INSIGHT
NETWORK EVOLUTION
Having comprehensively surveyed the affiliate industry in our previous issue , Lee-Ann Johnstone of Best Odds Marketing here presents the pros and cons of using third-party affiliate networks in an ever-changing regulatory and commercial environment
Are networks still relevant in the affiliate ecosystem ? The affiliate marketing channel is maturing . Regulation is playing an important part and it ’ s also changing the way in which we need to run and strategise the growth of affiliate programmes .
The recent spate of advertising fines , and the fact that operators are now wholly responsible for what their affiliates advertise online , have led to a rapid move to implement stringent term updates and strike policies . In turn , this has forcibly changed the nature of the collaboration of the parties who make up the affiliate space ’ s ecosystem . It seems logical to focus on more active policing of affiliate content as well as stronger training and development of the operator staff tasked with managing affiliate business models .
Recently , quite a few operators , such as BGO , William Hill , 888Ladies and Wink Bingo , have closed their long-tail affiliate programmes on third-party networks such as Affiliate Window . These closures have made me think about the consequences for long-tail programme growth strategies .
So why use a third-party affiliate network as a long-tail growth strategy ? Before I answer this , let ’ s recap the reasons why affiliate networks exist and how they are typically used in igaming .
i ) Fast access to a pool of qualified traffic . If a programme is new to affiliate marketing , using a third-party affiliate network can provide instant access to a pool of active traffic-driving affiliates . This means you can launch a brand and hit the ground running with very few resources needed to find and acquire affiliates directly . ii ) Brand promotion at a very low cost . An affiliate network such as Affiliate Window can help to expand brand reach into broader consumer sectors ( not necessarily igaming-focused ) as a long-tail traffic source . Because of how you pay an affiliate , the programme doesn ’ t incur any upfront costs for the broad spectrum of promotion it receives within the network .
iii ) To target potential customers in a variety of different places .
What are the main advantages of affiliate networks ? You can access voucher code and other retail or offer-based traffic sites using a third-party affiliate network such as Affiliate Window , Trade Doubler or Commission Junction , so you can target a broad range of customers online who might not want to gamble but are still interested in playing online games . It also provides a platform to find or advertise to customers in multiple online spaces . Networks existed before we could pixel and target specifically on Facebook in great detail ( and other programmatic buying channels where targeting differential client groups and interests already exist ).
And what are the disadvantages ? There are of course also downsides to using a third-party network that operates in a closed environment . You never really get to work with affiliates directly or outright own the relationships acquired to your programme . It was designed like that to prevent network clients from recruiting affiliates directly out of the network into their own programmes as they expand . If you leave its platform , the network also imposes strict exit policies that prevent you taking affiliates that you have engaged in their network .
What effect have regulatory and technological developments had on affiliates ? It used to be acceptable to have a blanket network of affiliates promoting your brand , but now that the onus of advertising responsibly rests solely on operators , there is a greater need to know and to police affiliate partners .
What problems do these developments pose for working within a third-party network environment ? A third-party affiliate network doesn ’ t have a vertical focus , because it services multiple sectors and is specialist in none . Our industry is heavily regulated and there is a risk that the network staff who are recruiting and vetting affiliates into the network may not be aware of these requirements and may end up being responsible for large fines .
Having a blind affiliate programme ( where you don ’ t see the ID or origin of traffic ) means there is a limit on how effectively you can police your brand content online . Media buying and programmatic bidding can be highly targeted to avoid mass advertising wastage , and Facebook can help you target specific interest groups , which means spending less money on a blanket programme .
“ Affiliate networks will continue to play an active role in developing programme growth and helping new programmes to launch , expand and scale ”
iGB Affiliate Issue 66 DEC 2017 / JAN 2018
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