INSIGHT
“ Affiliates typically work with affiliate networks more readily than with direct programmes because it ’ s a safer option for them to manage multiple relationships , administration and reporting ”
Will third-party affiliate networks become redundant ? The simple answer is no . I say this because it still boils down to cost , resources , the relevance of your affiliate strategy and the budget required by an operator at any given time over their life cycle to acquire . Affiliate networks will continue to play an active role in developing programme growth and helping new programmes to launch , expand and scale . However , the management of a programme ’ s long-tail growth strategy will need to be more stringent than before . Building an affiliate programme from point zero and recruiting affiliates to it takes an incredible amount of time and a hefty budget .
Affiliates typically work with affiliate networks more readily than with direct programmes because it ’ s a safer option for them to manage multiple relationships , administration and reporting . Most reputable networks vet brands before they join ( for affordability and legitimacy ) and it ’ s much easier for affiliates to manage multiple campaigns or programmes within one login platform . There is a greater level of trust between the affiliate and a network , compared with affiliates signing up to multiple individual programmes that could go bust overnight .
Because of what they offer as part of your overall acquisition strategy , there is still a valid reason for considering third-party networks in terms of cost , accessibility and reach . However , you may have to work a bit harder on managing that relationship than before . Your long-tail network of affiliate partners will need to be just as actively managed but with more human interaction .
How will they change their service to suit regulated marketing requirements ? Perhaps networks will engage more with merchant brands and stop being run in a “ closed ” environment to avoid losing lucrative gaming business . Some might reconsider their pricing and exit models ( override fees ) to protect against direct recruitment , while also adding continued value as part of a long-tail acquisition strategy . There may be a shift in focus from other retail-based third-party affiliate networks so that they specialise in high-value content sectors , stringent policing and long-tail reach over micro and AI technology development .
This is a positive thing , because it means that there may be more choice for operators to select third-party affiliate network providers to work with to expand their long-tail reach . It ’ s clear that the affiliate network model will need to adapt to recent changes or risk losing profitable brands from their platforms , which would impact the revenue and administration levels of the affiliates operating in their network .
Even after taking into account the additional time spent improving the network of affiliates , as a whole it ’ s still one of the most cost-effective ways of acquiring new players . We ’ re battling with the bonus tax , which is seriously changing how we court players , and on top of this the Gambling Commission is very much making its presence felt . Although this may seem challenging , it ’ s a great opportunity for operators to create better programme strategies to promote overall affiliate growth .
Does that mean that there is an increased need for ongoing training and development ? Affiliate teams will need to strategise how they manage their internal programme operations , recruitment drives , account management and resourcing to deliver more effective results . By knowing affiliates and the guidelines more intensely , affiliate managers can benefit . They must create better connections , and watch out for potential breaches of the advertising codes . Operators and networks , now more than ever , need to invest in continued staff training to ensure their affiliate teams know and understand the rules , regulations and advertising guidelines to effectively police their affiliate relationships and make sound commercial decisions . This can stop the Gambling Commission from intervening . Part of the problem with the current system of regulation is that we have bits and pieces of guidance from various bodies , but not much in the way of concrete rules . If given enough time and resources to police the brand , a vigilant and knowledgeable affiliate manager may be able to prevent fines , while still working collaboratively with affiliates to build business revenue .
What ’ s next ? In the next year , we ’ ll see more compliancebased change in the way that programmes are actively managed . Already , we ’ ve seen terms and strike policies being updated to avoid fines . It will be up to all parties ( network , affiliate , operator ) in this ecosystem to work together to ensure compliance , either manually or by building AI technology-based upgrades that can do this automatically .
There are many challenges to come for the gambling industry , but the closure of a few affiliate marketing programmes doesn ’ t have to mark the start of an irreversible trend . Those brands and networks that make an effort to adjust will likely earn a better reputation and allow their affiliate marketing programmes to flourish .
The government and the Gambling Commission are placing a spotlight on the industry at the moment . It is up to us and our affiliate partners , as well as the technology suppliers and networks that support these channels to grow , to show that we can adjust and continue to support growth in this channel .
With almost two decades of digital marketing and affiliate experience within retail , payments and various igaming brands , LEE-ANN JOHNSTONE has a wealth of expertise as an award-winning digital marketing expert and business mentor . In 2015 she curated and developed AffiliateFEST and has now founded Best Odds Marketing ( www . bestoddsmarketing . com ) a digital marketing consultancy , training , event management and business coaching agency supporting igaming businesses .
50 iGB Affiliate Issue 66 DEC 2017 / JAN 2018