As we're drawing close to the end of 2022, one cannot help but take a look back at what's been done in the previous period and try to understand what's coming.
We sat down with our contributing writer and affiliate marketing guru, Lee-Ann Johnstone, for a Q&A session and tried to answer some of the most obvious questions concerning the industry.
AskGamblers: 2022 is almost over; how will it be remembered in the affiliate marketing industry?
Lee-Ann Johnstone: I think this year was a year of significant growth and development in the affiliate marketing industry. Especially as we came back to work post-COVID and had a very different view of how to market and engage with our customers online.
Overall there are three main things I will remember from this year.
- I think brands took a closer look at what customers need and want and trimmed the fat off the insane marketing promotions that didn't deliver actual value. I saw a slowdown in free spin offers or deposit bonuses that made customers jump through a million steps to get the reward, and I think brands returned their focus to a stronger product and service delivery in the promotions that were delivered by their marketing support.
- Affiliates have become more intuitive with their players, building brands around their businesses. That has led to several more significant acquisitions that have consolidated traffic sources in our industry to a group of top titan owners. I think smaller affiliates are seeing this and building better businesses on the back that one day they might want to exit; however, brands need to think about how that might look further down the line. For me, 2022 was a re-set year - where everyone looked at what they were doing but also really started looking at WHY they were doing it. This meant a pivotal change in how our industry operates and how players deliver value.
- The changes in cookie deprecation and first-party tracking rules on mobile app usage impacted how affiliate business infrastructures will need to change to continue driving value. Additionally, the changes to social media channels Twitch, YouTube, and Tik Tok which affiliates were early adopters to drive traffic via huge communities through their engagement activities, were pertinent too. As new channels become popular, there has to be a stronger focus now for these platforms to build proper regulatory controls to enable the content of this nature to be shared responsibly.
AG: In terms of innovation, what expectations do you have from 2023? What should be on the affiliates' radar?
LAJ: First and foremost, most affiliates will need to consider how they engage and build their customer data and niche audience segments. With the onset of cookies changing, we will need to consider how to track first-party data and remarket. Affiliates will not be able to send traffic and hope for big returns to exit as they used to.
Affiliates need to consider how they engage and build customer data and niche audience segments, says Lee-Ann Johnstone.
They will need to look at how they capture data, become GDPR compliant and build their business to drive value to operators over and above players registering and depositing but also further down the funnel in terms of conversion and retention.
AG: Who wins in 2023 in affiliate marketing: quantity (sell, sell, sell!) vs quality (helping customers through service)?
LAJ: My preference has always been to build quality. I've built hundreds of affiliate programs in my career in this industry, and the ones that deliver profit and additional customer value are the ones that keep on growing. Brands and affiliate managers need to realise that this channel keeps evolving; it keeps expanding beyond web-based sites to a significantly large amount of channels and traffic sources - all of which need to be explored.
Affiliate is no longer a separate channel working in silo to paid, SEO and other digital marketing formats. It's a model that sits across all of them in some way, shape and form. I'd like to see more strategic initiatives from affiliate teams to build partnerships and expand the economy that affiliate programs bring when appropriately managed.
My preference has always been to build quality - Lee-Ann Johnstone.
Affiliate marketing is a long game. When planned and managed efficiently, it can deliver significant results to your businesses and bring in an army of engaged players. When managed poorly, it can cost you money and make a loss, so it's essential to have and set clear objectives for these partnerships and keep an eye on delivery to KPIs which need to be met on both sides.
AG: What are the five main points of a fool-proof affiliate marketing strategy in iGaming in 2023?
LAJ: Five key things I think operators need to get right in 2023 are:
- Forget your competition - focus on what YOUR customers want. Too often, we see brands trying to compete and end up in senseless price wars, disrupting the market and eroding value. Get clear on who your customer is and what you want your affiliates to be doing for you. Focus on the niches and set targets accordingly.
- Invest in training your affiliate team - as I've already said, this channel is becoming more complex, and affiliate managers are at your business and brand's front line. Therefore, ensuring they know how to represent you properly, build professional relationships, and give partners a great first-touch experience is crucial.
- Review your program at least twice a year - are you working with the right affiliates? Do they deliver what your marketing strategy requires from your business, and have you created a proper marketing plan to meet this strategy within your affiliate team? We often get so focused on getting in new partners that we forget to look at the value our old relationships can bring. Keep sight of long-tail opportunities within your affiliate program database.
- Get yourself out to more affiliate events - Virtual or in-person; it doesn't matter. The point is to get out to them to NETWORK and LEARN. The most successful affiliate programs are ones that network at all the events. So make sure you're keeping an eye out on new events and speakers to tune into and learn from, as most of the learnings you get in this industry are from others more experienced than you sharing content at events.
- Invest in your program brand affinity with affiliates - what does this mean? Build a proper marketing plan and promote your affiliate program to keep your offer front of mind. We're going into a highly challenging year ahead, and pushing good content about your program is vital to stay at the forefront of partner interest. Tell affiliates why they should work with you and build a great onboarding experience so that from the moment they sign up to work with you, they become members of your extended marketing team. Build affiliate loyalty. Invest in your program for the long term.
AG: What affiliate newcomers' concerns would you brush off, and what would you advise newbies to pay attention to in 2023?
LAJ: As a newcomer to this industry, you'll need to know who you're serving and why. This is a highly competitive space, so getting clarity on goals and deliverables with the brands you're working with is the first step to securing your success. Understanding the brand's customer avatar and driving traffic to meet that objective is your only concern when you start out. Focus on quality, not quantity and build solid relationships with brands you trust and can convert well.
Get out to events and meet people - this industry is built on personal relationships, so don't hang around too long to build yours! Know your niche and the value you provide, and lead your conversations with brand affiliate managers to tell them this upfront so there are no misunderstandings about the value you can bring them after you sign up.
