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Chart 6 : Sports media industry ’ s potential for consolidation
progressions in terms of tracking over time .”
MORE M & A
As noted earlier in this report , Better Collective , subsequent to the earnings announcement , raised a further DKK1bn (£ 115m /$ 155m /€ 134m ) from investors to further its M & A ambitions and Søgaard made it clear on the call that more sports media brands would be the targets .
Producing a table of sports media brands ( see Chart 6 above ), Søgaard noted the long tail . “ We show this to give an impression on how big of a potential there still remains in this fragmented industry , where we believe we are the best owners of sports brands and the best sports partners to legacy media ,” he added .
THE REVENUE SHARE OVER CPA DEBATE
Back in the world of affiliate marketing , while the focus continues on the gradual shift of US revenues from CPA to revenue share which has had a dampening effect on revenue in 4Q23 and the current quarter , Pedersen was asked whether there was a future for CPA .
“ I think there will always be CPA because there are simply partners where we prefer working on CPA ,” he said .
He noted that working on rev share was “ like having a really long-term financial contract ”, adding , “ It is something where we need to both believe in product and long-term partnership . So , there will always be CPA and also some of our partners only want to work on CPA .”
He noted that the headwind of the transition to revenue share was predicted to continue into this year . “ Clearly it is a volatile environment , where we see new partners coming in . The mix of contracts we have with our partners influences this and when partners go live in a given state . So , it will be a mix , and it will not be 100 %.”
ON GOOGLE
Søgaard also added a viewpoint on the potential for Google changes to its algorithm , pointing out that the focus on brand strength also played a role when it came to search rankings .
“ We fundamentally believe that the long-term winners – and this is a sustainable way of gaining Google rankings – is by owning strong brands ,” he said . “ And that ’ s really why we in recent years have been so focused about finding
April 2024