INSIGHT
SPORTSBOOK AFFILIATES
NEED TO DIVERSIFY
Many UK sportsbook affiliates are overly focused on football and a small number of brands, meaning
they are missing out on valuable opportunities to offer their players something fresh and up their
conversion rates, argues Leon Hosking of ApolloBet.
THE EUROPEAN ONLINE sports-betting
market is set to grow strongly over the next
few years. The vertical is forecast to expand
to £4.1 billion by 2018 at a growth rate of
8.4%, according to H2 Gambling Capital.
This is good news for sportsbooks and the
affiliates that promote them, though major
challenges remain.
Rising competition and the spectre of
market saturation mean that affiliates
need to ensure that their offerings are as
diversified as possible in terms of brands,
sporting markets and verticals promoted
as well as the platforms offered. A diverse
approach is especially important this
summer, a relatively quiet period for sports.
Diversity of brands and sporting
markets
The UK online sports-betting vertical is
dominated by five operators. The combined
market share of William Hill, Ladbrokes,
Paddy Power, Bet365 and Betfair totals 56%,
according to Mintel. Given their size and
heritage – the first three firms were founded
long before iGaming’s emergence and the
latter two were launched in its earliest days
– many affiliates have primarily focused on
promoting these brands.
Such an approach is mistaken. There
will always be a place in affiliates’ offerings
for these five sportsbooks. However, their
high profiles and long-standing market
presence means that converting new
players can be challenging. Often, affiliates
may find that their lifetime revenue share
deals with these brands means that they
receive more profit from players converted
long ago than new ones.
To raise their conversion rates of new
players, it’s only logical that affiliates
look to new sportsbooks. Up-and-coming
brands allow affiliates to offer players
something fresh. Inevitably, newer
sports-betting sites have had to develop
innovative products and find their own
niche in a competitive market.
This spirit of innovation commonly sees
newer brands focusing on niche sports such
as rugby league and snooker, which provide
an important alternative to football. The
beautiful game is responsible for 40.1%
of online sportbooks’ turnover, according
to the Gambling Commission. However,
football is highly seasonal. While 2014
had the World Cup and next year features
bettors. As with football, male players
predominate. More than 95% of snooker
and rugby league punters are men,
according to ApolloBet’s data. Players in
both sports tend to be slightly older than
football bettors, with the median age group
35 to 45. Another important difference for
affiliates is that rugby league and snooker
bettors tend to be even more loyal, resulting
in higher lifetime player values.
Two other alternative sporting markets
that affiliates can promote this summer and
beyond are boxing and Ultimate Fighting
“ApolloBet’s data reveals that 90% of boxing
and UFC bettors are male, though high-profile
matches like the recent Mayweather-Pacquiao
bout saw approximately 25% of bets from
female punters.”
Euro 2016 in France, this summer will be
relatively quiet for football following the
UEFA Champions League Final on 6 June.
In contrast, rugby league will have a busier
summer. The UK’s Super League 2015,
which began in early February, continues
through June before the Challenge Cup
Semi-Finals and Final in August, with the
Super League climaxing in early October. All
these fixtures provide an important additional
revenue stream for affiliates.
They can further diversify their affiliate
offering this summer by promoting brands
offering betting on snooker. The World Cup
2015, taking place from 15 to 21 June, will
be followed this summer by the Riga Open
2015 in July and early August as well as the
Shanghai Masters 2015.
Aside from the plethora of snooker and
rugby league events, the player profiles
for both sports correlate well with football
Championship (UFC). There’s a WBA
Super World Middleweight bout scheduled
for late June and a Light Heavyweight
fight slated for July. To complement their
promotion of boxing, affiliates