Affiliates and operators at 'a crossroads' in business

Affiliates and operators at 'a crossroads' in business

Friday, October 28, 2016
Standards over player acquisition disciplines are still up in the air

Tom Galanis, managing director of Tag Media, believes that affiliates and operators are at a ‘crossroads’ in their relationship. Galanis said that stakeholders have not progressed in terms of discussions with regards to player acquisition disciplines, which has led to frustration between parties.

Galanis urged affiliates and operators to make the ‘leap forward’ and begin to place new standards and best practices to affiliate marketing. Galanis noted that unlike other industry marketing disciplines, affiliates have not had the regulatory focus of other verticals such as TV and print media.

He added that operators and their governances need to understand these disciplines for categorising affiliates and their capabilities, which may include SEO, media buying, social media outreach, mobile penetration and content creation.

Galanis was speaking on EIG’s expert panel on affiliate marketing and player acquisition, hosted by Income Access’ Head of Affiliate Services Allan Petrilli, which touched on the changing nature of this key discipline amid changing industry conditions and corporate values.

Central to the panel discussion was the changing relationship between affiliates and operators, which all panel members described as being ‘blurred’. Individually, the panel broke down how affiliates have changed in terms of their core competencies to drive player acquisitions.

Speaking from an affiliate perspective, Jesper Søgaard founder of Better Collective still believes that the industry suffers from a ‘short term mentality’ when assessing affiliates.

Operating Europe’s largest sports betting player portals bettingexpert.com, Søgaard detailed to the audience his teams concerns when adding a new operator to its network. He also made a striking point, detailing that uninformed operators tend to make incompetent affiliate partners, which in turn costs affiliates of all marketing disciplines money.

Edward Ihre, CEO of Ihre Consulting, pointed out that there are fundamental corporate learnings that can be transferred between operators and affiliates, beyond just player acquisition. He highlighted competent operators with big affiliate databases being able to better control their margins.

Consulting within multiple international markets as leader of Ihre Consulting, Ihre takes the view that operators should be flexible in their approach to individual markets, as they can no longer expect to have an all-encompassing acquisition strategy.

Totally Gaming says: With regulators demanding ever higher standards of operators, it is important for affiliates to follow suit. If they don’t then the law makers will start to extend its remit to these marketing tools and the cost of running affiliate websites will go through the roof. 

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