Brand image or software: what is more important to an online casino? Results of the panel discussion at Kyiv iGaming Affiliate Conference
On November 15, the panel discussion dedicated to Affiliates in iGaming was held as part of the specialized conference in Kyiv. The participants included:
- Levon Nikoghosyan (moderator) – CEO at a subsidiary of EveryMatrix and its affiliate PartnerMatrix;
- Mikhail B. – Head of Affiliates at an online casino Zodiacu;
- Nik Rudenko – Chief Marketing Officer at a betting company FavBet;
- Danil Kuprin – Co-Founder at Cash-Mates marketing agency;
- Johannes Nordholm – Head of Business Development at Voonix.net, a platform for affiliate program management.
Follow the article to find out the results of the panel discussion.
Tendencies in commission for reactivated players in 2018-2019
Most affiliates are paid not only for newcomers and high-rollers but also reactivated players who were out of gambling within a certain period of time and then returned to the game. The discussion participants found out who earns more profit from reactivated users – operators or affiliates.
Mikhail B., Head of Affiliates at an online casino Zodiacu, thinks that such a policy that is profitable to affiliates and threatens operators.
“Affiliates are more likely to benefit from reactivated players than operators because the price of affiliate traffic buying is pretty high. Additional expenses on reactivated players reduce the operator’s margin,” tells Mikhail.
Danil Kuprin, Co-Founder at Cash-Mates marketing agency, shared the opinion of his colleague.
“Operators should take into account a technical aspect of this issue – track such players and provide affiliates with feedback on those who were reactivated as well as who can be targeted once more. Certainly, for an affiliate, reactivation is easy money. However, it wouldn’t affect a cash flow in a positive way,” reckons Danil Kuprin.
Nik Rudenko, Chief Marketing Officer at a betting company FavBet, recommended undertaking drastic measures to solve the problem of reactivated players.
“I believe it’s not a good idea to ask affiliates to reactivate players: it’s up to operators. They have to set retention within the company, fully understand players and their behavioral patterns making them loyal.”
“I can give a good example from the telecoms sphere. If someone does not use Vodafone’s services, it mostly doesn’t mean that he or she passed away. They just found another operator with better conditions. The task of a casino is to present various internal offers to players and make friends with them so that no problems arise between an affiliate and this player,” claims Nik.
Nik also recommends paying attention to lifetime value – a net profit attributed to the entire future relationship with a customer.
“Concerning the CIS market, our average income out of every client is €300. We should understand at which stage a client is: how much we have made and what aspects are to improve. Roughly speaking, one affiliate performed a piece of work, paid for a player who later gave up playing. It is an internal service to blame, not an affiliate,” tells Nik.
What is more profitable to an operator – CPA or RevShare?
The participants of the discussion agreed that the choice between CPA and RevShare models is pretty difficult because each side may face certain risks: for both operators and affiliates.
“For an operator, RevShare may be quite risky while CPA would bring more profit. On the majority the markets we target, partners use either hybrid deals or CPA,” answers Mikhail B.
As reported by Nik Rudenko, trusted and transparent cooperation between operators and affiliates is a basis of affiliate programs.
“Fraud will always be part of a market. Of course, CPA is the safest market model. However, the affiliate market is not that big as it may seem to be. Actually, those who work in the industry know each other. Casinos that have been operating on the market for six-seven years in fact deal with the same affiliates,” comments Nik Rudenko.
What affiliates pay attention to when choosing a program
participants of the panel discussion singled out the aspects important to an affiliate who choses a program. The answers proved to be different.
“In my opinion, first of all, affiliates pay attention to transparent statistics and postback. They mainly look for a licensed version, not unknown software,” claims Mikhail B.
Let’s not forget about brand confidence. Nik Rudenko demonstrated its importance to casino’s revenue on his own example.
“Once, I had traffic on Sweden. I asked the team about the CPA. They said: “€400”. At the same time, I was working with a company with an established market presence and pretty high brand awareness. Its CPA was €175. So, my own brand had better results also showing high brand awareness: I earned more with the lower CPA. You do not have to chase tools, they are not the most important thing. In terms of an online casino, a brand is of more importance than soft,” concludes Nik Rudenko.
However, you do not need to neglect unique software: it can help both attract and retain clients.
“Our latest upgrades: registration goes with a quest that grants bonuses. Players can use them in a game. We noticed that it made a big profit. Gamification is the future of an online casino,” concludes Mikhail B.
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