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How to avoid affiliate marketing failures in 2024

Vasily Levenstam
April 9, 2024
9 min
405

Affiliate marketing, an essential part of the iGaming ecosystem, is evolving at a rapid pace. Regulatory changes are creating both new opportunities and new challenges, making it more important than ever to adapt to new realities. Let’s take a look at how you can avoid problems in affiliate marketing in different regions, and the best approaches to affiliate marketing in the face of changing regulation.

What is affiliate marketing?

Affiliate marketing is a commonly used and highly effective marketing strategy that focuses on yielding tangible results.

There’s an old adage that half of your marketing budget is wasted — you just don’t know which half. Affiliate marketing is, verifiably, the half you _didn’t _waste.

Affiliate marketing has long been the keystone of online casino and sportsbook marketing.

In this strategy, affiliates create content that enables them to build a large audience. Then, they direct their audience to their partner’s sites, and earn a commission for the players they refer.

When a user clicks on a unique link provided by an affiliate and makes a deposit or places a bet, the affiliate receives a certain commission percentage of the payment amount according to a pre-agreed payment plan. With the increasing popularity of online gambling and betting, affiliate programs are becoming an integral part of the marketing strategy in this industry, providing a mutually beneficial cooperation for all parties involved.

Why is affiliate marketing important for promoting an iGaming company?

Affiliate marketing plays a key role in the promotion of iGaming companies for several reasons. Firstly, it provides a constant stream of targeted traffic to gambling platforms, which is vital for attracting new players and retaining loyal ones. This is especially relevant in markets where there are restrictions on gambling advertising in traditional media such as television and radio.

In addition, affiliates help to increase brand awareness and improve brand identity. Even players who don't actually visit the casino site can still potentially encounter the brand through affiliate promotional materials. This is especially important in today's digital world, where brand recognition plays a pivotal role in determining a brand's Search Engine (SEO) ranking and reaching new customers.

Affiliate marketing allows iGaming businesses to expand their market by working with a wide range of partners who have their own unique audiences. This lets you reach new market segments and attract players that might have remained inaccessible without this type of marketing.

And finally, affiliate marketing offers iGaming companies the opportunity to use a variety of marketing channels and strategies that can be effective in attracting different categories of gamers.

Affiliate marketing in various regions

All countries of the world are divided into 3 categories (Tiers). In affiliate programs it is common to classify countries into Tier 1, 2 and 3. Tier 1 includes the most developed and advertiser-friendly countries. Tier 2 is made up of middle-income countries with developing economies. Tier 3 consists of countries where there is plenty of low-cost traffic, but the people have comparatively lower purchasing power. Operators turn a profit here due to a high volume of low-value bets.

Affiliate marketing in Tier 1 markets is considered highly regulated and competitive, subject to strict laws and regulations. Affiliate partners need to adhere to high advertising standards and comply with licensing requirements. Regardless of the challenges, Tier 1 markets have tremendous potential due to their large consumer base and high paying audiences.

Tier 1 countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Luxembourg, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, United Kingdom, United States.

In Tier 2 countries, regulations governing affiliate marketing are generally less strict when compared to Tier 1, but there are still certain restrictions and requirements that need to be followed.

Tier 2 countries: Andorra, Argentina, Bahamas, Belarus, Bolivia, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, China, Colombia, Costa Rica, Cyprus, China, Colombia, Costa Rica, Dominican Republic, Dominican Republic, Greece, Guyana, Hong Kong, Hong Kong, Hungary, Iceland, Indonesia, Israel, Iceland, Kazakhstan, Kazakhstan, Latvia, Lithuania, Macao, Malaysia, Malta, Mexico, Morocco, Nepal, United Arab Emirates (UAE), Vanuatu, Montenegro, Oman, Panama, Paraguay, Peru, Philippines, Poland, Portugal, Puerto Rico, Republic of Korea (South), Chile, Croatia, Czech Republic, Ecuador, Estonia, Fiji, Romania, Russian Federation, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa (South Africa), Thailand, Turkey, Uruguay.

Tier 3 countries are typically emerging economies that don’t have the most outstanding infrastructure. These countries may have less strict regulation of affiliate marketing than Tier 1 and Tier 2 countries, but they may also impose certain limitations and guidelines. Restrictions may include a ban on the use of unethical practices to attract players and requirements to comply with the rules of responsible gambling.

Tier 3 countries: Albania, Azerbaijan, Algeria, Angola, Armenia, Bangladesh, Barbados, Bahrain, Belize, Benin, Botswana, Burkina Faso, Burundi, Vietnam, Gabon, Guatemala, Haiti, Cambodia, Cameroon, Cape Verde, Comoros, Congo, Comoros, Egypt, Guinea, Georgia, Honduras, India, Iraq, Jordan, Kenya, Kuwait, Kyrgyzstan, Lao PDR, Zambia, Chad, El Salvador, Ethiopia, Lebanon, Lesotho, Madagascar, Macedonia, Mali, Mauritania, Mongolia, Mauritius, Mozambique, Moldova, Namibia, Nicaragua, Niger, Nigeria, Pakistan, Senegal, Suriname, Sri Lanka, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Tunisia, Turkmenistan, Uganda, Ukraine, Uzbekistan, Sri Lanka, Swaziland, Tajikistan, Tanzania, Togo, Trinidad and Tobago, Uzbekistan.

Regional specifics of affiliate marketing

Asia

Asia is a diverse and dynamic region for affiliate marketing in the iGaming industry. While some countries, such as the Philippines and Macau, have a well-developed gambling industry, others may have strict regulations or a complete ban on gambling. Affiliates operating in Asia have to navigate complex regulatory conditions and varying cultural attitudes. Marketing managers have to employ strategies that prioritize mobile channelization, collaboration with opinion leaders, and compliance with local laws — all of which are essential to success.

Africa

Affiliate marketing in Africa is still in its early stages, but is already showing significant potential. With the increasing availability of the internet and the spread of smartphones, the continent is opening up opportunities for affiliates to reach a fast-growing market. However, factors such as regulatory uncertainty, payment processing difficulties and the cultural diversity of the region need to be taken into account.

Latin America

Localizing content to suit audience tastes is essential in Latin American markets. Working with local affiliates who have a deep understanding of the regional market helps to better customize marketing campaigns and achieve higher conversion rates. Given the strict regulation of gambling in some Latin American countries, it is important to comply with local laws and advertising restrictions to avoid negative consequences.

Europe

One of the important parts of affiliate marketing in Europe is the use of a variety of channels to build audiences. Using a variety of channels helps to diversify and increase the flow of traffic to the partner's site, which helps to increase conversion rates. Each country has its own rules and restrictions regarding the advertising and promotion of gambling. Partners need to carefully research and comply with local laws and regulations to avoid violations. Affiliate marketing in Europe is a dynamic and competitive landscape where effective strategies and a professional approach can ensure significant business success and growth in the iGaming sector.

Our APIgrator solution enables operators to integrate over 15,000 certified games from more than 100 licensed game developers into their platforms. By offering certified games, operators can foster player trust and boost retention, promoting responsible gaming by providing a fair and reliable gaming environment.

In 2024, gambling companies will continue to partner with influencers and other internet celebrities. These partnerships will be increasingly effective methods of attracting new audiences, promoting products, and increasing brand awareness.

Loyalty programs and other ways of enhancing the user experience will also be essential for the promotion of gambling websites.

In addition, the development of partner relationship management software will be a major priority. It will help improve usability for affiliate partners and enable better communication between companies and affiliates.

Key components of a successful affiliate program

Let’s go over what to look for in an affiliate program.

The first level is the quality of the content the affiliate creates. It’s important to make sure your affiliate partners not only have large volumes of traffic, but that the traffic itself is high-quality.

If it’s a blog, are there well-written, insightful articles? Players trust blogs that dispense real wisdom. Does the blogger give good tips for how to play casino games or what matches to bet on (and how to bet)? If it’s a streamer, is the video in HD or 4K, and does the streamer have the kind of charisma that keeps people watching?

Quality content will lead to 1) a large audience, and 2) a knowledgeable audience — one that’s more likely to actually play themselves.

Next, look at the regulations the affiliate or affiliate program might be subject to. No matter how large their audience is, if they run afoul of the law and get blocked in their target market, their audience will disappear overnight — taking your stream of incoming players along with it.

After you’ve signed up for a partnership, don’t just forget about it and just assume that it works. You need to conduct ongoing analysis of the size and quality of traffic the affiliate is delivering you.

This is especially important if the affiliate expects a commission for every sign-up. If the affiliate is getting paid for every player they send your way, the players need to stay for a while for it to be worth it.

That’s part of why it’s so common to opt for the revenue share, or revshare, model of affiliate compensation, where affiliates receive a percentage of the lifetime losses of players that they send in your direction. The revshare model encourages affiliates to build up the kind of audience who don’t just watch, but will actually play themselves.

How can Slotegrator help?

Partnergrator from Slotegrator offers a solution for online gambling platform operators who face difficulties in tracking their affiliate program data. This innovative solution provides the ability to manage and analyze affiliate programs in real-time, using analytics to simplify the decision-making process.

Partnergrator operates on a single protocol that processes and segments data, allowing operators to efficiently track and manage affiliate programs. Integrating multiple affiliate systems, managing data, developing affiliate campaigns and marketing materials, and creating commission models are all available through a convenient back office interface.

Contact us for a free consultation and find out how Partnergrator can help you increase your website traffic and revenue by making a loyal player base.

Additionally, you can explore the modules and features of a turnkey online casino platform{:target="_blank"} to learn how they can help you effectively manage and analyze data from your iGaming project.

Vasily Levenstam
Vasily Levenstam
Content creator
With years of experience in iGaming content creation, his role at Slotegrator revolves around a dedicated commitment to thorough research and analysis of new trends. By staying informed about regulatory and technological developments in gambling industry, Vasily is dedicated to providing readers with the latest and highest-quality content, aiming to enhance and support clients and partners in the dynamic iGaming landscape.

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