EMERGING MARKETS
LATAM which you acquire players are probably going to be radically different . You need to be flexible and willing to think on your feet . Experiment and see what sticks – you may well be surprised .
Pick the right markets
There ’ s a whole world out there and picking the right emerging markets to focus on can be the most important decision you ’ ll make . The problem is there ’ s no one solution here . Above all , it ’ s critical you take an honest look at your business ’ strengths and weaknesses . And be brutally honest – if you delude yourself at the outset , you ’ ll pay a heavy price further down the line .
Then try to understand where your strengths intersect with the landscape of the market you are exploring . The right market should match your capabilities across everything from language to payment solutions .
And finally , make sure the market you select is ready to emerge . Are there reliable and active operator partners ? Is the wider economic outlook positive ? It may be exciting to find somewhere without much competition , but there may be a good reason why others haven ’ t yet taken the plunge .
Emerging ≠ lawless
I sometimes see people use the term ‘ emerging markets ’ as a kind of code for markets where anything goes .
It ’ s a misconception that emerging markets lack regulation and are a free-for-all for affiliates . While regulations in these markets may be less developed , they ’ re still evolving , and often with a focus on responsible gambling , tax
Following a strategy focused around a heavy reliance on high-value , long-term players is unlikely to work when player values are considerably lower
compliance and player protection . In short , the same type of issues we face in more mature jurisdictions .
Affiliates need to tread carefully . You don ’ t want to risk future reputational damage or legal issues as regulations develop .
We ’ re firm believers in establishing best practices early on , even if a market doesn ’ t yet have the regulatory framework in place to enforce them . When we enter somewhere new , it ’ s for the longterm and that means earning the trust of players and partners from the very beginning .
Not all FTDs are born equal
It ’ s easy to get fixated on firsttime depositors ( FTDs ) or traffic numbers , but don ’ t lose sight of your bottom line .
Emerging markets can offer up opportunities to drive huge growth in FTDs in a short space of time , but the value of these players is likely to be significantly lower than you might be used to in Tier-1 markets .
South Asia is a good example . We put the lifetime value ( LTV ) of an average user in the region at about $ 30 , around a quarter of what you might expect in a mature European market .
But that ’ s fine , given the sheer size of the market . The equation is
ABOUT ME a simple one : if you can refer four FTDs for every one you send in a European market , and at a reduced overall cost , the market will prove more lucrative .
So don ’ t obsess over raw numbers ; make sure every decision taken is put into the wider context .
Emerging markets eventually emerge
You may need to ask yourself some tough questions if you want your success in an emerging market to continue .
For instance , do you have a transition plan for when the market regulates ? And will your approach to the market stand up to the increased competition that will likely follow ?
Building a strong brand and presence in an emerging market is only the first part of the challenge . We ’ ve always been willing to adapt and experiment when doing this . It might mean a change of approach ; it will almost certainly require greater investment . But we never lose sight of the fact that there ’ s an even bigger prize to be won if you can capitalise on your position as a market matures .
Markets evolve . Make sure you evolve alongside them .
Alina Famenok is the CEO of tech-driven affiliate and media company Already Media . She brings more than five years of experience across the global igaming market to the role , with a strong focus on continuous innovation and data-driven solutions .
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