Affiliate Success
Ad Fraud and Affiliate Marketing Strategies: How Online Gaming Companies Can Transform Their ROI
By: Richard Metcalf, Global VP, Sports Betting & Online Gaming, TrafficGuard
Betting companies can adopt cutting-edge technology and offer the very best odds, but amplifying your brand is still difficult in a saturated industry. As a result of relaxing regulations, international players can break into an increasing number of new markets but reaching local target audiences can be a challenge. For these businesses, affiliate marketing is a vital channel in driving new user acquisition and some of the largest sportsbooks like Paddy Power and DraftKings are among those utilising the strategy.
With competition fierce, businesses are in a constant battle to keep costs low. Cost-per-thousand (CPT) payment models for traditional TV advertisements are progress towards paying for performance, but vendors still cannot guarantee that exposure will translate to depositing customers. Affiliate marketing provides a cost-efficient, low-risk alternative because businesses pay for conversions only.
But with money to be made, affiliate advertising fraud is rife and affiliate partners are likely delivering invalid engagement. If betting companies are looking to expand their user base and market amongst big players, they must improve their visibility over affiliate partners’ traffic.
Tracking Affiliate Activity
From smaller players to large conglomerates, there’s an exciting opportunity for betting companies to establish their presence across global markets. In the US especially, rapid legalisation across multiple states has turned betting into a million-dollar industry and created a profitable opportunity for overseas operators to move into the new market.
However, marketing globally can be expensive and driving brand awareness in a new location is often time-consuming and resource-heavy. With affiliate marketing, betting companies can create a network of partners from across the globe and easily access international audiences. This strategy is also much more efficient and expansive than physical marketing methods as it removes the difficulties that are tied to building a target audience from scratch.
Although affiliate marketing is a valuable marketing tool for increasing brand awareness and authenticity, affiliate management platforms aren’t prioritising fraud. The measures they put in place themselves are often basic and easy to get around and fraudsters can easily fly under the radar by taking advantage of the lack of protection. The nature of affiliate marketing means there is a disconnect between the promotion, analytics and payment, preventing companies from getting a holistic view of the fraud impacting them in addition to paying out for valueless traffic.
Affiliate fraud in the betting industry includes any deceitful action taken by a third party to exploit marketing techniques. This can include click fraud, where fake clicks are generated on ads to earn commission payments; or cookie stuffing, where fake cookies are placed on computers to hijack affiliate sales. Malicious affiliate ad programs do this so they can earn money from false clicks or sales and target high-investment marketing campaigns.
Research by Forrester revealed that 81% of advertisers include affiliate marketing as part of their marketing strategy. The growth of the market, paired with the increase in competition, is why many are turning to affiliate marketing. However, by being cost-effective through performance-based pay, there is an increased attraction from fraudsters. Sports betting companies are not well-equipped to address the problems they face with ad fraud.
Statista predicts affiliate marketing spending in the US alone will reach $8.2 billion by the end of 2022. With the vast amount of money involved, sports betting companies are a target for fraudsters.
Getting Instant Access
In order to prevent fraudulent traffic, betting companies must increase the visibility they have over affiliates. By keeping track of partners’ activity, including reviewing their demographics, reputation and quality of traffic, they can increase the quality of their affiliate partners.
Betting companies can do this using third-party technology that can indicate that affiliate scams are taking place in real-time to deliver the most reliable fraud protection. Intelligent software that uses behaviour analysis, such as machine learning, can track the volume of data required to deliver an accurate, instant analysis of which traffic is valid, invalid and fraudulent. Machine learning can identify granular details such as an unusually high number of clicks on an ad, or a high number of sales from a single IP address to confidently assess and deal with invalid traffic so the betting company doesn’t have to pay out.
With this data, operators gain the confidence to cross reference the engagement affiliates charge them for, prevent any partners from trying to outmanoeuvre them and safeguard their business against malicious activity. With more protection over advertising campaigns and a larger proportion of clicks coming from conversion-ready leads, companies can build cleaner audience groups from high-value affiliate partners.
Better Visibility, Better ROI
Reaching a market size of $231 billion in 2022, the sports betting industry is becoming increasingly attractive to international operators and fraudsters alike. If you’re running an affiliate marketing program, there’s a high chance you’re paying out for partners’ invalid traffic.
Only using the data your affiliate program partners declare means you’re at risk of being misled. Affiliate programs need to be monitored to avoid scams and program fraud. By understanding which affiliate partners are directing invalid traffic to their websites and charging a premium price for it, sportsbooks can optimise their pay-outs and exceed competitors’ efforts.
QMRA is a Compliance Quality Mark for iGaming Affiliates, launched by XY Legal Solutions B.V. (XYLS). XYLS launched a Dutch Quality Mark, KVA (https://kva.nl/), in September 2021, now working with numerous operators (LeoVegas, ComeOn, 711, TonyBet, Hard Rock Casino) and 90+ members.
In February 2024, QMRA was launched. Affiliates from the following markets were able to apply for the Quality Mark: Belgium, Spain, Denmark, Germany, Norway, Sweden, USA Michigan, The UK, Ontario and Estonia. As of today, Italian affiliates will be able to join QMRA as well. Applicants will receive:
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- A Compliance Report, containing compliance feedback if needed, in certain cases usable for obtaining a Meta Ads License;
- A specific Online Certificate about the member website, explaining its compliance (https://qmra.eu/members/affiliates/);
- Possibility to consult the QMRA team on compliance related questions.
Several joined since launch, representing all available markets so far. Among joining companies were Leadstar, ADM Group, BetFans, Game Lounge and Gentoo. Game Lounge and Gentoo decided to make QMRA official company policy. Sitebee, a Gentoo launched Compliance Tool, announced an official partnership with QMRA on legal support last week.
Casino Guru, the world’s largest and most up-to-date database of online casinos, has landed on the shortlist for SBC Awards 2024 in the Casino Affiliate of the Year category.
Casino Guru, which has processed more than 6,930 casinos, and prides itself on the world’s largest forum community built around informing players, enters a competitive field of 12 contestants all vying for the distinction.
SBC Awards 2024 is due to take place on September 26 at the MEO Arena on the final day of the SBC Summit, celebrating industry-wide achievements. Casino Guru is proud to be shortlisted for this important accolade. The company has worked tirelessly to establish itself at the top of the industry.
In embracing the affiliate business model, Casino Guru has created a groundbreaking and industry-shifting paradigm through the introduction of the Safety Index, a complex algorithm powered by big data, consumer feedback, and a meticulously in-house analyst team that has allowed Casino Guru to not only be the go-to repository for online casinos but also provide players with a credible source of information when it comes to the inherent trustworthiness of each casino brand listed in the constantly-growing database.
In welcoming the nomination, Šimon Vincze, Head of Sustainable & Safer Gambling, said: “I am thrilled to see Casino Guru shortlisted for the category again this year! Our competitors for the winner are recognised companies with a considerable impact on the online gambling affiliate business. The criteria for the winner go beyond our unique approach to affiliation and consider growth in multiple areas. I am convinced that we have much to offer in this sense as well, and I am looking forward to the judge’s conclusion.”
The Safety Index in particular has been a dynamic and living ecosystem that has been evolving on a weekly and monthly basis, registering movements in casinos’ overall ranking based on a comprehensive set of factors, such as complaint resolution, terms and conditions, licensing issues and more.
Having those efforts recognized by the SBC Summit Awards is a huge milestone for the company, which has operated with an unwavering commitment to bringing consumers the best possible choices from a database that easily constitutes the world’s largest.
Casino Guru is a trailblazer in building an affiliate business that is fully consumer-focused and consumer-facing, by offering an uncompromising, verifiable and transparent accreditation process that ultimately benefits consumers and helps match their preferences with the best casino brand.
Casino Guru is looking forward to September 26 and is excited about the opportunity to demonstrate to the panel of judges that the company is committed to raising standards for the way consumers engage with the industry in a manner that protects consumers and distinguishes the best operators and brands on the market, helping drive a sustainable and healthy environment for all.
ReferOn, a state-of-the-art affiliate management platform, announces its nomination in the Acquisition & Retention Partner category at the prestigious SBC Awards 2024.
The inclusion in this category highlights ReferOn’s efforts to create and develop a targeted product for the needs of the iGaming industry, recognizing the team’s innovative approach and notable results in the field of affiliate marketing.
ReferOn’s nomination as an Acquisition & Retention Partner confirms that the affiliate management platform has proven its effectiveness and understanding of customer needs, as noted by the judging committee. Designed with years of iGaming experience its team, ReferOn caters to the specific needs of affiliates and managers, offering a flexible and scalable solution for managing large networks of companies in one comprehensive hub.
Alexia Gauci, B2B Sales Manager of ReferOn, commented on the nomination: “Being mentioned in the ‘Acquisition and Retention Partner’ category at the SBC Awards 2024 means a lot for our team. We are providing innovative solutions that meet the evolving needs of iGaming professionals. We’re continuously enhancing the platform’s capabilities so our clients can solve the issues they are facing & achieve business goals.”
ReferOn brings reporting capabilities, robust back-office functions, and unique reward mechanics, all designed to simplify administration and enhance data control. With features like Sub-Affiliation and Independent Deal Calculations (IDC), ReferOn offers transparency and flexibility, helping users with tracking key metrics easily for quick data-driven decisions.
In addition to its technical improvements, ReferOn started educational initiatives & received good feedback from the audience. The team already conducted two free seminars, “ReferOn Insights” for Operators and Affiliates to provide valuable knowledge and strategies for maximizing affiliate marketing success.
The ReferOn team will be exhibiting at SBC Summit 2024 in Lisbon and will showcase its latest developments and offerings at booth F430 from 24-26 September. Visitors will be able to ask ReferOn representatives questions and learn more about the platform’s advanced features and innovations.
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