iGB Affiliate 63 June/July | Page 64

INSIGHT

BACK TO THE FUTURE OF IGAMING AFFILIATE MARKETING

With Paysafe ’ s Income Access recently having marked its 15th year in the industry , Sarafina Wolde Gabriel , VP of Strategy and Operations , looks at the affiliate channel ’ s evolution during this time and where the opportunities lie today for smaller and mid-tier affiliates .
THE AFFILIATE MARKETING
CHANNEL has never been more robust . Over 2016 , UK firms ’ performance marketing spend grew to an unprecedented £ 1.6bn , according to the IAB and PwC .
The igaming affiliate sector has come a long way since its early days . With Income Access celebrating its 15th anniversary , now is the perfect time to look back on the channel ’ s evolution and discuss its future . Competition today is high , but small and mid-tier affiliates can succeed if they carve out their own business niche , diversify their vertical and market focuses , and develop integrated marketing strategies .
Evolution & market challenges The earliest affiliate programme dates back to 1994 , but affiliate marketing ’ s real origins can be traced back to the launch of Amazon Associates two years later . In 1996 , Amazon was a small firm compared to the retail giant it is today – and affiliates proved instrumental in its formative growth . Other companies took note , including the emerging igaming sector .
From 888 ’ s founding in 1997 to the launches of PokerStars and PartyPoker in 2001 , the Millennium saw the rise of standalone igaming brands , which faced increasing competition from retail bookmakers ’ new online offerings . In this competitive environment , operators discovered in affiliate marketing a more cost-effective acquisition channel than media buying with high-traffic websites on a cost-per-impression basis or PPC campaigns on Google ’ s new AdWords platform .
Early affiliate sites placed a strong emphasis on their partners ’ sign-up ads and were less focused on providing visitors with valuable content . The term ‘ banner farm ’ is a reasonably accurate description of the prevailing approach to site design .
“ Major news and comparison sites like PokerNews and Oddschecker have grown their traffic to the point that they now command cost-per-impression ad deals from operators ”
The new discipline of SEO was at the heart of these pioneering affiliates ’ marketing strategies . Keywords relating to their partners ’ brands , verticals and products formed the backbone and , more frequently , the flesh and bones of sites ’ content . Inevitably , this SEO-centric approach often meant keyword stuffing and thin content .
Google clamped down . In November 2003 , the search engine ’ s Florida algorithm update specifically targeted the practice of keyword stuffing . Savvy affiliates recalibrated their sites accordingly . Thus began an ongoing cycle of action and reaction between Google and affiliates . Ultimately though , the channel was strengthened by major algorithm updates like Jagger in October 2005 , attacking link farms , and May Day in May 2010 , targeting thin content . Affiliates became more focused on developing engaging content of genuine value to site visitors – from game reviews to tips and news . This shift improved affiliates ’ conversions and , in turn , catalysed operator investment .
Simultaneously , affiliates faced market challenges . The 2006 Unlawful Internet Gambling Enforcement Act ( UIGEA ) shut down online gambling in the US , whose 300 million population , high internet usage and significant disposable income made it a major market . With PartyPoker and other brands exiting the States , affiliates shifted their promotional focus to Europe .
This period also offered opportunities . The end of Google ’ s four-year ban on UK-facing gambling AdWords campaigns in 2008 opened up the channel to affiliates , while the launch of Twitter in 2006 and Facebook Pages the following year provided them with even more costeffective traffic-driving platforms .
Opportunities also emerged at a vertical level . Even before igaming ’ s state-level return to the US in 2013 , alternative verticals had already arisen . These included daily fantasy sports ( DFS ), following the launch of FanDuel in 2009 and DraftKings in 2012 . Meanwhile , esports brands like Unikrn , founded in 2014 , allowed affiliates to target users interested in wagering on competitive video gaming .
60 iGB Affiliate Issue 63 JUN / JUL 2017