INSIGHT
Unsurprisingly , affiliate marketing ’ s two-decade evolution has involved changes in the promotional model . Major news and comparison sites like PokerNews and Oddschecker have grown their traffic to the point that they now command costper-impression ad deals from operators .
Inevitably , affiliates ’ transformations into major online businesses have led to mergers and acquisitions . In 2014 , XL Media acquired multiple British and Finnish affiliate sites , while Catena Media purchased Right Casino Media the following year . These are just some recent examples of an ongoing spate of consolidation .
Finding niches and diversifying The current wave of affiliate M & A begs a question : can smaller and mid-tier affiliates succeed today ? The old saying of ‘ adapt or perish ’ are words affiliates should live by in 2017 and beyond .
Today ’ s forward-thinking affiliates will look at their sites less as a promotional space and more as a digital product . As with any product , affiliate businesses need a unique selling point ( USP ) fulfilling a particular market need that isn ’ t currently being met . As an example , the launch of Oddschecker in 1999 bridged a gap in the market by providing players with a tool to quickly compare bookmakers ’ odds on multiple sporting events . It fulfilled a distinct need .
With a USP that ’ s genuinely unique , affiliates will gain a first-mover advantage over subsequent imitators . Savvy affiliates will analyse new verticals , products , technology and emerging markets to discover the next big thing . Extensive market research , joining relevant networks and discussion groups , and following forums closely can all help identify latest trends and new business opportunities . esports remains relatively unchartered territory for affiliates . Wagering on contests involving games like Dota 2 and League of Legends is projected to reach $ 11.5bn by 2020 , according to Eilers Research . esports ’ focus on events and an expanding portfolio of games supports the development of content-rich sites and allows affiliates to target wider gaming keywords and traffic .
DFS is another alternative vertical whose core focus on US sports enables affiliates to adopt broad traffic-driving strategies across multiple channels – from organic and paid search to social media and their sites themselves . As with esports , the vertical is growing : in August 2016 , FanDuel expanded into the UK market and , more broadly , DFS entry fees are expected to top $ 5.3bn globally by 2020 , according to Juniper Research .
Another vertical for affiliates to explore is promoting forex , binary options and other financial trading brands . The retail forex trading market alone averaged $ 15.5bn in daily turnover globally in 2016 , according to the Bank for International Settlements . Aside from the financial trading market ’ s strength , the vertical is also content rich for affiliates , with forex and binary options traders as hungry for analysis on central bank announcements and economic indicators as DFS players are for NFL game previews .
Ideally , affiliates will be exploring multiple alternative verticals – and a range of emerging markets as well . Following UIGEA , US igaming has gradually re-emerged , with New Jersey regulating online poker and casino and Nevada permitting poker . The Garden State in particular offers affiliates an important foothold in the US amidst ongoing legislative efforts in Pennsylvania , California and New York . New Jersey ’ s igaming market continues to expand , with the state regulator reporting record revenue of $ 21.7m for March .
Affiliates can also explore the growing market for online sports betting in sub-Saharan Africa . Kenya and Nigeria are currently leading this expansion and increasingly leveraging the affiliate channel . While an ecosystem of local football bloggers exists , the majority are hobbyists , providing an entry space for international marketing partners .
As well as exploring opportunities at a market level , affiliates will also diversify their marketing strategies . The fledgling industry ’ s fundamental focus on SEO remains important , though affiliates have since diversified to leverage paid search , social media , mobile , video and , more recently , programmatic media buying using demand-side platforms . A degree of fragmentation has occurred , so that there are today cohorts of affiliates without sites who monetise traffic solely through social media .
A diverse marketing strategy is a great asset . Affiliates should focus on using the full spectrum of digital channels in concert , with ads balanced by non-promotional , value-added content . For example , an affiliate promoting the growing niche of political betting could quickly draft an on-site analysis piece on a breaking news announcement . Published beside a banner for a political betting brand , the content would then be shared in organic Facebook and Twitter posts followed by Facebook ads , promoted Tweets and AdWords ads ,
“ There are today cohorts of affiliates without sites who monetise traffic solely through social media ”
all accompanied by the affiliate ’ s Facebook Live video commentary .
An integrated marketing strategy involving the coordination of multiple channels will place affiliates in the best position to meet igaming ’ s diversified future . While the affiliate space remains competitive , emerging verticals and markets will provide savvy affiliates with their own business niche . These affiliates will stand the test of time – just like the industry itself .
SARAFINA WOLDE GABRIEL is VP of Strategy and Operations , Paysafe ’ s Income Access . Sarafina focuses on developing the Income Access brand and overseeing the evolution of the company ’ s suite of products and services . She has worked in the igaming affiliate industry for well over a decade . Sarafina holds a master ’ s degree in marketing from the University of Surrey , in the UK .
iGB Affiliate Issue 63 JUN / JUL 2017
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