INSIGHT
“ GIG CAN NOW MORE CLEARLY COMPETE WITH THE LIKES OF GAN AND KAMBI AS FULL- SERVICE SPORTS BETTING AND GAMING SUPPLIERS ”
regulated US market about the extent to which their business there is based on a cost per acquisition ( CPA ) basis as opposed to ( the much preferred in Europe and elsewhere ) revenue-share model .
This counts for two reasons . First , the affiliate gets the full benefit almost instantly from the sugar rush of new state openings . As much was clear in the third quarter where both Catena Media and Better Collective noted the extent to which their figures had been boosted by the launch of Arizona in September . As the latter company noted , combined with the start of the NFL season , the sudden rush of customers from the newly opened market in the Grand Canyon state meant that the month contributed over 60 % of total quarterly revenues from the US .
Both Catena and Better Collective have noted previously that operators in the US prefer CPA deals . The thinking is that they want quick results and are more unwilling than their European peers to share the long-term value . Potentially , this is down to the operators not being entirely sure about lifetime values and not wanting to give away too much . By comparison , European operators have a much clearer picture of the economics of each individual customer and the value that can be had from the high-intent traffic they receive via affiliates .
But that might change over time . As operators gain a greater understanding of the value of the customers coming through their doors , they might well look at longer-term deals with the affiliates they are working alongside .
SCOTT LONGLEY has been a journalist since the early 2000s , covering personal finance , sport and gambling . He has worked for a number of publications including Investment Week , Bloomberg Money , Football First , eGaming Review and Gambling Compliance . Scott now runs his own editorial consultancy , Clear Concise Media , and writes for a number of online and print titles .
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