The Company's marketing expenditure is linked to the revenue generated from its previous month's performance. 32Red has focused its marketing on Internet-based activity enabling significant transparency of effectiveness as discussed earlier in this document. The Company also undertakes some offline marketing campaigns mainly through pitch side advertising at UK football grounds and British horseracing sponsorships.

The Directors intend to continue to focus the Company's marketing activities on the UK but with increased activity in Japan, Scandinavia and other European regions through the following channels:

• online marketing to non-gaming areas;
• online marketing to gaming related sites;
• natural search development;
• increased cost per click advertising and search engine optimisation;
• offline sports related sponsorship;
• offline direct marketing;
• offline mainstream advertising; and
• increased use of affiliates.

As part of the Company's strategy for growth, the Directors intend that 32Red will invest further in its customer service staff as part of a continued focus on providing high levels of service for its players.

The Company expects to further explore the opportunities available for new media such as mobile gaming and may also consider adding other games to its existing casino and poker online offerings. The Company has already held discussions with a software partner in one of these areas and has undertaken some investigation around the other possible new delivery channels for its services.

The Directors will also consider acquiring businesses complementary to the Group should appropriate opportunities arise.