iGB Affiliate iGB Affiliate Survey 2018 | Page 4

Executive Summary Editor’s letter Executive summary The findings of the second annual iGB Affiliate Survey reaffirm some important constants in the day-to-day working lives of affiliates, from regulation to the importance of trust, clear communication and transparency in dealings with affiliate programmes. The 2018 edition also finds the businesses of those affiliates surveyed in rude health, with the mean monthly amount generated up 28% year-on-year to $150k (albeit skewed by the 14% earning more than $400k) with commissions on the rise and these having increased by 42% compared to 37% in the 2017 survey. We also see affiliates adapting to changes in areas such as martech, with marketing platforms/automation identified alongside the opening of the US market as the industry trend and development affiliates identify as becoming increasingly important to their business. The trends and developments they identify as already impacting their day-to-day businesses reflect the headline developments in the core UK market (69% targeting this territory), with programme closures, ad compliance and increased liability this year figuring alongside regulation. Indeed, while respondents remain bullish about the outlook for the wider gambling industry, there has been a marked erosion in confidence regarding that for the igaming affiliate space, from the perspective of those surveyed on both the affiliate and affiliate programme sides. Beyond the headline stats, the survey results also include a depth of detail and insights about the igaming affiliate space not available anywhere else. Did you know, for instance, that 50% of affiliates still don’t read the T&Cs before signing up to a programme? Anyway, we will leave you now to trawl through these to find the snippets that are most useful to your work. We hope you find the contents informative and as we soon embark on putting the next questionnaire together, please don’t hesitate to get in touch with your feedback at [email protected] Verticals On average affiliates active in three verticals with casino and sports betting still core sectors operated within Location Key regions targeted remain Western Europe and the UK specifically, followed by Germany and Sweden Revenues Mean average of 46% of revenue generated by iGaming, with average mean revenue per month up 28% to $148,003 Other sectors Approximately 1 in 2 continue to affiliate outside of igaming; finance remains key other sector operated within Affiliate programmes Brand strength/reliability and tracking reliability still key attributes when assessing affiliate programs with payment terms/frequency growing in importance Marketing strategy SEO still most effective way to generate traffic, Facebook and YouTube most effective social media tools Preferences 45% prefer working with independent affiliate networks with ROI/higher commissions, (ease of) communication, and personalised deals given as key reasons Industry outlook Affiliates remain broadly confident about the gambling industry but confidence in affiliate industry down year-on-year • Expansion into new/emerging markets, opportunities from mobile gaming and regulatory changes seen as key opportunities for next five years • Regulation, competition and industry reputation now main challenges/threats • Over one-third of affiliates continue to be interested in becoming an operator with 11% currently going through the process Stephen Carter, Editorial Director, iGaming Business 4 iGB Affiliate Survey • July 2018