Simplifying Affiliate Marketing in E-gaming

Global Betting and Gaming Consultants has published its Affiliate Marketing Report 2011 to explain how affiliate marketing works in the online gambling sector. Whilst some information might be common knowledge for those with experience in the sector, to new entrants to online gambling the explanation as to how affiliates operate and the commission structures will be invaluable.

Julia Wild, the author of the report, has firsthand experience of running affiliate and marketing programmes in e-gaming and part of the research for this report has included talking to both affiliates and e-gaming operators.
As well as looking at what is needed for a successful affiliate marketing programme, the report also discusses what the future may hold for affiliate marketing within online gambling, given the changing regulation in Europe and the US and consolidation amongst online gambling operators.
Regulation is bringing change and the age of the mass affiliate could be coming to an end. In the new higher-tax environment of online gambling markets in Europe the operators are finding more pressure on their profits. As a consequence, they will find it difficult to maintain the generous revenue shares being paid to affiliates. 

Some operators GBGC has spoken to are already setting their revenue share limit and if affiliates do not like it they can go elsewhere. The operators are no longer prepared to enter into a “race” to offer unsustainable commission deals.
In the past, affiliates have worked best for operators in “grey” or unregulated markets, perhaps where the gaming brand is not known. An affiliate programme can be a cost effective means for an operator to establish itself in a new market, especially because the affiliate means the operator is one step removed from the customer in a market where the regulatory situation is uncertain.
Different operators rely on affiliate marketing to differing extents as a source of new customers. 

Established land-based businesses that have existing loyalty programmes, such as casinos, maybe have less need of affiliates if they choose to offer online games. They already have large databases of customers to which to market directly. This avoids one common conflict in affiliate markets – who “owns” the customer and their details- the affiliate or the operator?
But most online gambling operators do agree that affiliate marketing will continue to have a role to play as part of a wider marketing strategy to attract and retain players. 

GBGC’ Affiliate Marketing Report 2011 is available for GB£450 (+VAT), or as part of the Interactive Gambling Report (GB£950 +VAT), or the Platinum Subscription (GB£3,950 +VAT).