Affiliate marketing isn’t a new topic to casino articles as such type of gambling brand promotion is mainstream among operators.
Dennis Dyhr-Hansen, CEO of Matching Visions, has cleared up the risks, which affiliates are exposed to, difficulties connected with regulations, and named the most important types of data for this vertical.
Dennis, the first question to ask is about the regulatory hindrances that affiliates face while working with gambling companies. What are they? How do affiliate networks cope with this?
The main regulatory hindrance is in countries that start creating a licensing procedure. A great example is what’s happening in Germany now, where brands have to conform to regulations if they want to apply for a license. All the affiliates that promote the brands need to adhere to these rules and regulations as well.
What does this mean? It means quite a few different things depending on how the brands interpret the regulations to come. Some will change deals models from a revenue share to a very small CPA, which makes it very difficult for the affiliate to continue promotion with little income coming in. They will also need to follow strict rules such as disclaimers, adding various terms across their site, removing many words that the regulators don’t want, including terms like “casino” itself.
If the procedures are done slowly, carefully, and properly, most affiliates should be able to adjust to the regulations and adhere to the new rules. The main question is will the affiliate manage to survive financially during these periods, transitions, and changes?
Are affiliates the main channel for operators to promote their brands in 2021?
I think affiliates always have been the main channel for operators to promote their brands and will continue to be in many years to come. The main changes might be connected with the types of affiliates as we see shifts in the way people approach online casinos. This world has become far more visual, so seeing how other people are doing certain things promotes a brand as individuals want to do the same thing.
So far, we have seen a much bigger rise in traffic from affiliates focused on streaming platforms, social media platforms and unique types of promoting brands. So, the question is more how affiliates will continue being the main channel for operators instead.
Let’s talk about the risks that affiliates are exposed to. What are they? Is the trust between an operator and affiliate network important?
There are always going to be risks in any industry that works on services and not on physical products. You can have fully-fledged licensed brands or operators that can still do some things we might not agree with or not like.