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23 for circa 33 % of core media sales in the quarter and including new key partnerships with companies like Betano and Betway .
PURE PLAY
The affiliate business , meanwhile , benefited from the launches in Ohio and Massachusetts as well as the packed sporting calendar including the Super Bowl and March Madness .
“ We have high expectations for our affiliate business as we begin looking at leveraging Playmaker ’ s geographic diversity , and as new states launch in the US for both online sports betting and igaming ,” said Gnat .
“ Our teams have begun integration efforts with our media businesses and Wedge to unlock value by combining
our vast audience with Wedge ’ s user acquisition and conversion expertise .”
Gnat gave an insight into how the dynamics of a new state opening works and how it can affect margins . “ When you have an exceptional quarter , the pool you ’ re fishing in is pretty static until you get a new state , and then the pool gets a little bit deeper ,” he said .
“ But as soon as you have a state opening , you go from using a rod to a net pretty quickly and it becomes very efficient and you can grab a lot of people all at once , but then it stabilises , so then you get to more normalised margins .”
FLYING DOWN SOUTH
He noted the likely seasonal swing in the affiliate business in the second and third quarters which might pull the numbers back a touch . But he said that in the meantime , the affiliate business was also being pointed more at the Latin American market .
“ While things are quieter in general in the affiliate business , the resources of the team are now available to sort of look at that , and that ’ s looking down into the Latin American market . The teams are working together already . There ’ s lots of work being done in testing through strategies in the Latin American market to get ready for the calendar when it kicks back in .”
Generally , Gnat suggested Playmaker holds out high hopes for Latin America . “ I think that the biggest opportunity for us would be unlocking LatAm in a meaningful way ,” he said .
“ Think of the size of our audience in those markets and the reach that we have , it ’ s such that if we can get it right , and when we get it right , we ’ ll be looking at something that is hopefully quite exciting .”
In particular , he said the betting and gaming opportunity in the region was huge . “ We know that others do it , because we have a significant amount of revenue that we generate from igaming and sports betting operators in Latin America . And they ’ re not buying it just because they like us . They ’ re buying it because it obviously converts for them .”
July 2023