MEDIA MARKETING:BACK IN March 1987 when the National Lottery was launched, it made front-page news that the weekly super prize would be as high as £250,000. The first purchaser of a lotto ticket was the then taoiseach, Charles Haughey. He didn't win.

Times have changed and now €4 million is seen as a respectable prize. And as our attitude to money has changed so the National Lottery's marketing strategy has had to change too.

New this month is Millionaire Raffle, a scratch-card game that promises to create two instant millionaires. Its launch coincides with the return to TV this Saturday of the lottery's weekly game show.

Operated by An Post, the National Lottery enjoys an enviably dominant position in the market with 80 per cent of adults across the country buying scratch-cards or playing the Lotto, according to the National Lottery's marketing head Eddie Banville.

A smaller operator, Rehab Lotteries, a fundraising company within the Rehab Group, also markets a range of scratch-card lottery games but it doesn't have the lock on TV exposure enjoyed by the National Lottery.

Now in its 21st year and with annual turnover of €750 million, the National Lottery operates 20 games, of which 13 are scratch-card varieties, and has a network of 3,600 retail agents.

But the National Lottery is not taking its dominance for granted. It embarked on a €6 million revamp 18 months ago after research found its branding was out of touch. This had followed several years of declining sales.

The brand overhaul had several components. The old logo was ditched in favour of a logo that centres on a green star character on a bright white backdrop and the old "An Post" wording was dropped. More prizes were offered by adding a new prize category. A minimum jackpot of €2 million was introduced. The Euro Millions draw was rebranded. In addition, the lottery began to develop online and mobile games; these are said to be well advanced.

To fund the extra cash giveaways, the ticket price increased from €1 to €1.50, with a minimum of two plays allowed.

On the back of these changes, sales increased by €103 million in 2007. Banville believes there will be further sales growth in 2008 but perhaps not by as much as the 10 per cent spike enjoyed in 2007.

The National Lottery spends €8 million a year advertising and promoting its games, excluding PR activity. When rollover jackpots exceed €4 million, the lottery increases its ad spend, as research has shown that €4 million is the figure most people want to win. But once the jackpot exceeds €10 million, the ad spend is cut back.

"When it rolls over to €10 million, we cut back our ad spend because we get the benefit from the PR bounce. Word of mouth is still the most important form of marketing," says Banville.

Market research plays an increasingly important role in the National Lottery's marketing strategy. The lottery convenes focus groups to test out new ideas for games. Quantitative research is also part of the mix.

In addition, as a member of the World Lottery Association, the lottery shares information with other national lotteries.

Games introduced in Ireland are often inspired by games already played in other countries. For example, Millionaire Raffle has been played in a number of states in the US over the last few years.

With a limit of 300,000 tickets for sale in the Millionaire Raffle, players have a 150,000-to-one chance of becoming a millionaire.

Banville admits that, at €20, tickets are at the premium end of the scale and to woo buyers, the lottery is pitching the game as a gift idea. The early feedback from retailers is that office groups are pooling to buy one ticket.

The new game is backed by a TV ad campaign produced by Red Rage Films and directed by ex-MTV director Lena Beug. Shot in St Bricin's infirmary in Arbour Hill to a catchy soundtrack, the scene is a maternity ward with the new-born millionaire tucked up in his luxurious bed. The presence of the nurses in their starched white uniforms is reminiscent of the old National Sweepstake draws.

For the first time, the lottery is integrating the internet into a marketing campaign. It has introduced a facility on its website that allows consumers to personalise the TV ad by uploading someone's photo into the ad and then e-mailing it to others. In this way it hopes to generate a viral marketing effect.