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John Wright, co-founder of StatsDrone, offered his predictions for the iGaming affiliate space in 2024 and beyond. What does he see happening?
- Some of the largest affiliates will continue record growth (you know who you are)
- Some mid sized to larger affiliates will stall, if they haven’t already
- Smaller hungrier affiliates will rise up fast
- Affiliate networks will become more prominent
Some of the bigger gambling affiliate networks - Better Collective and Gambling.com - have secured $150 million and $50 million, respectively. Funds are intended for Mergers & Acquisitions.
"The irony of this activity of well established operators closing accounts of affiliates is it gives more power to the giant affiliate groups and it encourages the smaller affiliates to not bother with regulated markets.
"On the note of this benefiting larger affiliates, these groups tend to command the highest rev share, CPA deals and flat fees and it is understood the margins are slimmer. It is no wonder why operators like getting into the affiliate space themselves."
Wright says that the typical affiliate manager can't just hand over a high commission deal to someone without a promise of 10,000 plus first time depositors.
"One thing the big fish can do is instantly transform deals upon acquisition which is pure arbitrage."
The big networks can also help smaller affiliates by making it less likely that their account will be closed (a la the network fire power), they'll assure the smaller affiliate better deals and the little guy or gal won't have to chase after payments.
"In the casino space that starts to make any of these iGaming affiliate networks a bit more appealing than having to manage your individual accounts with your casino affiliate programs."
Wright also reflects on the importance of Affiliate Network 2.0.
Wright describes it as the rise of affiliate networks that include advanced analytics with Business Intelligence along with adtech.
"Adtech will simply make life easier for affiliates to focus on one thing rather than having to be good at 2 things."
Adtech, or advertising technology, refers to software and tools advertisers use to buy, manage, and analyze digital advertising.
"For some affiliate sites, they need to be good at the tech component of their biz along with driving traffic. Adtech will take away one half of the equation so they can invest more time and effort into providing value and creating content."
Wright sees Adtech as the "game changer everyone is looking for".
And as he writes this, another UK affiliate program is set to cease operations in August.
Scorching Slots Affiliate Programme, with brands that include Scorching Slots, Pots of Luck and 21Bets, just announced their program shutdown this week.
Dear Partner,
We hope this notice finds you well.
We write to provide notice that the Scorching Slots Affiliate Programme (“the Affiliate Programme”) will be closing on 08/05/24.
In keeping with our obligations under Section 12 (“Consequences of Suspension and Termination”) of the Affiliate Programme terms and conditions, we shall pay you the balance in your account (if any) and your next Revenue Share payment as normal.From the stated date of closure, all rights and licences granted pursuant to the Terms shall cease, and you shall immediately cease to promote, market, advertise, or solicit Customers for the gaming site. Further to Clause 12.4, neither party shall have any further obligations to the other in accordance with the Terms, such as any previously agreed Revenue Share agreements (such as lifetime Revenue Share), and such agreements shall cease to be paid.
This termination does not affect any provision in the original agreement which is expressly (or by implication) intended to come into force (or continue) after termination.
If you have any queries about this notice, please contact us as soon as possible and we will look to assist further.
We’d like to place on record our thanks for your work on the brand, and hope to keep working with you on other brands. Please contact me if you have any queries about the closure of the brand or about future opportunities for collaboration, and we will be happy to help wherever possible.
Kind Regards,
- Aaron Goldstein, Gambling911.com
