Part 3: Marketing and affiliates
distance, spending DKK108m that
year compared with DKK79.2m by
the next highest spender, retailer
Bilka.
It was also the second-highest
spender in digital advertising
behind GlaxoSmithKline with a
spend in 2016 of DKK38.8m, the
seventh-highest in newspapers at
DKK47.8m and finally the second-
highest in radio at DKK14.3m.
The role of affiliates in
Denmark
The Danish market is well-served
by recognisable affiliate names
including the indigenous Better
Collective (which recently listed on
the Nasdaq Stockholm exchange),
Raketech and, of course, Catena
Media.
The maturing of the Danish
market has coincided with the
move within the affiliate space
towards M&A and greater
professionalisation. Jansson
from Better Collective says the
percentage of marketing spend
that goes on affiliates has grown
over the past six years and believes
that across the market circa 15-20%
of all new customer acquisitions
come through the affiliate channel.
“The affiliate market has matured
a lot,” he says. “Only a handful of
companies play an important role.
The best affiliates have enjoyed the
online growth and the huge overall
growth in marketing – it goes hand-
in-hand. The operators, whenever
they spend big on marketing, they
bring more awareness to their
brands and that is something we
benefit from both directly and
indirectly.”
This is certainly the case with
new entrants. Kärrbrink at Mr Green
points out in Denmark as elsewhere
the affiliate channel is “an important
part of our growth strategy.”
Weinreich at LeoVegas makes
a similar point, suggesting that
the affiliate channel’s importance
shouldn’t be overlooked when it
comes to market entrants.
“It is a difficult route to exclude,”
he says “Maybe the bigger ones
can forego it because they have
already built their customer
bases. With the affiliates there are
conversations about tax – who
pays – and compliance. Controlling
your affiliates around compliance is
so essential. The big ones – Catena
and Raketech – are good. Others
may have the best intentions but
need to adjust to a higher level of
quality standards.”
Jansson agrees that the record of
the smaller affiliates when it comes
to compliance has been patchy
but in Denmark as elsewhere, the
sector is learning as it develops.
“For everyone, it is about practice,”
he says.
“I can understand that operators
cannot work with all affiliates. From
day one, they should have done
better due diligence. But it is all a
learning process. It is something I
can understand.”
Chart 7: Danske Spil ad spend 2016 (DKKm)
120
108
100
80
60
47.8
38.8
40
20
0
14.3
TV
Newspaper
Radio
Digital
Source: Gallup Adfact/MediaBrands.dk
Denmark: Insights and data on Europe’s pioneer model for igaming regulation
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