decades.
“Lotteries find themselves in a challenging position. Historically, lotteries avoided marketing to marginalized groups. Yet, neglecting to adopt a marketing approach that resonates with a diversity of Americans could harm their perception within these communities and their sustainability long-term,” says Jeffrey Schweig, President, Alchemy3. As the landscape of America evolves, shouldn’t lotteries evolve along with it?
Asking, Wanting, and Expecting to be Seen
“The population of lottery players is diverse. No matter what state you’re looking at, we need to speak to the full breadth of our audience,” Alec Esteban Thomson, CEO, Arizona Lottery, says. His state is approaching a “majority-minority” status, where non-White groups collectively exceed 50% of the population. These population shifts necessitate a new marketing approach that resonates across cultural boundaries. “Consumers are asking, wanting, and expecting to be seen and reflected in the advertisements and products they’re consuming,” he adds.
Recent studies also point to the positive business benefits of inclusive marketing. In August 2019, Ipsos collaborated with Google and the Female Quotient to survey 2,987 U.S. consumers ages 13 to 54. The goal was to study the effectiveness of inclusive marketing, defined as strategies that foster a sense of belonging for marginalized demographic groups. Findings revealed a significant trend: nearly two-thirds (64%) of respondents reported engaging with a product after watching an inclusive ad campaign. This trend was even higher among Latino (85%), Black (79%), LGBTQ+ (85%), and Millennials (77%).
However, to implement inclusive marketing practices successfully, lotteries must go beyond diverse representation in their products and ads. It requires a commitment to inclusion from the top down, which should be evident internally before lotteries initiate a campaign. The best starting point is to gather input from employees and local communities to enhance understanding of the groups lotteries are trying to reach.
“If you’re striving to engage a new audience, then you have to make sure your team is in touch with their culture, language, and the relevant nuances because no community is a monolith,” Thomson advises. He points to the differences between Latino communities in Florida and Arizona as examples of how cultural references vary significantly within a single demographic.
Once the organization is internally aligned, it’s crucial to ensure external support aligns with what the Lottery is promoting. “We just gave $50,000 to the Arizona Hispanic Chamber of Commerce to support entrepreneurship in rural and tribal communities, a sponsorship that is in alignment with not only our pillars for giving back, but also the inclusive values of our organization,” he says. Thomson also points out how the Arizona Lottery financially supports LGBTQ+, Latino, Black, and other communities. “We’re investing in these communities through the beneficiary transfers that improve the quality of life for all Arizonans and through partnerships and sponsorships that support our state’s diverse population and the mission of the Lottery,” he comments.
Alchemy3’s Caliente Cash Program
These efforts legitimize the Lottery’s initiatives to connect directly with these various groups through advertising and products. One example is their new promotion, Caliente Cash. While the promotion is designed to appeal to a broad audience, its playful use of two languages adds an engaging cultural touch for Arizona’s Latino population.
It features a second-chance giveaway dubbed Caliente Cash $1,000,000 Getaway, orchestrated by Alchemy3. Thirty winners and their guests will be treated to a trip to Miami to attend the Billboard Latin Music Awards and participate in the numerous festivities occurring during Latin Music Week. The package includes hotel accommodations, transportation, a private welcome reception with acoustic Latin performances, and tickets to the awards show. Winners will also enjoy a lavish private reception with delectable cuisine, refreshing beverages, and, of course, a guaranteed $1 million giveaway. Furthermore, they will receive exclusive VIP access to the Billboard En Vivo concert series and an additional $30,000 in cash giveaways throughout the trip.
The emphasis on Latin music is a perfect complement. The genre has seen a surge in popularity in the U.S. over the past decade. Between 2020 and 2022, Latin music saw a 55.29% growth in album consumption in the U.S., according to Luminate, far outstripping the overall industry’s 21.61%. Events like the Billboard Latin Music Awards now rival major sports events in size and impact.
“We’re seeing a substantial cultural influx, with artists like Bad Bunny attracting a very diverse audience,” says Schweig. “It is an optimal time for these offerings because they appeal to a mainstream audience—which lotteries have always pursued—while also resonating with Hispanic communities in their state.”
Reflecting Diversity
The Arizona Lottery is one of a few lotteries testing inclusive marketing strategies. The Texas Lottery may be the most quintessential, with their top three instant games in FY23 being variations of Loteria. Other lotteries, like New Mexico, have employed Dia de Los Muertos-themed games. Still others, like California and New York, have sold Chinese New Year-themed tickets.
Last year, BCLC updated their Set for Life—a $5 instant game with a top prize of $1,000 a week for 25 years—with three scenes depicting Millennials and older Gen Zs in the midst of daily life. For example, one of the scenes shows a same-sex couple walking on a beach together.
“We tried to be thoughtful in our use of imagery,” Shelley Wong, Media Relations, BCLC, says. “As a business, we believe we must create experiences that are sensitive and responsive to the communities and players we serve. This means every decision is made with the intention of positively contributing to the progress of our society. Identifying, developing, and launching products that reflect the diversity of our players aligns with our social purpose. It supports our aim to entertain players while sustaining long-term growth by creating new games and innovative experiences. It helps us both resonate with a wider audience and create more tailored and individualized playing experiences.”
BCLC’s strategy mirrors Thomson’s thoughts. Lottery jurisdictions are competing in the entertainment space. The introduction of products developed specifically to meet consumer needs helps differentiate BCLC from competitors and grow its business. “Our Diversity, Inclusion and Belonging policy supports our values of respect and community and reaffirms our commitments to equity, inclusion and anti-racism. It applies to our product creation and marketing activities,” Wong says. “It is a key component of our social purpose. Decisions are made to positively contribute to the progress of our society and create a better world through our core business operations.”
This Is America (& Canada)
In light of America and Canada’s increasing diversity, lotteries should embrace inclusive marketing practices that connect with all marginalized groups. Their efforts must authentically align with both internal and external practices to effectively engage with these communities. The strides made by the Arizona Lottery and Alchemy3 serve as exemplary models of how an inclusive strategy can better connect lotteries with an increasingly diverse player base. “This is America. Understanding and integrating yourself into these cultures is absolutely critical to effective leadership, whether it’s in the lottery industry or elsewhere. We must be representative and appealing to a broad and increasingly diverse population,” Thomson concludes.