Online gambling has exploded in popularity over the last decade. As more jurisdictions legalize and regulate online casinos, the industry continues to grow at a rapid pace. In 2020, the global online gambling market was valued at over $66 billion. That number is projected to surpass $100 billion by 2027.
A key driver fueling this growth is affiliate marketing. Affiliate programs connect online casinos, like SugarCasino, with publishers who can promote their brands and products. This performance-based arrangement benefits both parties. Casinos acquire new players in a cost-efficient way. Publishers earn commissions for generating traffic and sales.
Affiliate marketing has become an essential customer acquisition strategy for online casinos. Let’s examine why affiliates have become so instrumental in promoting and marketing internet gaming sites.
Rise of Affiliate Marketing in Online Gambling
Affiliate marketing has its roots in the 1990s dot com era. Amazon pioneered the concept by creating an associates program where websites could advertise its products in exchange for a cut of the sales. This performance-based approach aligned incentives between the merchant and affiliate marketer.
The online casino industry was quick to adopt the affiliate model. In the early 2000s, leading internet gaming brands launched affiliate programs to tap into this new promotional channel. The shared revenue approach provided a win-win for both operators and publishers.
Over the past two decades, casino affiliate programs have grown more sophisticated. Networks connect thousands of affiliates with hundreds of gaming sites. Advanced tracking technologies precisely attribute new sign-ups and deposits to specific affiliates. Payment models now include CPA, hybrid, and revenue share options.
As the internet gambling industry has grown, so has the role of affiliates. Today, affiliates are responsible for funneling a substantial portion of players to online casino sites. Let’s look at why affiliates have become so instrumental.
Why Affiliates Are Critical for Player Acquisition
There are several key reasons why affiliates have become the dominant promotional channel for online casinos:
- Cost-Effective – Affiliates provide an efficient way to acquire players at scale in a purely performance-based model. Merchants only pay when affiliates generate real customers.
- Targeted Reach – The affiliate channel provides access to publishers with very targeted audiences interested in online gambling. This includes review sites, streaming channels, forums, and more.
- Trust & Credibility – Many affiliates build strong trust and credibility with their audiences. Their recommendations convert at a high rate.
- Automation – Affiliate networks provide a turnkey system to manage thousands of partners. Tracking and attribution technologies handle payments.
- Innovation – Top affiliates constantly test and optimize new customer acquisition strategies ranging from content marketing to social media ads.
According to a poll conducted by AffPapa, over 80% of iGaming operators now get more than 20% of their total new sign-ups from affiliates. The largest online bookmakers and casinos generate 60-80% of new players through their affiliate programs.
This heavy reliance on affiliates for customer acquisition is expected to continue as the industry matures. Affiliates provide online gaming brands instant access to proven promotional channels that deliver ROI.
Top Affiliate Marketing Tactics for Online Casinos
Affiliates leverage a diverse mix of strategies and traffic sources to promote online casino brands. Here are some of the most common and effective affiliate marketing tactics:
Review Websites – In-depth reviews of online casinos make up a popular affiliate model. These sites provide ratings, comparisons, and recommendations to guide players.
Bonus & Deal Content – Articles and videos showcasing the latest casino bonuses and promotions convert extremely well. These capitalize on players seeking the best offers.
Streaming – Live streams and videos with casino promotions attract engaged viewers. Streamers promote offers and share referral codes.
Paid Ads – Facebook, Google, and native ads allow affiliates to precisely target interested users across the web. Retargeting ads remarketing to visitors.
SEO – Ranking informational articles and comparison content for popular gambling keywords nets targeted organic traffic.
Email Marketing – Sending promotions, deals, and content to subscribers generates low-cost high-converting sign-ups.
Social Media – Active social media accounts promote offers and build engaged followings for future marketing.
The most successful casino affiliates use a blended approach across multiple platforms. Creating diverse income streams protects against issues with individual traffic sources.
Key Factors for a Successful Affiliate Program
For online casinos, building a thriving affiliate program is critical for scalable customer acquisition. Here are some key factors for success:
- Competitive Commission Rates – The revenue share or CPA rate must be lucrative enough for affiliates. Top programs offer 30-50% revenue share.
- Big Brand Selection – Having a wide range of top-tier gaming brands and variety keeps affiliates engaged long-term.
- Timely Payments – Affiliates expect fast monthly payments. Slow payments will churn affiliates.
- Dedicated Account Managers – Hands-on account managers provide support and help affiliates maximize earnings.
- Compliance Monitoring – Programs must actively monitor affiliates for compliance issues to avoid penalties.
- Conversions Optimization – Improving registration and deposit conversion rates increases affiliate earnings.
- Reporting & Analytics – Robust analytics help affiliates track performance and optimize their campaigns.
Future of Casino Affiliate Marketing
Affiliate marketing is poised to continue growing its role in the online gambling industry. As more markets regulate and new technologies emerge, affiliates provide a scalable, cost-efficient customer acquisition channel.
Expect more casinos to shift their marketing budgets towards affiliates to reduce risk and increase ROI. Turnkey affiliate platforms will make it easier for smaller operators to launch and manage programs.
Regulation will also impact affiliates. Some jurisdictions are introducing stricter requirements around transparency and compliance. However, properly regulated markets provide more opportunities for affiliates in newly opened markets.
Overall, affiliates will likely consolidate their position as the dominant promotional channel for online casinos for years to come. The performance-based model aligned incentives between operators and marketers. This win-win approach will be a key driver fueling the growth of internet gambling worldwide.
