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Market Monitor Executive summary
Executive summary
WELCOME
PAID IN FULL
Better Collective ’ s Atemi buyout at the very start of the fourth quarter is significant in a number of ways , in particular the extent to which this points the new owners more heavily towards paid media as a source of revenue . The deal transforms Better Collective ’ s future earnings profile and will see revenue rise from about $ 89.5m (£ 66.6m ) in 2020 to a forecast $ 162.5m in 2021 .
Moreover , the deal sees the Copenhagen-based business heading in the opposite direction to major rival and soon-to-be-ex-market leader Catena Media , where paid media revenues are a minor element of the company ’ s income . In return for the lower profitability of paid media over natural search – in short , AdWords have to be paid for upfront – there is arguably a big benefit to being a client of Google rather than simply profiting off the back of its search efforts . This potentially counts for a lot , especially in an environment such as now , with Google changing its algorithm and harming the positioning of the inventories of gambling affiliates .
THE UK AND SPENDING CAPS
One issue sure to gain more prominence now that the UK government ’ s review of the Gambling Act is under way is that of spending caps . According to a consultation document already released by the UK Gambling Commission , big changes could be afoot and they are sure to affect the affiliate sector .
While some think that affiliates could benefit – spending caps might see more players taking up multiple accounts – the long-term prospects for UK online gambling are cloudier than ever . In such circumstances , the possibility that marketing budgets might be cut as operators seek to stabilise their UK operations will certainly affect the affiliate space .
COMPANY-BY- COMPANY REVIEW
Broadly , the third-quarter results from the listed affiliates show the sector has weathered the storm of Covid-19 and the effect the pandemic response had on the gambling space . Most clearly coming out of the crisis stronger and bigger than it entered it is Better Collective . Also in expansionary mode is Raketech , while Acroud too is seeking to acquire its way out of trouble . Gambling . com Group is benefiting from its focus on the US and GiG ’ s media business is now firmly back on the road to growth . Lastly , both Catena Media and XLMedia are still measuring the impact that changes to the Google algorithm are having on their businesses . iGB Market Monitor