Aug/sept 2010
Gaming Reports from MECN and Greenlight Focus on Hungary Video on the Mobile Channel Building a Gaming Affiliate Strategy SEO Myths Debunked
Virgin Territory An interview with Sir Richard Branson
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
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THOR IS BACK AND THIS TIME HE HAS BROUGHT REINFORCEMENTS.
www.microgaming.com
CASINO | POKER | BINGO | NETWORK GAMING | MOBILE
CONTENTS 06 Events Calendar 08 Webmaster News 14 SEO Myths, Debunked 17 Using Stats and SEO to Gain Long-Tail Traffic 21 SEO for the Romanian Market 22 Multiple Languages Can Multiply Your Conversions 25 Conversion Tools – Heatmaps 26 Interview – Connie Burstin, Founder of Burstin Marketing Group 28 The Lay of the Land – the Affiliate Interview 30 The Greenlight Gaming Sector Report for June 33 Sportsbetting Supplement 48 Gaming in Hungary – the Legal Environment 50 Gaming in Hungary – the Market Overview 52 Localisation Vs Translation 55 The MECN Report on the Gaming Sector 58 Building a Proper Gaming Affiliate Strategy 60 Benefits of an in-house Affiliate Program 64 Sir Richard Branson – an Interview 70 Introducing iAds 72 An Affiliate’s Guide to Equal Opportunity Marketing 74 An Affiliate’s Guide to iGaming Conferences 76 Utilising Video on the Mobile Channel 78 Affiliate Guard Dog Feature 80 Market Place 82 Getting IT Support for Your Landing Page Test
The end of summer means its back to work for most of us, but luckily there is plenty to look forward to. For one, the Budapest Affiliate Conference is upon us, and as your primer to the show, we have explored the Hungarian iGaming market this issue. We’ve also taken a look at the mobile gaming market following this summer’s game changers – Android and the iPad. To get you back up to speed for the autumn push, we invited MECN and Greenlight to provide you with
http://tinyurl.com/igbaffiliate @igbaffiliate
the essential raw data in two reports featured herein this month. But the one feature that really excites me this issue is our exclusive interview with Sir Richard Branson, where he discusses entrepreneurship, iGaming and his upcoming holiday in space. I hope you enjoy this issue, and I hope to see you in Budapest. Michael Caselli, Editor in Chief
Editor in Chief: Michael Caselli
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source must be given. iGaming Business Affiliate Magazine is London EC1V 0BB, UK. The views expressed by contributors and
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iGB Affiliate AUGUST/SEPTEMBER 2010
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affiliate events calendar Due to their popularity and wealth of information, analysis and discussion, conferences have become an integral part of the affiliate industry and a key communications bridge between affiliates and affiliate managers. Whether used for networking, education or just an excuse to meet up with friends, the affiliate conferences listed below provide all the tools you need to improve your business.
Budapest Affiliate Conference, SYMA Centre, Budapest October 7 – 10, 2010
London Affiliate Conference (LAC) Old Billingsgate, London January 28 – 31, 2011 Summary: An event that needs no introduction due to the huge success of previous years, the LAC has been the flagship event on the affiliate conference circuit since its inception in 2007 (then as CAP Euro). An allencompassing expo and conference delving into the very latest issues affecting all aspects of the iGaming and affiliate market sectors, LAC 2010 promises to be the best attended and best prepared event to date.
Summary: The Budapest event in 2009 was such a huge success that the 2010 autumn affiliate conference returns to Hungary for what organizers hope will be a repeat performance. Following on from the iGaming Super Show in Prague in May, the BAC returns to one of Europe’s most historic and romantic capital cities with the usual array of insight, networking and partying making this one of the most sought after stops on the affiliate conference calendar. www.budapestaffiliateconference.com
www.londonaffiliateconference.com
A4U Expo London Excel Exhibition Centre October 11 -13, 2010 Summary: A4U is back in London for its fourth London event since its 2007 launch. With a brand new venue which more than doubles last year’s capacity, new event hotels and networking venues; a4uexpo London ensures it remains a must-attend affiliate, SEO and performance marketing conference for 2010. Delegates will be able to attend a number of new themed tracks across two days of exceptional learning and networking opportunities. www.a4uexpo.com/london
EiG 2010 Copenhagen, Denmark October 19 – 21, 2010 Summary: The 2010 version of the European iGaming Congress and Expo remains in Copenhagen, Denmark, and promises to outshine last year’s event in terms of content and exhibitors. www.eigexpo.com iGB Espana Puerta America Hotel Madrid, Spain November 5 – 6, 2010 Summary: The second annual Spanishspecific event returns to the conference circuit this November, hoping to capitalise on what was a sensitively organised and impressively successful first outing in 2009. The conference section will update attendees on the very latest in legal, regulatory and operational fronts in the Spanish market and offer insight into the intricacies of serving and supplying into this unique and promising region. www.igbespana.com
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webmaster news
ARJEL Starts Second Phase of French Licensing The French national online gaming regulatory authority, the Autorité de Régulation des Jeux En Ligne (ARJEL), has awarded a second tranche of new online poker and sportsbetting licences while also approving 13 new sports on which wagers may be taken. The growing number of operators now licensed to offer online poker and sportsbetting to customers based in France include PartyGaming, PokerStars and Paddy Power, whilst offerings by Chili Gaming and Partouche Gaming France SAS have also been given the green light. PartyGaming has received clearance for five France-facing sites including PartyBets. fr, GameBookers.fr, PartyPoker.fr, ActPoker. fr and LuckyJeux.fr run in partnership with Electraworks SAS while PokerStars is now licensed for PokerStars.fr, which is operated by its Reel Malta Limited subsidiary. For its part, Chili Gaming has received clearance for its ChiliPoker.fr online poker domain, which is run in partnership with French telecoms and Internet services provider, Gaming Iliad SAS, while Partouche can now offer the game through its Partouche.fr site. The final license covers sportsbetting and authorises LIL Managers Limited to offer services through its FriendBet.fr social poolbetting site.
ARJEL also revealed that sportsbetting sites targeting French players can now offer wagers on badminton, baseball, billiards, boxing, fencing, ice hockey, swimming, basque pelota, petanque, skiing, boules, taekwondo and sailing, which brings the total number of sports where bets may be taken to 28.
Australian Government Rejects Liberalisation Australia’s federal government has rejected a recommendation from its own independent advisory body to begin lifting the nation’s ban on online poker. The Australian Productivity Commission published its final report and called for a managed liberalisation of online poker in Australia and the repeal of 2001’s Interactive Gambling Act. The report argued for widespread changes and stated that the “Australian government should repeal the Interactive Gambling Act and, in consultation with state and territory governments, should initiate a process for the managed liberalisation of online gaming”.
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However, Stephen Conroy, the Communications Minister for recently departed Prime Minister Kevin Rudd, responded by rejecting any such move on behalf of the current Labour Party government. “We are not convinced that liberalising online gaming would have benefits for the Australian community which would outweigh the risks of an increased incidence of problem gambling, particularly with the rapid changes in technology,” Conroy told The Courier-Mail. The Brisbane-based newspaper reported that the government was instead interested in speaking with other nations
including the United States ‘about global regulations’. “The long-run consequence of prohibition may be higher problem gambling risks and a loss of commercial opportunities and tax revenue in Australia,” read the report from the Australian Productivity Commission. “Consequently, a gradual approach to managed liberalisation that commenced with the likely safest form of online gambling, poker card games, would seem to be an affective way forward. The effects of this partial liberalisation could then be evaluated as could the harm minimisation measures in place before any further liberalisation was considered.”
British Columbia Offsets Deficit via iGaming The Canadian province of British Columbia has premiered North America’s first government-run online casino in an effort to raise revenues and offset some of its expected $1.63 billion annual budget deficit. Being run by the British Columbia Lottery Corporation, PlayNow.com features casino games such as blackjack, sic-bo, roulette and craps alongside sportsbetting with any tax revenues going into the province’s general fund. According to a report from the Reuters news agency, the Western Canadian province launched the domain because it could no longer afford to ‘stand on the sidelines’ and lose revenue to the hundreds of offshore websites currently available to its residents. “The hard reality is this; that activity is not going away,” said Rich Coleman,
Housing and Social Development Minister, who oversees the British Columbia Lottery Corporation. “British Columbia may be the first jurisdiction in North America to offer games but I can predict that it won’t be the last.” However, critics have accused the governing right-of-centre BC Liberal party of failing people with gambling addictions at the land-based casinos it now allows. “If we're going to do this as a government, then we have a higher responsibility than private operators elsewhere to ensure we are protecting people,” said Shane Simpson, a lawmaker with the opposition New Democratic Party. Only people that live in British Columbia are able to access PlayNow.com and users must be at least 19 years of age.
Evander Holyfield Signs to Namesake Poker Brand The firm behind the new RealDealPoker.com site, Gioia International Limited, has announced that five-time world heavyweight boxing champion, Evander Holyfield, has signed up as an ambassador for its poker site. The current WBF Heavyweight Champion of the world claimed his fifth world title after defeating South African boxer, Francois Botha, in Las Vegas in April, and has now laced up his gloves for the RealDealPoker.com corner to promote the use of its patented Cut N’ Shuffle® technology in providing more realistic game play. The boxing legend will also be appearing at this year’s Poker in the Park in September – Europe’s biggest poker fair – on behalf of RealDealPoker.com, who will be exhibiting
its patented technology Cut N’ Shuffle® and Game Check®. Gioia revealed that RealDealPoker.com is the only site in the world to use actual cards rather than a random number generator; they also offer extra features including burn cards, a cut function, and a real scramble alongside the ability to audit entire deck arrays. Ahead of travelling to the World Series of Poker in Las Vegas to participate in the Ante Up For Africa celebrity charity poker tournament, the 47-year-old Holyfield stated, “Real cards being dealt online, why didn’t someone think of this sooner? If I’m playing poker, I like to know I am playing with real cards and not just a computer. RealDealPoker.com is a poker room I’m very proud to be associated with.”
Gambling Ads Given Green Light on YouTube Google has announced that it is to allow licensed gambling and betting companies to run display campaigns over its YouTube.com video sharing website for the first time. According to a report from weekly magazine New Media Age, gambling firms licensed in the UK, Spain, Italy and France will now be permitted to launch age-restricted campaigns via YouTube.com’s homepage as well as on its video pages and on the
OpenBet Rebrands Alphameric Acquisition OpenBet Technologies Limited, a provider of integrated online gaming and betting software, has announced that the recently purchased Alphameric Solutions Limited has been fully integrated as a retail division and rebranded OpenBet Retail Limited. Alphameric provides end-to-end technology to high street bookmakers predominantly in the UK and Ireland including William Hill and Ladbrokes and was purchased by OpenBet Technologies (formerly known as Orbis Technology Ltd) in May for £15.475 million in cash. OpenBet Technologies also announced the appointment of Karim Peer as Managing Director for the new retail division, which has undergone the rebranding ‘in line with the new positioning of its parent company’ in order to ‘further enhance its position at the forefront of the online gaming and retail betting sector’. The London-based firm revealed that Peer has a ‘strong background in software and technology’ after heading up ‘a number of companies in the financial and online banking sector’ including Financial Objects. Alphameric was founded in 1984 with Orbis Technologies stating that its purchase would ‘significantly enhance’ its position as the ‘technology platform of choice for the Gaming industry’ and enable it to expand its client base while delivering ‘consistently high-quality technology solutions’ to customers utilising its OpenBet platform. “I am delighted to be joining OpenBet Retail at this exciting stage of its development and look forward to working with the OpenBet team to build on its success and realise the full potential of the business,” said Peer.
gaming brand’s own channels. The California computer giant revealed that gambling content will only be displayed once a viewer has verified that they are over the age of 18 while adult YouTube. com account holders will also be served the adverts. British online and land-based betting giant Ladbrokes is set to be the first to take advantage of YouTube.com’s new policies with a click-to-play campaign booked for marketing agency TBG Digital.
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webmaster news
IOC Ratifies New Recommendations on Sportsbetting The International Olympic Committee (IOC) has announced a series of recommendations designed to protect and maintain the integrity of sports if and when they are put at risk by irregular betting. Agreed with representatives from the betting industry and public authorities following a recent seminar in Lausanne, the IOC revealed that the measures would serve as guidelines for all stakeholders involved and called for the prevention of irregular betting through increased education and information sharing among those involved in sport as well as improved collaboration with governments. “It is clear that betting, through the financial benefits it generates, provides huge opportunities to sports organisations,” said Jacques Rogge, President for the IOC. “However, there is a significant problem when betting leads to the manipulation of competitions and, therefore, threatens the integrity of sport. Cheating driven by betting is undoubtedly the biggest threat to sport after doping. “For the sports movement, it is crucial to develop a unified strategy and to collaborate closely with public authorities and the legal gambling industry. Only then will we be able to address efficiently this complex issue.” In related news, the European Sports Security Association (ESSA) monitoring group has renewed its cooperation agreement with FIFA’s Early Warning System GmbH subsidiary and will continue to scrutinise betting activities related to upcoming soccer tournaments. FIFA’s Early Warning System division is dedicated to monitoring, reporting and tracking suspicious betting activity online and off and the ESSA will continue to link with the subsidiary and assist in identifying attempted match-fixing. “I am very pleased that ESSA will be supporting FIFA in its attempts to ensure betting integrity during the coming World Cup,” said Khalid Ali, Secretary-General for the ESSA.
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Gala Coral Completes Restructuring The Gala Coral Group has announced that four of its main creditors have taken control in a restructuring deal that could secure the firm’s longterm survival. The London-based firm operates over 1,600 land-based licensed betting shops throughout the UK as well as online operations EuroBet.com and Coral. co.uk and has been hit hard by the recent economic downturn with net debt reaching £2.6 billion. “I am delighted that, after nearly twelve months, we have successfully concluded one of the largest and most complex restructurings in UK corporate history,” said Neil Goulden, Executive Chairman for Gala Coral. “The restructured group is now in a strong position and fully able to compete in an increasingly competitive global gaming market.”
The restructuring will see mezzanine debt holders, Apollo Management, Cerberus, Park Square and York Capital Management convert their £558 million holding into equity while injecting a further £200 million in order to pay down senior debt. As a result, Apollo will emerge as Gala Coral’s largest shareholder with a 25 percent stake while Cerberus will own 18 percent followed by Park Square with eight percent and York Capital holding four percent. A group of 21 investors including Goldman Sachs, JP Morgan and CitiGroup will hold the remaining 45 percent of the company with management agreeing to forfeit its entire ten percent stake. Goulden also revealed that the firm would soon be presenting a new business plan and that they are “very well positioned to invest in growth as the UK and global markets come out of recession.”
ASA Bans William Hill Email Advert William Hill has had an email advertisement for its WilliamHillCasino. com domain banned by the Advertising Standards Authority (ASA) watchdog over concerns that it was misleading. The email advert in question read that new players could take advantage of an ‘amazing bonus offer’ that included a £66 free no deposit extra alongside a first-time deposit bonus worth up to £150. Ensuing text read that players could receive these offers ‘simply’ by downloading and registering with WilliamHillCasino. com before being sent a subsequent welcome email. However, one complainant challenged whether the advert was misleading because
it did not make it clear that customers were required to make numerous bets of significant value in order to redeem the £66 free bonus and deposit £35 of their own money before being able to withdraw any winnings from the bonus up to a limit of £200. In response, William Hill said that the email had been sent by one of its ‘associate companies’ and an error meant that the advert had not contained the statement ‘terms and conditions apply’. The operator apologised for the oversight and revealed that it had been rectified immediately with a new email template being produced containing the full information.
Google Releases Android DIY Code Tools Google has announced the release of code tools that claim to simplify program creation for Android phones, or more simply, “make it easy for anyone to create programs for Android phones”. The new App Inventor, which Google confirmed it had been developing for the past year, targets those with minimal understanding of programming and allows them to drag ‘blocks’ of code around to create applications. The graphical blocks represent the different functions and capabilities of a Smartphone. In the testing process, which
involved children and college students, one tester used the GPS locator, timer and database querying blocks to produce an app that told his friends where he was every 15 minutes. According to the BBC, the programming system was developed with the help of computer scientists at Massachusetts Institute of Technology (MIT) who created a similar coding system known as Open Blocks. A Gmail account is required for anyone wanting to use the tools and users must apply via a web form.
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“The whole show was awesome and possibly the best I have been to. Best layout and venue to date and the parties were great.”
“Budapest was a great conference, well attended and we de�initely received positive conversions as well great contacts.”
For more information email info@BudapestAffiliateConference.com
The Budapest Affiliate Conference is back and promises to be bigger and better than ever before. Bringing together operators and affiliates at one of the industries biggest affiliate events. This event offers 60+ exhibitors, innovative and informative conference streams, dynamic speakers and some of the best networking opprtunities around. Come to Budapest to work hard and play harder.
We look forward to welcoming you to Budapest again in October. Previous sponsors and exhibitors includes: Party Partners 888.com EGO Affiliates United Europartners Intertops Cake Poker Expekt Chipleader ReferBack eToro Tower Affiliate bwin Ladbrokes Doylesroom Sticky Eyes Income Access Everest Affiliates Vegas Affiliates Affiliate Lounge Casino Blasters Affactive and many more...
For sponsorship and exhibition enquiries Richard@iGamingBusiness.com For speaker opportunities Kiera@iGamingBusiness.com
TRAFFIC
As an SEO consultant who has worked in-house, client-side and agency-side, I am very familiar with the differences in approach that have to be applied to each scenario. However, there are a number of similarities between the three separate roles and the way I approach a site – new or established, ranking well or ranking abysmally – and the myths that people assume are what SEO is all about. WE’VE SEEN HUNDREDS, if not thousands of “Top SEO Tips” style articles recently, but nothing that really covers the other side; the bad advice that plenty of people still follow. Here are my top SEO myths, debunked.
Advertising through a search engine’s PPC platform will affect your organic results The best part of this myth is the fact that it isn’t even clear within the believers. I come across plenty of people who believe that their PPC campaigns will somehow affect their SEO efforts, but half of those claim it will hinder their activity whilst the other half believe it will help. Must we discuss this any further?
Google uses its free analytics package (Google Analytics) to spy on you Matt Cutts has answered this question on multiple occasions. A video uploaded to Google Video over three years ago (http:// bit.ly/arhcRy) by Matt Cutts covers this completely, answering a correspondent’s question “Does Google Analytics play a part in SERPs?” “To the best of my knowledge it does not. I’m not going to categorically say we don’t use it anywhere in Google, but I was asked this at Webmaster World Las Vegas last year, and I pledged that the web spam team (those responsible for creating new parts of the
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algorithm that ranks natural pages) would not use Google Analytics data at all.” So all you conspiracy theorists can now relax and use a great free analytics package without fear that the big G is spying on your data.
Having an XML sitemap will boost your rankings This is a relatively new myth, but a myth nonetheless. Google does not use sitemaps – written in XML or otherwise – to assign rankings. The sitemap is used for discovering and indexing new content and to help Google identify duplicate content as part of the canonicalization section of their algorithm.
Deep directory structures are bad for SEO Now, up until a few years ago, this is a myth I also believed; that any content held deeper than three or four directory levels would not be found, or at least less weight would be applied to it. However, it was clarified that the depth of the directory does not matter, as long as the number of hops a search spider has to take to reach that content is kept to a minimum. Consider a sports blog with upcoming previews of the Premier League 2010-2011 season. A piece of content on the opening game between Spurs and Manchester City could potentially be located under a very deep directory:
www.mysportsnewssite.com/football/ england/premier-league/2010-2011/openingweekend/tottenham-hotspur-v-manchester-city. html However, the spider could reach that content by reading a link on the homepage entitled ‘Our 2010-2011 Match Previews’ which links straight to: www.mysportsnewssite.com/football/ england/premier-league/2010-2011/ That page will contain a link to the Spurs v Man City match, so two small hops and the spider has found content which is two levels down. My tip on this one is keep your content and directories structured from the beginning, as this will save you issues in the future, as well as give your readers (content is for people, not spiders, remember?) better usability. After all, Prior Planning Prevents Piss-Poor Performance.
Getting to the top is the hard part, staying there is easy I hear this one again and again and again, usually coupled with “but you only need to do SEO once” or “I’ve just finished SEO-ing my sites!” Search engine optimisation is a continual, ongoing process – a form of marketing. After all, when did you last hear someone say “I’ve just done a load of print ads, and now I’ll never have to promote my product ever again!”? You didn’t, because a marketer’s, and therefore an SEO’s work is never done.
Image 1
The H1 Tag
The META Keywords tag
Many people, myself included, used to place some importance on the H1 tag as a MUST HAVE for any on-page optimisation. Unfortunately, Google et al quickly cottoned on, just as they cottoned on to white on white text, teeny tiny links in your footers, and divs hidden by CSS, to the spammy techniques people were using regarding H1 tags. Recent research by a number of bigwigs in the SEO community has come to the following conclusion, and I quote a certain Rand Fishkin of SEOMoz fame on this one: “H1 tags are very slightly better than Bold/ Strong tags for keyword usage and both are barely better than simply using the keyword on the page (in any text format).” On a humorous side-note regarding hidden divs, check out Adidas.com’s ingenious method of circumventing the fact that their entire site is written in Flash. Look out for these great lines in their source code – I think they’re pretty self explanatory: <!-- HTML Content for SEO --> <div id=”HTMLContent” align=”left”> <noscript>
When on God’s green Earth will this one finally give up the ghost and die? If you are spending one second on the META Keywords tag, you are spending one second too many. This tag was used to spam search engines to hell and back, and has, therefore, been completely and totally ignored for some years now. I have personally done tests (as have countless others) on the META Keywords tag, and I can categorically assure you that Google and Bing do not read or index anything held in the META Keywords tag. Yahoo! used to, but Bing will be doing its organic search results as of very soon, so that’s out the window anyway!
The META Description tag There is still a little weight applied to the META Description tag, but this is nowhere near the levels of yesteryear. However, the Description tag is important, as nine times out of ten, search engines will use this as the snippet under the link in the search result. If the META Description tag is missing, search engines and Google especially will automatically generate the snippet from content it finds on the page, which can end up with garbage
being indexed and displayed in the results (image 1). The Totesport corporate site is made up of images and is missing a META Description, so Google has picked up the content in the footer and other link text as the snippet as they’re the only legible copy on the page. An accurate and enticing META Description not only gives you the opportunity to catch the searcher’s eye and draw them to your site over your competitors, but gives you the chance to promote yourself and your products/ services from the Google homepage, before they have even clicked through to your site. Always include some form of call to action in your Description or Title tag to entice that click!
ANDY BLACKBURN is a search marketer specialising in the iGaming industry, having worked with a number of the biggest brands in the online gambling space. He recently launched GameOn Consultants, a dedicated iGaming consultancy assisting in all areas of running an online gaming operation, heading up the search marketing division. Andy Blackburn: andy@gameon-consultants.com www.gameon-consultants.com
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PartnerLogic is becoming InterPartners To celebrate the relaunch of our affiliate programme and our partnership with ‘Income Access’, we’re offering ALL new affiliates 50% commission for their first 3 months. Offer valid October – December 2010, email us at support@InterPartners.com to become a part of it.
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21/07/2010 16:01
TRAFFIC
USE YOUR STATISTICS AND SEO TO GAIN MORE LONG-TAIL TRAFFIC Kay Schaefer, Founder of KSOM (http://en.ksom.es), discusses the possibilities of gaining more traffic by using your own statistical data and some basic SEO tactics.
Long-tail traffic Vs short-tail traffic We are talking about long-tail keywords when the phrase is comprised of at least two words, usually more. Short-tail or generic keywords consist of one, sometimes two words at most.
Why make a difference? Obviously, generic and short-tail keywords produce more traffic than long-tail keywords if you look at the ‘keywords’ alone. Still, a healthy website usually gets more than 50 percent of its total traffic from long-tail keywords and less from generic keywords. More importantly, the conversion rates are significantly higher for long-tail searches than short-tail (see box 1).
Finding the right keywords using your statistical data
hits to have decent data to work with.
Every day you are collecting data from your visitors using data collectors. The most common and, of course, most discussed is Google Analytics. My personal opinion is that it is one of the best free analytic tools available and if you have nothing to hide, do not hesitate using it. But even if you do not want to use it, there are other tools available: ● Piwik – Open source web analytics ● Webalyser – Serverside ● Awstats – Serverside All these programs analyse your incoming traffic; right now we are interested in the search terms they used to get to your website. Choose a period which has enough
Finding the right keywords Looking at the ‘search terms’ that the statistical data provides, we know with which keywords and phrases users have found our website. Now, we have to check some things: 1. Which page has been found by the user when he was searching for the keyword? 2. Where do we rank for this keyword? 3. Is this page optimised for SEO for this keyword? 4. Is this page optimised for conversion for the term searched by the user? 5. Do we have a better optimised page? If yes, why does this not rank? If no, than we should create one!
Box 1 For example: Your website is an online casino affiliate website. Search term: ‘Casino’. Searcher: Is looking for a real casino close to him. Traffic: Very high. Bounce rate: High, because of the ambiguity of the keyword. Conversion rate: Low conversion rate, because of the non-specific keyword. SEO: Very competitive. Search term: ‘Online Casino’. Searcher: Looks for an online casino to play keno. Traffic: High. Bounce rate: Depends on the website, but a lot lower than with casino only.
Conversion rate: Medium, because he does not find what he is really searching for. SEO: Competitive. Search term: ‘Online Casino to play keno’ Searcher: Looks for an online casino to play keno. Traffic: Low. Bounce rate: Depends on the website shown, but if it offers the searcher possibilities to play keno in an online casino, the bounce rate will be low. Conversion rate: Very high, if the searcher immediately finds what he is looking for on the site. SEO: Less competitive.
To check which page has been found, just use the appropriate search on Google and look (http://www.google.com/#hl=en&q=O nline+Casino+to+play+keno). Keep in mind that we are working with data from the past and the rankings could have changed. You can also use a tool to find your domain and the page if you do not want to look at the results manually. There are many ranking tools available; an interesting and not so expensive one is Advanced Web Ranking (http://www.advancedwebranking.com/). The next step is checking the page, if it is well onsite optimised, by looking at some common parameters like the title, appropriate heading (H1), content using the keyword and the internal linking structure. In addition, the meta-description should be
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TRAFFIC
“Creating lots of irrelevant or poor quality links in this market could have a negative effect on search rankings on Google. Sticking to a few, first-rate links will have a positive effect on SEO.” conversion optimised; never forget that this is what the user first reads in the Google search result pages besides the title of the page. Have a look if the page has a good callto-action related to the search term and whether it is visible for the visitor. If they cannot click they can not convert. If you want to find out if there is another page which might be better optimised for this term, use the ‘site’ command with your domain and the keyword: http://www.google. com/#q=site%3Awww.yourdomain. com+online+casino+to+play+keno. In the case that you have a better targeted page, you should check the above mentioned basic SEO parameters to find out why this page is not ranking for this term. Finding and then solving the reasons why this page is not ranking usually helps to understand the page structure better, which can result in overall better visibility in search engines. Let’s say you find out that you rank, for example, with your home page for ‘Online Casino to play keno’. You should consider creating a new page for this keyword, because your home page probably has a lousy conversion rate for this term. Usually,
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it is better to have a specific targeted landing page for each keyword to have better conversion rates. The next step would be to find an appropriate place for the new page in your website structure, produce good SEO optimised content and publish it. Using these techniques, you will be able to rank for more keywords, which results in more incoming traffic and new keywords in your statistical data. This way you can repeat the process while your website is getting more content, more traffic and more conversions. At some stage, it is more than recommended to automate parts of this process. You can, for example, programme scripts which help you to get the keywords from your statistical data and check automatically if you already have a page and rank for a certain keyword. If you need help finding the right strategies to optimise your website just contact me. at http://en.ksom.es
KAY SCHAEFER is Founder of KSOM.es. Kay studied business administration and marketing before he settled on Internet marketing and SEO in 2004. His main specialty is improving a company’s search engine visibility using creative and unique link building strategies. His client portfolio includes companies in online gaming and other industries outside of gaming. In 2007, he started building his own SEO company and currently resides in Barcelona, Spain. http://en.ksom.es
traffic
traffic
Online Gaming SEO – Romania Greig Holbrook, Director at Oban Multilingual International SEO, investigates the search marketing and online gaming landscapes in the Eastern European country of Romania.
The Romanian gambling industry made the news in June when betting shop owners went on strike after draft tax laws were announced, which, if implemented, would impose a 25 percent tax on all gambling gains. The strike, which saw most betting shops closed on the first day of the World Cup, meant that bettors sought online gambling sites to place their bets. The current Balkan online gambling market, which includes Romania, Greece, Turkey, Croatia, Slovenia, Serbia, Montenegro and Bulgaria, is worth €520 million, and a recent MECN report found that the Eastern European market is at the forefront of online gambling growth in Europe and holds great potential, especially as broadband penetration increases. With UK operators having the chance to promote themselves without going against local competition, which is often one of the biggest setbacks for any cross-border operator, Romania is a desirable market for any expanding online gambling company.
Regulatory review The gambling industry is flourishing in Romania, and there are plenty of laws surrounding ‘bricks and mortar’ gambling, yet, there is barely any mention of online gambling in the Romanian legal system. It is outlined as neither legal nor illegal and because of this, the government does not issue online gambling licenses to potential Romanian operators. However, the legalities of online gambling in Romania are predicted to change as the government recognises the huge benefits it could reap by regulating the activity. Tom Brady Hawkes, from the international online gambling directory, GamingZion, points out, “Recently, the Romanian minister of finance explicitly stated that his department was formulating plans on how to tax online gambling properly. It looks like regulated online gambling will soon happen in Romania and at the very least, we can expect to see further opening up of the market to foreign-based websites in 2012.”
Local trends In order to improve the visibility of their sites in Romania, UK operators should
“It looks like regulated online gambling will soon happen in Romania and at the very least, we can expect to see further opening up of the market to foreign-based websites in 2012.” look at the ways Romanian people use the Internet and search for gambling related subjects and implement a search engine optimisation (SEO) strategy that considers these factors. Although there may not be online competition from the locals, there are still many other providers that operate within the Romanian borders, therefore, making a site visible and user friendly is a good way of increasing success in the Romanian market. Like the UK, Google holds the majority of the search engine market share in Romania. However, unlike the UK, sponsored advertisements for online gambling websites are not permitted on Google.ro. The laws for sponsored advertisements for gambling websites vary throughout Europe, but they are illegal in all Baltic countries. Therefore, implementing a SEO strategy which will improve organic results is a necessary measure for any operator targeting the Romanian (or Baltic) online market. Sites such as Bet365.com and Unibet Casino, both allow Romanian bettors and feature English and Romanian language pages, making their sites more Romanian user friendly. However, research by OBAN Multilingual SEO has found that when searching for gambling related terms on Google (the most popular search engine in Romania), Romanians tend to use English words and phrases. This is almost certainly due to the fact that there are no ‘homegrown’ online gambling sites, so searching in English provides a far wider variety of results from international operators. So, although featuring Romanian language pages would be beneficial to Romanian users once on the site, it may also be worth thinking about hosting the Romanian site in English as well to increase traffic to the site from search engines. Statistics show that ‘free’ casino games are highly searched for, with ‘free casino’ being one of the most highly searched terms related to online gambling in
Romanian, along with ‘no deposit casino’, so by offering these services, sites are likely to drive more traffic their way. “Sportsbetting – namely football – and poker are the most common online gambling activities in Romania, whilst other casino games such as blackjack and roulette only make up ten percent of the games played online. So, if operators are considering Romania as a potential market, it would be worth focusing on some games more than others,” explained Iulia Ilas, Campaign Manager for Romania, Unibet. UK operators should also consider their off-site presence in Romania. Developing an off-site PR strategy helps with establishing a website within a market, and also in improving search engine rankings. Online gambling portals offer many ways in which to do this. 777-online-gambling.net is a comprehensive directory of international online gambling sites, and features a Romanian language section. The site also features an article submission section and a discussion forum, both good means of building links. Bet2win.eu.com is a similar portal, which also offers a direct link submission service. As well as generating publicity, link building will also help improve search engine rankings, as long as the links are with relevant sites and are of good quality.
International growth The online gambling industry is experiencing phenomenal international growth, and the Eastern European market holds plenty of promise for UK operators. But, as with any international SEO strategy, localisation is the key to achieving success. Our extensive research has found that online gamblers hold different preferences to what they are looking for in gambling websites depending on where they come from. By understanding the ways in which different cultures engage with the Internet, the chances of success online are increased.
iGB Affiliate august/september 2010
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TRAFFIC
Multiple Languages Can Multiply Your Conversions AFFILIATE MARKETING is the major source of content in the gaming space. What I mean by that is the people who make their income through affiliate programs are creating the vast majority of the content on the web and in the gaming space, this is particularly true. Finding a way to stand out against your competitors and discovering areas that do not have high levels of competition is the never ending task of the online entrepreneur. You can read the numerous success stories about online riches but in reality, there is a small handful while the majority are hard working people who make a decent living. Are there any secrets? Perhaps, but the insights I have gotten from the more successful people is hard work and perseverance will see good returns. Luck and getting in early to an opening space adds that extra spike in income. That being said, I can offer some suggestions for finding these areas where the competition is lower in the gaming space and ways to make standard vendor content different from the pack. The recent FIFA World Cup made me aware of a couple of areas that offer the opportunity to garner conversions without high competition. RSS feeds come into play for two of these. First, I saw a small handful of content providers who were smart enough to establish themselves as a news source for the event many months prior to the start of the World Cup. They created blogs dedicated to the upcoming event and wrote on a regular basis about qualifying games, news of the host cities and commentary about the event in general. Their actions got the attention of Google News and by putting in the time in advance, they were among the sites Google used to present news of the event. Given the hundreds of millions of people who searched for information during the World Cup, these sites benefited from the effort. The other way to use RSS feeds comes from the use of translations and changing up the content sent to you by your vendors. Obviously, when you translate the content it becomes unique – if others are not doing it already. Either way, you want to change up the information to avoid this. In English,
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I recommend you rewrite a good portion of the data feeds from your vendors; this will guarantee you are not dealing with duplicate content issues that can see the effort of publishing the pages not make it in to the search results. You are also changing the content when you translate, but make sure you have a good translator – that means no machine translations – so your content makes sense and is readable by people who speak that language. Creating content in different languages is a fairly labour intensive effort, but the rewards are that you will gain more conversions in an area many avoid. So regardless of whether you are using vendor data feeds or your own original content, each language gives you the opportunity to double your content – multiply this by the number of languages and you have another way of building out multiple pages and have your site be seen as more authoritative. I would keep them under the same domain and have each language as a separate subdirectory with all pages in each subdomain pointing up to a main category page and then link from it back to your main home page. This will tighten your internal link structure and get those pages noticed by the search engines for the languages. A good tip to remember is to have the language mentioned in the head tag of these subdomains – for example, <meta http-equiv=”content-language” content=”en”> is usually the default of most HTML editing programs you will use (unless you are already working in a foreign language) – but this should be changed for the pages in the various languages. This is a good resource for <a href=”http:// www.seoconsultants.com/meta-tags/ language”>META language tags</a>. When translating in the gaming space you really need to find people who know the language as well as gaming. While you can translate ‘Full House’ into any language there is not only the possibility that they are different words for a poker hand compared to a house full of people, there is also the possibility that it is called something completely different in different countries. This is a major hurdle of language use – as
most would have heard, Eskimos have 100 ways to say snow, so picking the one that applies to what you are saying is a fine line that needs your full attention, as people will leave your site if the content does not make sense. Another warning about marketing to different areas is that there are different rules governing the countries. Join one of the many groups out there and keep abreast of the rules and you will be okay. The other thing you need to know when creating online content for different countries is that each has its own cultural biases about how they like to be spoken to online and what colours attract their attention. If you use Alexa and look at the top 50 sites for each country you can start to see patterns – colour palettes will jump out and there will be a familiarity to how the language works. A tip I learnt by trial and error is that Germans do not like having content repeated to them – Americans need repetition to reinforce a message, while the Germans take this as offensive. Things like this you can research, but many times it comes down to trial and error. Using multiple languages is a great way to test new areas to market. Within the languages and countries you will find areas that work best for your content – discover the elements and concentrate on them and you will soon be grabbing the extra conversions that the early adopters in English enjoyed. FRANK WATSON is CEO of Kangamurra Media and has been involved with the web since it started. For five years, he headed SEM for FXCM, which was once one of the top 25 spenders with AdWords. He’s worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion. He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he’s not editing the Search Engine Watch forums, blogging at a number of authoritative sites, or developing some online community sites. Frank was one of the first 100 AdWords professionals, as well as a Yahoo! and Overture ambassador. He is on the Click Quality Council and has worked to diminish click fraud.
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TRAFFIC
TRAFFIC
CONVERSION TOOLS – HEATMAPS HEATMAPS AND YOUR own site analytics can be valuable tools in helping you optimise your site for conversions and retention. Sometimes, when you see a heatmap for the first time, it might only tell you where users will concentrate on the site. All of these tools can and should highlight what you are doing right and the things that need to be improved. These things might not always seem obvious, for example, what if your heatmap on one page shows the whole page as having some ‘mouse over’ activity compared with another page that is ‘hot’ on a specific link or button? Having definite calls to action can help lead your user to where they want to be lead. Let’s have a look at a heatmap supplied by onlineflashcasinos.com that highlights some information about conversions and improving click through rates.
Online casino affiliate heatmap Before looking at the heatmap and seeing this site, I suggested that banners tend to distract rather than attract and will hurt conversions and click through rates. Banners can be a good means for increasing your bounce rate and this is really going to hurt all of your SEO efforts. Regardless of the SEO game for the traffic you are receiving you want to make sure you make the most out of each user and assist them to find what they are looking for.
Banner blindness The term ‘banner blindness’ is getting tossed around the affiliate marketing world but banners still seem to dominate many affiliate sites and even mainstream marketing sites. Banner blindness is simply users blocking out banners. If you look at the heatmap the only set of banners exist at the top 468x60 and on the right hand side scrolling down the page are five 125x125 banners. You can see most of the Rushmore banner has no mouse over and it’s one of the least clicked items on this page.
Ironically enough, the banner has a ‘click here’ button that has received a few clicks and is the only reason this banner has got any attention at all. The five 125x125 banners are at least out of the way and on the right hand side of the main set of reviews. If they were placed in a more prominent position they would probably increase the site’s bounce rate and overall number of clicks. This heatmap does at least highlight which banners perform better and from the image, Cherry Red was ‘hot’ while Bodog was ‘cold’. Further below, which isn’t displayed in the image but can be found on the website, the next best performing banner is the Club World Casino banner followed by Online Vegas. Slots Oasis was hardly looked at. Does this means that users don’t look at banners at all? Not completely, but their conversion rates in the last ten years have dropped to all time lows and we’re seeing an increase in conversions of links and buttons. For the banners that were used on this page, some of them performed better than others, and that is a whole other topic on how to produce a banner that converts better. Just try to think of banners as a TV commercial; some people change the channel when commercials go on, others go to the bathroom. Some even have things like TiVo to fast forward through commercials. You can even get add-ons to your browser to block banners!
Converting with links and logos The hottest spot on the site was the centre area just after the main paragraph starting with the Cherry Red logo and the red links in the short reviews. Logos, I find, are easier on the eyes for any user to look at. If it starts flashing and moving then it might distract. If you have five of these flashing, moving objects then they will all just hurt each other and the user will probably scan another part of the website. Some of the highest numbers of clicks on this page come from the first three static logos and the red text links to the right. Users will gravitate towards these links and logos and will trust you to click on your suggestions. Your banner suggestions or TV commercials might get ignored.
Suggestions for improving conversions A/B testing should be done to find out
what will convert best for this site. There are many factors that will determine how well a site will convert, such as the methods they found the website including the keywords searched for in a search engine. Suggestions for improving conversions, click through rates and reducing bounce rates are: ● Remove 468x60 banner at the top. If it is not removed, replace with another until you find one that converts better. Also, try putting some text below the banner like a casino review or a link to visit the website. ● Add some links in the main paragraph area. Currently, there is only some bold text but it doesn’t hurt to add in a few text links which might get some clicks. ● Remove all five banners and replace them with text and links. This could make a better spot for latest blog posts, casino news or simply a bigger list of casinos. The suggestions can’t guarantee any results until they are tried and tested. It does help to have analytics data and heatmaps to highlight what your users want to do or like doing. The heatmaps were helpful in identifying that more clicks came from logos and links over banners. The heatmaps also provided an insight into which banners had better conversions.
JOHN WRIGHT is a marketing consultant and works as an affiliate coach for GamingAffiliatesGuide.com. After obtaining a Bachelor of Applied Science in robotics at the University of Toronto he decided a career in gambling would be more fun and exciting. In 2002 he began playing poker, card counting and bonus hunting despite the requests from concerned friends and family members to pursue a real job. In 2003 he began creating his own affiliate sites teaching players the rules and strategies for online gaming. In 2005 he providing marketing services for 400affiliates.com and became the affiliate manager for ThisisVegas in 2007. In 2009 he helped launch the Rockbet casino brand and at the start of 2010 decided to work on his affiliate sites and become a consultant. In his spare time John enjoys traveling, reading, surfing, muay thai kickboxing and meeting new people. He can be reached at john@gamingaffiliatesguide.com.
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INTERVIEW
IN THIS INDUSTRY – EXPERIENCE COUNTS Burstin Group Founder, Connie Burstin, tackles the questions of iGB Affiliate this issue, as she reflects on a chance entry into the world of online casinos and a new generation of gaming affiliates who are changing the way business is conducted in our industry.
Let’s talk about your background – is it true that your marketing career actually began in online gaming and specifically, online casino marketing? That’s absolutely true, and it actually happened by coincidence! I didn’t know that the job interview was for online casino marketing specifically. But that was my very first marketing job in 1997, as a marketing assistant for an online casino operation. Online casino gaming was still pretty new when I started. Back then, the main idea was to market the concept to get people to download the free casino games. The company that I worked with was also very new to the whole concept and was trying out different online campaigns to spread the word about the ability to play casino games for free from the convenience of your own home. Was it a conscious decision to become involved in the industry (despite your coincidental beginnings) or rather that the opportunity presented itself? At the beginning I was just eager to apply my marketing skills with a product/service. After my first year and a half, I saw an opportunity for my marketing skills within the online environment. I got involved in the industry because the opportunities presented themselves. There were people who trusted my capabilities allowing me to continue trying ‘out of the box’ ideas with the main objective to drive traffic to an online casino. I was given the chance to execute those ideas with webmasters who were also new to affiliate marketing back in 1999. What was the catalyst for the creation of your Burstin Marketing Group? My son. After finding out that I was pregnant, I decided that it was time to start up my own business and continue to be in contact with affiliates that I had known for many years. Having my own business would give me the freedom to be with my son and family anytime that was required.
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You have expanded your company significantly since inception. What areas have you invested in the most in an effort to provide quality services to online gaming companies? Initially, we have been more focused on providing outsourced affiliate management and consulting as this is our main area of expertise. Translation and copywriting have been the areas that have required more effort. Number one has been to find the right people to work with, either a translator or a copywriter who is professional with their work and able to maintain the quality of our services to the gambling industry. We want to make sure that we are known for offering only the best. Most of our clients have been referred because of the quality of our work and our flexibility to accommodate virtually any need a client has. In terms of the services you offer, who would you say are the more challenging clients to provide for – affiliates or operators? Affiliates are the more challenging clients. There are thousands of people promoting the same product and the sales pitches from each of them needs to be unique and different. Most affiliates are also young adults and they are used to the online environment where almost everything has to be on a fast turnaround. We do our very best to accommodate their needs in every circumstance. Having been in the gambling industry since 1997, what major differences are there in the way that business is carried out today, and how do you see things evolving into the future? There are a lot of very young adults involved in today’s industry and the way they conduct business is very different to the practices of the 1990s or early 2000s. This new generation makes very fast decisions and are more aggressive with their marketing techniques.
I see this new generation challenging the traditional concept of affiliate marketing (revenue share) as they are generating very high volumes of traffic for gambling operations where, sometimes, they are not getting the expected results. How important has affiliate marketing become in industries reliant on high volumes of customer acquisition and conversion, such as, but not restricted to, the gaming industry? Affiliate marketing continues to play a very important role as a marketing channel for any industry that requires high volume traffic. The amount of money that a company can save (and the amount of money they can generate) by developing an affiliate program for their product/service cannot be compared with any other channel. Not only will they get pay based results, but they will also gain branding and position on search engine results. Industries such as dating also require high volumes of traffic to be able to reach the potential customers who are conversion targets. The conversion part is more challenging as we are dealing with the emotional, privacy and trust aspects of a potential customer. The affiliate needs to be very creative and careful on their wording to feature a dating website by considering the above. Finally, what would be your advice to new entrants to the iGaming market, be they affiliate or operator? My main advice to potential operators is to spend time on research before deciding to enter a specific operator market. Affiliates should be more selective on which company they are featuring on their website. They want people to continue to come back to their website after a good experience rather than having people stay away as a result of a bad experience at one of their featured gambling merchants.
INTERVIEW
The Lay of the Land This issue, we spoke to two affiliates, Neha Sood, CEO of GamingUnited.com, and Igor Salindrija about the business landscape in which they operate today, and how the sector is shaping up for the future. Neha, what is the most challenging aspect of affiliate practice within online gaming at present? Neha: In an industry as dynamic as casino, we affiliates are always adapting to cater to new and emerging laws and regulations. The most challenging aspect faced by an affiliate at present is the enforcement of these laws. After Google stopped casino paid advertising, the only way affiliates can make their websites visible or generate traffic is through organic search – by getting top ranks via Search Engine Optimisation (SEO) and email marketing. SEO requires a lot of time and investment. So, when an affiliate goes through all of this effort to gets ranked in a country and then the laws change in a day… the whole investment and time go to waste. Igor, where are the biggest opportunities in terms of the revenue value of gaming products, even classifying these by region? Igor: When we started AskGamblers.com five years ago, we wanted to have a portal covering all gaming products, so we started with everything. However, as time has moved on, we are becoming more focused on casino. It’s a natural progression and is something that we haven’t attempted to force. Currently, most of our profit comes from casinos so we don’t feel the need to change the situation. Yet, I wouldn’t go as far to say that casino is the best area for affiliates to be focused on. We are launching a sportsbetting portal soon and I’m confident it will work very well. Ultimately, it doesn’t matter what you do;
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it’s only important how you do it and how dedicated you are. Neha: Personally, I think the biggest opportunities for an affiliate keep changing, as they have to adapt to new markets and trends. For instance, during the 2010 FIFA World Cup, sportsbetting affiliate websites made a lot of income. At present, bingo is growing exponentially in markets like South America and Spain. For Poker affiliates, opportunities are in rakeback affiliate sites in Scandinavian countries where poker is so popular. In terms of region, at present, the potential lies in Dutch and Spanish markets. Dutch player value is very high, whereas Spain is an emerging and upcoming market. So, affiliates should make a concerted effort to try to expand their networks in new markets like Spain and South America. In addition, Asian countries are now good to explore given their growing economy. What frustrates you most about your job? Igor: The lack of creativity in the whole industry and the inability to express 100% of yourself. Obviously, the industry is sort of marginal and we seem to focus on everything else except for the creative aspect. A friend once showed me a great billboard ad by Coca Cola, but I was upset because I’d never be able to have something like that in my current business, even with a multi-billion dollar company, as all my advertising will be based on SEO, banners and some basic advertising techniques.
That really frustrates me. Neha: As I mentioned, SEO is the only way to drive traffic to affiliate websites at present, so the time and patience required getting results via SEO is hugely frustrating. How would you describe the health of the relationship between program and affiliate – could operators still do more to maximise their relationship with their business partners? Neha: Operator and affiliate relationships have always been healthy. But what operators can do is bring more transparency, such as sharing their player database so as to increase trust. Because this is the only thing which can spoil a relationship between an operator and affiliate, when an affiliate doesn’t make money from a program he blames it saying ‘maybe my players have been shaved from database?’ Also, operators can provide insight as to how some of the finer details can improve conversions, providing new designs and content on regular basis. In the end this is a partnership, so if they go that step further then both will benefit – operators should understand this. In what areas would you like to see more coverage in terms of providing insight, advice and expertise (be it in magazines or online)? Igor: Absolutely doesn’t matter. If you are interested in something, you’ll read
everything, online or printed. For me personally, online is more practical, but I’m sure some people prefer paper in their hands. Neha: I would like to read more affiliate views on different market trends. At present, we see the views of operators on a regular basis, but I would like to see more and more affiliates promote their views on the changing market trends, and what they are doing to build up traffic in new markets. Also, future law changes so that we know ahead of time what’s in store. Which commission structure works best, and is it different for each product you promote? Neha: Overall, I think Revenue Share is best. But it depends on the market, like for Netherlands and Germany; where player value is high revenue share works well. But for new markets like Portugal, hybrid (i.e. CPA + Rev Share) will be the better option. Igor: Higher commission is better (joking). No, seriously, if I estimate that a certain casino can work well, I’m not caring too much about starting commission. Some casinos get too desperate, giving 75% and higher commission, but conversion is often poor. What’s the most effective way to maximise social media as a gaming affiliate? Neha: Facebook is the best way to maximise social media. Fan pages help you to connect to different people and with genuine updates you gain reputation and authority. Igor: I’ll mainly talk about Twitter and Facebook as two major social medias. If you want to set-up your presence on Facebook, you should have your human profile. If you have a website and want to create a profile
for it, create a fan page. Don’t create a Facebook profile or group, and here is why. Groups are useless. Groups have a limit of up to 5,000 members and if you get to that limit, Facebook will not allow other members to join. Create a fan page and all your limits are gone. There is just one thing. Don’t bother people with status messages and links because they have the ability to hide your updates and they will never see your posts again. Your fan page can have thousands and thousands of users but if they cannot see your updates it’s the same as not having them. So, the power of the fan page is not in number of users but in number of users who are following your updates. Second, don’t create real profiles for your websites. Real users also have a maximum limit of 5,000 friends. Facebook does not allow you to create a profile with a fake name, so you are at risk of being banned from the site. Third, many people will not accept your friend requests with the name of your sites; only your colleagues and competitors who don’t care much about your updates. Twitter is one of the biggest social medias which can be useful for gaining some traffic to your website. Remember, as well as Facebook, traffic which comes from Twitter is current so you should get the maximum out of it. Your updates will only reach those people who are currently checking their Twitter profiles or if they have set-up phone (or other) notifications. Old updates are replacing new ones and nobody will ever scroll your Twitter profile to read your five-days-old posts. There are two models of gaining followers on Twitter. You can collect your users organically by posting interesting things every day, a few times a day, and they will come to you. They will start following your posts because they are interested in them. The second model, which I personally don’t like and don’t use,
appears the more powerful at first sight. You can gain a hundred thousand followers in quite a short time period by using certain techniques. Sounds fantastic, 100k people will see what you are writing about. Unfortunately, this is a worse model. Most of your followers are bots or users who apply the same technique as you and they don’t care about your posts. How do you believe your role will change as the technology on which gaming is consumed continues to develop (Smartphones and the iPad and beyond)? Igor: Smart and technically educated affiliates are thinking about this constantly. Back to the question of my frustrations, I’m very upset to see how uneducated this industry is technically. My primary interest is online marketing, then web design and web development in general. Focused on technology, we are always trying to follow current trends… and you must. If you are still living in the age of static websites, then younger, smarter wunderkinds will outperform you. You mention the iPad. Since Apple is very strict about gambling applications, there aren’t so many opportunities for this platform, as well as for the iPhone, which is unfortunate as it has a huge audience. Even if you have a great idea for an application you can develop, you cannot monetise it because you cannot play casinos on the iPad since it doesn’t support Flash and you can’t download casinos. There is an alternative in the Android platform which has a way smaller audience. Technology is changing every day and you must be in step with it. Knowledge of basic programming and web design can be very useful. Having a dedicated team and basic knowledge of how things work is far better, but, having a good team and knowing technology well, combined with gambling experience, is a winning combination.
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FEATURE
GAMING SECTOR REPORT – JUNE 2010 Independent search marketing agency, Greenlight, returns to give iGB Affiliate magazine an exclusive insight into its forthcoming gaming sector report for June 2010, detailing the most up-to-date search marketing data for the iGaming sector. Introduction Research shows that when people are looking for a gaming website they go to a search engine. And more often than not, they go to Google, the search engine used for 90% of all UK searches. So when people searched on Google in June what did they type – and who were they most likely to see in their searches, and hence click through to? This report answers those questions by profiling search behaviour in the gaming sector. Greenlight has analysed which gaming brands were the most visible in both natural and paid search results in June (and, hence, had the greatest share of consideration) when UK-based searchers went to Google to look for gaming sites. Greenlight has also assessed which brands interacted well in social media. This sector report is based on search volumes for June 2010.
How the report was created Greenlight used industry data to classify
700 of the most popular search terms that consumers use to find gaming websites and totalled the number of times each one was used. This gives an indication of the size of audience and a profile of how Google users went about their searches for gaming websites in June. For natural search, Greenlight then analysed the natural search rankings on Google to see which websites and brands were positioned on page one for each term. That way, it was able to build up an aggregate view of the most commonly appearing and prominent websites, as well as the respective size of the audience they were reaching as a result of their having that keywordspecific visibility. For paid search, Greenlight monitored the advertisers appearing in the sponsored links for the top 120 of the 700 terms analysed. Data was retrieved from Google on a daily basis during June to ensure a fair assessment of the paid search space, and to take into account the ad rotation system
employed by Google. This data was then collated, and league tables of the most visible websites in both natural and paid search were created for the gaming sector. In Greenlight’s forthcoming ‘Gaming Sector Report – June 2010 ’, you will find market view data for the gaming industry as a whole, as well as by segment: casino, bingo, poker and sportsbetting.
Keyword analysis ● Overall, ‘Poker’ and ‘Bingo’ were the two
most searched for terms in June 2010, totalling 246,000 searches each (see Chart 1). ● However, search volume for the term ‘Casino’ decreased in June, in comparison to Q2. Nevertheless, this could be due to seasonality, as Greenlight found that this keyword was most popular during Q4 2009 and Q1 2010, yet it was searched on fewer occasions in the summer of 2009 (see Chart 2). ● Greenlight monitored a marked increase
Chart 1 - Top 25 gaming keywords
joy
Campaign
Wordgroup
Keyword
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Poker
Poker
Poker
301000
301000
301000
246000
246000
246000
Bingo
Bingo
Bingo
246000
246000
246000
246000
246000
246000
Casino
Casino
Casino
246000
201000
301000
246000
246000
165000
Sports betting
Sports betting
Bet
90500
90500
110000
110000
110000
110000
Sports betting
Sports betting
World Cup odds
2400
1900
5400
12100
49500
90500
Casino
Casino
Online casino
90500
60500
74000
74000
74000
74000
Sports betting
Sports betting
Betting
60500
49500
74000
90500
60500
74000
Poker
Poker
Online poker
74000
60500
60500
60500
49500
60500
Bingo
Bingo
Free bingo
49500
49500
60500
49500
49500
49500
Poker
Poker
Poker chips
60500
60500
60500
40500
40500
40500
Bingo
Bingo
Online Bingo
40500
33100
40500
40500
33100
33100
Sports betting
Sports betting
Online betting
27100
33100
40500
49500
40500
33100
Bingo
Bingo
Bingo sites
40500
40500
40500
40500
40500
27100
Poker
Poker
Free poker
33100
27100
27100
22200
22200
27100
Sports betting
Sports betting
World Cup betting
1600
1900
2900
8100
22200
27100
Poker
Poker
Poker games
33100
27100
27100
27100
22200
22200
Poker
Poker
Poker Table
33100
33100
33100
27100
27100
22200
Casino
Casino
Online slots
27100
22200
33100
27100
27100
18100
Poker
Poker
Poker Hands
27100
22200
22200
22200
22200
18100
Casino
Casino
Casino games
18100
14800
18100
14800
14800
18100
Poker
Poker
Free online poker
18100
18100
18100
14800
14800
18100
Poker
Poker
Play poker
22200
18100
18100
18100
14800
14800
Poker
Poker
Poker Stars
18100
14800
14800
14800
14800
14800
Source: Google AdWords
30
iGB Affiliate AUGUST/SEPTEMBER 2010
Chart 2 - Top 3 keywords Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Poker
301000
301000
301000
246000
301000
301000
301000
301000
301000
246000
246000
246000
Bingo
246000
201000
246000
201000
246000
201000
246000
246000
246000
246000
246000
246000
Casino
135000
165000
135000
165000
201000
201000
246000
201000
301000
246000
246000
165000
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Source: Google AdWords 350000 300000 250000 200000 150000 100000 50000 0
Jul-09
Poker
Aug-09
Bingo
Mar-10
Apr-10
May-10
Jun-10
Casino
Chart 3 - Sportsbetting keywords
Bet
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
110000
90500
90500
74000
90500
90500
90500
90500
110000
110000
110000
110000
World Cup odds
260
480
1300
1000
1300
4400
2400
1900
5400
12100
49500
90500
Betting
60500
60500
60500
49500
49500
49500
60500
49500
74000
90500
60500
74000
Online betting
22200
27100
27100
27100
27100
27100
27100
33100
40500
49500
40500
33100
World Cup betting
480
320
720
720
1000
2900
1600
1900
2900
8100
22200
27100
Bookmakers
8100
9900
9900
8100
9900
18100
18100
18100
22200
27100
18100
12100
Apr-10
May-10
Source: Google AdWords 120000 100000 80000 60000 40000 20000 0
Bet
Jul-09
Aug-09
World Cup odds
Sep-09
Betting
in search volume for World Cup related betting keywords; for example, ‘World Cup odds’ almost doubled in volume from May (when it was searched 49,500 times) to June 2010 (90,500). The term ‘World Cup betting’ also increased in volume in the lead-up to the World Cup (see Chart 3). ● Interestingly, other sportsbetting keywords, such as ‘Bet’, ‘Online betting’ and ‘Bookmakers’, either saw search volume remain consistent or even decrease in June, compared to Q1 and Q2 2010. This, in Greenlight’s view, indicates that, in general, consumers were utilising specific terms when they were looking to bet on the World Cup, rather than performing generic betting related searches.
Oct-09
Nov-09
Online betting
Dec-09
Jan-10
Feb-10
World Cup betting
Mar-10
Jun-10
Bookmakers
Natural search Which sites were most visible in June? Given that UK web users conducted 2.3 million searches for gaming related terms in June 2010, which brands were best positioned on page one of Google natural search, and, therefore, most likely to gain the searchers’ consideration? Greenlight has determined the best positioned, and hence, most visible websites in this sector based on the volumes for each keyword, and their respective ranking for websites on page one of Google. These websites have been scored in the league table below, which represents visibility to a total of 2.3 million searches in June. ● Wikipedia was the most visible website,
achieving 35% visibility in June through
relevant gaming content and credibility through links. It achieved such visibility through ranking at position one on Google for 11 terms, as well as ranking at position two for the keyword ‘Poker’, which was searched for 246,000 times in June. ● 888.com achieved 34% share of voice through ranking at position one for 13 of the keywords analysed including the high volume driving term ‘Casino’ which was searched for 165,000 times in June. Although it saw share of voice increase by 2% since March, it was replaced at top spot in Greenlight’s league table (charting the top 60), by Wikipedia. ● The top ten websites included: three bingo sites, three poker websites, three multi-channelled sites and an information site.
iGB Affiliate AUGUST/SEPTEMBER 2010
31
FEATURE
Paid search Which advertisers were most visible in June? We have conducted a detailed level of monitoring and analysis to determine which advertisers appeared in the paid search space. An advertiser’s share of voice is based on: how often they were present in Google, which ad position they bid for, and the associated search volume for the keywords they bid on. These advertisers have been scored in the league table below, which represents visibility across the top 120 keywords in June 2010. ● On the whole, paid search visibility for
gaming websites was relatively low, compared to individual segments. In Greenlight’s analysis, it found that advertisers tended to focus paid search on specific areas of the gaming sector. Major brands, such as 888, Bet365, Betfair, Ladbrokes and William Hill all utilised different display URLs for separate products. ● Achieving 26% share of voice, BingoHollywood was the most visible advertiser in June, having not featured in the top 60 advertisers for gaming keywords in March. It bid on 26 of the keywords analysed, at an average ad position of four. ● Although Betfair bid on more keywords analysed than any other advertiser (71), it bid at an average ad position of five and bid less often than BingoHollywood for the high volume driving terms, which accounts for its slightly lower visibility of 24%. ● The top ten advertisers included: four bingo sites, four multi-channelled sites, one casino site and a poker website. The World Cup is the major sporting event of the year and Greenlight has analysed which brands were most visible for the top 30 sportsbetting keywords in June – when the tournament was in full flow. ● William Hill was the most visible
advertiser. It attained 86% share of voice through bidding on all 30 of the keywords analysed, at an average ad position of two. This was a 7% increase in visibility, as it previously bid at a lower average ad position of four in March. ● Betfair lost 10% visibility, as although it bid on the same number of keywords as it did in March (29), it bid at a lower average ad position of six, having formerly bid at position four. This decrease in visibility saw it drop from position two to position four in Greenlight’s top
32
iGB Affiliate AUGUST/SEPTEMBER 2010
Natural search: the top ten most visible gaming websites (June 2010) No.
Domain
Monthly Reached Volume
Monthly Missed Volume
Percentage Reached
Nov-09
90500
1
wikipedia.org
837,379
1,550,454
35%
2
888.com
819,486
1,568,347
34%
1300
3
ladbrokes.com
751,280
1,636,553
31%
49500
4
betfair.com
383,753
2,004,080
16%
27100
5
paddypower.com
340,677
2,047,156
14%
1000 9900
6
cheekybingo.com
335,735
2,052,098
14%
7
888ladies.com
329,084
2,058,749
14%
8
pokerlistings.com
315,398
2,072,435
13%
9
pkr.com
290,466
2,097,366
12%
10
foxybingo.com
285,517
2,102,316
12%
Source: Greenlight
Paid search: the top ten most visible gaming advertisers (June 2010) No.
Advertiser
Share of Voice
1
BingoHollywood.com
26%
2
Betfair.com
24%
3
MeccaBingo.com
24%
4
WilliamHill.com
21%
5
Bingo.WilliamHill.com
20%
6
williamhillcasino.com
19%
7
bet365.com
18%
8
PaddyPower.com
18%
9
888ladies.com
17%
10
PokerStars.com
17%
Source: Greenlight
Paid search: the top ten most visible sportsbetting advertisers No.
Advertiser
Share of Voice
1
WilliamHill.com
86%
2
bet365.com
73%
3
PaddyPower.com
72%
4
Betfair.com
63%
5
bwin.com
56%
6
VictorChandler.com
49%
7
Boylesports.com
45%
8
coral.co.uk
30%
9
EurosportBET.co.uk
22%
10
BlueSq.com
17%
Source: Greenlight
60 paid search league table. ● Interestingly, in two of the most visible
ad creatives, displayed by William Hill and Coral, betting on the World Cup was specifically promoted, incentivising the consumer with free bets after sign-up. For more information about this report, or for any queries regarding search marketing at Greenlight, contact Krishna Rao, Krishna. rao@greenlightsearch.com, +44 203 326 6263. Greenlight is an independent specialist search and social marketing consulting
and technology firm. The company is a leader in the search marketing space, and is recognised worldwide for its commitment to delivering record ROI for its clients and investing in the future of search. Greenlight is considered the premier thought leader in the sector, publishing widely read industry reports, original research, speaking at trade events, and delivering a highly respected search training programme in conjunction with the IDM. Greenlight was founded in 2001 and is headquartered in London, with offices in New York. www.greenlightsearch. com.
Sportsbetting Supplement Sponsored by
sportsbetting supplement
Pool Betting and the Tote Pool betting is one of the more traditional gaming pastimes of 20th Century Britain – a tradition now well into its ninetieth decade. iGB Affiliate welcomes its founders, the British government owned ‘tote’ (now totesport), as we take a look at the resurgence of pool betting in today’s online environment. These are times of real change for the sportsbetting landscape. The progressive technologies that fire the software and exchanges, the availability of new game-changing Internet and mobile platforms, and the ingenuity of the products being unloaded onto the conveyer belt are all changing the way sportsbetting, and sport itself, is consumed, delivered and monetised. Its recent rude health is thanks, in no small part, to the rise of in-play betting, which upon adoption in European markets, made immediate and significant impacts on the bottom lines of implementing sportsbooks. The recent FIFA World Cup in South Africa presented a huge opportunity for inplay adoptive operators and their affiliates, and the initial reports would suggest that the tournament has proved to be a significant success in terms of revenue. For a new betting market to move into the European space and almost immediately account for upwards of 50, even 75 percent of total sports turnover for the some of the largest operators, tells you just how much in-play betting has changed the landscape. However, it doesn’t mean that the rest of the sportsbetting sector is by any means living in the shadow of the in-play product. It’s easy to overlook, in the pandemonium surrounding the sector’s ‘A-star’ pupil, the opportunity that exists in the more established product markets that have made the transition to the online channel with varying degrees of success. You will find more information on some of these throughout this supplement, including pieces on fantasy sports and spread betting, which represent an interesting opportunity for affiliates to explore. Yet, another area laden with opportunity for affiliates is the world of pool betting, which is making something of a resurgence in its online format.
34
Origins Pool betting is very much a part of the furniture in UK betting circles, having been founded in 1928 by then Chancellor of the Exchequer, Winston Churchill. More accurately, Churchill formed what was then known as ‘the Horserace Totalisator Board’ in an act of parliament with the intention to harness a safe, controlled alternative to illegal off-course bookmakers. Another reason, which is still in practice today, was to ensure that some gambling revenues were put back into horseracing. ‘The tote’, as it was more commonly known, opened its first retail outlet in 1972 (when it began to take normal fixed odds bets on all sports) and from there, has managed to embed itself in towns and cities across the UK with over 570 retail outlets along with presence on all 60 of Britain’s racecourses. There is also a call centre based at its headquarters in Wigan as well our main interest here, its Internet business.
Nuts and bolts Pool betting itself was invented to provide punters with the chance to bet on the outcome of horseraces only, pooling all bets into a single pot which is then split between the winners. Unlike normal fixed odds betting, there are no specific odds on a selection, only a guide price which can change depending on the number of bets placed. Just like the lottery, the more bets placed into the pool, the bigger the winnings will be. For today’s affiliates, there a variety of pool bets available – for instance, our totepool product houses eleven pool bets (see table), providing a greater variety of options than the solitary single bet that was on offer when Churchill signed the tote into motion. Pool betting actively promotes more stakes and more winners as the consumer isn’t betting against the house, and the house, largely (certainly in our case) takes its profits from the stakes from where a 40
percent margin is passed back to affiliates. This also ensures that affiliates never incur the dreaded negative balances. As mentioned earlier, it has always been a principle of the tote to reinvest gaming revenue back into horseracing, so on top of the 40 percent of our profits we pass on to affiliates, a further ten percent is reinvested in the racing industry to help protect its future. Therefore, affiliates can feel the added benefit of helping to keep the business from which they earn a portion of their living, alive.
Profitable business If you are already a sportsbetting affiliate then you will be aware of the scale of opportunity that exists in this area. What we all need to bear in mind is that this is also an area ripe for development. We have seen through the advent of in-play betting just how malleable, responsive and flexible this sector of the industry is, and that can only bode well for future revenue returns. Pool betting is one sportsbetting product on the rise in terms of demand and provision, and affiliates should explore this avenue further to better understand the monetary advantage of adding this opportunity to their portfolios. The sportsbetting sector is in rude health and sportsbetting affiliates are helping to drive that success. Its development into the future is very much dependent on the good work done in partnership by operators and their affiliate partners and together with a relentless technological advance, sportsbetting will be an area of high returns for a long time to come.
totesport.com is the parent brand to several iGaming platforms: totepool.com, totecasino.com, totebingo.com and totegames. com.
Sponsored by iGB Affiliate august/september 2010
Pool bet types For those who aren’t exactly familiar with pool betting, here is a helpful guide to each of our pool bets:
have to pick the horses to finish first, second and third in the correct order.
totewin – this is where you would simply select the horse you think will win, your stake will be added to a central pool which will then be divided up to all punters who select the winning horse. More often than not, the totewin dividend returns bigger than the starting price, meaning you would get more bang for your buck by betting on the totepool instead.
toteplacepot – This is probably the most common totepool bet at the moment. You need to pick a horse to be placed in the first six races. This is a good bet to give you some interest in all of the day’s races and can return some hefty payouts.
toteplace – this is the only way that you can bet on a horse just to be placed. With toteplace you are betting on your horse to finish in the first two, three or four places (depending on the number of runners). toteeachway – toteeachway is basically a totewin and a toteplace bet on the same horse, so it costs double your unit stake. It’s a good way to hedge your bets on a horse that you fancy to win, but might just get pipped at the post. toteswinger – toteswinger is the only bet that gives you three chances to win. All you have to do is pick two horses to finish in the first three places. They can be first, second or third in any order, so you don’t even have to pick the winner. toteexacta – This is a good bet if you can’t choose between two horses. To win, you have to pick the horses to finish first and second in the correct order. Not as easy as just finding the winner, but the rewards are much greater. totetrifecta – totetrifecta is a difficult bet but if you manage to get it right, the payouts can be pretty big. To win you
totequadpot – This is the toteplacepot’s little brother. It works in the same way, but this time you only have to pick a placed horse in races three, four, five and six. If your toteplacepot has already lost after the first two races, this bet gives you another chance to win! totejackpot – For the totejackpot, we select a race meeting each day where you need to correctly predict the winner of the first six races. This is one of the most difficult bet types but if you can get it right, returns are often in excess of £25,000, sometimes as much as £140,000. totesuper7 – totesuper7 offers you the chance to win a fortune daily, from Sunday to Friday. Players need to pick the winner of all seven nominated races. There are great consolation payouts for any six or any five winners too. totescoop6 – This is the bet customers can win the most money on. Each Saturday, if you pick the winner of the six selected races, you will land a share of the win fund – as well as the chance to win a massive bonus payout the following week. You also get a great consolation payout if your six horses are placed.
Sponsored by iGB Affiliate august/september 2010
35
sportsbetting supplement
Legal Online Sports Gaming in the US – Not Just a Fantasy Picture this: legal sports gaming in the US, with a player lifetime value and retention akin to poker. This is a situation many of you with US traffic might dream of. However, this is no longer just fantasy – it’s the new breed of ‘instant’ fantasy sports games.
36
According to the latest research
‘Instant’ fantasy sports games
The competitive landscape
from the FSTA*, fantasy sports are played by 25 million people in the US. In fact, 22 percent of US males aged between 18 and 45 with Internet access have played fantasy sports. It is estimated that fantasy sports has a $3-4 billion annual economic impact across the sports industry. This is big business. The 2010 FSTA research also points out that people who play fantasy sports are highly unlikely to stop playing any time soon. 75 percent of those who have played fantasy sports are still playing and the majority of players say they’ll still be playing in 20 years time. The retention rate in the industry is phenomenal. Until recently, however, the only way for affiliates to have any impact in this industry, was to focus on the very small pre-season window, selling draft guides, premium information or season-long games. This is typically a time when, although there may be a peak in online interest in these things, PPC and advertising costs soar with the major mainstream operators often driving up prices, rendering tactics such as PPC arbitrage uneconomic. Come the start of the season, prices drop back down again because there is no longer anything to sell. Everyone has picked their league, done their draft and is focusing on the ongoing management of their team. This has all changed. The latest innovation in the fantasy sports marketplace means that there is something for affiliates to sell every day of the year. ‘Instant’ or ‘daily’ fantasy sports games started to hit the market in 2007 and, with the launch in mid-2009 of technically slick sites such as FanDuel.com, are changing the way America plays fantasy sports – and offering untold opportunities to gaming affiliates.
Rather than drafting a team for the entire season, these instant fantasy games let players draft a team for just one day – and pitch it against one or more opponents for cash. It’s like fantasy sports for the ADD generation. Players draft a team, watch the game and win cash all within a 24 hour period. From a player’s point of view, this type of game offers huge benefits over the regular season-long games. He (it is more likely to be a ‘he’) doesn’t have the commitment normally associated with playing in a fantasy league – there is flexibility to start and stop playing at any point during the season, so that family holiday is no longer such a trial. Playing in these short-term games offers instant gratification, highly relevant to today’s Facebook generation who demand instant results. And above all, it satisfies a certain itch which, thanks to UIGEA, may otherwise be illegal in the US.
In addition to new independent game sites such as FanDuel, major networks such as NBC, Comcast and Fox have launched their own versions of these instant fantasy sports games, with more expected to launch for the start of the (NFL) football season. This has been niche so far, but it’s moving very quickly to the mainstream.
Legal considerations The laws concerning fantasy sports vary by state, however, in the vast majority of them, fantasy sports games are considered as a game of skill and, therefore, legal, having received a specific exemption from the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA). Instant fantasy sports games are, in essence, exactly the same as the regular season games simply played out in a shorter timeframe. The things to look for in an instant game to ensure that they are legal include: ●● The prize must be fixed in advance of the contest, and not dependent on the number of entrants ●● The winner must be based on the outcome of multiple sporting events ●● The predominant factor involved in winning is skill rather than luck
Benefits for affiliates It isn’t difficult to see the similarities to poker in the description of this new breed of fantasy game. There is a huge potential market there – 25 million people – and it’s legal in the US. Earning a recurring revenue share on a skill game which is legal in the US is a distinct benefit, but add to that the fact that this is an emerging market with very little in the way of competition for traffic and the benefits for affiliates are abundantly clear. During the month of August last year, there were 4.6 million Google searches for the broad phrase ‘fantasy football’ from a US based audience. Harvesting those and directing them to a game which is high yielding with great retention sounds like a good place to start promoting sports again in the US. *Fantasy Sports Trade Association & IPSOS, Fantasy Sports Study, June 2010.
Lesley Eccles is the founder and Marketing Director of FanDuel. com, the instant fantasy sports game. Lesley can be reached on lesley@fanduel.com.
Sponsored by iGB Affiliate august/september 2010
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ROUND TABLE
SPORTSBETTING SUPPLEMENT
BETTOR VERSATILITY
How malleable is the sportsbetting business? Could operators diversify the way betting is consumed?” Rasmus Sojmark, Commercial Director, EveryMatrix
From fantasy sports to fantasy sportsbetting
In the last decade, sportsbetting affiliates have kept their focus on promoting what they are good at, such as free bet sites, tipster services, review sites and odds comparison services. Besides the rise of Betfair, operators have been offering the same services with focus on improving the experience for the end customer. Lately, we have been experiencing some radical changes with new market opportunities arising from live betting, mobile betting, content and portal partnerships and social networking. Where operators have successfully been embracing live betting and, to some extent, mobile betting and partnerships, they have yet to jump on the social media bandwagon. Affiliates, on the other hand, have not been embracing any of these new opportunities and left ideas and innovation to new start-ups that are targeting the operators with B2B propositions or finding new ways to combine B2C and B2B focus. Speaking to a handful of operators, affiliates and start-ups via the Sports Betting Community (www. SportsBettingCommunity.com), I will sum up some of the products, opportunities and partnerships in today’s sports betting marketplace.
Sport is a mass produced product and consumers only choose to follow and watch events they can identify with, relate to or gain something from. FSBtech (www. fsbtech.com) is the recent player trying to capitalise on this opportunity making it possible to place bets on the players’ performances during a match. The company has already secured deals with Gala Coral, 188bet, Sky and Metro. Another interesting company is Get In (www.getinlive.com). Before the World Cup, it launched Pitch Betting – a brand new offering from Sports Predictions that they describe as ‘football meets roulette’. Players will stake fun money on where events will take place on the field through a grid with odds changing by the second as the action unfolds.
Live betting Live betting is a great opportunity with more than 50 percent of the turnover for some of larger operators compared to some five to ten percent a few years ago. However, it is rather costly to use quality content like live odds feeds, live streaming and real-time stats. This development seems to favour affiliates like odds comparison services with live odds feeds and live score sites, as well as leading the way for new software opportunities and partnerships. Live betting is also creating opportunities in the financial trading market with new in-running trading options for the savvy punters who want to make a living out of sportsbetting. I am pretty sure we will see a lot of new things happening in this area, and one of the most interesting recent projects evolving around in-running content is Bettorlogic (www.bettorlogic.com) which focuses on selling betting tools and content to betting and media communities.
Combining social media and sportsbetting Bridging the gap between social media and sportsbetting has yet to materialise. It is difficult to recreate the banter and experiences around sportsbetting that friends share in the pubs or even at the stadium, or via an online community on their site. Sportsbetting does offer an attractive leisure option for recreational punters, but how do you improve the relationship between the operator and the player which is necessary for a community to blossom? If done correctly, this would not only attract less savvy sports bettors, but by also engaging the operator in the community, it would personalise their brand in the minds of these less savvy punters. When these potential customers already trust the operator, the affiliate can then direct them to their site as a new and also more loyal customer. A new affiliate entrant, OddsLife (www.oddslife.com), launched a beta version of its Social Networking betting challenges before the World Cup. The site is said to be focusing both on an affiliate presence as well as working closely with operators on improving customer retention and re-activation levels utilising a microsite platform. Social betting with real money has also seen the rise of companies like Smarkets (www.smarkets.com) and soon-to-belaunched Tailorbet (www.tailorbet.com).
Both companies aim to penetrate the market using a P2P betting platform where the users are creating the bets. Tailorbet was pitching its idea at the EiG Launchpad in 2009.
Content and affiliated portal partnerships Partnerships between fantasy sports vendors and operators have been evident from the early days, operators trying to diversify the product experience by offering fantasy sports competitions on their portal. Today, we also experience this in sportsbetting with bwin and Get In as a good example. The two joined forces for the World Cup and the partnership saw bwin integrate the gaming content from Get In on the win.com platform. Similar partnerships have been established between the Football Pools (www.footballpools.com) and newspapers in the UK. At the EiG Launchpad in 2009, another pool betting operator, Jacky Betting, was pitching its business model as a standalone operation as well as an affiliated type of relationship option for operators interested in pool betting. According to Jacky Betting (www.jackybetting.com), it is combining social networking features with traditional pool betting. Entry into regulated gaming markets like France and Denmark will also lead to new opportunities arising from strategic partnerships. The same goes for the businesses trying to penetrate new and emerging markets in Latin America. To sum up, I do see quite a few opportunities for affiliates, entrepreneurs and operators alike, but to be successful you will need to take a risk to come up with something new and less traditional or find the right companies to partner up with.
Lesley Eccles, Founder and Marketing Director, FanDuel.com Over the past ten years, online poker has exploded while sportsbetting has grown at a steadier pace. As someone who has launched new online betting products since 2000, this difference has always intrigued me. I have analysed the reasons closely and noted three main differences between these betting products. The first main difference is the role of skill. Both poker and sportsbetting are games that combine elements of skill and chance. However, the role of skill is much
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SPORTSBETTING SUPPLEMENT
greater in poker. One way to see this is to compare the impact of trying to play poker badly with trying to do the same at sportsbetting. With poker, the impact would be immediate whereas with sportsbetting there may not be any change at all. With a traditional bookmaker, a skilled player will struggle to beat the odds, and if he or she does then is likely to get their account closed for their effort. One of the biggest innovations in sportsbetting within the last ten years has been exchange betting. Through removing the house from the game and lowering margins, it meant that skilled punters could become long-term winners. Betfair’s spectacular growth has largely come from tapping this demand for a skills-based betting product. The second main difference between poker and sportsbetting is the live element. You can jump into a poker game 24 hours a day, 365 days a year. From a player’s perspective, this means they can get immediate action, but also, action for longer. From an operator’s perspective, this means users turnover their bankroll much quicker which means higher ARPUs. This is where in-running betting makes sportsbetting more like poker. The action is fast and players can profit very quickly but also, from an operator’s perspective, rapidly turnover their bankroll. The third main difference between the products is social. The difference is that poker is fundamentally a social game while sportsbetting is not. In poker, play is between people, not with the house. Additionally, unlike a betting exchange, those other people are individuals you can track and (sometimes) chat to. Top poker players are stars who aspiring poker players want to learn from and emulate. To see how marked the difference is, compare the number of photos of players in a poker magazine (nearly every page) with the number of photos of sports bettors in the Racing Post (typically zero). However, this is where sportsbetting has innovated the least. The online sportsbetting experience has more in common with online banking than poker. Most sites focus on maximising the speed and efficiency with which a user can make a bet, rather than
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maximising their experience. A sportsbetting product that was skill based, live and social could be transformational to the online sportsbetting industry. What would it look like? Well, it would be similar to poker in that the house would not take a side, rather it would take a low commission from each game. The product would still be dependent on sports results, however, much of the player interaction could occur prior to the game. Finally, like poker, players would be identifiable through user names, and leader boards and tournaments would be core to the game experience. It is early days but a number of start-ups are already developing games like the one described above, including our own Fanduel fantasy sports game in the US and Picklive in the UK market. We’ve seen the huge growth of exchange and in-running betting in the past ten years, could social be where we see huge growth in the next ten?
Paul Marchong, betting.com At first glance, one would be right in assuming that the sportsbetting business has no way of evolving. However, on closer inspection, this product has always adapted to its environment and ever evolving market. From a small range of bet types and markets, we now have a vast array of bet types, all designed to engage the punter and offer the opportunity of huge return from a small stake. Markets now have increased to encompass every sport imaginable – plus more events spanning the globe; for example, current betting on Australian Rules to horseracing from South Africa. Who would have ever imagined! This is only the beginning, as we have not only seen the huge rise in betting-inrunning; but, the industry has embraced new technology and heading towards the introduction of virtual sportsbetting, with complicated weighting formulas, so as to get as close as possible to ‘Real sportsbetting’. Operators have also highlighted sportsbetting formats that have been on the periphery; and have either promoted or developed to make the proposition more appealing to new and existing customers. We can see this with pools betting, fantasy sportsbetting, exchanges, financial
betting, spreads, politics and special betting markets. Following this line of thinking, I truly believe that operators have already accepted that the manner in which betting products and services are consumed have changed – and will continue to do so. The method in which consumers are attracted and transact on gaming portals have broadened considerably over time. It will keep on this path; gradually changing from a traditional view – to what we see now – with fantasy sports, pools, skilled games, blogs and forums, Facebook, twitter, etc. This reflects the eternal need to attract more and more traffic, with more and more innovative products and services.
RASMUS SOJMARK is Commercial Director at EveryMatrix and founder of the Sports Betting Community (www. SportsBettingCommunity.com). If you want to discuss sportsbetting with Rasmus you can join the Sports Betting Community group on LinkedIn: http://www.linkedin. com/groupInvitation?groupID =1982079&sharedKey=10D3F A426197
LESLEY ECCLES is the founder and Marketing Director of FanDuel.com, the instant fantasy sports game. Lesley can be reached on lesley@fanduel.com.
PAUL MARCHONG, Gaming Consultant, has more than ten years’ experience in the gaming industry, including interactive and live studio betting. He has previously worked for 365 Media and Boylesports, for whom he set up and managed its online gaming service. He was educated at Leicester University, gaining a Degree in Economics and completed a Masters in the Science of Management at Boston University.
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North American Sports Bettors Vs European Punters Working with both American bettors and European punters does pose its challenges at Bodog. Of course, the major difference between the two markets is the sports that are offered or accentuated to the American or European audience.
As everyone knows, soccer is the sport of choice in Europe, with all of the major leagues being represented at sportsbooks in Europe. The way soccer is wagered on is an interesting difference, with the tie or draw in the typical threeway option being standard fair in Europe. However, three-way outcome wagering is rarely a choice for American bettors. Frankly, with the exception of the World Cup, little respect has been given to soccer in all of North America. Other globally popular sports such as cricket or rugby also get little notice in the US, with that audience more interested in the other football. Certainly, there are some sports that have crossover appeal in the US and Europe, such as basketball and ice hockey. Horserace betting is also very different in the two markets. The sport of kings is considered a separate betting channel in the US and isn’t even offered by smaller offshore books that cater to US markets. It has become merely a niche betting sport in the States. In Great Britain, however, horseracing is a central part of the sports betting culture. While football in the US would be considered a key part of the sportsbook business channel, the racebook, in most cases, is a separate entity. This is also in part because of the different legal restrictions on horseracing. The differences don’t stop with the sports each region’s sportsbooks offer. We have found that there is sophistication with the European bettor that translates differently than an American counterpart. In the UK, sportsbetting has been around (and legal) for generations with every corner having a bricks and mortar betting store next to the fish and chips shop. This gives acceptability to the online versions of those
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operators. Thus, bettors in Europe tend to stick with online-only operators that are based in the UK or elsewhere in Europe. Because of this loyalty, the online sector in Europe has experienced big growth not only in the markets that they offer but in the technology available to punters – two main examples would be wager exchange and in-running wagering. In-running is now virtually standard for all European sportsbooks and makes up a considerable amount of their sports handle. European books also offer excellent ecommerce solutions for the punter. This makes moving their money from one book to another quite easy, allowing players to take advantage of the best line available, which puts pressure on the operators to offer very competitive pricing. All these factors contribute to the average European bettor being very sharp. Meanwhile, the bulk of North American players can usually be classified as recreational bettors, choosing the favorites and home teams frequently. Because of the legality issue of sportsbetting for US players, there aren’t as many available ecommerce solutions for them. Thus, the ability of a bettor to move his/her money around or shop for lines is much more limited. This results in a player generally sticking with one book once they have established a trust with that operator. US-facing operators need to focus less on competitive product development and spend more on maintaining and providing ecommerce options for their player base. Ecommerce is a larger component to attracting and retaining North American players over and above any improved or superior wagering portal. A case in point is the rather limited offerings of a real
in-running product for North American bettors – although Bodog, for one, does offer this. With so many differences in the sportsbook markets in the US and Europe, needless to say, the marketing efforts needed to promote them vary. Obviously, the sports that are promoted and the season in which they are played are the biggest factors. But European marketers tend to focus on the variety of wagering markets available to bettors, including the ever growing category of proposition wagering. US-focused sportsbooks often market less in favour of the products available to wager with and more towards the emotion and excitement tied to the sport or event being wagered on. Both markets use affiliates, social media, SEO and CRM tools to promote. But while sportsbooks market freely in Europe, US-facing sportsbooks generally don’t use mainstream marketing such as TV or print ads. Richard Gardner is the Sportsbook Trading Director for Bodog. Gardner knows the Bodog business model inside and out – having helped to develop several hugely successful creative marketing campaigns, as well as numerous customer service policies and procedures.
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Spread Betting You’ve heard it mentioned, often accompanied by a confusing analogy about ‘buying and selling’.
While fixed-odds betting will be familiar to most, some folks may not be quite so comfortable with the terms ‘spread betting’ and ‘binary betting’. As such, these betting methods are often approached with caution. What I’d like to do here then, is blow away a few misconceptions about spread betting and show you how it can turn out to be a hugely profitable vertical in your (affiliate) portfolio. Firstly, it’s not as complicated as you think. It’s simply a game of ‘higher’ or ‘lower’. The spread betting company will give you a market, followed by two numbers. For example, “How many goals will Wayne Rooney score this season?” Let’s say the spread price is 27–28. If you think he’ll score 28 or more, you ‘Buy’ or if you think he’ll score 27 or less, you ‘Sell’. The stake is entirely up to you. In this case, we’ll stake £1. You decide Rooney is in poor form and sell at 27 for £1. What happens now is that for every goal less than 27 he scores, you’ll win £1. For every goal over 27 he scores, you’ll lose £1. As it happens, he had a terrible season and only managed to score 10 goals. Congratulations! You’ve won yourself £17! So what’s the big advantage over good old, reliable fixed-odds betting? Well that’s very simple. It’s far more exciting! In fixed-odds betting, you know exactly how much you can win and exactly how much you can lose. It either happens or it doesn’t. With spread betting, the more correct you are, the more you can win and the more wrong you are, the more you can lose. It’s fast paced, enthralling, and best of all, most markets are traded live, meaning
“Once a player discovers spread betting, they stay very loyal. This results in player values that are consistently four to five times higher than their fixed-odds cousins and means more money in an affiliate’s pocket.” you often have a live bet from the kick off to the final whistle. I’m sure you’ve also heard horror stories about people losing lots of money. Well, yes this can happen, but it can also happen in any form of betting. What we have in place across all of our bets is something called a ‘Stop Loss’. This does exactly what it says on the tin. As soon as your bet is losing at a certain point, the bet closes. This means you will always know the maximum amount you can lose.
Okay, what does this all mean to an affiliate and why should affiliates promote spread betting options to their punters? Currently, spread betting is seen by affiliates as very much a niche vertical. That means there’s not much by way of competition. I’m certain that a well put together spread betting site would work its way up the rankings very quickly. Another key point is that there are only a few companies that offer spread betting. The good news here is that once a player discovers spread betting, they stay very loyal. This results in player values that are consistently four to five times higher than their fixed-odds cousins and means more money in an affiliate’s pocket. The big spread betting companies are mostly licensed in the UK, often by both the FSA as well as the Gambling Commission.
The combination makes them the most highly regulated betting companies around. This gives players peace of mind when they’re thinking of making a large deposit, or placing a big bet. Could you say the same about all the fixed-odds companies you promote? Online players are getting shrewder and more discerning. They’re keen to learn new and more exciting ways to play. There’s only so many more ways you can dress up a fixed-odds bet. Eventually, your players will want to try something new. With sports coverage now at unprecedented levels, why not try to match the variety of sport itself with the full variety of betting products available? By promoting spread betting within your portfolio, you’ve added one more potentially highly profitable earning vertical to your basket. Disclaimer: It is important to remember that spread betting can result in losses that exceed your initial stake and you should ensure you fully understand the risks involved. extrabet. com supports responsible gambling: www. gambleaware.co.uk. Ed Randall is Head of Affiliates at Extrabet.com. Ed can be reached at Edward.Randall@ extrabet.com. http://affiliates. extrabet.com
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SPORTSBETTING SUPPLEMENT
THE PSYCHOLOGY OF SPORTSBETTING What should affiliates know? UNTIL FAIRLY RECENTLY, there appeared to be a commonly held perception that consumers viewed the Internet as an information gathering tool rather than a place to spend money. The explosive growth in online gambling and betting shows this is no longer true. For me, one of the interesting questions is how affiliates can use the psychology of people who like to gamble on sports events to get them to access sportsbetting sites (as long as this is done in a socially responsible way that enhances the punter’s experience rather than exploits them). I’m sure many people’s view of psychology is that it is little more than common sense (and to be honest, some of it is). However, I hope that some of what I have to offer in the rest of this article is more than common sense.
Trust and reliability Let’s look at it from an individual level. A sports fan has logged on to the Internet and is in the process of deciding which online sportsbetting website to make a beeline for. What things influence their decision? A recommendation from one of their friends? Advice from a gambling portal? An advert they saw in a magazine? From a psychological perspective, research on how and why people access particular commercial websites indicates that one of the most important factors is trust. If people know and trust the name, they are more likely to use that service. Reliability is also a related key factor. Research shows that many people (including sports bettors) still have concerns about Internet security and may not be happy about putting their personal details online. But if there is a reliable offline branch nearby, it gives them an added sense of security (i.e., a psychological safety net). For some people, trust and security issues will continue to be important inhibitors of online gambling. Punters need assurance and compelling value propositions from trusted gaming operators and affiliates to overcome these concerns.
Personalisation One of the growth areas in e-commerce has been personalisation and most online
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commercial organisations now have a personalisation strategy as part of its business plan. However, this practice is a double-edged sword that can prove to be a large logistical problem for companies who use such a strategy. Tracking every move for marketing purposes is one thing. Using these data for personalisation purposes can prove troublesome. The amount of data is potentially enormous. Producing personalised pages for everyone is also logistically difficult and may even turn potential punters away. The key is knowing what to ask the punter. Affiliates have to think intelligently and creatively about what to ask their customers in a way that the information gained can be used effectively. Attracting customers and providing recommendations relies on the affiliates putting punters first. Integration can also be a factor here. Gaming affiliates have to think of creative ways to make the website experience more personal.
both time and money. This is why gaming affiliates need to strategically target the ‘grey pound’.
Contextual commerce Imprinting One of the most important marketing strategies that companies engage in is ‘imprinting’ new customers. Online punters quickly adopt predictable Internet usage patterns and evidence suggests that they don’t switch online allegiances easily. Smart gaming affiliates will work at becoming a starting point for the novice gambler and capitalise on this opportunity for capturing player loyalty. The emerging post-teenage market is a key consideration although, from a social responsibility perspective, thought needs to be given so that teenagers are not exploited. There is a whole Internet generation of people coming through who have a positive outlook on online commercial activities. They may be happier to enter credit card details online and/or meet others online. This has the potential to lead to major clientele changes as the profiles of these people will be radically different from previous punters. The problem is that the young don’t tend to have much disposable income and are less likely to own credit cards. Therefore, another market segment that affiliates need to target to are the over-50s who are starting to use the Internet for shopping and entertainment use. Early retirees have
So what can affiliates do next? Contextual commerce may be one avenue that gaming affiliates will need to go down. In most retail outlets, shoppers notice what other people are buying and this may influence the purchaser’s choice. Companies are now using software that allows customers to do this online including interacting with other like-minded people. Seeing what everyone else is betting on may influence the decision process. There is also the potential to bring in techniques used on home television shopping channels. Presenters tell viewers how much of a product has been sold with viewers to instil a sense of urgency into the buying process, along with an element of peer review. This could be applied by gaming affiliates if people are gambling as part of a sportsbetting community.
Getting the balance right on the chance-skill dimension All forms of gambling lie on a chance-skill dimension. Neither games of pure skill nor games of pure chance are particularly attractive to sports gamblers. Games of chance (like lotteries) offer no significant edge to sports gamblers and are unlikely to be gambled upon. While games of skill Sponsored by
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“For some people, trust and security issues will continue to be important inhibitors of online gambling. Punters need assurance from trusted gaming operators and affiliates to overcome these concerns.” provide a significant edge for the gambler, serious gamblers need more than an edge – they often need an opponent who can be exploited (which helps explain the popularity of online poker). Serious gamblers gravitate towards types of gambling that provide an appropriate mix of chance and skill. This is one of the reasons why sportsbetting – and in particular activities like horserace betting – is so popular for gamblers. The edge available in horserace gambling can be sufficient to fully support professional gamblers as they bring their wide range of knowledge to the activity. There is the complex interplay of factors that contributes to the final outcome of the race.
Inter-gambler competition and the exercise of skill Over the last few years, I have often been asked by the media about the increasing popularity of online sportsbetting, particularly in relation to betting exchanges.
Psychologists claim that male gamblers are attracted to sportsbetting because they love competitiveness. Sports bettors clearly feel that gambling via betting exchanges provides value for money and an opportunity to exercise their skill. Another factor that I feel is important in the rise of sportsbetting is not just the inherent competiveness but also the intergambler competition. Obviously, there is an overlap between competitiveness and skill but they are certainly not the same and affiliates need to show how the sites they recommend feed into the psychological needs and desires of the sports bettor.
PROFESSOR MARK GRIFFITHS is Professor of Gambling Studies at the International Gaming Research Unit at Nottingham Trent University.
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FEATURE
CROSSING A BRIDGE THAT HASN’T BEEN BUILT Highlight on Gambling Regulation in Hungary, by Dr Viktória SZILÁGYI, Nagy és Trócsányi, Hungary.
Where we stand Eduardo Antoja, former President of EUROMAT, the European Gaming and Amusement Federation, wrote in the introduction of ‘The Future of Gaming and Amusement in Europe’ – a collection of essays: “It is time for the gaming and amusement sector across the European Union, represented by EUROMAT, to move from traditional coin-operated amusement machines to new forms of entertainment, either with or without cash prizes, as demanded by society in the 21st Century. We are ready to cross over, but the bridges have not yet been built.” Indeed, the gaming and amusement sector is facing serious challenges as we move into the 21st Century: non-existing EU regulation, incomprehensive and non-harmonised national legislations throughout the EU, new forms of entertainment, continuous demand for gambling services, serious state monopolies with serious state incomes from gambling, social difficulties – these are only a few highlights from those issues requiring immediate action in the sector. Love it or loathe it, with or without problems, gambling is part of our everyday life. But how is this colourful sector regulated? What are the main issues of gambling regulation in Hungary? Are there any answers for the most serious challenges? Here are some highlights of gambling issues in Hungary.
General regulation of gambling in Hungary Although gambling services are covered by the EC Treaty under the freedom to provide services (Article 49), the EU does not implement any specific legislation with respect to gambling, which consequently remains national competency. In Hungary, gambling is regulated mainly by Act XXXIV of 1991 on the
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Operations of Gambling (“Gambling Act”) as amended several times. According to the Gambling Act, non-continuously operated drawings (under specific conditions), operation of fruit (slot) machines and operation of card-gaming rooms are liberalised activities and can be conducted only by a person holding the license of the Gambling Supervisory Department of the Hungarian Tax and Financial Control Administration (“Gambling Department”). All other gambling activities are nonliberalised and can be organised only by the 100 percent Hungarian State owned organizer, Szerencsejáték Zrt, (“Gambling Ltd.”), or another organizer exclusively owned by Gambling Ltd., or an economic organisation with majority state interest or on the basis of temporary state concession agreement. Nevertheless, lottery and betting, except horserace betting and bookmaker betting, can be exclusively organised by Gambling Ltd. Until January 1, 2007, the gambling supervisory agency, Szerencsejáték Felügyelet performed the general supervision of gambling activities in Hungary, when it was reorganised within the framework of the Hungarian Tax and Financial Control Administration as a separate department – the Gambling Department.
National gambling strategy, the need for the bridge In connection with the change of government in Hungary in May 2010, the Ministry of Finance published the handover protocols of the Ministry on its website, which included a Status Report of the Hungarian Tax and Financial Control Administration (“Status Report”). The Status Report reminds us of the several intentions in recent years to work out a National Gambling Strategy, which
has never been finalised until today. Although the Gambling Act has been amended several times, a comprehensive review and modification has, to date, never been accepted, despite the need for a thoughtful and reasonable concept to reflect the market changes of the last 20 years. Gambling Ltd. and the approximate 1,200 economic entities operating around 25,450 fruit (slot) machines around the country are the main players in the market at the end of the first quarter of 2010. Three casinos are run by concession companies and horserace betting is also outsourced to a separate entity from Gambling Ltd. The status of the market players and the regulation of their activities, especially in light of the spreading number of foreign service providers whose activity qualifies as illegal under the current regime, becomes more and more uncertain. The most important strategic points, according to the Status Report, are the regulation of online gambling, further improvement in poker game regulation, the protection of gamblers’ interests, and in general, the avoidance of ad hoc style regulation in order to follow the requirements of the market players in a changing market.
Online gambling Under the current regime, online gambling is the monopoly of Gambling Ltd. Reality, however, as always, is different. Without the technical background and without harmonised financial and IT supervision
“The rules with regard to online gambling in the Gambling Act are poorly defined, providing only that gambling may be organised through communication equipment and networks in accordance with the rules of the Gambling Act.” rules, the general prohibition is simply unenforceable. The rules with regard to online gambling in the Gambling Act are poorly defined, providing only that gambling may be organised through communication equipment and networks in accordance with the rules of the Gambling Act and based on the license of the Gambling Department, except card games, operation of casinos and playing of casino games and drawing games, which cannot be organised through communication equipment and network. The Gambling Act expressly provides that the Internet falls into the category of communication equipment and network. These general rules do not hinder the spread of foreign online gambling organisers, which may be illegal, but effectively, there is no risk of legal consequence in practice. According to the Status Report, a state monopoly would be reasonable in the future in order to ensure that the online games do not reach gamblers uncontrolled. Although there is no EU legislation, the European Court of Justice provided guidelines in its judgments with respect to online gambling. In the recent matter just closed at the beginning of June 2010, Betfair and Ladbrokes, (UK based gaming
operators), lost the battle against the Dutch state lottery monopoly, since the Court ruled that “the mere fact that an operator lawfully offers services in that sector via the Internet in another Member State is not a sufficient assurance that national consumers will be protected against the risk of fraud and crime”. The Court provided that the Member States are entitled to restrict the accessibility of gambling websites based on the above grounds. Similar decisions by the Court may provide a basis for future online gambling legislation in the Member States. The big question is how effective future legislations may be to prevent illegal gambling on the Internet, or if it can be prevented at all.
The new “Poker Act” The latest and most significant amendment to the Gambling Act in recent years entered into effect on May 1, 2010. The nickname of the amendment in the press is “Poker Act”, since it mainly includes the revised rules of card games. As of May 1, 2010, card games can solely be organised in casinos and card rooms, the latter can only provide poker games organised in totalisator, cash and/ or tournament systems. Starting bets are also regulated and poker games cannot be organised via the Internet. Poker is becoming more and more popular in Hungary. According to the Status Report, the Poker Act established the grounds of legalising illegal poker games, but there is still a long way to go. The suggestion is to harmonise the activity of the Gambling Department, the police and the custom authority in order to work out new strategies and to carry out joint control procedures.
Protection of gamblers’ interests – pathological gambling According to the Status Report, since the current Hungarian legislation mainly regulates the legal relations and obligations of the gambling organisers and the Gambling Department, it is essential to extend the scope of legislation to the protection of gamblers’ interests. This includes, primarily, sufficient information provided for gamblers about the games and risks they are taking. On the other hand, this issue evokes an interesting social topic related to gambling services – to what extent the state will protect gamblers with legislation, and how the possible harmful consequences of gambling shall be handled by means of legal provisions. From one aspect, gambling is a Janus faced sector: it provides fun and entertainment for most players. But it also means psychological and social problems for a small minority, the implications of which have been debated for years. According to market research performed at the beginning of 2010 for Gambling Ltd., 1.2 percent of the adult (i.e. above 18) population of Hungary are defined as pathological gamblers. Although it is not a legal issue to deal with pathological gamblers, one could argue that the prevention of harm is an issue which shall be, at least partly, handled by regulation. What can the law can do? There are several strategies, including restriction of access, and providing suitable information, extending the responsibilities of gambling operators. However, it remains to be seen how effective these policies will be for the Hungarian market.
iGB Affiliate AUGUST/SEPTEMBER 2010
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FEATURE
HUNGARY: VIRGIN TERRITORY FOR iGAMING It is quite amazing that a Central European country with a population of ten million is far behind in iGaming terms compared to other countries in the region. Is it worth entering this country’s market deeper than before? Gyula Vadász, former country manager at DOXXbet Ltd., and now freelance marketing consultant, explores this virgin territory.
THE NUMBER OF ACTIVE Internet users in Hungary is more than three million. With a significant expansion in Internet services, both online sportsbetting and poker have been spreading like wildfire. In the last five years, the number of online bettors and poker players has risen in notable proportions, reaching more than 300,000 in 2010. Within this group of service users the main target age group is among those between 19 and 55. Out of all online bettors, approximately 80 percent is male. No doubt, that these numbers still represent a significant market potential. Hungarians have always been crazy for betting, especially in the field of ‘LOTTÓ’, i.e. lottery and ‘TOTÓ’ which is combined betting for 13+1 targeted football matches. However, all these betting opportunities were organised by the Hungarian state owned monopoly and the choice of sporting events to bet on was very limited. Only the equally popular horserace betting was independent and this has never ever lost its popularity. After the so-called ‘change of regime’ in 1990, to bet on sporting events other than those selected by the Hungarian monopoly was still forbidden, therefore, Hungarians travelled to their neighbouring countries – especially to Slovakia – to bet.
Those in the honey pot From 2004 – ever since the first online betting company, Sportingbet, set foot in the Hungarian market – the online betting ‘big bang’ has opened space for other online betting companies and as a result, the Hungarian state owned betting company was soon falling behind in sharing the income from the online betting market. The main reason for that was that the foreign online betting companies offered tax-free winnings. This proved extremely attractive for Hungarian online bettors. Although in the offline betting field (bookmaker agencies), the Hungarian stateowned company, Szerencsejáték Zrt., still
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plays the leading role, the online betting sphere is dominated by some ten foreign companies (including bwin, Sportingbet and Betandwin) and in the meantime, other typically Central-European companies (e.g. DOXXbet, Tobet) are coming up to the surface. A third of all bets in Hungary are being made online.
Affiliate? Oh, come on . . . Affiliate partnerships in Hungary were rooted at least a decade ago and were booming for some years. Nowadays, the interest in becoming an affiliate partner to any online betting company is significantly lower. Naturally, the leading web pages are ready to affiliate to the most preferred online betting companies on the ‘revenue share’ basis and they are damned sure they gain profit on this partnership. However, as for the second line webpage operators, they have suffered negative experiences in the past, simply because as affiliates, they were not treated fairly by their partner online betting companies – it was not possible for them to monitor the new registries and the real income – and soon they lost interest. Many new – but momentarily less important – online agencies look for affiliates and they face rejection from the other side. But this is no reason to give up, because there are still excellent and fruitful opportunities hidden in affiliate partnerships. Newcomers in the market are supposed to offer conditions that are more attractive than those in the past to encourage webpage operators to join as affiliates. Experienced local managers can help with this.
Legal background Is online betting, poker and casino lawful in Hungary? Just like in other countries around the world, the Hungarian government intends to control gaming business – either online or offline – and impose tax on it. New law passed in this
respect in 2007 and from that time on, the tax authorities are supposed to supervise gaming activities in Hungary. Banks are strictly forbidden to transfer money on the client’s order for betting purposes. But is it possible to enforce this law? As you will have read in the preceding legal article from Nagy es Trocsanyi, the answer to that is no. Banks freely make the transfers without being sanctioned and the online betting companies are well advertised – also against the law – in the media (TV, radio, newspapers, magazines and web pages) no matter what. If this continues, gaming companies can prosper and will remain undisturbed.
Good prospects for iGaming? Taking into consideration the above mentioned facts it would be difficult to predict what legislators may do in the future. The Hungarian market is far from being saturated, and the number of Internet users and online bettors within is continuously increasing. The global economic recession is over (if it ever existed), new projects are being established and the investors are highly encouraged to return to the market. Even our newly elected government provides certain assurance for better prospects for everyone. To invest in Hungary is not against all odds.
GYULA VADÁSZ, 51, is a former foreign diplomat is based in Budapest, Hungary. He worked as country manager for DOXXbet Ltd., the Slovakian online betting company and casino for two and a half years. Now he is a freelance consultant. For any collaboration purpose you can reach him at juliusnwagbo@yahoo.com.
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INSIGHT
LOCALISATION IN A REGULATED INDUSTRY This issue, we take a look at how important a role localisation is playing in an increasingly regulated and mature market with Entertasia Technology’s Sales and Marketing Director, Celia Ho. How has localisation become more important as markets open to regulation? Localisation is a concept which consists of, but should not be limited to, applying local expertise and cultural understanding to market conditions. These days, a customercentric approach is a prerequisite for retaining customer loyalty but acquiring new revenue streams when entering new markets requires additional strengths. A real understanding of local cultural issues will be the differentiator when new customers are selecting their gaming provider, particularly amongst the more sophisticated and experienced players. Those companies, seeking to open up new markets, who can offer a localised approach incorporating a localised product will be best placed to succeed over local competition. Of course, joint ventures and partnerships with local companies who are either specialised in local gaming software development or marketing are an alternative way to add value by using local expertise. Common mistakes – localisation is more than merely translating your core website and key products into several languages – what should affiliates take into account when preparing their business for new markets? Translation is a task and localisation is a project. Localisation includes the details of website structure, nature of products, navigation, betting patterns, registration, deposit flow, customer service and preferences, etc. Before entering new markets, affiliates should set clear business goals and review the website/product to determine if it fulfils the requirements in line with strategy. Identifying the market as primary or secondary will determine the level of localisation strategy required. For example, there is a difference between the name ‘Chelsea’ in traditional Chinese or simplified Chinese and having the ability to accommodate such differences in the operator’s database is a fundamental basic requirement to support secondary market penetration. However, for primary markets, it may be a consideration to revamp the website to include Asian favourite sports to maximize income streams. Another example is baccarat mapping, as this is unique in terms of its own logical presentation for the traditional Chinese players. It looks odd if you translate the unique names literally
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from Chinese to English and vice versa. In this scenario, affiliates should take into account which localised products are most favoured by most players. Is the use of translation agencies and services enough in today’s localised market, or should companies be creating standalone regional businesses that are specifically tailored to serving each specific market they serve? Some agencies do offer wider language translation support, and these are usually supported by a local network of regional expertise. However, I recommend that these companies use a regional pool of staff for proof reading at least. Considering the costs of the above, is this limited to bigger operators with more capital to invest? I do not see this as a costly investment, certainly not beyond the reach of newcomers and private groups. I believe the costs charged by some translation agencies and marketing houses are hard to justify. Time and costs are higher priorities when considering localised strategies for primary markets over secondary markets. Another route into new markets is to form partnerships and joint ventures with existing domestic brands to pool liquidity through their database, in combination with your expertise (as we’re seeing in France). Indeed, but I think we have to look at this case by case. It very much depends upon combining the right partners to develop the right business. If one partner’s expertise lies in land-based operations, they may not be able to contribute much to a very localised online betting platform aimed at meeting regional customers’ requirements. However, when a good partnership is formed, the synergy pays extra dividends. For example, the market believes that local monopolies in land-based operations, such as France, will have a greater success online by cooperating with those businesses that already have experience in B2C or B2B gaming operations and, thus, be able to deliver more effective localised services to French players. Do affiliates face a harder task than operators in localising their business for the markets they serve?
It should be easier for affiliates even though they operate in multiple markets. The key to success is whether they are capable of selecting those operators who they believe are truly localised. Operators are the initiators so they need to input more into the localised strategy via the websites and product solution. We’ve seen many companies travelling East for emerging markets, but what about those companies travelling the other way, from East to West, particularly with regard to live in-play betting – 188Bet, being a prime example? Are there lessons/examples to be learnt from Eastern companies making headway in Western markets? I believe that, in principal, a localisation strategy does not matter whether it is East to West or West to East. Although, live in-play offerings do not fit this pattern as Asia is one of the largest in-play markets and the market believes that match betting or 1X2 is a MUST along with Asian Handicap. However, the costs involved with a localised strategy in the West may be higher because of the more dynamic and wider range of products and services, interactive platforms, white list gaming licenses, event sponsorship and accredited system test certification requirements, etc. Also the markets are much more competitive and 188bet is a good example of how a company fulfilled the above requirements. A truly localised casino offering will include blackjack, roulette and poker – all essential in gearing up to offer a comprehensive casino suite with a Western facing character for any company that wants to make headway in the West. CELIA HO is Sales and Marketing Director at Entertasia Technology Company. Through her deep understanding and knowledge of the cultural requirements of the Asian markets, Celia is now the Sales and Marketing Director and a Senior Management Executive at Entertasia Technology, part of the MACOM Group. Focused on a global perspective she has become a respected and a highly valued expert in the online gaming, leisure and entertainment space. A Graduate from Gold Smith College, University of London 1999, her early career was in Graphic Design working in both London and Hong Kong. Linguistic skills include Cantonese, Mandarin and English.
SUBSCRIPTIONS “It is quite evident to me that significant, in fact, above and beyond effort and expertise have gone into ensuring that iGaming Business constantly stays ahead of the pack in quality.” Chief Marketing Officer, CyberArts Licensing LLC
iGaming Business Issue 59 November/December 2009
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INSIGHT
The Industry Trends Driving our Gaming Future Upon releasing its latest report, ‘Online Gambling Trends 2010/2011’, MECN has suggested the specific trends that are helping to drive the iGaming industry ever forward. iGB Affiliate has been allowed a sneak preview of some of the main points of interest.
THE NEW REPORT from the Media and Entertainment Consulting Network (MECN), ‘Online Gambling Trends 2010/2011’, suggests that increasing liberalisation and consolidation in the industry will be the main facets accountable for driving online gaming’s near future. The report points to the fact that, currently, “the online gambling market is awash with new industry trends and issues: liberalisation, consolidation, B2B/B2G, the US market and mobile betting… to name just a few.” Previous to this report, MECN suggests, data on which trends are relevant for the various gaming business sectors and which ones are just hype, as well as the figures and analyses behind each, for the most part, has been vague and subjective. Martin Oelbermann, Managing Director of MECN, explained on its release that, “A lot of market analyses of key issues are subjective in nature – in contrast, many of our clients requested from us an open, candid, and objective analysis. We are now meeting the need they expressed with this study”. Indeed, in creating this report, MECN sought the opinions of more than 100 market insiders and operators, surveyed to reflect the most relevant themes and trends affecting the iGaming market today. Here, we look at some of the topics
and growth indicators sitting at, or near, the top of agendas across the industry. As mentioned earlier, the main drivers for growth remain with the liberalisation of key markets in tandem with expected increases in M&A activity in the space. Yet, the report also goes into other areas of interest that we will touch on in this article, namely; ● Products with the most growth potential ● New Channels – impact of Mobile, iPad, Social Networks and MMOGs ● Live betting – growth potential not exhausted
Liberalisation According to the results of the survey, the liberalisation of iGaming markets is at the top of the list of factors most likely to shape the online gambling industry in the next two-three years. The report itself states that this assessment by market insiders “is surely influenced by the ongoing discussion about the liberalisation of the US market, the first French licensees having launched their sites a few days ago, and the growth of the licensed online gambling market in Italy. However, despite this enthusiasm, MECN‘s consultants caution that a liberalised market does not guarantee continuous growth.” The report points to caution due to high levels of competition, driven by casual players, within these liberalised markets.
It points to the opening of the French market as our most timely example. “State and local incumbents will likely enter the market, and – as France’s PMU and FDJ show – they might be impressive heavyweights that are hard to compete against. Moreover, liberalisation goes hand in hand with regulation, and this comes with taxes, levies, and usually stricter (and costly) requirements. It is, thus, not surprising that many operators looking for a license are not expecting to make any profit in the first few years, and several large operators (e.g., William Hill) have dropped out of the race in liberalised markets.”
B2B business hype at an end? Another interesting aspect to the report is its focus on the apparent deflation in enthusiasm over the much talked about B2B market, particularly those B2C companies opening (or reopening) business to business arms of their operations. Despite the “hype”, as referred in the report, only a quarter of those surveyed believed the B2B market to be relevant to the ultimate growth of the industry, even in the relatively short twothree year timeline this report is assessing. “In recent months, many news releases and annual company presentations have discussed the B2B business of operators
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INSIGHT
Exhibit 1: The drivers most likely to shape the online gambling industry in the next two-three years – results of MECN survey Increasing liberalisation (e.g., France, Denmark,...)
81%
Consolidation and mergers
62%
New games and product innovation
46%
New market players (e.g., state lotteries, media and incombents)
44%
Marketing for EXISTING customers (e.g., CRM, VIP/loyalty services, ...)
41%
Regional expansion and localisation (more languages, more local payment methods, ...)
40%
New customer groups (e.g., women, casual gamblers, ...) B2B business for operators (incl. B2G) Marketing for NEW customers (e.g., affiliates, SEO, ...)
35% 25% 24%
Note: n=92; multiple answer possible Source: MECN survey May 2010
as a new business segment compensating maturing B2C companies. It seems that the hype around B2B might already have come to an end before it fully got off the ground: only one fourth of the survey participants believe this to be a key driver for the industry in the next 2-3 years.
Mobile is back Not that the mobile channel has been anywhere particularly, the title assumes industry sentiment that mobile has long been heralded as a key driver for the future, if not the future itself, but has encountered many false dawns. Yet, the mood of the industry would suggest that a clear portion now believe that this channel will bear fruit in the coming three years. “Overall, nearly half of the experts surveyed believe that ‘new games and product innovation’ will most likely shape the overall online gambling industry – with mobile leading the way. Although mobile is still, even years after launch, a niche segment, the result of MECN’s survey was clear: mobile gambling was estimated to be the product with the highest growth potential. There are many reasons for this, two of which being the iPhone effect, and that emerging markets might prefer using mobile Internet connection instead of fixed lines.”
New channels – impact of mobile, iPad, social networks and MMOGs The previous segment brings us nicely into the more expanded ‘new channels’ chapter (from which the preceding ‘Mobile is back’
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languishes in a niche market, if it is offered at all (the only exceptions are the UK and France), the iPad could finally make iTV a reality.” The main beneficiary, according to the report, will be live betting. It suggests that where before, people laying live bets have had to ‘jump’ between TV and PC, they will now find it easier on the iPad (without entering into detail). It also points to increased entertainment features due to the iPad’s touch screen nature of operation, and, of course, its popularity with consumers. Apple reportedly sold two million iPads within 60 days of its release, and figures in the MECN report show that this figure is estimated to rise to 21 million by 2012.
% of survey participants
summary was taken), that also includes insight on the iPad, social networks and MMOGs. Where mobile is concerned, although the survey unearthed a bright new optimism for sector’s ability to shape the future, others confided that the channel’s revenue contribution to their overall gaming business remained small. The report considers Ladbrokes, and the 2 percent of net gaming revenues its mobile channel contributed in 2009, and William Hill, who conceded that its mobile betting business was only a small part of its overall revenues. However, optimism on this front prevails, as William Hill enhances its mobile product in the face of a decline in popularity in its telephone wagers, and Ladbrokes stating that, “the growth of Smartphone penetration is changing the landscape.” The chapter also questions whether mobile will generate extra revenues or merely cannibalise the PC business, discusses Apple’s decision to allow gambling apps, and whether the ratio of mobiles to PCs presents an opportunity in emerging markets.
The iPad A much talked about new channel with regards to its ability as a new platform for gaming. The MECN report suggests that the iPad, and tablet computing in general, “will close the long-standing gap between TV (normally in the living room) and PC/Internet (normally in the home office). Whereas iTV gambling still
Social networking The report is hard on gaming operators, suggesting that they are lagging far behind affiliates when it comes to entering the ‘Gaming 2.0’ sphere. “Affiliates have quickly realised the potential that comes with social media and have set up their own accounts on Facebook or are looking for followers on Twitter to increase traffic to their websites without putting too much effort into SERPs ranking.” Readers of this magazine will be all too aware of social media’s potential as a marketing tool for gaming operators and affiliates. Indeed, the report states that in March 2010, “Facebook reached as many visitors as Google for the first time, and blogs, videos and other social media platforms such as Twitter have drastically increased in importance.” Yet, despite the promise, there also lie challenges which need to be overcome. MECN reiterates the fact that Facebook doesn’t allow gambling with real money, despite the prevalence of Zynga Poker. It has also banned all gambling advertising although logos, URLs and links to official sites appear to be tolerated. There is also the fact that no current figures exist that can tell us the effective value of social media. Ultimately, the advice would appear to be that operators need to make more serious their objectives on social platforms.
Summary The MECN report provides a snapshot of the iGaming industry at this current time, and serves up some interesting pointers as to mindsets of those in charge of steering the sector into a technologically, economically and legally advanced future.
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INSIGHT
Building a Proper Gaming Affiliate Strategy How affiliates should prepare for today and what they should prepare for in the future.
Planning on taking the first steps to becoming a successful gaming affiliate? If you are one of the many who realise the potential that gaming affiliation offers then you should know that you will need a proper gaming strategy in order to succeed. Successful affiliation is no longer about creating a site, letting it get indexed and inserting a few banners; as you will learn in this article, the future of affiliation holds a much different reality than the past. This is largely due to the fact that affiliation is a dynamic working environment and will be going through huge changes in the future, both for better and worse. Many of these changes will ultimately create a new affiliate playground, specifically Google’s ever increasing desire to be fully localised, the growing market penetration of 4G telephones, UIGEA and offline casino big boys entering into the mix of things, new markets opening and the constant dynamic evolution of the online gaming industry. There are several huge factors that affiliates will need to take into consideration if they want to make the big bucks. When building today’s affiliate strategy, you must take into consideration the following issues
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as they will definitely have a part to play in the level of success you will achieve.
UIGEA It has been the talk of the town since 2006, and it’s been for a good reason. We all know that the UIGEA bill will be overturned; it’s just a matter of time. Once the US is open and legal for operators to enter, there will be an intense battle for real estate as many of the larger publically traded companies will be showing their muscle when trying to overtake many of the current operators and software providers operating in the US.
Viva Las Vegas Bugsy Segal may not have known what the Internet is, but today’s land-based casinos are very aware of the liquidity of online gaming and will also be entering the mix of things in their pursuit of increasing revenue. This may give affiliates a ton of leverage when negotiating revenue structures and terms of partnership as operators will be trying to gain maximum exposure in their goal of maximising acquisition efforts. Due to the fact that the demand for US traffic will be so high, both veteran and new affiliates should really consider creating solid marketing and SEO plans in order
to get their hands on the ever-so-valuable US player market. This involves building pages that are localised to state, taking into consideration server location as well as rethinking on their Meta tag strategy – possibly focusing attention on new keywords that will be used more and more, such as ‘land-based US online casinos’ or ‘Harrah’s online US casino’.
Einstein phones The gaming industry has been speaking for years about the potential that mobile gaming platforms offer. As an affiliate, you should take into consideration the fact that when the mobile gaming market explodes, affiliates want to have a method of acquiring those valuable mobile players. You may be asking ‘how large is the mobile gambling market?’ – it is expected to generate $7.6 billion in 2010. Acquiring those valuable ‘gamblers on-the-go’ could involve anything from creating applications for cell phone providers in order to attain leads, targeting search terms for Internet users looking for mobile gaming, and most importantly, negotiating in their affiliate contract terms to always include the cross sale of players into a mobile platform. In short, cell phone
gaming in these regions. However, when the golden gate opens, you don’t want to be kicking yourself for not being one of the affiliates to enjoy success from the aforementioned countries.
Going loco for localisation
“Bugsy Segal may not have known what the Internet is, but today’s land-based casinos are very aware of the liquidity of online gaming in their pursuit of increasing revenue.” capabilities are growing at an exponential rate and if there are people looking to gamble on their phones, there is no reason why you shouldn’t be there making revenue from them.
ways to deposit and withdraw their funds. By keeping abreast of new gaming trends, affiliates can hopefully tap in to areas of less saturation making it easier to get a foothold in some valuable territories.
Market evolution
China, Brazil and Russia
The great thing about online gaming is that it is a constantly evolving playground where both operators and affiliates are looking for new revenue streams and sub-verticals to make a better profit. Affiliates should really place their eye on gaming trends such as the ever-increasing lottery presence (which will be extremely evident in the mobile gaming sector) and even possibly venture into social gaming, following several super affiliates have ventured into this sector looking for results. Another area to place concern is localised payment methods – e.g. “Moneta”, as with both legislation and countries becoming more Internet penetrated, more and more players will be making the crossover to the world of online gaming and looking for the best possible
Preparation for new and currently developing markets should be a major focus. Countries like China, Brazil and Russia pose incredibly fertile ground for gaming due to a rapid increase in disposable income and Internet penetration. In addition, payment methods are becoming more and more localised in order to deal with increased risk management and fraud protocol as well as making it easier for players to deposit from their accounts. Some may argue that it will be years before these countries will be ‘worth the effort’ as there are issues with taxation, censorship and government interference (specifically in China and Russia) that will effect the growth of online
Although regulation is currently causing a stir amongst both affiliates and operators, it will eventually lead to a much larger and more profitable international gaming community. Another result of regulation will be the emphasis that search engines place on delivering locally regulated operators. Affiliates will need to focus on localising their traffic as search engines will be very effective at getting localised results to the user. If localisation is achieved, the affiliate will be in an excellent position to promote the operators who have attained proper regulation for the country/territory that the affiliate is targeting, and will have incredible interest in building a proper business relationship with that affiliate. On top of this, think in terms of the old business motto – “location, location, location”, as the search term ‘online casino’ will produce different results when searched from Los Angeles and New York. OK, but where does that leave me? Well it’s quite simple. With technological advancements, people are finding it easier to access the Internet and find what they are looking for. This can be at home, in the office or even on the train to work. Affiliates have to start thinking of technology as a gateway for ‘touching the player’ and the fact that new technologies, industry developments and legislation have to be taken into consideration when starting out as an affiliate. Due to the fact that the gaming industry is always changing, you must make sure you are constantly learning and keeping up with the 411. They say knowledge is power, but in the gaming world, knowledge is one of the factors of making your business succeed. Try tackling some of these issues before starting on your quest to become the industry’s next super affiliate and you will be sure to speed up your success.
Joshua Krimberg is currently the affiliate director for AffStars. com, and has over 6 years of marketing experience in the online gaming industry.
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INSIGHT
View from the Boardroom
Benefits of an in-House Affiliate Program …or why Deirdre needs good drivers. When I joined Virgin Games in 2005, my first recommendation was to bring our affiliate program in-house. From the outset, it seemed to me we had enough resources and affiliate know-how to make building our own system a plausible long term option. So how do you know what affiliate strategy is right for your business? An affiliate program is, first and foremost, a service. A new operator, prior to looking at potential solutions, will have to define what questions their affiliate marketing strategy must answer in order to define what type of service they are looking to provide. ●●Who do you want to reach through affiliate marketing? ●●How do you want to reach them? ●●How much of your time/money are you willing to commit to reach your goal? Depending on the answers, a number of options become available, all relevant in their own right, and not mutually exclusive.
Traditional affiliate networks Mike, marketing manager for a new UK skill game operator, wants to use affiliation to drive volume and build branding for his new site. His players are soft gamers, playing
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small stakes. He needs a large critical mass to break even. If Mike asked me where to start, I’d probably suggest setting up a campaign on a traditional affiliate network (i.e. Tradedoubler, Buy.at, Affiliate Window, DGM, etc…). I’d also advise him that working with such networks can be both beneficial and frustrating, sometimes at the same time, which is, to say the least, quite unsettling. The strength of traditional affiliate networks lies in the potential volume they can deliver to Mike’s site. Cash back sites will claim an overwhelming share of that volume, but provided his compensation structure accommodates the customer volatility inherent to their business model, the sky’s the limit. But there’s a price to pay. With the network’s account management sitting between him and the affiliates, Mike is agreeing to relinquish marketing services for a niche business to a broad third-party media company. A good account team will alleviate this to some extent, but he’ll have to bear in mind that traditional network clients are as numerous as they are eclectic: gaming operators, dating sites, underwear or dog kennel manufacturing companies
“An affiliate program is, first and foremost, a service. A new operator will have to define what questions their affiliate marketing strategy must answer in order to define what type of service they are looking to provide.” (no dog underwear companies yet… watch this space). Mike’s skill games outfit will only be one of many. Finally, and because of the mainstream nature of the publishers on traditional affiliate networks, the click-through and conversion rates from non-cash back sites will also be quite low. The bulk of the traffic will not specifically target his core demographics. If a carpet bombing approach is what Mike is after, traditional affiliate networks will be his vehicle. He just needs to make sure his ammunition is sensibly designed; and well founded.
Gaming affiliate networks Steve is marketing manager for a whitelabel online bingo start-up, with a limited
acquisition budget. After wishing him good luck – he’ll need it – and quizzing him on his motives and financial means (bring bingo targeted traffic with limited resources), I’d probably recommend working with a gaming specific affiliate network – either gaming software agnostic or software provider locked. The main benefits of working with such networks are reach, targeting and industry expertise. Unlike generic networks, their affiliate base will mainly be gaming specific. Because of the improved overall targeting, conversions will be better than traditional network campaigns. The number of affiliates Steve will get access to is a fraction of that from a traditional network, but who cares, it’s targeted traffic he’s after. It all goes back to the 80/20 rule (90/10 more likely in affiliate marketing) whereby a small number of partners bring an overwhelming share of new customers and revenue. If a traditional network looks at the full 100 percent of sites, a gaming affiliate network allows you to focus on the 30 percent that count. As Steve is starting off with limited resources, delegating his affiliate management services to a team of industry experts makes a lot of sense. With a generous remuneration model more in line with industry standards, cooperation with an account team well versed in the marketing techniques and affiliate expectations for the gaming sector he’s in, a gaming affiliate network will help Steve achieve brand exposure, affiliate trials, and – if conversions follow – sustained traffic and profit.
In-house affiliate program Deirdre is marketing manager for a well funded new online casino operator, targeting the UK market with an exciting new slots product. She plans to rely heavily on affiliates to spread the good word to the gambling masses about their exciting new product. I’d strongly advise her to go indie (i.e.
“The main benefits of working with (gaming affiliate) networks are reach, targeting and industry expertise. Unlike generic networks, their affiliate base will mainly be gaming specific.” start an in-house affiliate program). With cash, a unique proposition and a long term plan for growth, she might as well plan for the future rather than let the future plan for her. The first question will be software related. Does she build the affiliate engine in-house or get one off-the-shelf? That depends on how quickly she wants to get started, and how much time and money she’s willing to invest. With a strong development and design team in place, no recurrent fees and full ownership of the code, building in-house has a case. Beware though; she’ll need to think long and hard about development resources and support, system robustness, stability and scalability. Trust in her program will heavily depend on that, the rest being down to the quality of service provided by the affiliate management team. If Deirdre’s boss is the impatient type, or if she’s not entirely sure the business is ready for a long term investment towards a proprietary solution, I’d tell her to start shopping. Off-the-shelf gaming affiliate software providers have been around for a while, and because they’ve partnered with many operators using various gaming software solutions, integration should be relatively short and painless, and she could get cracking in no time. As I mentioned previously, the options above are not mutually exclusive. At this point, Deirdre could also consider combining her in-house scheme with both a traditional and a gaming network to drive volume. Off-the-shelf or proprietary, Deirdre’s in-house affiliate program should be the Ferrari of her affiliate acquisition garage, sparkling unashamedly alongside the luxury sedan that would be her gaming
affiliate network, and the people carrier that would be the traditional affiliate network. Quite a collection she could have. Deirdre’s in-house affiliate team will drive the Ferrari, dedicating most of their time to the 10 percent of affiliates that matter. An in-house program will help her cater for top-tier partners more effectively. Her active affiliates will feel valued and rewarded by regular and personalised communication, performance monitoring, revenue model flexibility, feedback management, all managed in-house by a friendly team. And let’s face it, nobody does it – or should do it – better. Depending on the effort she wants to put into affiliate marketing, a well thought out, non-cannibalising, de-duplicated, comprehensive multi-network offer strategy can work wonders. The lot – Ferrari, Sedan and people carrier. At this stage, and before going our separate ways, I’d remind Deirdre that affiliate marketing is, first and foremost, a service, and that affiliate satisfaction must always take precedence. It’s the prerequisite to success, and for that she’ll need good drivers. You wouldn’t want your Ferrari to go rusty, would you?
Pierrick Leveque is Head of Acquisition at Virgin Games, managing the in-house affiliate program as part of the overall acquisition strategy. Virgin Games Affiliates was voted ‘Affiliate Program of the Year’ at the 5th annual EGR Awards 2009 ceremony, ‘Best Casino and Gaming Affiliate Program’ at the A4U awards 2008. Pierrick also received the ‘Best Bingo Affiliate manager’ award at CAP Awards 2009.
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INSIGHT
Taking your Gaming Profits to the Next Level Scratch cards, slots and instant win games can be a substantial new revenue stream for anyone with online marketing experience. We all have our own dreams of making the first million in the most effortless way. In the earlier days of online gaming, anyone who didn’t own a product or technology would get a taste of the action by trying commission based affiliate marketing. Since then, the gaming industry has become more demanding: increasing competition amongst big traffic generators forces them to adapt and create a more profound communication channel with players which will open new doors to a deeper understanding of the operational side of the business. It might seem a milestone away to open these doors, but they are closer than ever. The answer is to create your own brand and partner with a service provider who can offer a turn-key solution under one single roof that will enable you to focus on your own expertise. When NeoGames was first established in 2005, the online scratch card market was completely untrodden ground. Growing with the market challenges, scratch cards, slots and instant games quickly proved their popularity on the Internet and their success as a standalone product offering. It was on the back of this success, after four years of tremendous growth in most European countries, especially in the UK, France, Italy, Spain, and the Nordic countries, that we decided to provide fully managed services for white labels in the instant win gaming industry. Scratch cards, slots and instant games approach a wide demographic with an equal split between male and female players with an average age of between 30 and 50. With an audience that is not used to sophisticated technology or gaming concepts, barriers to entry for first-time players must be
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minimised. Inspired by game concepts that everyone is familiar with from the offline world, the scratch card and instant games offering creates a non-intimidating gaming atmosphere with friendly user interface and self-explanatory logic. Developing three to four games a month, the current games platform counts over 80 interactive Flash games that are simple, easily accessible, and with modern and entertaining content for the mass-market.
Scratch games – the ultimate mass-market product with high revenue potential The potential of scratch games as an independent revenue stream has already been recognised by a large number of leading marketing experts and gaming operators. Being a lottery product that has been taken to the online world, scratch games, slots and instant win games can be marketed by anyone who has gained online marketing experience but wants to benefit from it further. However, creating a strong, approachable brand is not enough: localisation needs to be taken into account to properly target the chosen target audience and for the brand to succeed. Media companies like OK!Magazine and The Daily Mirror have lately created their own UK targeted websites solely dedicated to scratch cards, slots and instant win games, to offer additional entertainment to their mass market audience on the Internet. Other white label clients like Nordic Entertainment established a strong brand in Sweden with Svenskalotter.com, and LMA Gaming Ltd. with Nettyarpa.com in Finland. Another interesting aspect to note is that acquisition and marketing efforts
differ enormously from traditional casino and other gaming products both in their messaging approach and their expenditure. By utilising different and less competitive marketing channels, scratch card operators manage to keep their CPA (cost per acquisition) lower whilst maintaining almost the same player value over time.
With a white label affiliates can easily increase their profits A white label solution is the classic win-win solution: a lucrative mass-market product can be offered without having to invest in creating the technology and infrastructure itself. Acquisition marketing specialists only need to bring their expertise of generating traffic – by marketing their own brand, this traffic turns into their own. Instead of losing all player data when sending traffic to an affiliate program, they own the player information and obtain the ability to influence the quality of the service given to players, turning them from traffic owners into website owners. Mr Moti Malul is the VP of Sales and Business Development at NeoGames. He formed the B2B Sales Division which was established during 2008 and under his leadership, NeoGames signed and launched more than 15 fully managed online scratch cards operations and software integration solutions for customers in nine different countries, among which are leading media brands and top gaming operators. Prior to his position at NeoGames, Moti held senior positions in the Mobile Telecom industry for over 12 years, in companies like Ericsson, Mobixell and Sabio focusing on product, sales and business development.
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“I don’t see Virgin as a job – it’s my life, my love and I still enjoy every minute of every day and take great pride and joy when I think of what the Virgin brand has become.”
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In past issues of iGB Affiliate, our ‘Masters of the Internet’ interview series has highlighted the work and profiles of those at the cutting edge of modern business and technology. Yet, when you think of the word ‘entrepreneur’, you tend to think of one name... Sir Richard Branson; the father figure to today’s generation of young, creative business people high on aspiration and innovation. This issue, we speak to the man at the helm of one of the biggest brands in modern business and entertainment, Virgin. SIR RICHARD BRANSON’S name and image is synonymous with adventure, calculated risk and, of course, success. He is known as an entrepreneur, industrialist and business leader, having built the Virgin Group from the ground up to incorporate over 360 companies that span the worlds of travel, entertainment and technology (amongst much else). He is held aloft as a pioneer for today’s generation of business men and women, representing a fresh and bold perspective on business, brand building and, perhaps most importantly, attitude. This attitude, arguably, is best committed to record by Branson himself in his autobiography where he states, “My interest in life comes from setting myself huge, apparently unachievable challenges and trying to rise above them... from the perspective of wanting to live life to the full, I felt that I had to attempt it.” Sir Richard’s business career inflated to life when the 16 year-old Branson published a magazine called ‘Student’, having graduated from school with a somewhat uninspiring academic record. Yet, as with many success stories, his educational background was no barrier to the sense of adventure that would ultimately catapult him (almost literally) to global notoriety. But what was the initial spark; the catalyst? To what, or to whom, does he owe for his passion in developing new business? “My parents taught me from a very
young age the importance of maintaining a positive attitude and of taking responsibility for my actions. These are two invaluable building blocks that have shaped my career and kept me going during the toughest of times. I also believe you cannot be taught how to be an entrepreneur – I think it is something you are born with. “My passion comes from doing things I can be proud of, bringing talented people together and creating something that’s going to make a real difference to other people’s lives.” And make a difference he has. Aside from the more direct levels of consumerconnection to which Sir Richard alludes to above, many of today’s current and would-be entrepreneurs have found inspiration in his story – his rise to prominence as a successful businessman, perhaps as against the odds as the seemingly unfeasible goals he and his companies aspire to achieve. Branson too found motivation from role models of his own. “In some ways, my mother was my first mentor. As a child, I was always impatient to try new challenges in every area – at home, on the sports field, even at school. When things did not go right (and often they didn’t!), she would always tell me not to look back in regret, but to move on and try the next thing. I believe this basic skill is absolutely crucial to success in business. Starting a business can be a very tough
and lonely experience – many start-ups fail in their early years – but an entrepreneur cannot look at a setback as a bad experience; it’s just part of the learning curve. “Another piece of advice that I will always treasure was from my mentor and friend, the late Freddie Laker. We first met when I was thinking about setting up my own airline. He gave me this advice: ‘You’ll never have the advertising power to outsell British Airways. You are going to have to get out there and use yourself. Make a fool of yourself. Otherwise you won’t survive.’ I’ve been making a fool of myself ever since!” Now a sexagenarian, Branson’s career has spanned decades of real cultural, economic and technological change. In that time, indeed, up to the present day, there have been many parameters that have shaped the landscape for today’s businesses, and the way in which they are able to operate. In Sir Richard’s opinion, the most significant changes have laid the platform for the world of business and entertainment as we know it today. “It has to be the music business, which has changed a great deal in the last 40 years. The advent of the iPod and digital downloading has really speeded that up. I must say, I loved going to a record shop and buying a good vinyl or cassette. Now you just log on and download what you want. That is quite a change! “The next significant change over the next ten or so years will be digitally downloading magazines and books. Without doubt, this will be a new market to watch – it’ll be fascinating to see how traditional high street book retailers tackle the increase of online book purchasing.” Of interest here is whether the principles on which Branson founded his empire – what he wanted his brand to embody – have also changed with the world around him, or if, in fact, those initial sentiments ring
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“Virgin is completely in favour of regulatory environments as we see gambling as a form of entertainment and are as keen to offer as much protection to the customer as is both possible and appropriate. Prohibition, on the other hand, is damaging as it drives gambling activities underground and, consequently, favours the less scrupulous operators at the expense of the players.”
as true today. “When I started Virgin from a basement flat in West London, I didn’t set out to build a business empire. I set out to create something I enjoyed and that would hopefully pay the bills! I never in my wildest dreams thought it would be what it is today. When asked when I am going to retire – I always ask – ‘retire from what?!’ I don’t see Virgin as a job – it’s my life, my love and I still enjoy every minute of every day and take great pride and joy when I think of what the Virgin brand has become.” Indeed, Virgin has become one of the world’s preeminent brands with three of its fleet, Virgin Atlantic, Virgin Media and Virgin Mobile, all attaining super brand status in 2010 (Superbrands (UK) ltd). However, is today’s environment conducive for start-up businesses or would a ‘Virgin’ of the future face tougher challenges than ever in successfully growing their enterprises? “It depends really on what the circumstances are. For start-up businesses that have sufficient funding and a really great idea, then anytime is a good time to start. Funding is harder to come by at the moment, particularly with banks being less willing to lend, while the niche or angle that a start-up is pursuing needs to be on the money from the word go, but if the product or service is what customers want and enjoy, then, in my experience, they’ll find the money to buy it even in these difficult times. “The key advice I would give is to make sure your product is absolutely right, not just for now, but for the immediate future and that it responds to a real need out there in the market place. It is then important to be prepared (and to be able to afford) to be committed to the business for as long as it takes. Rome, after all, wasn’t built in a day. Other than that, just take a huge amount of care and passion in the way you recruit your staff – at whatever level. If you haven’t got the right staff with the right attitude, then it will make things infinitely more difficult.” The Virgin strategy is condensed to three simple rules of engagement: quality, outstanding customer service and industry
innovation. It is one of these principles that Branson highlights in using the Virgin brand as a blueprint to follow, “make sure the customer comes first” – advice that qualifies the world over, in any industry sector.
Personality The advice Branson heeded from the late Freddie Laker has been on public display since 1985, when he first attempted to break the world record for the fastest Atlantic Ocean crossing in his ‘Virgin Atlantic Challenger’. The first attempt failed almost before it began in British waters, however, the second, inside the ‘Virgin Atlantic Challenger II’, alongside sailing expert Daniel McCarthy, Branson beat the world record by two hours. With such a clear sense of adventure, one could be forgiven for assuming that Branson is an adventurer first and a businessman second. “I like challenges in life and pushing myself out of my comfort zone. Both starting up a business and attempting to fly around the world in a hot air balloon fulfil those desires. And, let’s not forget, once upon a time businessmen were known as merchant adventurers!” And from which does he derive the most pleasure? “Without doubt it’s my family and friends. I am fortunate enough to have Necker Island, which is both my home and the most fabulous place to go on holiday. So, having the opportunity to spend time there with my family and friends is an unending source of pleasure.” For a man of such swash and buckle, there are likely to remain adventures and challenges out there that he is aching to tackle. With Virgin Galactic in mind, a space walk perhaps? “Virgin Galactic is an incredibly exciting project and I can’t wait to go up in the first flight and experience that sense of weightlessness and be able to see the curvature of the earth. In fact, all my family are keen to go up in it, including my father Ted, who’s in his nineties! We are also looking at a submarine capable of withstanding incredible pressures, in which we can explore parts of the sea that no one
iGB Affiliate AUGUST/SEPTEMBER 2010 2009
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FEATURE
“When I started Virgin from a basement flat in West London, I didn’t set out to build a business empire. I set out to create something I enjoyed and that would hopefully pay the bills! I never in my wildest dreams thought it would be what it is today.”
has ever been to. Indeed, the bottom of the sea, in certain areas remains one of the few virgin territories on earth that has yet to be explored.” Branson has never been the man behind the brand – he is the face, the image through which he has been able to drive his business adventure forward, and the face that people the world over associate with Virgin. So, does the Virgin brand reflect his personality – an ‘aspirational’, innovate and adventurous man who likes to take calculated risks? “Yes, I think the Virgin brand does reflect my personality. After all, in the very early days, that’s all it was. Even today, the Virgin brand is not a product like Coca Cola or Famous Grouse whisky, it’s an attitude. And that attitude is about giving customers a better time and better value in a fun way that embraces life and seeks to give the customers something new. There are, obviously, always calculated risks involved and not everything you try will succeed, but it’s important to believe in yourself, trust your instincts and give it your best shot. That’s my attitude and one that still, I think, characterises the Virgin brand. Of course, the other great advantage of having a brand that embodies attitude is that it can be applied to a whole range of different businesses – from planes, trains, health clubs, money, mobile telephones, and online gambling. “All brands have a personality whether they like it or not. Some are good and warm and loved; others less so. But brands, ultimately, belong to the consumer and whilst a business can influence its brand by what it does and how it behaves, it is what the customer thinks at the end of the day that is the only important thing. Look at BP’s brand values in the US at the moment. As the old marketing cliché has it, “Products are what manufacturers sell. Brands are what consumers buy.”
iGaming As Sir Richard mentions, online gaming falls very much in line with the Virgin attitude, and Virgin Games has established itself as a highly visible and reputable part
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of the interactive gaming environment. Branson acknowledges that while growth in this area of his business hasn’t been breaking any records, its development has been impressive nonetheless. “Virgin Games’ growth has been steady and impressive, if not spectacular. From the very start, we took the decision that Virgin Games would only accept bets from jurisdictions where it was unequivocally legal to do so. In terms of growth, this has obviously lessened our ability to generate huge profits and build up a war chest for increased marketing and acquisitions. A lot of our competitors, for example, grew big on the back of taking bets from the US, which we never did, and that has obviously helped them. Indeed, PartyGaming, I note, still makes a significant chunk of its profits from Germany, which, again, we won’t touch. Still, as Simon Burridge, Virgin Games, CEO, keeps saying, ‘a principle isn’t a principle until it costs you money’.” With the gaming industry at such a significant juncture in its adolescence, does Sir Richard believe it is developing ‘to par’, or are the regulatory and ‘prohibitional’ elements that hinder its progress more damaging than some would care to admit? “In the last few years, the online gambling industry has, in my opinion, really come of age. The scope of their operations, the size of their marketing budgets, the consolidation taking place and so on, all point to a mature industry. Encouragingly, too, the move amongst national governments – and, for that matter, state governments – to regulate online gambling in their jurisdictions is a further positive step. Virgin is completely in favour of regulatory environments as we see gambling as a form of entertainment and are as keen to offer as much protection to the customer as is both possible and appropriate. Prohibition, on the other hand, is damaging as it drives gambling activities underground and, consequently, favours the less scrupulous operators at the expense of the players.” Public opinion is something the industry is naturally subject to, and regulation can
only help to freshen the general perspective on what gambling really is – a form of entertainment. Yet, attitudes are stubborn obstacles, and stigmas, however founded or not, tend to linger. “To a degree, gambling will always have some form of stigma attached to it because, taken to excess, it can cause people real problems. In reality, however, those who suffer from addiction are, from my experience (and this is backed up in the UK by government statistics) few and far between. What’s more, at Virgin we try and do everything we can to help – from selfexclusion to the ability to set daily, weekly and monthly limits, contacting players who are losing regularly to check that things are under control, and so on. The fact remains that for the vast majority of people it is a relatively harmless and enjoyable pastime, although that is no grounds for complacency. After all, in all walks of life, nothing exceeds like excess.” Speaking of excess, nothing has exceeded like the forces that plunged the world’s economies into a period of hitherto unseen suffering, the aftershocks of which are still hampering those businesses who survived in their attempts to recover. However, according to Branson, opportunities in business are never far away, suggesting that the short to mid-term future of the general business landscape can be a positive one. “I think there are always opportunities in any business environment, good or bad, for businesses to prosper. Raising money to invest behind new opportunities can become a lot more difficult, but if the basic premise behind a business serves a customer need and the customers are well looked after, then I see no reason why the short to mid-term future for today’s businesses should not be good. It’s often said that it’s harder to manage a business when things are going well than when they’re not, as in difficult times, you have no option but to become more efficient and to come up with innovative ways of giving the customer a better experience. Necessity, after all, is the mother of invention.”
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WEBMASTER WORLD
APPLE’S NEW MOBILE advertising platform launched on July 1, after being announced, along with details of the iPhone 4 and iOS 4, at its Worldwide Developers Conference 2010 (WWDC10) conference in June. At the time of the announcement, Steve Jobs stated that Apple already had commitments from advertisers worth over $60 million, around half of the total 2010 prediction for US mobile advertising spend (an impressive claim for a service that hadn’t even launched at the time of the announcement, and considering that the announcement came halfway through the year).
So what makes the iAds platform so special? Firstly, the platform is built right into the new iPhone operating system, iOS 4, bringing ads to the iPhone natively as part of the system rather than as a platform layered over the top of the underlying architecture. This means the system is much more tightly integrated and is optimised for the iPhone hardware, and so, it won’t drain system resources as much as other ads may have done before, giving the end user a better experience of both the system itself and the new ad platform. In the same way that Apple revolutionised how we communicate with the iPhone, it now wants to revolutionise our experience with mobile advertising as well, and promises that the iAds platform will deliver ads with the same impact, immersion and emotion as television advertising, combined with the interactivity and delivery of the web. This allows a much richer format of adverts than has ever been
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possible before. In the press release for iAds, top advertisers, such as Unilever, are quoted as saying that the iAds platform has allowed them to create some of their most compelling ad campaigns ever. Ads created for the iAds platform can feature full HD quality video, fully playable games, and enough interactivity to allow purchases to be made via the App store or iTunes, all from within the ad itself. The app that features the iAds never needs to close while this happening, so all of this interactivity is still possible without jerking you out of whatever app you’re using at the time. Now that the iPhone supports HD video and relies on the same processor as the iPad, it makes sense to make full use of the more powerful architecture wherever possible.
Data usage Apple has access to a huge array of user data including spending habits through both the App store and iTunes as well as browsing habits, meaning it will have a firm foundation when it comes to deciding what ads to serve to users. The new platform will also gather new data about users, including details of their location via GPS, to allow the system to serve ever more relevant and more targeted ads. Some people have concerns about this intrusion and feel the new system is an invasion of privacy. Whether in response to this directly, or because of legal obligations, Apple has also introduced a simple way for both iPhone and iPad end users to opt-out of the iAds service. By visiting a specific URL in the browser, the system is registered as opting out. Although
“iAds has been marketed to appear attractive to developers, offering similar monetisation to the App store.” this aspect of the service has not been publicised at all, the URL is easy to find. This should help alleviate the concerns of anyone that is worried about how their data will be used, and should be seen as a gesture of goodwill by Apple towards users. This is interesting because other mobile ad platforms do not offer this same opt-out feature; usually, the only way to remove ads from an application is by purchasing the app (if the app is originally free). Opting out of this service will not prevent ads entirely, however, it will just mean that standard, non-targeted ads will be displayed instead of those that may actually be relevant or of interest to you. The ads are initially displayed nonintrusively as a standard ad bar somewhere in the app and feature the iAds logo so that it can be instantly recognisable as an ad. Tapping the bar will open the app in full screen interactivity mode, allowing you to browse its content and interact with it if you wish. Both the iPhone and iPad devices running iOS 4 are suitable for displaying iAds and using the platform.
Technical build iAds are built using the latest web technologies, HTML5 and CSS3, making it easy for advertisers to create the rich and engaging content featured in the adverts. HTML5 is the new standard in the language
used to create web pages and although the spec isn’t yet finalised, enough has been adopted to make developing with it the sensible choice when building content for a device as advanced as the iPhone. Like HTML5, CSS3 is still in working draft format, but Apple’s Webkit rendering engine supports a lot of the new standard, more so, in fact, than most other platforms.
Attraction iAds has been marketed to appear attractive to developers, offering similar monetisation to the App store. Developers that choose to join the advertising network and have iAds appear in their apps can expect to receive 60 percent of the revenue the ads generate, which is quite an attractive deal and is sure to tempt many a developer. This is the same tactic employed in the App store, which makes it such an attractive platform to develop for. Allowing developers to generate income in this way is even great for the end users, because although they are exposed to advertising, this helps to keep the cost of the apps themselves far lower, and often free. So we continue to get great free and low cost software, while developers continue to earn money for writing great
“Developers that choose to join the advertising network and have iAds appear in their apps can expect to receive 60 percent of the revenue the ads generate.” apps. On the receiving end of 40 percent of all iAds related revenue, Apple should be pretty happy as well. The underlying technology used to serve iAds is reputed to have come from technology gained by Apple’s purchase of Quattro Wireless at the start of the year. This move, which has led to the development and release of iAds, is thought by many to have been in response to Google’s earlier acquisition of the highly successful and pervasive mobile advertiser AdMob, which is already a part of many top apps on the iPhone platform. However, iAds will not be able to compete as effectively as AdMob because it will not feature in apps written for the Android (or any other competing Smartphone). Apple is restricted to using the ads on its own devices, but given that these devices are extremely popular and widespread this shouldn’t cause too much concern at the moment, but could begin to be a problem as the handheld market share rises for other Smartphones.
Arms-race Google already placed itself in competition with Apple with the release of its mobile operating system Android, which has found its way on to many handsets that rival the iPhone. Now, it seems that Apple is taking a swing back at Google by moving into the mobile advertising space. Arms-races between goliath companies like Google and Apple usually involve better deals for both developers and users as the companies compete, so it’ll be interesting to see where the fight goes next and what Google will do to retaliate.
DAN WELLMAN is a freelance writer and IT professional that lives and works in a thriving city on the south coast of England. He insists that he has other interests besides computers, and vows one day to prove this somehow.
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webmaster world
Gambling in the UK has, for much of its existence, been the domain of men. That fact, however, is changing rapidly and the opportunities for marketing gaming products to women online are increasing on a daily basis. With more women online than ever before, and more of them looking for casino, poker, bingo and sportsbetting opportunities, the time is now for affiliates to develop campaigns that can reach this exciting and growing market. Casinos, betting shops, races – anywhere that one could engage in and be involved in gambling entertainment – these places were, for many years, almost exclusively the domain of men. Did that mean that women never wanted to gamble? Given the popularity of bingo halls over the years, it is
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not a stretch to say that they were not averse to a game of chance; they just hadn’t been given the right venue.
Access to the venue The general dynamic of UK culture has changed dramatically in a very short time, and women have been a big part of this cultural shift. Today, women are very much involved in the online revolution. According to eMarketer, the percentage of female to male Internet users in the UK shows a slight majority to females, at 50.5 percent. They go on to say that this trend will continue through 2010, at which point it is estimated that women will account for 51.3 percent of UK Internet users. Finally, a venue has been created in
which women can engage in gaming activities and it comes in the form of online betting shops, casinos, bingo destinations and poker rooms. The question is, then, are affiliates doing enough to reach out to these women, and, if not, how do they access this burgeoning market?
Bingo and slots: the big easy At the moment, bingo is the most popular online iGaming destination for women. Sites like 888Ladies.com are geared entirely towards women and are easily marketable as such for affiliates. Sites of this nature provide an environment in which women can talk to each other in the chat rooms whilst enjoying a round of bingo – from the comfort of their own homes.
Bet on women
888Ladies is a bingo site that puts a heavy emphasis on the community aspect of the game, and even goes so far as to hold annual meet-ups, with promotional items, dancing and, of course, bingo. This is a great example of how to offer added value and create a community. Affiliates have a great opportunity to express the added benefits of these kinds of destinations, and, if marketed correctly, should be able to do well with acquisitions and retention. Slots are also popular with women and are often marketed to a female audience. Operators are beginning to understand the dynamics of the group, and, through trial and error, are beginning to create tantalising gaming opportunities. This is another great opportunity for affiliates in which directories listing bonuses might well see good rates of conversion.
The rise of women in poker A recent study by Poker Players Research found that one quarter of all depositing poker players are women and it is predicted that this amount will reach one-third of all real-money players by 2011. This could very well be due to the rise of successful women on the poker tours who are becomingly increasingly popular. For example, Annie Duke, the most successful woman in the World Series of Poker, spends a good deal of her time espousing the virtues of the game, which, in turn, brings more women to the game. Affiliate sites that offer tutorials, especially in video, have the potential to do very well, particularly with tutorials provided by women, for women. Welcome bonuses are also very popular, especially to poker sites that offer a fun, friendly and social environment.
It would be difficult to argue with the fact that the UK loves to bet. A 2007 survey conducted by the British government said that online gambling was the fourth most popular means of gaming entertainment, at 7.4 percent, with the three leaders being spread betting, fixed odds betting terminals and betting exchanges, respectively. Add to that the fact that women are getting more involved in spectator sports like football, cricket and rugby and you have a whole new marketplace that is just beginning to be tapped. Some sports teams are actually selling their team jerseys in pink, which is a great way to reach out to and involve a team’s female fans. As far back as 2004, the Guardian was reporting on how online gambling was becoming more welcoming to women. In the article entitled, “Women Raise the Stakes for Online Casinos,” James Hipwell, who now works for Bet Republic, was quoted as saying, “Women hate going into smoky betting shops – it’s an intimidating environment. But… the comfort of their own bedroom is more attractive.” We know that women are starting to place bets online, because (a) it is a place where they feel comfortable doing so, and (b) they are getting more and more involved in sports. We also know that women are getting more involved in casino games. The trick now is to find ways to involve this evolving market in new and interesting ways, making this prospect more attractive to women.
Making connections with women The job is to make a real connection with women and open the channels for interaction. Women are very likely to talk about products they have purchased, or goods that they have used. Bonuses, free games, contests and marketing campaigns that are likely to be shared are excellent strategies. The point is to get women to start talking to their friends about your product.
Establishing trust The Edelman Trust Barometer said in 2007 that a “person like me” is still the most trusted source about a company and, therefore, products. Sites that are run by women, in which they can share their experiences with other women, are often powerful avenues for reaching out to women. Blogs can be a great medium for this venture. A recent study by BlogHer found that women use social networks more than anything else. A whopping 80 percent are involved in social media in one way or another. Interestingly, when women in
their survey were asked what sources they rely on for information on topics they’re interested in, blogs was the top response, with 59.5 percent. This speaks to the value of blogs, and given that women want to make connections with trusted sources, this can be a very influential medium. Blogs that can provide tips to beginners, as well as providing inside information to more seasoned players are sure to become more and more popular.
Get social As popular as Facebook is with women, (according to Tech Crunch, 63 percent of Facebook users are women), this is an amazing opportunity to get social with women. Facebook does not, currently, allow gambling-related ads, but does allow pages for online casinos, and their affiliates. There are plenty of Facebook pages that have been built by affiliates for that very purpose and, in turn, it is a great way to get your brand out there as an affiliate. Finding ways to interact with women in this space is an important part of marketing gaming products to women, and cannot be ignored for its potential.
Know your customers through your software Affiliates track all kinds of statistics, and it makes sense to know exactly who your players are. Use your CRM tools to ensure that you’re reaching the audience that you are after. Armed with the right data, you’ll be able to find out what’s working well, and where you need to further adjust your marketing campaigns.
A serious opportunity Women represent an amazing opportunity for online marketers who are able to appeal to them. We know that women want to be entertained, that they are online, that they are spending money and that they are strong, empowered and highly influential. Marketers who can tap this market are likely to find a great source of revenue. Women are searching for online entertainment, and given the opportunity and incentive to participate, there is no doubt that they will.
Sarafina Wolde Gabriel is Director of Marketing at Income Access. One of the most well-known and widely respected affiliate managers in the iGaming space, Sarafina can always be counted on to offer advice to affiliates and operators alike. She can be contacted at sara@incomeaccess.com.
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An affiliate’s guide to getting the most out of an iGaming conference experience. As an iGaming affiliate, you may be considering attending an upcoming conference, as an opportunity to nurture existing relationships and build new ones. Deciding to invest in this avenue, both in terms of time and money, can be well worth it for your brand recognition, your earning potential and your networking reach. Going in with an action plan is the best way to get maximum return from your investment, and to ensure that you have the tools you need to drive your affiliate business forward. To get the most out of your next conference experience, we’ll take you through some considerations for what to do before, during and after a show.
2. Do your research Many of the industry’s leading operators attend conferences and as an affiliate, you’ll want to meet with the ones that best match your business plan, vertical and marketing techniques. A great way to find out who’s going to be at a conference is to review your Message Centre in your affiliate marketing software, and then follow up with an email to your affiliate manager to set up an appointment to make sure you get some one-on-one time with the programs that matter most to you. You can also check out the conference website, where you can usually find a schedule, a list of speakers and often a specific guide just for affiliates.
3. Review your performance Pre-conference preparation 1. Set goals Affiliates attend conferences for different reasons. For some, it’s the information seminars, others the networking opportunities, while still more want to find out about the latest affiliate programs, promotions and special commission structures. Setting goals is important because it will help you structure your conference experience, allowing you to focus on the areas that matter most to you, and avoiding getting overwhelmed with all the buzz and excitement. This is especially important if you are attending an iGaming conference for the first time – so set your goals, write them down and stick to the plan.
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Before a conference is a great time to review your performance. You can use detailed reports such as the Quick Summary Report, the Earnings Report and the Player Report to determine the success of your campaigns. This way in your meetings, you can give feedback, ask for advice and get ideas for improvement. This will also give you the opportunity to see where you truly excel, so you can focus on promoting affiliate programs where you have a strong track record.
“As an entrepreneur, you invest in your business. As an affiliate, invest in yourself and you will maximise your conference experience.” professional or use a template if you must, but having something with your name and contact information is a must-do. Next is your attire and grooming. You may work from home, but you’re a professional, and what you look like speaks to this effect. You should look your best, so make sure to pack your professional attire, and for the two or three days that you’re away, tuck away your Iron Maiden t-shirt and sweats, and look spiffy. Third in the list is get some sleep – you’re going to need it. The conference may be during the day, but the after-hours parties are a great place to mingle, and tend to go until the wee hours of the morning. And last, and I can’t stress this enough, get yourself a comfortable pair of shoes. It’s hard to focus on building your business when your feet hurt!
At the conference 1. Personal branding
4. Get your essentials There are a few things that every affiliate absolutely, unequivocally needs to do before attending an event – these are your essentials. First is your business card – design it yourself, have it created by a
How you define yourself, your business strategy and personal goals strongly contributes to your personal branding, which really should be on your priority list while attending an iGaming conference. The question is, does what you say
“Going (to a conference) with an action plan is the best way to get maximum return from your investment, and to ensure that you have the tools you need to drive your affiliate business forward.” contribute positively or negatively to your personal branding? You may be new to the industry, but that doesn’t mean that your introduction should scream newbie. Your goal is to not only tell new contacts who you are and what you do, but what you do differently and better. And it may sound silly, but your introduction is something you should practice – out loud. You needn’t memorise your response, but do have a solid idea of what your unique selling point is, so that when you introduce yourself, you’re seen, and heard, as an asset to any affiliate program.
2. Learn something new We often tend to be creatures of habit. We stick to what we do best because we’re confident and comfortable, and we’re fairly certain that we won’t blunder. Conferences are the perfect place to break this habit. Go to a seminar that will teach you something completely new, will promote personal growth and will open new doors to your affiliate business. Maybe your SEO skills need fine tuning or you’re looking to make your way into social media marketing. Perhaps you want to produce a video or bring your HTML skills up to the next level. Chances are if you break out of your shell to attend something completely unexpected, you’ll get a lot more out of your experience – your pocket book will thank you.
them or to inquire further about a program. The best part of doing this through your software is that you can rest assured that your note hasn’t ended up in a Spam folder. Plus, the immediacy really speaks to your professionalism and level of urgency.
3. Review top performing creative Once you’ve been accepted into a program, you can check out the top marketing creative on the homepage dashboard of your account. This will allow you to select a specific program, and choose either ‘best’ (i.e. top converting) or ‘newest’ and get a quick list of the top five links for that program. Everyone is always very busy once they get back from conferences, so this is a quick and easy way to get the most effective links for your campaigns, and start promoting straight away.
4. Talk to other affiliates We talked about breaking out of your comfort zone when it comes to attending new seminars, and the rule applies here as well. This is a great time to meet new affiliates who promote within the same verticals as you do – as well as those who don’t. You can learn a lot from speaking with an experienced affiliate, and most often, they’re open to sharing ideas and tips. Even if you’re an experienced affiliate, fresh ideas can breed inspiration, and often those come from green affiliates. Ask other affiliates what promotional methods are working for them, what new trends they’re seeing in the industry. What are their players asking for, how are they working on player retention? How are they using social media? You can also ask them about their top marketing creative, and then use your affiliate marketing software to pull the tracking codes to see the creative.
4. Try something new While you were at the conference, we recommended you attend a seminar that taught you something completely new. Now is the time to apply this new knowledge. That doesn’t mean that you should drop all of your tried and trusted methods that have worked for you in the past, but that you can start testing out some of the new marketing techniques that you learnt to see if they are effective for your campaigns. If this feels too daunting, you might want to reach out to some of the new affiliate contacts you made, who use this new technique, and ask them how they got started. More often than not, affiliates will be happy to offer advice and guidance and at the same time this gives you the opportunity to offer your own expertise in an area where you excel. It’s a great way to achieve personal development, and perfect for nurturing new relationships.
Summary Post-conference action plan
3. Pick an affiliate manager’s brains
1. Update your contact details in your account
This is your chance to get some one-on-one time with an affiliate manager to get all the insight you can to help you build your business. What can (s)he tell you about new ways of promoting? New ways of positioning a brand you already promote? New tools? What is their relationship with operators like? With so many affiliate programmes and affiliate managers to choose from, it just doesn’t make sense to work with anyone but the best, and the most trustworthy. A one-on-one meeting will allow you to really see the calibre of the affiliate manager, and to judge for yourself if this is someone you want to partner with. Ask them about their availability and response time for emails, what resources they provide to help you move forward and how they ensure your success as an affiliate. Later, when you’re settling down at your hotel, send the affiliate manager a note from your Message Centre to thank
Post-conference is a good time to review your affiliate account details and make sure that all your contact details are up-to-date. This way, operators and affiliate managers will be able to easily reach you to follow up.
2. Apply to new operators right away We stressed in our first tip in this section how important it is for people to be able to get in touch with you after you’re back from a show and while this is true for obvious reasons, you should also be proactive about reaching out to the programs that really made a solid impression on you. Conferences often leave attendees with a surge of energy and enthusiasm – transfer that personal boost to your business and get promoting something new right away! Simply go to the “Apply to a new merchant” link in your “My Account” menu, then peruse the list of new merchants and apply.
Conferences are the perfect platform to network, learn and build your affiliate business. And when you have a goal, and a plan to get you there, conferences can be one of the best business investments you can make. Seth Godin says entrepreneurs can transform their businesses by being remarkable, by finding a way to stand out. For him, it’s about being the purple cow in a field of Holsteins. When you’re at a conference, get noticed, reach out and aim to be better than you are today. As an entrepreneur, you invest in your business. As an affiliate, invest in yourself and you will maximise your conference experience.
Nicky Senyard is CEO of Income Access, overseeing their independent iGaming affiliate network, market-leading affiliate software and expert affiliate management services.
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Utilising and Maximising Video on Mobile platforms It was inevitable. Make phones smart enough and powerful enough and sooner or later, someone will find a way to push advertising onto them. Annual US mobile ad spending today is between $400 and $600 million. The Kelsey Group, a market research firm, projects that the mobile advertising market will balloon from $160 million in 2008 to $3.1 billion in 2013. Jupiter Research estimates it will reach anywhere between $4 billion and $5.7 billion by 2014. Cisco predicts that mobile traffic will double each year over the next five years with 66 percent of that traffic accounted for by video. With the rise of web phones like the iPhone, Android, Blackberry and Palm (Verizon’s CEO says that 40 percent of its new phone sales are such Smartphones), mobile advertising promises to be a huge growth area.
Why mobile ads? Jupiter Research said the response rate for mobile advertising has been higher than alternative methods, and mobile Internet will be the most popular method of delivering mobile ads. For companies and ad agencies looking to get more of their message across to potential customers, mobile advertisement is a new and powerful tool. In my previous article about ‘Video Content Monetisation for Affiliates and Advertisers’ (iGB Affiliate Magazine December/January 2009/10), I talked about the growing popularity of online video. Advertisers understand the power of video, and that people who see a video in a rich media ad are simply more likely to make the purchase. Rich media ads containing video appear to increase purchase intent. So, do the math and you’ll see that it’s not a question of if… it’s a question of when. When will we see a growth and monetisation of video ads and content on mobile platforms?
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Utilising video on mobile platforms Online advertising providers use sophisticated ad-targeting and ranking algorithms with the dual aim of maximising revenue while providing a superior user experience. Internet marketing places an emphasis on targeting: marketing that appeals to a specific behaviour or interest, rather than reaching out to a broadly defined demographic. Online and Offline marketers typically segment their markets according to age group, gender, geography, behaviour and other general factors. Mobile websites are springing up by the minute, and the majority of consumers have mobile devices on them nearly all the time. The device is personal, and the ‘always-connected’ nature of it gives the advertiser the opportunity to serve better targeted video ads, based on a user profile and preferences, as well as the geographic location of the user at any given moment. So if you are wandering through New York City, London or Timbuktu and feel like a pizza, you can Google a pizza place on your Smartphone. A contextual ad of the nearest pizza place will pop up on your Smartphone’s screen, and if it’s a video that shows the hot fresh pizza coming out of the oven, you’re likely to be on your way there before the video is even over... As for monetisation, the advertiser knows that his ad is being delivered to the right target audience, using sophisticated location and preference-based targeting, so he pays more for that kind of ad with higher conversion probability, even more than on a website, where the targeting is more general. Smartphones keep getting ‘smarter’ and more useful. Now they’re turning into mobile TV broadcasting stations. With a high-speed mobile broadband network and a high quality wide screen which
makes it easier to watch video on, people use their Smartphones to watch the news, videos on YouTube, and much more. There are even Smartphones that are all about entertainment and come pre-loaded with movies, such as the HD2 by Sprint. It is now even possible to convert (in terms of size and resolution) into formats suitable for movies and TV shows for Microsoft Windows Mobile Smartphones and iPad devices! So, if the Smartphones are perfect for videos, and as the majority of web video viewers have no problem with ads (eMarketer poll), then given the fact that advertising on mobile is highly targeted, it’s only natural that video ads will show up. And it’s not just about ads; companies are monetising their video content and adjusting it for viewing on Smartphones. Sports Illustrated, for example, is looking into monetising its mobile content. The publication recently released an iPad version of its magazine, which is being offered as both a free and paid application. Sports Illustrated also finds Apple’s iPad to be a game changer and thinks the device will revolutionise the way that the company will monetise its content. As for the iPad, it’s a bit different from Smartphones. It’s actually the first e-reader to offer a full colour display and a screen close in size to the standard magazine page size, and it has a potential to link to ad servers to offer ads customised for the individual reader. The iPad allows advertisers to use their existing standard-size marketing material, drastically reducing the cost of launching an iPad-based campaign. Until now, any advertiser wanting to reach consumers on a mobile device had to contend with a very small screen size and a variety of layouts with which to display their advertising and
catalogues. It limited the effectiveness of the advertising and included the additional cost of creating or modifying existing material to fit to different screen sizes and layouts. The iPad changes the entire layout cost equation in advertisers’ favour. So what’s easier than broadcasting video content on the iPad, and having your favourite shows, videos and movies on the go?!
Monetisation of mobile video – role of networks Publishers want to turn their video traffic into a revenue generator, but without ads, it becomes a cost centre. Advertisers are clamouring to reach the eyeballs that are increasingly focused on video served to mobile devices, but lack the ability to do so with scale. Ad networks and platforms sit in the middle, needing to provide the same functionality in the mobile space as their standard web-based video products do today. The video ad networks and ad management platform vendors are the glue that bonds together the publishers and advertisers. Therefore, both advertisers and publishers should consider carefully with which network to work. It has to have experience on both the marketing and
the technical side, and the tools to enrich the videos by adding ‘trackable’ links and action-based layers, amongst others. Special attention needs to be given to the technical aspect of things. Both advertisers and publishers should be aware that there are various available mobile platforms and there is a need to prepare content in appropriate formats, resolutions and frame rates, detect the mobile platform type and deliver the content in the appropriate format. So the choice should fall on a network/ agency that also understands video and the technology behind it, so that the ads will be in the right format and will be delivered where they can be watched.
Summary Mobile gets better, bigger and faster. According to a recent article from Adweek, the shift in mobile ad spending in the US is attributable primarily to growth in mobile web usage. Mobile web browsing used to be a basic, irregular experience due to less sophisticated handsets, slower networks and prohibitive consumer pricing. The age of Smartphones and unlimited data plans has changed that. If better web browsing and the personal
nature of the mobile device were not enough to convince an advertiser that this is the place to be, understand this: the phone knows where you are. Advertising using this channel is more relevant, personal and targeted, allowing the consumer some sense of control and the notion that they are driving the experience rather than simply being served. This, in turn, increases the likelihood of conversion and the spending of actual money, which is the obvious end game of all advertising. Add to that the high conversion of video advertising and content, and you have a successful formula for utilising and maximising video on mobile platforms. Liat Fuchs is a Marketing Director at AffiliatePLY.com, a video based ad network. AffiliatePLY is a new and unique concept, delivering videos on performance base (view, lead, sale, etc), as well as CPM, and monetising videos for both advertisers and publishers. Liat has been in the online affiliate and marketing industry for over five years. Liat has a BA degree in Political Science and Asia Studies from Tel Aviv University, and an MBA with marketing orientation from The College of Management, Israel.
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Dominique, Founder of Games and Casino, explores Affiliate Guard Dog and the truth behind why affiliates need it. ANDY MUELLER STARTED Affiliate Guard Dog (AGD) in 2006 to fill a void in the information available to affiliates. AGD tracks the T&C (Terms and Conditions) in contracts between affiliates and affiliate programs. If there are any changes, AGD will flag and evaluate these.
AGD terms watch Affiliate terms can vary widely from program to program and affiliates take them very seriously, considering them a binding contract, same as any other business arrangement. Unfortunately, it has occurred that programs change the terms of the contract without informing affiliates, or in a manner where it seriously impacts the way affiliates conduct business. When these things occur, Affiliate Guard Dog will detect these changes, analyse them and inform affiliates.
AGD certification AGD also evaluates existing terms and applies various labels regarding their affiliate friendliness. The following categories exist: ● Terms and Conditions certified by AGD as ‘affiliate-friendly’. ● Terms and Conditions are considered ‘predatory’ (not good for affiliates). ● Terms and Conditions are certified but have a warning on one of the terms. ● Terms and Conditions have not yet been reviewed. ● Warning – new affiliate program. No proven track record. ● Program is closed/out of business. ● Program bundles earnings on its
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casino properties. ● Program carries over negative earnings. ● Program pays its affiliates consistently
on time. ● Program pays late or irregularly.
Programs can be listed with the symbols for one or more of these categories. This can be very helpful to affiliates when choosing new programs to promote.
Affiliate payments service The calendar allows AGD members to keep track of affiliate payments easily and with good statistics. The additional benefit of the calendar is that the affiliate programs each have a payment statistics section in their forum, which provides information as to when a specific program typically pays. Entering payments received is very simple. First, a payment method is selected, then the program is selected and simply dragged onto the date. Retrieving payment info is also very easy; just hover over any date on the calendar to see what affiliate payments were made on that day.
AGD stimulus package Also known as a mentorship program, the AGD Stimulus Package is here to stimulate potential affiliates into giving casino affiliate programs a chance at earning you money. This program is free of charge. The only cost to the new affiliate would be to purchase a domain name. What AGD will provide for free: 1. A place to host your website. 2. A Year’s free hosting...
3. A free template. 4. Keyword targeting so that no time is wasted trying to rank for keywords that are way too competitive for a new site. 5. Simple logo design. 6. SEO help
What does AGD expect from participants? AGD expects participants to have the ability to learn from what is taught. AGD is not here to do your work, only to show you how. AGD expects participants to use AGD certified programs on their website for the beginning phase of mentorship.
AGD translation service AGD has recently released an expansive translation service for use by its members. This service offers a wide variety of translations with over 80 languages to choose from. All translations are performed by real translators who natively speak the language the document will be translated into. Translation quotes/costing are performed based upon several key factors: ● The amount of text that needs to be translated. ● The language to be translated into. ● The translator’s cost factor. All translations are guaranteed by AGD. The translators are of the highest quality, but certainly, any article/page/document will be re-translated upon request if the translation is found to be unacceptable. (AGD does not expect the need to use this guarantee, but it is there for member safety.)
INTERVIEW WITH ANDREW MUELLER, FOUNDER, AFFILIATE GUARD DOG “Affiliate terms can vary widely from program to program and affiliates take them very seriously, considering them a binding contract, same as any other business arrangement.”
TO FIND OUT more about the nuts and bolts of Affiliate Guard Dog, Dominique spoke to founder, Andrew Mueller. D: What made you decide to found AGD? AM: In 2006, many affiliate programs were introducing what we now call ‘predatory terms’. Such terms usually dictate a specific number of clicks or players prior to any commissions being paid. These clauses were being retroactively introduced at the time and the trend was alarming to both big and small affiliates alike. D: AGD also has a forum. What sets it apart from other forums? AM: We try to keep our forums very friendly, conversational and professional. Additionally, within the forums it is clearly displayed which affiliate programs are ‘friendly’ and which are not. It is a great way to quickly identify programs you would like to work with.
D: Do you plan to develop more services? AM: Yes, very soon there will be two additional services added to the forums. One is currently under testing and the other will be right on its heels. D: What are your thoughts on the future of the gambling affiliate business? AM: There will always be a place for affiliates. I believe there will be organizations who will limit the commissions (possibly US, wellestablished, land-based casinos), but there most certainly will be some affiliate involvement if they wish to gain a new player base. D: And what does the future hold for AGD – should we be keeping our eyes out for new updates? AM: Absolutely, watch AGD for the upcoming services; I think you will enjoy what we are cooking up.
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MARKETPLACE
Welcome to the MarketPlace listings section in iGB Affiliate Magazine. All Listings below are from our iGB Affiliate Directory 2010 which is a 200 page directory of affiliate programs and services companies specifically for affiliates from translation to SEO services. To request a free copy of this publication or to have your company listed please contact Richard W on Richard@iGamingBusiness.com or +44 (0) 207 954 3437
ADVERTISING AND MARKETING
888.com
PartnerLogic
Netgaming Services
www.888.com
www.partnerlogic.com
AffiliateClub
PartyGaming
www.AffiliateClub.com
www.partygaming.com
BetOnMarkets (Regent mkts)
Affiliates United
Refer Income
Affiliates.BetOnMarkets.com
www.affutd.com
www.referincome.com
Income Access
Bet365
Slots N Games
www.incomeaccess.com
www.bet365.com
www.slotsngames.co.uk
NEO Games
Betfair
Tipico
www.neogamespartners.com
www.betfair.com
www.tipico.com
ChanceAffiliates
Tower Gaming
www.chanceaffiliates.com
www.towergaming.com
Circus Casino
Virgin Games
www.circuscasino.com
www.virgingames.com/affiliates
EGO
Winner Affiliates
www.EGamingOnline.com
www.winneraffiliates.com
www.netgameservices.com
ALTERNATIVE GAMING
BINGO AFFILIATE PROGRAMS Affiliates United www.affutd.com Bet365 www.bet365.com EuroPartners www.europartners.com GamblingB2B www.gamblingB2B.com Income Access www.incomeaccess.com Ladbrokes www.ladbrokesaffiliates.com Maria Partners www.mariapartners.com Market-Ace www.market-ace.com Paddy Power www.paddypowerbingo.com PAF www.paf.com StarGames www.stargames.com Virgingames www.virgingames.com/affiliates Virtue Affiliates www.virtueaffiliates.com
CASINO AFFILIATE PROGRAMS
EUCasino www.EUcasino.com EuroPartners www.EuroPartmers.com Fortune Affiliates www.fortuneaffiliates.eu GaminGang www.gamingang.com Genting www.gentingcasino.com Income Access www.incomeaccess.com Intertops Casino
All in Translations
www.intertops.com
www.allintranslations.com
Kerching Casino
Burstin Group
www.kerchingaffiliates.com
www.burstingroup.com
Ladbrokes
NetGames Services
www.ladbrokesaffiliates.com
www.netgameservices.com
NetGames Services www.netgameservices.com
EMAIL MARKETING
PaddyPower Casino www.paddypowercasino.com PAF www.paf.com
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CONTENT & TRANSLATION SERVICES
Altex Marketing www.altex.ee Cheeze DMG www.cheezedmg.com
Clash-Media
Chance Affiliates
Paddy Power
http://www.clash-media.com
www.chanceaffiliates.com
www.paddypower.com
Communicator Corp
Circus Poker
www.communicatorcorp.com
www.circuspoker.co.uk
Epsilon International
EGO
http://www.epsilon.com/uk
www.EGamingOnline.com
Silverpop
Eurobet
www.silverpop.com
http://affiliates.eurobet.com
FOREX AFFILIATE PROGRAMS BetOnMarkets www.affiliates.betonmarkets.com Forex Yard www.forexyard.com
EuroPartners www.EuroPartmers.com Gutshot.com www.gutshot.com Intertops www.intertops.com
HOSTING & MANAGED SERVICES CSB www.csbgroup.com Income Access www.incomeaccess.com NetGames Services www.netgameservices.com
Ladbrokes Poker www.ladbrokesaffiliates.com Paddy Power Poker www.paddypowerpoker.com PartnerLogic www.partnerlogic.com PKR.com
PAYMENT SOLUTIONS Counting House www.countinghouseltd.com EntroPay www.entropay.com
www.pkr.com Virgin Games www.virgingames.com/affiliates Winner Affiliates www.winneraffiliates.com
Intercash www.intercash.com MoneyBookers www.moneybookers.com
POKER AFFILIATE PROGRAMS 888.com www.888.com
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Getting IT Support for Your Landing Page Test You want to run a landing page test and make more money for your company. It seems like everyone should want to support you in this important endeavour. However, you have to first understand and get the cooperation of your IT staff. The information technology (IT) people in your company may be concentrated in a department of the same name. But they can also encompass anyone with a primarily technical background or role. This potentially includes the webmaster, programmers, system administrator, and your hosting company (if you outsource this function).
IT people like to say no, especially to marketing people The gulf between marketing and IT within a company can be wide. The mindsets of the two groups of people are fundamentally different. IT people often see themselves as the high priests of technology and try to keep marketers completely away from their domain. IT staff members are often legitimately busy and overwhelmed. Since their support is often requested (or demanded) by many people in the company, they have developed a multilayered defence strategy. Even if they don’t directly refuse a request for assistance, they can effectively block progress by a series of escalating responses. Common policies and tactics include:
Technical feasibility determinations If the IT staff don’t want to work on a project, they can examine the proposed underlying technology and declare it unfit for some reason. They might insist that it cannot be effectively integrated with existing technologies or systems. In landing page optimisation, this approach is commonly used to disqualify the testing tool technology. Since the reasons for the objection are often highly technical, few marketers can muster the necessary ammunition to counteract it. Common reasons for rejecting technologies include incompatibilities, noncompliance with security policies, additional load placed on networks, increased page load times, and dependencies on the testing software company’s servers for serving some of the landing page content elements. Luckily, most testing companies have come up with non-invasive approaches to
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testing. The only underlying technologies required are JavaScript (a scripting language available in all popular browsers) and the setting of first-party cookies (allowed by the vast majority of Internet users). With many approaches, the alternative tuning elements can remain in the client’s original web server environment (created server-side), without adding any JavaScript to the page itself. Uptime levels and response times (collectively referred to as ‘availability’) can also be guaranteed or effectively addressed.
Scheduling and resource allocation IT staff may insist that since your project wasn’t scheduled during the last planning cycle it will have to go to the back of the line. In addition, IT managers may insist that since no resources were allocated, the project will have to wait until the next budget cycle.
Operational policies Most landing page optimisation projects don’t require a lot of IT support time, but they often involve a number of small interrupt-driven tasks. IT has the power to bring the project to a virtual standstill by insisting that detailed, time-consuming, and labour-intensive systems be used to interact with their staff. There are many names for these systems, including ‘change requests’, ‘trouble tickets’, and ‘issue tracking’. Their use is appropriate for larger projects (so component tasks will not be overlooked), but they can be overkill when the required changes can be addressed within a few minutes by the IT staffer. In such cases, a small request for help can be tied up for days or weeks in the system without resolution. If this happens repeatedly, it can throw off a landing page project by many weeks. Common ways to proceed in the face of IT-delaying tactics include the following:
Work on a landing page outside of IT control It’s often difficult to get permission to change parts of a company’s main website.
However, many marketing programs use standalone landing pages or microsites that aren’t connected to the main site. In many cases, such landing pages have significant inbound traffic and are controlled by the marketing department. Since you can control many of the traffic sources for the landing page test, you can redirect their traffic to anywhere you like.
Get a project-based support commitment You can often get a specific IT staff member assigned to you for the duration of your project. As long as you can guarantee that the individual will be used at only a small percentage of the person’s total time availability and for a short duration, you can often get IT approval. These kinds of arrangements transfer the person nominally to your team (or have that person remain under joint jurisdiction). This allows you to bypass many of the IT procedural requirements and have the IT staffer complete your tasks with minimal delay.
Prioritise projects based on financial impact If you properly lay out the financial case for your landing page test, you may be able to show the potential for a large profit impact on the company. In many cases, IT projects are prioritised based partially on this criterion. By focusing on the financial impact, you may be able to reprioritise your project to the head of the IT queue.
Tim Ash is the CEO of SiteTuners.com, a landing page optimisation firm that offers consulting and conversion improvement tools. He is the chairperson of ConversionConference. com and a speaker at events worldwide. Tim is a contributing columnist at many publications and author of Landing Page Optimization.
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