INSIGHT
AFRICA : DIG FOR OPPORTUNITIES AND STRIKE GOLD
When it comes to Africa there is a whole continent of potential for those looking to boost their profit margins . Hannah Gannagé-Stewart reports on the findings of an expert panel at this year ’ s London Affiliate Conference and discovers how affiliates could benefit from an emerging market
THE RISE OF MOBILE technology has sparked rapid growth in Africa , making the sports-mad continent a compelling prospect for igaming businesses .
For affiliates ( unlike bookmakers ) the cost of entry is low , particularly if their sites are already attracting African traffic , so there is a real prospect of high-margin returns .
Where affiliates in the UK and Europe might generate profit margins of about 3-5 %, in Africa it ’ s not unusual to make 30 %, according to an expert panel at the London Affiliate Conference ( LAC ) earlier this month .
Income Access ’ VP of strategy Sarafina Wolde Gabriel chaired the discussion aimed at affiliates wanting to enter these emerging markets .
Joined by Nairabet . com chief executive officer Akin Alabi , chief marketing officer for Betolimp . co . za Mark McGuinness , and Web Analysis Solutions founder Mathew Symmonds , she began by asking what had triggered such rapid growth in the past couple of years .
Alabi ’ s Nairabet has been operating in Nigeria for about nine years , and has recently started seeing decent traffic flowing from affiliate partners in the region .
He said increased mobile penetration was seeing online businesses go from strength to strength in Africa . “ Ninety per cent of those accessing the internet are now doing so through their mobile phones ,” he added .
Marry that with increasing internet speeds , more competitive data pricing and the fact Africa is a continent obsessed
“ Where affiliates in the UK and Europe might generate profit margins of about 3-5 %, in Africa it ’ s not unusual to make 30 %” with football , and it ’ s easy to see the extent of the potential for affiliates .
Likewise , Betolimp . co . za has witnessed rapid growth in South Africa . “ We also have a retail presence , but in our business online has overtaken retail for the first time in six years ,” McGuinness said .
Chairperson Wolde Gabriel asked what had triggered such rapid growth in Africa
African market Symmonds is behind affiliate brands WinDrawWin . com and PredictZ . com , entering the African market about four years ago . He now attributes 40 % of his business ’ revenue to the continent .
He told delegates that when he first started targeting African countries , 50 % of the traffic was still from desktop . He was informed at the time that this came down to people not having good enough internet connections outside their offices to bet online .
But “ within one year , that went to 85 % mobile . Mobile penetration in such a short time in Africa is just crazy ,” he explained .
Despite the obvious opportunities , all the LAC panellists highlighted the importance of understanding the market and recognising that each country comes with a unique set of requirements .
56 iGB Affiliate Issue 68 APR / MAY 2018