iGB Affiliate 33 Jun/Jul 2012
-
Upload
igaming-business -
Category
Documents
-
view
233 -
download
1
description
Transcript of iGB Affiliate 33 Jun/Jul 2012
JUNE/JULY 2012
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
JU
NE
/JU
LY 2
012
SportSbetting and the olympicS
iGB Affi liate JUNE/JULY 2012 3
If you didn’t know that the Olympics were descending on London this summer then you certainly will after reading this issue of iGB Affi liate. What this edition will also remind you is that when opportunity comes knocking at your door, you can’t afford not to answer. ‘Olympics? ‘Opportunity?’ Yes, the Olympics do bring opportunity to affi liates, and not just to be entertained at the games by your sportsbook affi liate managers. Couple the Olympic SEO opportunities with the Penguin update mixing things up in SEO-land, and you could fi nd yourself outranking the traditional SEO stalwarts if you take advantage of this fortuitous circumstance. Good luck, but before you do anything at all, make sure to read this edition’s article entitled ‘Marketing at the Olympics’.
Michael Caselli, Editor in Chief
FREE SUBSCRIPTION email: [email protected]
Printed in the UK by: Pensord Press, www.pensord.co.uk
Published by: iGaming Business,
33-41 Dallington Street, London EC1V 0BB
T: +44 (0)20 7954 3515 F: +44 (0)20 7954 3511
www.igamingbusiness.com
© iGaming Business 2012. All rights reserved. No part of this
publication may be reproduced or transmitted in any form or
by any means, or stored in any retrieval system of any nature
without prior written permission, except for permitted fair dealing
under the Copyright Designs and Patents Act 1988. Application
for permission for use of copyright material including permission
to reproduce extracts in other published works shall be made to
the publishers. Full acknowledgement of author, publisher and
source must be given. iGaming Business Affi liate Magazine is
published by iGaming Business Limited of 33-41 Dallington Street,
London, EC1V 0BB, UK. The views expressed by contributors and
correspondents are their own. Editorial opinions expressed in this
magazine are not necessarily those of the Publisher.
The Publisher does not accept responsibility for advertising
content. Cover image: istockphoto.com
Editor in Chief: Michael Caselli
Editor: James McKeown
Publisher: Alex Pratt
Designer: Jessica Croome
Production Manager: Craig Young
Production Assistant: Laura Head
Sales Manager:
Richard Wanigasekera
Senior Sales Executive: Ed Grundy
CONTENTS
http://tinyurl.com/igbaffi liate
@igbaffi liate
3
04 Events Calendar
06 Webmaster News
12 Backlink Profi ling
15 Opening Pandora’s Box?
16 Social Measurement and Monitoring
18 Building a Niche Olympic Betting Site
20 Negative SEO
22 How to Win With a One Man SEO Team
25 Interview: Jochen Dickinger, bet-at-home.com
28 Dealing with US Land-based Operators
29 Sportsbetting and the Olympics
30 Introduction
31 Strategies, Marketing and the Olympic Opportunity
38 Marketing at the Olympics
41 What’s Next for In-play Betting?
42 In-play Betting in Numbers: GamblingData Report
44 The Psychology of In-play Betting
46 The Fall of an Empire: a Full Tilt Poker Timeline
48 Poker Affi liate Forum: 2012 Forecasts and Predictions
50 The Mobile Gambling Market
52 Social: the New Business Paradigm
54 Online Gaming, iPads and Tablets
56 Integrate your Marketing
58 Turning One-off Customers into Repeat Business
59 The Industry’s Key Performers
64 A Year in Words
66 What is Ring Fencing?
67 Google Penguin Impact Examined
68 Data Centre: International Market Snapshot
70 Data Centre: UK Search Trends
72 Market Place
74 Nobody Asked me, But…
v
4
affiliate events calendar
iGB Affiliate JUNE/JULY 2012
Due to their popularity and wealth of information, analysis and discussion, conferences have become an integral part of the affiliate industry and a key communications bridge between affiliates and affiliate managers. Whether used for networking, education or just an excuse to meet up with friends, the affiliate conferences listed below provide all the tools you need to improve your business.
AffiliAte Summit eASt New York AuguSt 12 – 14
The Affiliate Summit was founded for the purpose of providing educational sessions on the latest affiliate marketing industry issues and fostering a productive networking environment for affiliate marketers. The event brings thousands of attendees from affiliates, networks, merchants, agencies, and vendors together to meet, network, do business and learn industry best practices.
www.affiliatesummit.com
CASiNo mArketiNg CoNfereNCe lAS VegAS JulY 24 – 26
The Casino Marketing Conference is a senior-level conference that addresses marketing challenges across all facets of the gaming industry, including commercial casinos, tribal casinos and racetrack casinos – virtually any gaming venue around the world. More than 100 different gaming operators and companies involved in the gaming industry attended the 2011 event from throughout North America and beyond.
www.casinomarketingconf.com
the igAmiNg CoNgreSS At g2e lAS VegAS oCtober 3 – 6
The Internet has been a game changer for the gaming industry. This conference will address the potential impact of Internet gambling legalisation in the US, and advise the gaming market on how to react to the changing face of the industry and take advantage of new opportunities. This information packed programme will appeal to existing offshore Internet gambling operators, as well as commercial casinos, Native American casinos, manufacturers and affiliates.
www.globalgamingexpo.com
bArCeloNA AffiliAte CoNfereNCe & igb eSpANA bArCeloNA oCtober 11 – 14
After a triumphant return to the Catalan capital in 2011, the iGB Affiliate events circuit will once again be visiting Barcelona for its 2012 autumn affiliate conference, the original home for this leading European affiliate event for the online gambling industry. This year’s event will also incorporate iGB Espana with a separate zone and conference session specifically for the Hispanic market.
www.igbaffiliate.com
K. BenzemaFrance
M. ÖzilGermany
X. AlonsoSpain
Friendship lasts for a lifetime.Victory for an eternity.
Welcome to the world’s biggest sports betting arena.
webmaster news
6 iGB Affiliate JUNE/JULY 2012
ExchangE WagEring DElayED in californiaThE ThoroughbrED oWnErs of
California (TOC) horseracing organisation
used a recent board meeting to delay a
vote on whether to authorise exchange
wagering for one year.
This most recent delay will come as a
blow to operator Betfair as it had hoped to
have its Betfair TVG subsidiary conducting
exchange wagering from San Diego’s Del
Mar Racetrack as early as June.
“The concept of exchange wagering
has been a polarising issue among
the stakeholders in California racing
and this action will give us additional time
to study this betting alternative
and consider if it is in the best interests
of the industry in our state,” said Mike
Pegram, Chairman for the Thoroughbred
Owners of California.
TOC President, Lou Raffetto, added,
“We will continue to seek alternative
revenue sources and have not slammed
the door closed on the concept of exchange
wagering. We are simply putting this
contentious issue on the back burner until
we can analyse it further and, hopefully,
build a consensus within the industry.”
The Thoroughbred Owners of California
took its decision despite strong lobbying
from Betfair TVG and the 75-year-old Del
Mar Racetrack with officials from the
California Horse Racing Board state agency
due to meet later this month in order to
discuss the issue.
“This is a bleak day for California horse
racing,” read a statement from Betfair TVG.
“Not only has the TOC turned down
millions of dollars of guaranteed revenue
in 2012, it has aligned itself to a track
ownership group with a long record of
broken promises. We look forward to a
fuller explanation of their motives because,
presently, any rational observer who takes
time to examine the full facts behind this
decision will struggle to comprehend it.”
bETraDar sEcurEs scanDinavian loTTEry DEals
sporTs anD bETTing-related data
supplier Betradar AG has signed deals with
Veikkaus Oy and Norsk Tipping AS for the
deployment of its Live Odds Service in their
betting offer.
Betradar revealed that it now serves
over 30 state lotteries on four continents
with its extensive product and service
portfolio while the Finnish and
Norwegian Live Odds Service agreements
follow similar arrangements with Tipp3
Austria and Sazka.
“We are very pleased to welcome
Veikkaus Oy and Norsk Tipping as
new partners of Betradar’s Live Odds
Service,” said Carsten Koerl, Chief
Executive Officer for Sportradar.
“We are convinced that together we
can shape future developments and play
an active part in the creation of an even
more exciting live betting offering for the
Scandinavian market.”
Tommi Jokinen, Live Betting Product
Manager for Veikkaus Oy, added, “Veikkaus
Oy was the first national bookmaker to
launch its live betting service back in 2004.
We have, since then, steadily increased
live betting turnover. In order to raise our
service to a whole new level we decided to
turn to market leader Betradar.
Veikkaus Oy is also the Finnish national
sportsbetting agency while Norsk Tipping
offers Norwegian customers a wide range
of lottery, sports and instant games.
“Norsk Tipping will launch a new
and innovative live betting product,
Liveoddsen, for Euro 2012,” said Ole
Morten Bratberg, Head of Odds
Compilers for Norsk Tipping.
“With Betradar’s Live Odds Service we
can achieve a great number and variety of
events per week for our customers. Thanks
to the support of Betradar during the
development and testing phase, we are now
looking forward to Euro 2012.”
purplEloungE.com goEs inTo liquiDaTion
afTEr TEmporarily suspEnDing the operation of its PurpleLounge.com
online casino and poker operation in May,
Media Corporation has announced that it
has now decided to liquidate the loss-
making service.
The London-based firm is also behind the
Eyeconomy.co.uk Internet advertising service
and stated on May 1 that PurpleLounge.com
had been “trading materially behind the
same period of the previous financial year”,
which will result in “increased losses for
the company as a whole”.
Media Corporation acquired Intabet
Limited appointed Adam Fraser-Harris to
the role of Interim Chief Executive Officer
in place of the outgoing Sara Vincent
and unveiling Phil Jackson as the
replacement for the departing Justin
Drummond in the position of Chairman.
“Since their appointment, Adam and
Phil have been conducting a strategic and
financial review of the enlarged group,”
read a statement from Media Corporation.
“It has become clear during the review
that the financial and trading position
of the PurpleLounge.com division is no
longer tenable due to historic operational
and financial failings within the business.
Accordingly, it is with regret that the
board announces that it has made all of
the staff within that division redundant
and will be instructing lawyers to file the
relevant documentation to put the relevant
companies into liquidation.” The statement
from Media Corporation revealed that it
will “specifically request” that liquidators
investigate the financial arrangements
within PurpleLounge.com and “review
the position as to player funds”.
“The board regrets any corporate
failings in the past and seeks to assure
shareholders that it is exploring routes
to try, in some way, to mitigate the
expected player losses, though this is
against a background where the group has
loaned well over one million pounds to the
division since its acquisition in October
of 2009,” continued the statement from
Media Corporation.
“The board does not believe that
the group will incur any further
liabilities in respect of PurpleLounge.com
over and above the realisation of the
above loan. Notwithstanding the difficult
decision it has made, the board believes
that it can put the poor trading of
PurpleLounge.com behind it and will
be working to bring the group back to
profitability as quickly as possible.”
webmaster news
7iGB Affiliate JUNE/JULY 2012
inTraloT goEs onlinE anD mobilE in souTh africainTraloT has launchED fixed odds
online and mobile betting sites in South
Africa under the JustBet brand. The
firm’s licence covers sports and horseracing
betting facilities in the area of Western
Cape in South Africa and Internet,
telephone and mobile betting for players
across the country.
“With our new websites we are offering
to our customers in Western Cape, and
countrywide, the opportunity to bet online
in a responsible way at any time and at any
place of their convenience,” said Dr. Yannis
Rondiris, Managing Director of Africa Sub-
Sahara Region of the Intralot Group.
“The trend-setter of the gaming sector
worldwide, Intralot, has brought innovation
to South Africa with pioneering gaming
solutions that satisfy all players’ needs
and habits.”
The sites, which went live on June 1,
offer markets on a broad variety of sports,
with emphasis on football (soccer), rugby,
cricket, tennis, and selected golf events.
licEncE issuancE unDErWay in spain afTEr monThs of delay and
negotiations, Spain has awarded its first
set of online gaming licences to operators
including bwin.party Digital Entertainment,
William Hill, Jaxx Ag, 888 Holdings,
PokerStars and Sportingbet.
According to a report from the Reuters
news service, 59 companies had applied
for Spanish online gambling licences
with officials in the nation hoping that the
attached 25 percent gross gaming revenue
tax will help the cash-strapped country rein
in its spiralling deficit.
Recent weeks have seen Spain raise
approximately €87 million in back taxes
from online gambling operators including
Sportingbet, bwin.party and 888 while the
nation’s Treasury Department revealed that
it was currently in the process of informing
successful candidates but would not yet
make the full list public.
Spain is one of Sportingbet’s main
European markets but the firm’s operations
there have been suspended since March
due to local company Codere winning a
legal injunction, which is a restriction the
London-listed company revealed it will now
apply to have overturned.
“The grant of the iGaming licence
negates part of the injunction, which
was imposed on Sportingbet’s Spanish
business on March 27, 2012 and thus
allows Sportingbet’s Spanish business
at Miapuesta.es to commence trading
when this regulated market opens,”
read a statement from Sportingbet.
nEvaDa givEs grEEn lighT To licEncE applicanTsTechnology provider International Game Technology (IGT), British bookmaker William Hill and online and land-based supplier Bally Technologies are the latest firms to have received a recommendation from the Nevada Gaming Control Board (NGCB) for an online gaming licence.
“We are honoured to be one of the first recommended providers by the Nevada Gaming Control Board,” said Patti Hart, IGT’s Chief Executive Officer. “This important step will allow IGT to better support our customers as they expand their offerings to their players to include interactive wager based entertainment. We are thrilled to be at the forefront of this exciting and necessary expansion of gaming in the US.”
William Hill made its initial foray into Nevada in spring 2011 when it agreed to purchase American Wagering Incorporated, Club Cal Neva and Brandywine Bookmaking LLC.
“We are extremely pleased to have the Nevada Gaming Control Board's recommendation for licensing,” said Ralph Topping, Chief Executive at William Hill. “We now look forward to our hearing with the Gaming Commission in two weeks’ time. Nevada regulators have been extremely fair and detailed in their assessment of our entry into the state, and we are grateful for their decision today.”
Bally Technologies was the first company to receive a recommendation from the NGCB for a supplier licence. “This is a historic day for Bally Technologies, for Nevada and for the gaming industry,” said Richard Haddrill, Chief Executive Officer for Bally.
“We are very grateful for the Board’s recommendation and are excitedabout being the first company recommended by a US state for licensing to offer online gaming products and services. We are proud to achieve yet another milestone in our 80-year history and look forward to further supporting our Nevada casino customers with our technology in this exciting arena.”
The final decision on IGT, William Hill and Bally will be made by the Nevada Gaming Commission on June 21.
gala coral rEporTs q2 groWTh
gala coral group Limited has released
its financial results for the second quarter of
2012 showing a three percent year-on-year
increase in turnover to £284.4 million.
May saw Gala Coral conditionally agree
a deal with Rank Group worth £205 million
that would see it offload 23 of its land-based
UK casinos with the London-based operator
revealing that its statutory gross profit for
the 12 weeks to April 7 grew by four percent
year-on-year to £220.6 million.
Gala Coral stated that its second quarter
earnings before interest, tax, depreciation
and amortisation improved by £300,000
year-on-year to £71.8 million despite “an
estimated £2.2 million negative impact of
weather” and “the movement of the Grand
National into quarter three in 2012”.
Regarding its remote gambling division,
Gala Coral declared that gross profits had
risen by four percent year-on-year to £17.1
million with active customers up 39 percent
for Gala Interactive and nine percent at
Coral Interactive while earnings before
interest, tax, depreciation and amortisation
improved by four percent when compared
to the same period in 2011 to £7.1 million.
“This quarter has seen another solid
performance by the group,” said Carl Leaver,
Chief Executive Officer for Gala Coral.
“The trading environment for leisure
and retail businesses remains difficult but
within this context all of our businesses
have delivered gross profit growth in the
quarter with growth over the first half
standing at five percent.
“Following the end of the quarter we
announced the proposed sale of our casino
division to Rank in a deal that will deliver
excellent value for our shareholders and
debt investors. This last month has also
seen the launch of the first of our new
websites, GalaCasino.com, with positive
early results.”
webmaster news
8 iGB Affiliate JUNE/JULY 2012
caEsars EnTErTainmEnT losEs cfoCaesars Entertainment Corporation has announced that Jonathan Halkyard has resigned as its Executive Vice-President and Chief Financial Officer in order to “pursue an opportunity outside of the gaming industry”.
Halkyard’s responsibilities are to be assumed by other members of its senior management team including Chairman, Chief Executive Officer and President Gary Loveman on an interim basis.
“We have an experienced team of senior leaders who will oversee the finance functions and ensure that we maintain our momentum as we execute on our growth plans,” said Loveman.
“We have made significant progress in improving our operations and balance sheet and will ensure these efforts continue. Jonathan has played an important role in managing the company’s financial position and in helping us return to the public equity markets earlier this year. We thank him for his service and wish him well in his future endeavours.”
ausTralian rEsulTs boosT sporTingbET
sporTingbET has announcED its
unaudited financial results for the three
months to the end of April and revealed
that total amounts wagered grew by almost
ten percent year-on-year to £555.9 million.
Sportingbet recently reached an
agreement with officials in Spain that
will see it pay €17.2 million in back
taxes in order to qualify for an online
gambling licence and declared that net
gaming revenues for its most recent
three-month accounting period dropped
by over 20 percent year-on-year to £43.4
million although its Australian business
experienced a 116 percent rise in net
gaming revenues when compared with the
same period in 2011 to £18.1 million.
Its Australian division also saw
total amounts wagered improve by 78
percent year-on-year to £369.1 million,
Sportingbet reported, while mobile
accounted for 34 percent of online net
gaming revenues in April.
Sportingbet blamed the “underlying
recession and regulatory uncertainty”
alongside “the imposition of new betting
taxes and the suspension of our Spanish
business” for its poor results in Europe,
which saw the total amounts wagered
decrease by 38 percent year-on-year to
£186.8 million while net gaming revenues
dropped 47 percent when compared with
the same period last year to £24.2 million.
Overall, Sportingbet declared that earnings
before interest, tax, depreciation and
amortisation before exceptional items and
share option charges for the three-month
period fell by 33 percent year-on-year to £10.8
million while its operating profit plummeted
by £10.4 million when compared to the same
period in 2011 to £1.6 million.
“Our Australian business, which
accounts for over 90 percent of our profits,
continues to go from strength to strength,”
said Andrew McIver, Sportingbet CEO.
“The integration of Centrebet is nearly
complete and our combined Australian
business grew net gaming revenues by 116
percent in the quarter. Europe continues to
be impacted by the recession and the effects
of regulation. As we have demonstrated
in Australia, the long-term benefits of
regulation are clear but take time to
manifest themselves.”
bWin.parTy EnTErs social gamEs markETbWin.parTy DigiTal EnTErTainmEnT
has announced that it intends to spend
up to $50 million over the next two
years to fund its expansion into the social
games sector.
The company has already agreed to
purchase “a number of assets” from
Velasco Services Incorporated and Orneon
Limited for $23 million, of which $17.25
million has already been paid, that should
speed its entry into the market.
bwin.party declared that these
acquisitions include “a number of existing
business-to-business social gaming
contracts” along with “significant software
engineering resources” that will form the
foundation of its new Win social games
studio complete with its own dedicated
development teams.
“We have chosen a ‘build and partner’
strategy, one that provides us with both
the resources and additional management
expertise to execute our planned extension
into social gaming, which is an exciting and
fast growing area of digital entertainment
that is the latest addition to our business
strategy,” read a statement from Jim
Ryan and Norbert Teufelberger, Co-Chief
Executive Officers for bwin.party.
“We are focused on building
a meaningful stand-alone enterprise
that will operate outside our core real-
money gaming business but which
will benefit from the group’s significant
resources and assets. Our investment
will enable us to launch Win, our dedicated
social gaming studio, with its own
development centre that will increase
our speed to market both for social as
well as mobile games.
“Intent on securing a meaningful
position in the marketplace, we expect a
€5 to €10 million impact to clean earnings
before interest, tax, depreciation and
amortisation in 2012 and 2013. However,
we are excited by the potential of this
new market and believe we can deliver
attractive returns in the medium-term
through relatively modest investment
funded from operating cash flow over
the next 18 months.”
The company also revealed that the
former CEO for Myopia, Barak Rabinowitz,
has been recruited to lead a specialist
management team for its new Win
social games subsidiary that is also set
to include Alex Usach, Dennis Hettema,
Dan Matkowski and Tilli Kalisky.
nEogamEs aWarDED Danish licEncEOnline scratch card and instant win games provider NeoGames has been awarded an operator licence by Spillemyndigheden, the Danish Gambling Authority.
“We have high hopes and are thrilled to enter the newly regulated market in Denmark,” said NeoGames Managing Director Shay Bar-Joseph.
“As we have learnt in other regulated markets, such as Italy and Belgium, there is a true market need for an offering that does not necessarily focus on hardcore casino, but rather combines a softer and more mass market approach. The fact that we already have a few customers that will launch their sites immediately is yet another demonstration of our strategy.”
NeoGames said that it has already signed deals with a number of skilled and experienced marketing and media companies to launch websites targeting the instant win and soft casino market in Denmark.
webmaster news
9iGB Affiliate JUNE/JULY 2012
gigi lEvy sTEps DoWn aT 888
gigi lEvy has stepped down from the
board of directors at 888 Holdings with
immediate effect. Levy served as 888
Holdings’ Chief Executive Officer for four
years before stepping down in April last
year “to pursue other interests”.
However, the 40-year-old subsequently
agreed to remain on the operator’s board
of directors until a replacement could be
appointed and was re-elected as a non-
executive director at the company’s annual
general meeting last month.
888 released a trading update
concerning its financial performance
over the first quarter of 2012 showing that
total revenues had increased 25 percent
year-on-year to $94 million while the
number of active customers for its casino
and poker operations had enlarged by 87
percent year-on-year to 566,000 due
to “successful new customer recruitment
and marketing initiatives”.
“Our focused strategy has led to another
excellent quarter with ongoing strength
in poker driving March to the highest
ever monthly revenues in the history of
888,” said Brian Mattingley, the recently
appointed Chief Executive Officer for 888.
“Poker has continued its robust
performance in the early stages of the
second quarter with our other product
areas seeing an expected return to seasonal
patterns. As stated at our full-year results,
there are significant growth opportunities
offered by the liberalisation of new markets,
which will take investment to realise.
We will continue to invest throughout
2012 in order to build market share.”
WEsT brom anD boDog parT company English Premier League football side West Bromwich Albion has ended its shirt sponsorship deal with online gambling firm Bodog Europe halfway through a two-year arrangement.
The rumoured seven-figure deal, which was unveiled in late-June 2011, was described at the time as the largest in the club’s 133-year history and saw the logo for Bodog replace that of emergency domestic repair service HomeServe on the team’s home and away shirts.
“We have enjoyed a wonderful relationship with Bodog,” said Mark Jenkins, Chief Executive Officer for West Bromwich Albion.
“It is a vibrant brand and has been a pleasure to work with over the course of what has been an important season in the club’s history.”
The club declared that it had enjoyed an “excellent working relationship” with the operator behind the online casino and sportsbook at Bodog.co.uk while its supporters had benefited from a ‘Baggie of the Month’ competition to win VIP match tickets as well as many betting initiatives.
“The mutual decision to part company with Bodog was not an easy one for the club based on the fact we were very happy with our relationship,” said Adrian Wright, Sales and Marketing Director for West Bromwich Albion.
“However, the club has been presented with an attractive new opportunity and Bodog was more than happy to accommodate our request to step aside and enable us to pursue a different avenue.”
Ed Pownall, Public Relations Director for Bodog, added, “We have very much enjoyed working alongside West Bromwich Albion during another successful season for the club as well as teaming up once again with Roy Hodgson. We would like to thank the fans, the club and the playing staff and wish them and the new club sponsor all the best for the future.”
gambling commission ToinvEsTigaTE social gamingThE uk gambling Commission
government watchdog will undertake an
investigation into the rise of social gaming
with a view to determining whether the
market needs to be better regulated.
According to a report from the Daily
Mail newspaper, social gaming has largely
avoided the attention of UK regulators as
games are usually played for free and as
such haven’t been viewed as real gambling.
“The key question is; is it gambling
or not,” read a quote in the Daily Mail
attributed to John Travers, Corporate
Affairs Manager for the Gambling
Commission. “We are monitoring
developments and assessing any wider
implications for licensing objectives.”
The Daily Mail went on to quote Travers
as saying that social gaming was “at the
perimeter” of current legislation.
The New iGB Affiliate website is now online, visit www.iGBAffiliate.com
DElaWarE housE approvEs inTra-sTaTE igamingThE us sTaTE of Delaware has taken another
step towards legalising online intra-state
gambling and expanding sportsbetting after
proposed legislation passed through its House
of Representatives on Tuesday evening.
The proposed Delaware Gaming
Competitiveness Act of 2012 made it
through the House Gaming and Parimutuels
Committee last month before being put
forward for a full House of Representatives
vote earlier this week and would authorise
Internet gaming for players over the age of 21
in the state under the control and operation
of the Delaware Lottery.
Supported by first-term Democrat governor
Jack Markell, the proposed legislation, which
is also known as House Bill 333, made it
through the House of Representatives by
a vote of 29 to 8 and would also authorise
online slots and table games while expanding
keno beyond Delaware’s three existing
casinos to at least 100 sites.
The bill is now scheduled to go before the
Delaware Senate for a vote and would, if
passed in its current form, additionally
authorise residents to wager on National
Football League (NFL) games in at least 20
sites other than casinos.
The Delaware Gaming Competitiveness
Act of 2012 was sponsored in the House of
Representatives by John Viola, who stated
that the proposed legislation represents
‘the next logical step’ in the evolution of the
state’s gambling industry.
The Act would enable state officials to
eliminate the $4 million in slot machine
fees currently paid by casinos in ‘The
First State’ while table gaming duties
would be slashed from $6.75 million to
around $3 million. In return for these
breaks, casinos would be asked to spend
an equal amount on traditional business
expenses such as marketing, capital
improvements and debt reduction.
Pho
to: T
ob
y M
au
dsle
y
Come join usFastest paying company in the businessexCellent back office reporting tooltop level support from our affiliate teamexClusive affiliate promosproFessional creative team Great conversion
www.nordicbetpartners.com
Pho
to: T
ob
y M
au
dsle
y
Come join usFastest paying company in the businessexCellent back office reporting tooltop level support from our affiliate teamexClusive affiliate promosproFessional creative team Great conversion
www.nordicbetpartners.com
iGB Affiliate JUNE/JULY 2012
TRAFFIC
12
Knowing what your competitors’ backlink profiles look like is key to understanding how to outrank them in the SERPs and where to draw the line in your link-building efforts. However, before doing so you need to be able to differentiate the spam from the good, and make sure you are focusing on the right sites. This article will explain how to do so.
We have all been there: we have a
quick check at the SERPs for our money-
making keywords and a few sites seem to
be constantly outranking us. How can these
terrible sites outrank us? Why can’t we
beat them? These questions are more than
legitimate, and possibly the best starting
point for an effective SEO strategy and link-
building campaign. However, focusing and
trying to emulate the wrong kind of sites
can make you lose focus, time, money or,
even worse, your beloved money-making
websites, due to some serious penalties or
to the effects of Google’s recent Penguin
update. Therefore, the first step of every
serious backlink analysis should concern
the choice of our target competitors.
In this article, we will go through a
simple process you can follow to understand
who to compare yourself with, how to
quickly create the right competitors’ roster
and how to gather all the data you need to
finally identify your real competitors.
Step 0: What game are you playing?Nobody knows the answer to this question
better than you. Just like in poker, you should
choose your game carefully, depending on
your bankroll, on the amount of time you can
invest in it and on your attitude and skills.
●● How much money have you invested in
your affiliate business, and how much
money is it generating for you?
●● Are you one of the big guys running
your affiliate empire full-time or are you
running some sites in your spare time?
●● Are you a business-minded person
focusing on a long-term strategy or a
tech-savvy hustler looking for a quick
win, ready to burn a few sites each week
to start some new ones in no time?
By asking yourself these three basic
questions you should be able to understand
what kind of affiliate you really are, and
what range your competitors should
therefore fall into. If you are a mid-size
poker affiliate trying to rank for mid-tail
and long-tail keywords, you shouldn’t
consider big-brand poker rooms as your
direct competitors. On the other hand, if
you are a purely white-hat SEO (do they
still exist?) working for a big network of
trustworthy affiliate sites, you should not
compare the sites you are pushing with
sites whose domains.look.like-this-or-even-
worse-for-free.info.
Note: In this article, we will assume you
are running a relatively conservative, grey-hat
(after Google Penguin white-hat does not exist
anymore, in our field), mid-size affiliate
BACKLINK PROFILING 1: SERP REALITY CHECK – WHO ARE YOUR REAL COMPETITORS?
iGB Affiliate JUNE/JULY 2012 13
TRAFFIC
site, generating a relevant amount of money
but not able to compete directly with the
‘big guys’ in terms of budget.
Step 1: Create your competitors’ rosterNow that you know what game you are
playing, the first thing you need to do
is create a list of the sites constantly
occupying the SERPs for your target
keywords, including your own. The
quickest way to do so scientifically is to
use a SERP checking/scraping tool like
AdvancedWebRanking1. Checking page one
rankings for a broad set of the keywords
you are getting traffic for (minimum
100); you should compile a list of the sites
ranking more often in top three, five and
ten (this is what AdvancedWebRanking
calls a Visibility Report). You should then
limit the list to approximately ten to 15 sites
and remove all big brands and off-topic
sites (online magazines, Wikipedia, etc) as
they are playing a different game and you
most likely would not be able to compete
with them anyway.
In preparation for the next steps, I
recommend exporting the list obtained
to an (Microsoft) Excel file, without
forgetting each site’s visibility score. I also
recommend adding each site’s IP address
to the list, so to spot possible relations
between different sites.
Note: AdvancedWebRanking will
automatically recommend you the sites
to show results for in your Visibility Report
(select all of them) but if you are using
different software you may have to manually
add them. A quick way to generate such
a list is to export all sites ranking in Google’s
top 100 for a few of the main keywords in
your niche, by customising Google’s SERPs
depth to 100 and using SEOQuake’s2
CSV export function.
Step 2: Get on-site data Now that you have your preliminary list,
you need to understand what’s happening
on these sites. Again, the tool that can
help you here is SEOQuake. Using
SEOQuake’s Check/Compare URLs and
domains function, you can quickly pull
the following information for each site:
PageRank, indexed pages and age. Once the
parameters have loaded, you should export
them to a CSV file and add the results to
the Excel file created at the end of Step 1.
Step 3: Get off-site data Once your on-site data research is complete,
it is time to get some raw backlink data. My
tool of choice in this case is MajesticSEO.
Using its Bulk Backlink Checker you
can easily and quickly pull all kinds of
quantitative data about your target sites’
backlinks. Also, in this case, I recommend
exporting all data to a CSV file and adding
them to your Excel file.
Step 4: Spam-hunting timeCombining the URLs from Step 1 with the
data from Steps 2 and 3, you should now have
a good overview of your potential competitors,
allowing you to easily spot odd profiles.
The main things you should watch
out for are:
●● Very new sites: a few months old and
already ranking for lots of keywords?
Most likely, the site will be gone just
as quickly as it came.
●● Very old sites: pre-2000 sites are either
authorities or ‘revived’ sites. Do you play
the same game they do?
●● Sites with high PR and very few
backlinks: possibly the result of a change
of domain. You should double check
their backlinks to see if you can find the
old site’s name, and its backlinks.
●● Sites with very few pages: 30 pages and
ranking for 100 keywords? A little too
ambitious to be normal.
●● Non-US sites with many .edu/.gov
links: do you see any reason why
a significant amount of US-based
educational and governmental
institutions should be linking to a
non-US gambling site? In most cases,
Google doesn’t – just give
it a bit of time and you will see the result.
●● Sites with high Ref.domains/IPs and
IPs/Subnets ratios: most of these sites’
links are coming from sites on the same
IPs or on the same Subnets… I doubt it’s
a bizarre coincidence.
Looking and each of these occurrences and,
even more so, looking at all of them as a
whole should allow you to easily identify
the most spammy competitors of the roster,
which you should filter out and have a
more careful look at.
This same data will also allow you to
easily see which competitors are far out
of your league in terms of age, size and
backlink volume. My recommendation is
to be realistic and remove them from your
backlink profiling targets.
Most of the time, you should end up
with just four or five sites left: these are the
sites you should focus your analysis on.
In the next installment of this series on
backlink profiling we will see how to check
your competitors’ backlink profiles, emulate
it and beat it. In the meanwhile, feel free to
ask any follow-up questions you may have
Matteo Monari is the COO of BizUp, a result-driven Internet marketing agency specialising in competitive segments and international link building (http://www.bizupmedia.com).
With a background in Languages and Human Computer Interaction, Matteo has been a successful Internet marketing specialist for more than six years. During his career, he has worked for some of the biggest affiliates and operators in the iGaming world, helping them to successfully expand their businesses across Europe.
After heading the SEO department of Europe’s leading content-on-demand company, Matteo is now leading BizUp’s link building team, providing links in five languages to clients in more than fifteen different countries. You can follow him on Twitter as @matteo_monari and contact him at [email protected].
1http://www.advancedwebranking.com2http://www.seoquake.com
iGB Affiliate JUNE/JULY 2012 15
TRAFFIC
James Lowery, Head of SEO at Latitude Digital Marketing, examines the impact of Google’s Penguin update on the iGaming affiliate community.
On ApriL 24 2012, Google changed
how its ranking algorithm scored links and
changed the game about what mattered in
SEO. Overnight, iGaming affiliates around
the world found that previously strong sites
with great rankings and high traffic had
nose-dived.
Google said the Penguin update was part
of its on-going high quality sites algorithm
but, at first, it appeared almost arbitrary.
Sites with great content saw their traffic
decimated, content websites that had
been built as a labour love were as prone
to penalisation as the most aggressively
optimised low quality sites.
Within the SEO community, consensus
about Penguin came quickly. Leading up to
April, Google made noises about changing
how it treated anchor text in links. Until
fairly recently, SEOs would recommend
that people get links using optimised
phrases as anchor text to make pages
appear more relevant.
Real people link using shortened
URLs, brand names, ‘click here’, or
‘more info’, and they link from places
like Facebook or Twitter rather than
networks of sites. Real people link
differently to SEO people, and as more
and more of the links online are made
by real people, this has made pure SEO
links look increasingly obvious and less
relevant to what matters when it comes
to recommendations and authority.
In an industry like gaming where
the prevailing wisdom is that it’s tough
to get ‘natural’ links, website owners
across the board got a kicking. Big brands
weren’t as badly hit as affiliates because,
generally speaking, brands tend to have
more people linking to them because
they’ve heard of them. People link naturally
to websites such as 888.com or Ladbrokes
because they’re in the news whereas
affiliate sites aren’t.
Penguin was so hard, so fast, and so
indiscriminate that it felt like a weapon,
and pretty quickly, people began to realise
it could be used as one. If links could hurt
your rankings, then surely they could be
used against others.
negative SEONegative SEO is not new. For years, it’s
been theoretically possible to harm other
people’s rankings as easily as you can
improve your own, and Google recognises
that. There was a clause in Google’s
Webmaster Guidelines that said: “There’s
almost nothing a competitor can do to
harm your ranking or have your site
removed from our index.”
That’s gone. Now it says: “Google works
hard to prevent other webmasters from
being able to harm your ranking or have
your site removed from our index.”
When asked about whether the latest
backlink considerations could be used to
attack a competitor, Matt Cutts and the rest
of the search quality and web spam team
at Google have cited Google’s guidelines or
stated that time spent on negative tactics
would be better invested in optimising your
own presence. That’s not reassuring.
Gaming is hugely competitive. For
a term like ‘casino’ which has around
half a million searches a month across
Google, the difference between position
four and position three could mean an
extra ten thousand visitors each month.
With a one percent conversion rate,
£50 per funded account means £5,000
in extra revenue.
Under penguin, websites where the
bulk of links have been focused on a single
anchor text variation have been hit hardest.
Big link networks like BuildMyRank have
been completely de-indexed, and old school
techniques like articles and directories
have been devalued. These techniques
are pretty cheap. If someone wanted to
harm your rankings, getting a thousand
directory links, spinning a hundred
articles, and buying a hatful of links from
a spam network would only cost a couple
of hundred pounds. Add automated blog
comments and forum posts using Xrumer,
and the numbers of links increase, but the
cost doesn’t. In weeks, all your hard work
could be destroyed.
What can you do?You work in a highly competitive field
where the odds are against you. On the one
hand you’ve got Google doing all it can to
promote trust – which ultimately means big
brands, and a marketplace where limited
investment can mean substantial returns.
Tracking the inbound links to your
site via MajesticSEO will give you an
early indication of what’s happening.
Big increases in the number of links
you weren’t aware of will tell you that
something’s happening, but it won’t give
you much time to react. Having a Google
Webmaster account will provide you with
a warning about links before a penalty, but
not much before.
The risk of negative SEO means that
you need to focus on the strength of your
site. You’re less likely to be affected by the
actions of others if your profile is clean and
relies more on brand rather than keyword
anchor text.
You need to look at your site and ask
whether it really adds value to users. If you
get penalised, a reconsideration request
to Google is much more likely to be
successful if your site adds value to the user
experience. If all you do is pull traffic in
and then push it on to another site, Google
doesn’t want you at its party. Legitimise
your website with frequently updated
content; go beyond just having affiliate
links – add links to useful resources, video
tutorials and social media services.
With Google Penguin, Pandora’s
Box is open, and negative SEO is more
of a reality than ever before. Gaming is
not about friendships – the stakes are too
high – and anyone who has a chance to
take an advantage, whether legal or not,
is going to be tempted to take it. Reading
this, you’re probably tempted too.
Don’t. You only make it more likely that
someone will go after you.
Opening pandOra’s BOx?
iGB Affiliate JUNE/JULY 2012
TRAFFIC
16
Matthias Bachor of Searchmetrics explains how to monitor and measure the effectiveness of your social media.
Social Media iS a way of life. In one
minute, there are 30 hours of video posted
on YouTube, 100,000 Tweets, and six
million Facebook page views. Businesses
who don’t participate in social media are
missing out on communicating with an
increasingly large number of customers. In
fact, from 2009 to 2010, Facebook added
100 million users – a 145 percent growth
rate. By comparison, in 1997, the entire
Internet had only reached 50 million users.
However, the problem is that unlike
traditional marketing and advertising
or even search engine optimisation
(SEO) and search engine marketing
(SEM), it’s incredibly challenging to
measure the impact and value of social
media – especially when you consider
all the channels out there. Facebook,
Google+, Twitter, Delicious, LinkedIn
and StumbleUpon, just to name a few
of the top social media sites, all have
different users and different benefits. So
how do you compare and quantify social
marketing? Do you know the number of
Facebook ‘likes’ vs ‘shares’ vs ‘comments’
for your website? Do you know how this
compares with your competitors? Can you
combine this with detailed analyses of
LinkedIn, Twitter, Google+, Delicious, and
StumbleUpon?
Here are a few things to consider when
developing your social media measurement
and monitoring metrics.
1. Be sure you actually monitor and
measure your social media outreach.
According to eConsultancy’s State of
Social Report (November 2011), “41%
of more than 1,000 companies and
agencies surveyed had no return on
investment figure for any of the money
they had spent on social channels as of
October 2011.” Perhaps these companies
were exaggerating when answering the
question, but there are always ways to
measure some of the expense – whether
likes, or retweets, or Pins, or user-
generated content.
2. Understand what you need to measure.
One current methodology, proposed
in ‘MIT Sloan Management Review’
advocates tracking metrics in three
categories: brand awareness, brand
engagement, and word of mouth across
each social media application in order to
measure effectiveness. So, for example,
in measuring a Twitter account for
brand awareness you would look at
the number of number of Tweets and
followers. For brand engagement you’d
look at the number of followers and the
number of @replies. For word of mouth
you’d look at the number of retweets.
It’s a lot of information, especially when
you consider that you must measure
Social Monitoring
30 hours of video posted
on YouTube
100,000 Tweets
6 million Facebook
page views
The Internet Minute
iGB Affiliate JUNE/JULY 2012 17
TRAFFIC
your blogs, Twitter accounts, social
bookmarking, forum and discussion
boards, product reviews, social networks
(such as Facebook), and video and
photo sharing (Flickr, YouTube,
and Pinterest). And each of these
categories has different variables
under the three categories.
3. Have a list of all the brands and
sites you need to monitor and know
that this list will change based on
internal and external factors. For
instance, when Motrin launched a
video that offended many mothers
in November 2008, the misstep was
compounded by a failure to monitor
and respond to the turn the program
had taken. Obviously, we are all the wiser
three years later, but just for the sake of
discussion, in retrospect the campaign
and hashtag #motrinmoms, generated
by outraged consumers, should have
been carefully monitored.
4. Be aware of all the accounts you need
to monitor. According to Altimeter,
companies now face an overwhelming
number of corporate owned accounts –
an average of 39.2 Twitter accounts, 31.9
blogs, and 29.9 Facebook accounts. If it
isn’t possible to reduce the number of
official social outlets, then they will need
to be monitored.
5. Integrate your social site monitoring
for each brand – combining tracking
data from relevant sites such as Twitter,
Facebook, Google+, Delicious, and
StumbleUpon. Without this capability,
social media marketing really becomes
just another shot in dark – an intuitive
sense, rather than a campaign based on
customer analytics. One way to do this
is by choosing a tool that provides one
social visibility score.
6. Remember it’s about more than just
‘converted customers’. If almost 60
percent of companies and agencies do
perform some sort of ROI tracking (see
point 1), it’s likely that some of them
have imposed old marketing constructs
– leads, converted customers – onto
social media tracking. Of course, most
people realise that this misses out on the
cost savings generated from providing
consumers with online forums to solve
usage problems, but it also misses an
important point that now the marketing
objectives themselves are being provided
through social media instead, it shifts the
related costs.
7. Calculate the business value of social
media. Just as you must consider ROI
beyond converted customers, you must
consider that the business value of social
media moves beyond marketing and
customer relationship management.
The MIT Sloan Management Review
conducted the 2012 Social Business
Global Executive Study and Research
Project and found four distinct areas
including marketing that benefit from
social media. The other three might
surprise you: innovation, operations
and leadership. According to the study,
these areas “are where social business
is creating significant opportunity and,
for some companies, significant value.”
The toy company Lego, for instance, is
launching a new product line based
on a suggestion from an adult – not
a child – via the company’s Lego
enthusiast website. Within 24 hours
of submitting the idea, the proposal
received 10,000 ‘votes’ from other
enthusiasts – which brought it to the
attention of Lego management who
believe that customer collaboration
is the key to innovative new products.
Growing importanceSocial networks continue to grow in
importance. Facebook now has 800 million
(and growing) active users. LinkedIn has
100 million users. More than 200 million
tweets are sent each day. However, social
media monitoring does take work – and,
ideally, dedicated resources. Although we
don’t know which social media platforms
or mechanisms will dominate in ten years,
we do know these communication tools
will only continue to gain importance;
recent studies show that over 80 percent
of organisations have indicated their intent
to increase investment in social media
moving forward. That’s a great reason
to spend more time on improving your
ability to be successful by managing,
monitoring and measuring it.
MatthiaS Bachor leads global marketing initiatives for search and social analytics software leader Searchmetrics. He brings over 14 years experience in online marketing, previously working with various Internet companies helping to build high-performance websites, managing online shops and optimising multiple campaigns. You can contact Matthias directly via email at [email protected] or via Google+ (https://plus.google.com/111526970413036813842).
USA 141.2
INDIA 68.1
INDONESIA 49.1
BRAZIL 45.4
MEXICO 25.6
Top 5 Facebook Countries by Users 2012 (millions)
Source: eMarketer
iGB Affiliate JUNE/JULY 2012
TRAFFIC
18
As the UEFA Euro 2012 football
tournament concludes, the next major
sporting event on our horizon is the
summer Olympics in London. Creating a
website for a niche such as betting on the
Olympic Games can be as problematic
or simple as you make it, depending on
your approach and how you tackle the
process. Using Euro 2012 as an example,
it is possible to create such a niche site
and generate decent rankings, traffic and
commissions. This article will explain the
processes you can undertake to get a niche
site off the ground – especially for sporting
events that are either seasonal or occur on
two or four year cycles – and how to get the
most out of it. You can apply many of these
principles on future websites, whether
you want to try an Olympic betting site or
something like the 2014 World Cup.
Looking at the problem objectively,
the solution is somewhat simple: create
a website that is optimised, write really
good content and build links for it. The
good news is that, theoretically, niche sites
have less competition so by creating the
pages you have an easier chance of ranking
well. Conversely, if you tried to create a
generic casino portal, the competition is
tough; their sites are well established, they
have thousands of pages and thousands of
links… sometimes more. With a niche site
like Olympic betting, you still have a chance
to create a website, get content and links
and see traffic come in. You can also apply
these steps on other niche sites for future
sporting events.
Here is a breakdown of the steps towards
creating your niche site:
●● Creating a website
●● Content and conversion
●● SEO, link building and traffic
Creating a websiteWhen creating a website you are also
picking a topic; for the time being, we
are going to focus on Summer Olympics
Betting 2012. The sooner you can get your
website up and running the better your
chances of ranking for a topic. One month
before the event is very short notice but it
is still possible to pull it off, get traffic and
make some money. We will also assume
you are on a limited budget – there is no
point in spending too much money not
knowing what your ROI will be. So you can
buy a domain and hosting for around $50
for a year or go down the ‘freemium’ route
using hosted or blogging sites. Examples
include Live Journal, Wordpress.com or
Blogspot/Blogger. The advantage of using
some of these sites is that you can get traffic
from the networks by writing content and
not have to build a single link. At the time
of writing, Google is giving itself more
traffic via its own networks like Google+ and
blogspot. For simplicity, we’ll recommend
you start your site with blogspot.com.
Selecting a domainWhether you buy a domain or select one
on blogspot you should pick your domain
wisely. There are many arguments in the
SEO world about whether exact match
domains are important anymore but in
my opinion, they will always be relevant.
Whatever your domain is, you are either
building up a brand or you want the name
to be self explanatory. For example:
●● davesblogoftheday.blogspot.com
●● betonsummerolympics2012.
blogspot.com
Which is a better domain to select? With
the first one, I have no idea what the blog
is about but if I was searching for ‘bet on
swimming summer Olympics’ and I found
the second site, I’d probably think I’m at
the right place. Do it firstly for conversion
and secondly because there is still some
relevance for exact match domains.
Content and conversionThis is where a lot of people get their
websites wrong – I have been guilty of this
myself in the past. One person I have learnt
a lot from on this topic is Graeme from
AffiliateBible.com and, sure enough,
he has launched beteuro2012.org, which
is currently doing well.
There is nothing wrong with writing
content that doesn’t convert but if all of your
content is focused in this manner then none
of the traffic you do generate will convert
into sales. Let’s look at examples of bad
converting and good converting content.
Bad converting content●● Michael Phelps going for
more gold medals
●● Summer Olympic Games schedule
●● Medal count by countries
●● Most memorable Summer
Olympics moments
good converting content●● Bet on Michael Phelps
●● Where to bet on Summer Olympics 2012
●● Odds for total Olympic Golds
for Great Britain
●● Sportsbook promotions
for London Olympics
Again, there is nothing wrong with
writing content that won’t convert, just
don’t expect your traffic to click on any
of your banners or links. If a person is
searching for a schedule, they probably
don’t have any interest at all in betting and
the conversion rate on this topic is going
to be extremely low. That said, this is still
useful information to have on a website
especially for your visitors that do like to
bet and perhaps found your site through a
different page. Writing previews of events
will also get you traffic but, again, is unlikely
to improve your chances of converting.
The bad converting examples listed will
get more traffic but lead to almost no sales
while the good converting content examples
will generate less traffic but will contain the
depositing players you are looking for. Have
a look at beteuro2012.org as a great example
for content ideas and website structure.
One last note on content is to try to get
into the mind of what the user would want to
BUILDING A NICHE OLYMPIC BETTING SITE
iGB Affiliate JUNE/JULY 2012 19
TRAFFIC
search for and what appeals to them. If you
have a page focused on ‘Michael Phelps Odds
for Summer Olympics in London’, then try
to write more content focused on things
that matter to the odds. So, rather than write
about the swimmer write more about his
chances of winning in relation to the odds
and/or list the best odds for Michael Phelps.
go nicheOlympic betting is a niche topic, but you
can go even deeper. Every country is a niche
you can focus on, using sites dedicated
on betting for all the events for a specific
country; such as athletes from UK, Canada,
Sweden, etc. Likewise, you can also focus
on individual games like swimming and list
all of the latest odds and betting options on
all the swimming events and swimmers.
Seo, link building and traffic
on-page SeoSEO is still a big mystery to many people
and it doesn’t need to be. If your content
is good then you’ll want to make sure that it
is presentable with well written page titles
and descriptions.
Link buildingLinks will help you rank and there
are enough options available where
you don’t have to buy them. In general,
just try to focus on social media links
and sites that are as relevant as possible.
So, for Olympic betting as a topic,
you’ll want links from sites that talk
about the Olympics, sports and betting/
gambling and, increasingly, the links that
are becoming more influential in 2012
are those from within social media.
There are now hundreds of these sites
but you can simplify things by sticking
to the main ones: Twitter, Facebook,
Google+ and YouTube. There are also
many sports and gambling webmaster
forums available as further sources of
links and information. When approaching
link building, it is also worth noting
that link exchanges are not as helpful
as they used to be and could actually
be harmful. In addition, Google+ ‘shares’
are having a bigger impact on ranking,
which is no real surprise given that it
is Google’s own social outlet, but guest
posting is still the way to go.
trafficSEO shouldn’t be your only means of
traffic. Social media outlets can be treated
like search engines themselves and they
offer the chance to gain more traffic
without having to be dependent on a search
engine. Ironically, a site that has a stronger
social media presence tends to get better
search rankings as a result.
For a while, too many webmasters cared
about getting a nofollow link with a high
page rank regardless of if that link came
with relevant traffic. Go for links or places
that can get you relevant traffic regardless
of whether the link is nofollow or not.
If you need a coach to help with your website, contact John WrIght from gaffg at [email protected].
iGB Affi liate JUNE/JULY 2012
TRAFFIC
20
Within the recent blog network penalties handed out by Google and the WMT (webmaster tools) warnings that many affi liates will have received, we have seen undisputed proof that being linked-to from the wrong areas can get you penalised. The real issue is ‘what if you’re innocent?’
YoU’Ve BUiLt GReAt content, you’ve
interacted with the community and built
a website to be proud of, only to have
a competitor throw a load of ‘spammy’
network blogroll links amongst other
fi lth to your site resulting in you being
penalised. So what do you do now?
Submit a re-inclusion to GoogleIn all honesty, this approach is likely to get
you nowhere. Google receives thousands of
these every hour and if it ever gets to yours,
the fact that you’re in gambling will probably
weigh against you. I’ve tried this with some
of the world’s biggest brands (inherited
issues) and that was after we’d cleaned up
an awful lot of the rubbish. The response
was still something of a disappointment.
the 301 quick fi xThis isn’t necessarily an awful idea
assuming that you can get away with it in
terms of branding. Many businesses are
unwilling to take this approach but if you’ve
picked up a penalty and lost your traffi c
then what do you have to lose? It should
be noted that this probably won’t work if
you are switching from ‘example.com’ to
‘example.net’, but changing from ‘example.
com’ to ‘examplepro.com’ works most of
the time. Don’t just take my word for it:
“I’ve seen a bunch of these and weirdly, the
301s do seem to (often) remove the penalty
in cases where it’s a true penalty.” Rand
Fishkin – SEOmoz.
the Google WMt warning emailIgnore it! If you do anything about it
then Google knows that you have been
building links. By admitting to this you
are guaranteeing your penalty; if you
ignore it, play dumb or blame it on an
SEO company then you are far more likely
to survive than if all of the unscrupulous
links disappear overnight (in addition to
which you risk taking out links that are
helping you). If you still get penalised
then react; send an email asking for
help because you don’t know what you’ve
done – then act. Following that, try asking
nicely to be re-included – although
as per my previous point, it may not
be the quickest solution.
Pre-empting the penalty Pre-empting the penalty is the best
course of action, and many affi liates
ask me what they can do to stop
competitors from negatively attacking
their site. Unfortunately, the
answer is ‘nothing’, other than not
appearing on their radar which
means not ranking, rendering the
whole point moot. But, there are
a couple of steps you can take to
make yourself a less appealing target.
1. Stop buying bad linksOne of the key issues is that you bought
bad links to begin with. Pre-empting a
manual penalty is much more likely to
be successful than trying to get out of
one after you have received a warning.
But, you need to keep buying links, right?
Maybe, but if you are going to do it then
you need to be much more careful than
previously. Make sure you time your link
building efforts together with your social
media – you will also need to consider
LIVING IN THE WORLD OF NEGATIVE SEO
then react; send an email asking for
help because you don’t know what you’ve
done – then act. Following that, try asking
nicely to be re-included – although
as per my previous point, it may not
Pre-empting the penalty Pre-empting the penalty is the best
course of action, and many affi liates
ask me what they can do to stop
competitors from negatively attacking
their site. Unfortunately, the
answer is ‘nothing’, other than not
appearing on their radar which
means not ranking, rendering the
whole point moot. But, there are
a couple of steps you can take to
make yourself a less appealing target.
1. Stop buying bad linksOne of the key issues is that you bought
bad links to begin with. Pre-empting a
manual penalty is much more likely to
be successful than trying to get out of
one after you have received a warning.
“ Google receives thousands of (re-inclusion requests) every hour and if it ever gets to yours, the fact that you’re in gambling will probably weigh against you.”
iGB Affiliate JUNE/JULY 2012 21
TRAFFIC
metrics much more than you used to.
Think about deep link ratios, brand vs non-
brand anchor split, tld type, IP location,
theme, image link proportion and quality
split (SEOmoz’s authority is a reasonable
indicator) and remember that the quality of
the content containing the link is paramount.
Be smart, check out a site which hasn’t been
overly optimised to compare against your
own efforts and see what’s natural.
2. Clean up the bad linksStart working on this now as you will
see the benefits later. This task can be
somewhat daunting and you may have
to be prepared to shell out some cash in
‘admin fees’ to the more unscrupulous
webmasters out there. There is no quick
fix with this; best to just analyse your link
profile, sift out all of the bad links and get
contacting the webmasters. But, this will
again make you a less appealing target.
Social is the way forwardWhilst gambling might not be the
easiest of products to get people talking
about, it certainly isn’t the hardest.
Remember that Google knows when your
links went live so if you got a huge amount
of links but nobody mentioned anything
socially, what sort of message does that
send out? Probably that you bought them.
After all, if people aren’t even willing to
tweet about something, why would they
link to you? The fact is that they wouldn’t,
so you need to tie-in link building off the
back of the social boom and the easiest
way to do this is by incentivising it. So
think competitions where you enter by
tweeting, or articles where you’ve asked
for input from relevant people in the niche
– promoting deep page content which you
build your links to will do you far more
favours. And remember: a good social
profile covers a multitude of sins.
Mike LitSon has been in Search Engine Optimisation for several years and specialises in competitive markets, predominantly iGaming. Having worked with many major players in the sector he has a solid understanding of what goes into making a successful campaign, both on and off site. Focusing mainly on SEO, Mike is also very well versed in SMO, PPC, Affiliate Management and Email Marketing believing that none of the skills are mutually exclusive and that having strong knowledge across online marketing channels can provide unique opportunities. Mike currently heads up the Blueclaw iGaming and affiliate department.
“ Pre-empting the penalty is the best course of action… it is much more likely to be successful than trying to get out of one after you have received a warning.”
iGB Affiliate JUNE/JULY 2012
TRAFFIC
22
This article looks at what I would consider to be an optimised process for a small in-house SEO function. Having built SEO departments of all sizes ranging from large scale iGaming specialist agencies through to small affiliates, the one thing I can be sure of is this: performing SEO in-house is the best way forward. We won’t go into the many reasons why this is true here, as we’ve covered it in great detail in previous articles.
Let’s Look at the most typical of
affiliate SEO departments… the lone
gunman. You’ve employed or contracted an
SEO expert to work on your affiliate site(s).
In a department of one, process is crucial as
the lone SEO will we tasked with executing
everything; this may even include running
PPC and maintaining a social media
presence – so they’ll be under a
great deal of pressure with everything
falling on their toes.
Firstly, who do you hire?Typically, there are a few ways
to approach this:
1) You hire a strategist: someone with
experience and a proven track record in
delivering results through the SEO or
integrated search strategy. If you’ve hired
the right SEO, he/she will be expensive
and this leaves you with a problem –
who will execute the strategy?
2) You hire a delivery guy: ‘the doer’,
the hard working, attention to detail guy
who delivers the strategy. These guys are
far cheaper and if you hire a diamond,
they will ultimately get you to where
you want to be. But who will devise and
oversee the strategy?
so what needs to be done?1) Strategy and research
2) On-site SEO
3) Ongoing off-site SEO
4) Ongoing review of strategy against KPIs
(Key Performance Indicators)
Naturally, a delivery guy will need
a well-researched strategy to work with
and will need a process to follow. They
will bridge the gap between the strategy
and the on-site development, as well
as between the strategy and the off-site
development (link building).
An experienced set of eyes will be
required to oversee the strategy – only with
experience can an optimiser get a feel for
the kind of subtle adjustments required
along the way. Things such as wrong page
ranking for a specific term, or introduction
of new target phrases into the strategy are
just two examples.
one man seo teamThe most effective way to operate with
a one man SEO team is to hire the
delivery guy and outsource the strategy
development and on-site optimisation,
as this is usually a one-off task. So unless
you’re a big affiliate, you will probably not
want an expensive SEO on your payroll,
when your budget would be better spent
on link building. The experienced SEO
may oversee the delivery of the strategy
on a monthly basis and make any required
adjustments by Skype – you can hire
the experienced SEO either on a retainer
or on an hourly rate, but if you can swing
a partially incentivised performance-related
deal, then do so.
outsource your technical seo – if correctly implemented, it will stay donePlatforms like WordPress and Drupal
can be optimised out of the box. Bespoke
developments may need more work –
get the experienced technical SEO
involved as early in the development
process as possible. Don’t wait until
the build has been completed if you
can possibly help it.
Your lone gunman will be best
leveraged through managing relationships
with various suppliers of links and
coordinating the SEO recommendations
with the web developers – never become
dependent on a single link network no
matter how well shrouded they are from
detection. Spread the risk.
Always assign your in-house guy a
female alias. In all seriousness, if you’ve
hired a male, create the outward facing
persona of a female. In every instance
where I have implemented this strategy,
this has proven to:
1) Get higher response rates from webmasters
2) Get better prices on link deals
In every SEO department I’ve built,
this (for me at least) has become a
standard approach, and it works very
well in iGaming.
Note: Do not use this technique
for an Arabic Forex site. It will have
the reverse impact.
In the outreach process; you should
soften your opening email to encourage
an informal dialogue. This is probably
one of the most powerful techniques for
optimising your outreach process.
One of the key metrics you should
monitor (outside of the usual response
rate) is response to flirt ratio – the use of
flirtation in email communication with
suppliers of links is proven to drive the
price down massively.
You may be wondering why I would
want to share some of these techniques
and lose a competitive advantage. The truth
is that there is another step we also use
which maximises response to flirt ratio and
renders the negotiating webmaster unable
to negotiate (an ace card up my sleeve,
which I may even share with you at the
Barcelona Affiliate Conference).
There are a number of tools out there
for identifying quality links. I personally
use LinkResearchTools.com; a powerful
suite of link tools for identifying links
which also helps find the webmaster’s
contact details. For recording link deals
How to win witH a one Man Seo teaM
iGB Affiliate JUNE/JULY 2012 23
TRAFFIC
and rank tracking I use Raven Tools. This
should be all you need and more for a small
yet effective SEO operation.
Before commencing with seo…Does your site already have a history?
Before investing in any activity you should
eliminate the possibility of there being
hidden penalties on your site.
This is a simple procedure which can be
completed in one step and provide valuable
insight usually within four days. Simply
put, it involves redirecting your domain to a
subdomain and waiting to see if any of your
rankings move up.
Often, the backlink profile of a site
will reveal abnormalities that are likely
to trigger subtle penalties – an experienced
pair of eyes should recognise these issues
at a glance.
the biggest key issue with seos working in-house is this…They lose their bottle. Or to put it another
way, they can become crippled by fear. This
is another good reason to outsource the
expertise in the case of one man teams.
In larger teams where you bring the
experienced SEO in-house, the best
way ensure your in-house guy remains
confident is through SEO counselling. He
will be far more effective if he has access
to an external SEO, be it just to discuss
his thoughts or bounce ideas off. This is
massively overlooked and is crucial when
the SEO becomes isolated.
As ever, the key to success is just to get
on with it as soon as possible. Don’t wait
for the perfect moment to take action. The
perfect moment never comes.
Reward your one man seo team – set goals and share the success Your SEO strategy will mutate as
opportunities appear, so be prepared
to adapt to things like fortunate double
listings, magically appearing low hanging
fruit, favourable algorithm updates,
unfavourable algorithm updates and
penalties. These will become apparent as
your experienced SEO reviews performance.
Sometimes, a keyword may appear
to get stuck; if this happens, follow the
money, adapt and refocus on what will
generate the easiest wins. Again, the
experienced SEO will guide you on what
can be realistically achieved.
Finally…Beware of charlatans – the SEO industry
is full of snake oil salesmen. Be careful. If
you do need an SEO evaluation, feel free
to contact me personally. I’d be more than
happy to help.
Remember...●● Follow your instincts when hiring expertise
●● Don’t believe the hype
If you have any specific questions email
me directly at [email protected]
or follow me on http://twitter.com/paulreilly
or stalk me on http://foursquare.com/
user/paulreilly
With over 12 years’ experience in search engine optimisation, PauL ReiLLy is one of the most experienced and influential professionals in the industry. With a wealth of experience in highly competitive sectors, Paul has worked on many of the UK’s largest brands in the toughest spaces, both in-house and at large reputable search marketing agencies. In most recent years Paul has focused and specialised in online gaming.
Paul is the founder of MediaSkunkWorks, a new and pioneering service provider which dissects the traditional agency model, building world-class, hand-picked specialist teams either in-house or as outsourced think tank and creative problem solving services.
50%revenue sharefor all new affiliates!
At myBetPartners we believe every good partnership should start with a fair share. That is why we offer new affiliates a 50% revenue share for the first three months. Find out more at http://partners.mybet.com
mybetPartners is the partner programme for mybet.com - one of the leading sports betting brands in Europe licensed in Malta and Germany. [email protected]
iGB Affiliate JUNE/JULY 2012 25
THe Here and now
“The future is always interesting,” says Jochen Dickinger, Board member at bet-at-home.com AG, but that nothing is of more importance to his company than the present. iGB Affiliate talks to Dickinger about a successful 2011, the impact of the affiliate sector on the company’s wider business and what we can expect from the sportsbook for the remainder of 2012.
Let’s start with the background to your affiliate program and how it directly benefits your overall business. We started the affiliate program in
November 2005 and, since then, we have
been welcoming new partners every day.
In addition, I believe that part of the reason
behind the program’s success are the
family values that are employed throughout
every sinew of the company. Integrity and
openness is very apparent resulting in
people being very secure about where they
stand both within the company and as a
strategic partner.
In terms of how it has affected
the business, with the aid of our
affiliate program partners we have
managed to significantly increase brand
awareness in recent years, establishing
the bet-at-home.com brand as a reliable
partner in the gambling industry.
The program therefore makes a
significant contribution to the
continuation of our growth curve.
The last couple of years have seen significant growth for sportsbetting businesses. What sort of year was 2011 for bet-at-home.com?
2011 was a successful year for the company.
We achieved sales in betting and gaming of
around €1.78 billion, which is in comparison
to €1.48 billion the previous year. Gross
gaming revenue (betting wagers less betting
winnings), the key number in online gaming,
increased to approximately €73 million in
contrast to €66 million in 2010. At our
offices in Austria, Germany, Malta and
Gibraltar, we have 200 highly qualified and
motivated staff and we have 2.8 million (as of
May 2012) registered and satisfied customers.
When we listed on the (Frankfurt) stock
exchange in December 2004, we embarked
on an important journey into a successful
future. In this way, we demonstrated that
we intend to remain true to our growth
strategy into the future. Indeed, we have
recorded double digit annual growth
percentages, so this considerable increase
in value will also be reflected in the
medium-term share values.
Returning to the affiliate program, besides trust, what are the keys to building successful relationships between affiliates and affiliate programs?Firstly, you need to offer a strong product
and a solid affiliate program. Without
these, it simply wouldn’t work. For both,
you also need a fast, user-friendly website.
No less important are excellent customer
service and speedy pay-outs. Our affiliates
also recognise that bet-at-home.com
customer lifetime values are particularly
high, something that enables us to have
long-standing relationships which, in turn,
strengthen trust. Ultimately, affiliates are
happy when they feel that a program is
rewarding them for their efforts and is
likely to continue doing so for the long run.
What strategies do you employ in attending to the maintenance and development of your program for the future market? Every day we are putting our heart and soul
into the constant expansion of our offer. To be
even more attractive to our partners, we also
depend on their support and, of course, we
appreciate questions, ideas and suggestions
of all kinds. Because partner service has
top priority, we have a separate department
solely to service the needs of our partners.
The future is always interesting but
much more important to me is what is
happening now for the company. At the
moment, we offer a €500 welcome bonus
across all our products to new affiliate
partners. For the UEFA European Football
Championships in Ukraine and Poland,
all our partners have the incentive of
a championship bonus: i.e. every new
customer delivers 60 percent revenue
share. Furthermore, we offer our partners
new promotion materials such as banners,
especially developed for the tournament
and with click warranty. Attractive
promotions are continuously being
thought up to try and promote our
products further, but I feel that the
quality of our products actually do a
very good job in promoting themselves.
“ Ultimately, affiliates are happy when they feel that a program is rewarding them for their efforts and is likely to continue doing so for the long run.”
INTERVIEW
iGB Affi liate JUNE/JULY 201226
What is your outlook for the remainder of the year ahead both for your company and the wider industry? We still have many plans for 2012
and, as in the past, we will continue
to offer our affi liate partners attractive
promotions in the future. Furthermore,
we expect considerable growth for the
2012 fi nancial year. Another signifi cant
increase in customers as a result of
continued, intensifi ed marketing
activities and the forging of even
closer and, above all, long-term links
between the customer and bet-at-home.
com, should lead to an increase in gross
revenue of at least ten percent. We are
applying for more and more licenses in
regulated markets and intend to structure
massive growth in the non-regulated
markets as well.
The culmination will be the European
football championships in Poland and
Ukraine, where we have recently gone on
air with our new advertising campaign.
As in recent years, we will again increase
our marketing expenditure in 2012:
we anticipate spending €45 million,
so against this backdrop, we expect a
renewed surge in growth.
We have been following a clear growth
strategy and have, to date, recorded annual
growth fi gures consistently in the double
digit range. This development is sure to
refl ect in the medium-term share value.
We also have teams of technologically
innovative staff looking to push and develop
our products and services to a wider range
of customers than ever before. We will also
be looking to grow our already extensive
affi liate team to enable us to offer an even
more personal touch, catering to each
affi liate’s specifi c needs.
Finally, what advice do you have for someone just starting in the industry?Be prepared to work hard every day, listen
to other people (both colleagues and
affi liates) and learn from your mistakes.
“ We anticipate spending €45 million in 2012, so against this backdrop, we expect a renewed surge in growth.”
INTERVIEW
StanJamesAffiliates.com
UP TO 35% NET REVENUE AcROSS All PROdUcTS- Excellent conversion and retention rates - Prompt commission payments- Ongoing sportsbook offers and promotions to maximise customer life time value- Industry-leading creative suites covering all key sports and events
www.StanJamesAffiliates.com
EARNgET liNkSREgiSTER
AFFiliATES
full-page-advert-igb.indd 1 10/26/2011 2:03:56 PM
iGB Affi liate JUNE/JULY 2012
INSIGHT – OPINION
28
As the interest and excitement grows around the potential for one or more US states to provide a regulated environment for online gaming, affi liates are once again looking to the American market as a place to do business. The question is; who wants them?
WITH NO LEGAL framework in place
for the type of relationship that a licensed
US operator can have with affi liates,
this is an area of their marketing that
has not received much attention. Many
operators that we speak to are unsure of the
defi nition of an affi liate and, in too many
cases, affi liates are seen in a negative light.
For those that do understand the value, the
majority don’t know where to start; how
to fi nd affi liates, what they need, how to
manage them, and they certainly have no
idea on how to compensate them.
Lest you think that this discussion on
affi liates is premature, not only can (and
should) land-based operators be using
affi liates to drive traffi c into their casinos
today but, in my opinion, the affi liate
community itself needs to be proactive
in this regard so that it is not left out
of the equation. If the casino operators
understand the true value of affi liates
to their land-based and proposed online
operations, their ability to extend their
brand and their reach, and in increasing
their overall business and revenues, then
they would also be interested in seeing this
‘advertising’ channel open to them.
Publications such as iGaming Business
are working to educate the stakeholders, as
are experienced online gaming consultants,
but while the operators are learning,
regulations are being proposed and written
and this lack of knowledge extends into
the regulatory bodies and governments,
as we are seeing in Nevada. As I wrote in
a previous article, the proposal to include
affi liates as an “…interactive gaming service
provider that provides products, services,
information or assets to an operator of
interactive gaming and, therefore, receives
a percentage of gaming revenue …” would
likely result in affi liates having to be
licensed; an onerous, extremely restrictive
and (likely) costly process.
Affi liates do not want to have their
businesses controlled by the state; I dare say
this goes against their very nature. Affi liates
can simply be viewed as another marketing
channel, and you can be sure that the
newspapers, radio stations, magazines and
TV stations are not licensed vendors.
Moving forward, assuming that you do
have the opportunity to become a licensed
affi liate for a land-based operator, you
will want to look at the business you are
doing now, and decide if you need to make
any changes. Certainly, it would stand
to reason that regulators would frown
on you promoting non-regulated sites,
especially those taking US action. You
may be required to provide a full history
of your business, your fi nances, and your
experience in this space.
When dealing with regulators, remember
that telling the truth is always the best
option, even if you have some history of
earning revenues from US player activity.
If there is any record of those earnings,
they will more than likely be found,
and the application could be declined.
My hope is that affi liates, operators and
regulators all understand that this is a new
beginning, and that the focus should be on
building respectful and mutually profi table
relationships between operators and
affi liates moving forward.
FORMING AN AFFILIATE RELATIONSHIP WITH US LAND-BASED OPERATORS
GIAN PERRONI is with American iGaming Solutions, (www.americanigamingsolutions.com), a Las Vegas-based consultancy that works with land-based North American operators to provide them with an effective online presence. He is also the owner of AffPoint, (www.affpoint.com), the new central hub for the iGaming affi liate marketing industry. Gian is a frequent speaker at international gaming conferences and a regular contributor to gaming publications. Skype: gianperroni; email: [email protected].
SportSbetting and the olympicS
Sponsored by:
iGB Affiliate JUNE/JULY 201230
feature SPortSbetting and the olymPicSSponsored by:
Structuring campaigns around major sporting events is nothing new to sportsbooks and affiliate marketers but, to date, the Olympics hasn’t been an event that has influenced much investment from either party. Will this summer’s Games change that philosophy?
We are currently in the middle
of the UEFA Euro 2012 Football
Championships in Poland and Ukraine
with European sportsbooks bracing
themselves for a month of fervent
betting activity that they hope will
eclipse that of the preceding two major
international championships.
Indeed, many within the industry
will point to the 2008 UEFA European
Championships in Austria and Switzerland
as the catalyst for the online sportsbetting
explosion. Many more observers will point
to the 2010 FIFA World Cup in South
Africa as the true reference point for what
is now driving revenues in the sector to ever
higher levels: mobile betting.
Both of these major football tournaments
have served as landmarks in the
development of the sector thus far; firstly
for online and latterly for the mobile
segment, with both sharing a common
denominator – in-play betting.
What the current European
championship should provide operators
is an opportunity to see how these
sufficiently matured channels work
together and whether this tournament
can provide yet another springboard
to further growth for the sector.
the OlympicsThe advance of technology and the
propensity of people to bet on a wider
range of sports due to greater accessibility,
air time and, notably, an increase in live
streaming has many believing that the
London Olympics will present the best
betting opportunity of any Summer
Games to date.
Our panel of experts will share their
views on this in the feature on the opposing
page and will differ slightly in opinion.
Operators may continue to see London
2012 as a market laden with one-off bettors
that will prove difficult to retain given their
passing interest in the event, making any
developed strategy requiring investment a
risk for the bookmaker.
The contrasting argument is that the
Games could influence the UK public in
the same way that the Grand National
inspires many people to make their
solitary bet of the year; generating lots
of one-off bets on specific events like the
100m final, the men’s football tournament
and on British gold medal hopes. It may
not be a market flush with potential for
retention, but it can provide another touch
point with a demographic that rarely
engages with betting activity. As James
McMaster points out in the following
feature, “if the Olympics doesn’t take
off as a betting medium this year then
it likely never will.”
restrictive landscape Another key area that will be discussed
in this feature is how limited operators
and affiliates are in promoting and
marketing around the Olympics in
accordance with the guidance set down
by the ‘Organising Committee’. Gambling
Law specialist, Peter Wilson, will provide
an overview of the guidelines that prevent
certain associations with the Olympics
and the London 2012 brand which
makes for essential reading for all those
implementing campaigns around this
summer’s Games.
We will also look into some statistics
and psychology behind the driver of
sportsbetting’s meteoric rise: in-play betting.
London 2012 – a Change of phiLosophy?
iGB Affiliate JUNE/JULY 2012 31
featureSPortSbetting and the olymPicSSponsored by:
To discuss the specific opportunities that exist around this summer’s Olympics and major sporting events in general, iGB Affiliate sat down with Harry Bowden, Commercial Manager at Oddschecker, James McMaster, Business Director at KMi Gaming Consultancy and Keith O’Loughlin, CEO of Boylesports Online.
Before we get to the Olympics specifically, what are some of the key facets to marketing effectively and sensitively around major sporting events for a) operators and b) affiliates? James McMaster (JM): For operators, it’s all
about good planning to make sure that they
focus on the events they believe will gain
them the most exposure in order to acquire
new players and generate revenues during
those periods. To give you an example,
certain sponsorship opportunities on the
large affiliate and media sites are booked as
far as 12 months in advance so marketing
teams have to adapt to this or risk missing
out completely. The major sporting events,
such as Euro 2012, are ultra competitive
for operators so they all seek ways to offer
unique messages to players, such as special
bets, new promotions and a wide selection
of markets. These are all ways of attracting
new players.
The next challenge is retaining these
new players and giving them reasons to bet
with them again, therefore increasing their
lifetime value. In certain markets, such
as the UK, which are well established and
saturated with so many operators competing
for the same traffic and a finite number of
new players, retention is absolutely vital
and companies are beginning to focus on
this more than ever before.
Keith O’Loughlin (KO): The key to
retention is an engaging CRM strategy
which focuses on customer segmentation
and appropriate targeting. It is unlikely
that these customers care about the 3.40 at
Haydock on a Saturday so it is important
to tailor your message for the audience you
are speaking to.
JM: The key for affiliates is converting
players so they aim to promote the operator
brands who they believe are most likely
to sign up new players around key events.
StrategieS, Marketing and the OlyMpic OppOrtunity
iGB Affiliate JUNE/JULY 201232
feature SPortSbetting and the olymPicSSponsored by:
For example, certain operators traditionally
convert very well when it comes to football
bettors so affiliates would prefer to
promote them than a horseracing-focused
bookmaker during Euro 2012. The other
consideration for affiliates, certainly those
on revenue share deals, is which operators
are best equipped to retain the players and
maximise the revenue they derive from
them – therefore, increasing the earnings
for the affiliate.
As a major sportsbetting affiliate, what sort of strategy do you employ to maximise the opportunity of a major sporting event, and how is your Olympic strategy different to other, more traditional betting events such as Euro 2012? Harry Bowden (HB): We’re focusing
heavily on PR ahead of the Olympics and
we’re looking to provide a betting context
to the top Olympic stories. We do use
PR widely as part of our daily marketing
activities, however, we feel the Olympics is
a unique opportunity to build upon this and
consequently the Oddschecker brand.
What are some of the most common mistakes that campaigns around these events seem to make? JM: In my experience, poor planning is
often the cause of mistakes. Exposure is at a
premium and so the marketing teams have
to be planning months before these events
to make sure they reach as much of the
market as possible. There’s no point having
the best campaign in place if players don’t
know about it. As long as you have the right
message in front of the right audience at the
right time, you shouldn’t go far wrong.
What would you say has prevented bookmakers in the past from investing more readily in markets for events at the Olympic games – was it/is it simply a case of low market appetite? KO: There are a number of items at play
here. Firstly, large scale sporting events
are too infrequent and suffer from poor
terrestrial TV coverage to warrant resource
investment in the trading product and
marketing of the betting opportunities. Two
weeks of Olympic betting on sports that few
people are well informed of does not make
it a lucrative proposition for bookmakers.
In addition to this, the appetite for risk is
low. If full-time specialist resources are not
warranted you will find yourself reacting
to news slower than the sharp players in
the market – this is a natural occurrence
as specialist trading resources who live
and breathe the product (as with football,
racing, etc) are not on duty 24/7. On this
basis, the ratio of sharp money to casual
money is so distorted that making it a
profitable proposition from the sportsbook
perspective is difficult.
Additionally, bookmakers’ risk appetite
is closely aligned to market liquidity and
efficiency, hence, we will regularly take bets
of €20,000 or more on football games.
Liquidity and efficiency does not exist on any
large scale on Olympic sports, for that reason
they rest just above novelty market class.
Would you say that because of its location and where technology is in terms of access and availability to place bets on the move, that this summer’s Olympic Games represents more of a betting market than it has before?
“ Large scale sporting events are too infrequent and suffer from poor terrestrial TV coverage to warrant resource investment. Two weeks of Olympic betting on sports that few people are well informed of does not make it a lucrative proposition for bookmakers.”
iGB Affiliate JUNE/JULY 2012 33
featureSPortSbetting and the olymPicSSponsored by:
HB: Without a doubt, the London Olympics
will be far bigger than any previous events,
certainly from a betting point of view. The
constant coverage across the BBC and the
locality of events will make a whole variety
of sports accessible to the nation.
What we continue to see week in week
out is people betting with their hearts. The
recent Jubilee celebrations highlighted how
patriotic Britain is and we expect massive
interest for the likes of Jessica Ennis, Tom
Daley and Sir Chris Hoy. Traditionally,
punters would not bet on sports like
athletics, diving or cycling, but given the
sheer interest, expectation and patriotism,
that is likely to change.
JM: It’s definitely the most engaged I’ve
known the industry when it comes to the
Olympics or any other athletics event and,
whilst it won’t drive anywhere near the
same revenues as Euro 2012, it could still
be an important period of acquisition. The
time zone will make it accessible to a truly
global audience and, as you say, there are
more ways for punters to play than ever
before and live betting has grown at an
enormous rate over the past few years so
everything is in place for the operators.
As my colleague Keith McDonnell said
at this year’s LAC conference, if the
Olympics doesn’t take off as a betting
medium this year then it likely never will.
KO: The general public doesn’t switch
on to betting opportunities based on the
location of the event, so for that reason
there is very little unique about the betting
opportunity presented by the Olympic
Games being held in London.
Most people who will watch the Olympics
will have a passing interest, and I’m not sure
that passing interest will be enough to get
them to pull out their wallet to have a bet en-
masse. The major events such as the 100m
sprint will always attract bettors, and womens’
beach volleyball will attract other interested
parties, but I suspect not for betting.
HB: The technological developments
will, of course, play a massive part. The
rise of mobile has been quite staggering
over the past 18 months along with the
integration of Facebook and Twitter.
The fact that all three are intertwined
together makes it far easier for the public
(regular/non regular punters) to stay
informed and far more likely to place
a bet than seen in previous years.
What sort of betting activity are you anticipating from this summer’s Olympics? HB: This Olympics seems to be a bit of an
unknown quantity. Typically, it hasn’t been
a priority within the sporting calendar, but
there does appear to be a strong amount
of interest from our sportsbook partners.
There a hundreds of markets already
available, with loads more expected closer
to the time. Whilst it won’t be nearly as
big as Euro 2012, it is certainly a welcome
addition to a normally quiet period.
KO: If we can break even in trading
and register some new genuine punting
accounts then we will call it a success.
Our expectation is that the punters will be
heavily weighted to one-time-only bettors.
We would love to be pleasantly surprised if
this is not the case.
HB: I think the higher profile sports
such as football and tennis will certainly
attract a lot of money. But what everyone
really wants to see happen is for Usain Bolt
to win the 100m in a new world record
and the home grown British athletes to
romp home. With this in mind, I think
there will be plenty of action on athletics in
general, notably the 100m and Women’s
heptathlon, plus cycling and diving.
“ It’s definitely the most engaged I’ve known the industry when it comes to the Olympics or any other athletics event and, whilst it won’t drive anywhere near the same revenues as Euro 2012, it could still be an important period of acquisition.”
iGB Affiliate JUNE/JULY 201234
feature SPortSbetting and the olymPicSSponsored by:
Do you think there will be markets that might surprise us – sports that may become more ‘bet-able’ markets due to their exposure? HB: Most definitely, I have already
seen markets available for the likes of
handball and water polo. I’m not too sure
of the scoring for either, but I’m sure
odds compilers across the country will
be swatting up to make sure they are
on top of everything.
Before the Olympics are upon us, there is a certain European football tournament in Poland and Ukraine to contend with. This is clearly a more lucrative event for sportsbooks but how challenging is it preparing for multiple major events in one year so that one campaign doesn’t overshadow another? KO: This year we have a reasonable flow
from one event to the next. The Euros will
finish, followed by Wimbledon, then the
British Open Golf followed by the Olympics
and then back into the Premiership season.
As our business has evolved, we have
become very tuned to planning several
campaigns to run in short succession on
small and large scales. That is the fantastic
aspect of the industry that there is constant
challenge and variety of events coming
thick and fast throughout the year.
Beyond promoting offers on markets around the Games, how important is content in any marketing strategy for an affiliate? Should they be looking to provide unique content or draw in news feeds from existing authorities considering that they don’t want to be taking on the likes of the BBC for quality of content, unless they have insider knowledge?
JM: This is a really good point because
I’ve been in many marketing meetings
in which this topic has been discussed.
My personal view is that there are so
many dedicated news outlets, both
online and on TV, that it is near
impossible for affiliates and operators
to provide unique content to their players.
Many have tried but I’m not convinced
they’ve offered any real value to their
users. In my opinion, there are other areas
they’d be better off focusing on in order
to engage people and drive traffic. An
RSS feed is a simple way to offer news
stories without the need for internal
resource and there are many good
ones out there.
What are the benefits and, conversely, the negatives of creating a standalone site to house your Olympic campaign? Does it help or hinder particularly if you want to try and retain many of the new players you’ve acquired through the process? JM: The main benefit for an operator is that
it offers a streamlined product to punters
actively looking to bet on the Olympics that
is very easy to navigate and offers all of
the relevant bets and markets in one place
– all good for converting and engaging
players. The downside is that it can often
make it a disjointed process when you
then try to cross sell your players to other
products as the messages and branding
can be inconsistent. As there are very few
high profile athletics events in the sporting
calendar, operators simply have to get them
betting on other sports and products in
order to retain them long-term and increase
their margins. I don’t expect to see too many
operators offering standalone Olympic sites
but instead think they’ll look for ways to
integrate the content into their main site.
What sort of year has 2012 been so far for sportsbetting considering the growth of the product matched up with the contracting of the economy and disposable income? Is it still a sector on the rise? HB: The contracting economy doesn’t
seem to be impacting the gambling
industry, the sector is undoubtedly on
the rise. We’ve seen a substantial increase
in traffic to the site and, in-turn, an
increase in sign-ups to partners. Betting
“ If bookmakers are to have as much success on mobile as they have had online then it is essential that affiliates are at the heart of it.”
LESS OF AN AFFILIATIONMORE OF A PARTNERSHIP
Partner with Betfair, The World’s Biggest Betting Community and the pioneers of exchange betting.We also offer a range of other sports betting products, poker, casino, and arcade games.
Competitive reward plansFull cross product earnings
No negative carry over
Sign up at betfairaffiliates.com
betfairaffiliates.com | [email protected] | twitter.com/betfairaff | facebook.com/betfairffiliates
Sports • in:play • Poker • Casino • Games
commission on mobile betting
24/7 global in:play
over 25 countries
20 different currencies
Join the Sportingbet Affi liate Program and start benefi ting from our global brand.
www.sportingbetaffi liates.com
iGB Affi liate JUNE/JULY 2012 37
featureSPortSbetting and the olymPicSSponsored by:
KEITH O’LOUGHLIN is CEO of Boylesports Online. Keith joined Boylesports in 2011 as Head of Online. In 2012, he was appointed CEO to the newly restructured Boylesports Online Business division. His vision is to develop Boylesports.com to be the best sports, games, betting and entertainment business on the planet.
JAMES MCMASTER is the Business Director at KMi Gaming having joined from Betting Partners, where he managed the affi liate program for one of their largest clients, the Bodog Brand. James is one of the industry’s most respected affi liate managers, having been responsible for some of the most competitive and challenging betting markets at Sportingbet prior to joining Betting Partners.
is becoming more and more prevalent
within society; you are hard pushed to
watch a football match without two or
three different bookmaker adverts. It’s
certainly a competitive market, but if
you invest within it then you should
reap the rewards.
KO: I can’t speak for the industry,
but 2012 has been an exceptional year
of growth for Boylesports. We have
had a major investment in people,
technology infrastructure and our web
and mobile sportsbook which have seen
high double digit growth year-on-year
for us. We surpassed all internal records
during the Cheltenham and Aintree
Grand National festivals for bets taken,
and bets per second and our infrastructure
suffered no outages, which wasn’t the
case for many bookmakers.
If you were advising a start-up sportsbetting affi liate on how to approach this summer’s opportunities, given that we have the Euros shortly preceding the Olympics as well as the annual major events, what sort of strategy would you suggest to them as a rookie in the space? JM: My advice is to try and focus on
the areas in which you feel you can
offer something new and unique to a
saturated affi liate market – although
that’s far easier said than done. With so
many events coming up it’s tempting to
try and promote them all, but some may
fi nd that they convert more effectively
and increase their levels of traffi c by
picking out certain events and offering
more detailed, interesting content.
This will also have long-term benefi ts
from an SEO perspective.
Keith, how do you foresee the growth of sportsbetting continuing into the next few years and how can the affi liate sector ensure that they are central to that development?
KO: I think that mobile access will
change the way we all look at sportsbetting
over the coming 24 months. I think
affi liates will need to evolve somewhat
to more of a partnership with bookmakers
on a sustainable basis rather than just
provide a feed of new accounts. When
industries go through great change
some non-core business areas like
affi liates can be vulnerable, so the more
value affi liates can bring to bookmakers
the better they will navigate through all
metamorphic phases that might be lying
in wait around the corner.
In terms of future growth, where do you see the market going in the next fi ve years – will we see mobile and in-play betting almost completely eclipse the desktop consumer? HB: The mobile web will never fully
replace the desktop computers, however,
it will become the principle medium for
transacting and communicating with
customers. In-play betting and mobile
betting perfectly complement one another
and I believe the growth of mobile betting
will directly impact the growth of in-play
and vice versa.
Whilst there are certainly advantages
of betting on your mobile, I cannot
envisage the desktop coming to an
end. People spend so much of both
their working and social lives in front
of a computer that it seems unlikely that
it will die out. I’m sure the likes of Apple
or Facebook will bring out another
state-of-the-art device in the near future
which will change the landscape within
which we work.
How integral will affi liates remain in the product’s growth? HB: If bookmakers are to have as much
success on mobile as they have had online
then it is essential that affi liates are at the
heart of it. Mobile is certainly a priority of
ours and we are very aware that we need
to remain part of the customer journey
whether it’s online or on mobile. Overall,
I think affi liates are having to play catch up
and it is up to us to envisage future advances
in technology so we are not left behind.
HARRY BOWDEN is the Commercial Manager at Oddschecker.com. He joined the team in November 2011 after nearly three years at Sky Bet. This month Harry looks ahead to the London 2012 Olympics and the impact that it is likely to have for the online betting industry.
iGB Affiliate JUNE/JULY 201238
feature SPortSbetting and the olymPicSSponsored by:
As marketing opportunities go, the London 2012 Olympics may stand out as a prime vehicle for sportsbook marketers to take advantage of, but the reality is that due to restrictive advertising regulations, great care must be taken in the development of any campaigns associated with Olympic events so that they do not contravene guidance set down by the ‘Organising Committee’. Peter Wilson, iGaming law expert and Founder of Peter Wilson Legal LLP, explains what the regulations prevent advertisers from doing at this summer’s Games.
The combined effecT of restrictive
Regulations on advertising during the
Olympic and Paralympic Games1, and
the registration of a number of Games-
connected trademarks, creates a marketing
equivalent of martial law. Breaches of
the Regulations are criminal offences
punishable by criminal prosecution and
fines of up to £20,000 per offence in the
Magistrates Court or even higher if tried
in the Crown Court. Infringement of
trademarks may result in civil suits with
injunctions and huge claims for damages.
No doubt there will be a real temptation
for some businesses to try to find a way
to use the draw of London 2012 to their
own commercial advantage. Apart from
The National Lottery, which is a major
contributor to the Games, there are no
other gambling operators who are sponsors
or partners. With so many sports to bet on
(although views about the level of likely
interest differ markedly), many operators
and affiliates must be looking to gain
some material benefit by mentioning the
Olympics on their websites. Doing so would
raise a number of complex legal issues
due to the strict intellectual property rights
protecting various registered Olympic
marks including the various Games’
logos and the words “London 2012”, “Get
Set”, and “Olympic” and even simply the
number “2012”.
The London Organising Committee of
the Olympic Games and Paralympic Games
Limited (‘the Organising Committee’) has
produced some guidance (available on the
www.London2012.com website) in which
they warn against any suggestion of any
association or link with the Games that, in
their view, would extend to the use of any
“athletic images” or anything similar that
could be intended to evoke the Games. The
guidance emphasises the need to avoid, if
at all possible, any use of words or imagery
to single out bets on the Olympics that
might imply some branding association.
The recommendation is that bets on the
Olympics should be marketed in the midst
of other regular sports bets, without any
special treatment. It has to be said, however,
that the guidance is not the law; it is the
Organising Committee’s interpretation
of the law and so may be a little on the
cautious side for obvious reasons. It is
certainly a document that should be taken
into account by every sportsbook marketing
department and affiliate manager.
flash mobsAs to advertising offline, the Regulations
severely restrict any advertising by non-
sponsors during the Games and they
establish advertising free zones around
each Olympics event. The Regulations
are a reaction to the growth of ambush
marketing and other non-sponsor
advertising at previous Olympics and
other notable sporting events such as the
World Cup. Remember the 36 attractive
models in orange mini-dresses that caused
a distraction at the Netherlands v Denmark
match during the FIFA World Cup in
South Africa in 2010? If you do, that is
the point; as the Dutch brewery, Bavaria,
succeeded in creating world-wide TV
coverage and publicity at a very limited cost
much to the chagrin of Budweiser, which
probably paid huge sums of money for the
privilege of being the official beer sponsor.
It was not the first time Bavaria used a
‘flash mob’; in the 2006 World Cup in
Germany, 28 male supporters wearing
orange Lederhosen in a similar stunt ended
up having to sit in their underwear after
Police intervention. At least they got to see
the game. The British Police will have a
similar right to seize offending articles used
in illegal ambush marketing, be it mini
dresses or Lederhosen.
Should the organisers of flash mobs or
other ambush marketing campaigns be
punished by the criminal law? The 28 or so
sponsors of London 2012 would probably
think so as they do not want anyone
freeloading on the back of a total £700
million investment in securing a tier one,
two or three sponsorship deal. The contra
view is that the government has no place
criminalising what might otherwise be fair
brand competition in order to protect the
commercial interests of huge corporations
such as McDonald’s, Coca Cola and Visa
with what some might characterise as a
leading sponsor advertising cartel over
a largely publicly funded international
event – particularly when the cost of any
sponsorship of the Olympics is totally
outside the reach of most businesses.
controversy What makes these Regulations so
controversial is their draconian nature and
broad application. Regulation 6(1) provides
for a protective advertising free zone
around the Games, stating, “A person must
not engage in advertising activity in an
event zone during the relevant event period
or periods.” If a company or individual
does so, then they could be committing an
offence unless they had authorisation from
the Organising Committee, applications
for which should have been submitted by
the end of March 2012. Directors or other
officers of a company will be assumed to be
responsible as having arranged the illegal
advertising and could have committed
an offence, unless they can show that
they had no knowledge of a breach of the
Regulations and took all reasonable steps
to prevent one. The prohibition has various
Marketing at the OlyMpics
1The Olympic Games and Paralympic Games (Advertising and Trading) (England) Regulations 2011 (“the Regulations”). The Regulations came into force on 2 December 2011 and last until 11 September 2012 There are equivalent regulations for Scotland and Wales.
iGB Affiliate JUNE/JULY 2012 39
featureSPortSbetting and the olymPicSSponsored by:
limited exemptions including shop signs
and the like for existing traders, that is
unless they adapt or change their usual
business offering, for example, to associate
themselves with the Games.
There are 25 of these event zones
covering all the places where competitive
events are being held including Earls
Court, the ExCel, Wembley Stadium,
Wimbledon, Horse Guards Parade, and the
whole Olympic marathon route, to name
but a few. There is a postcode checker on
the Olympics website www.London2012.
com so you can search to see if you are in
an event zone. If so, you might want to
check that your advertising will not breach
the Regulations and that goes for all your
advertising, whatever the delivery channel.
The event periods, referred to in the
Regulations, are from July 23 to August
13, 2012 for the main Olympics and from
August 28 to September 9, 2012 for the
Paralympics. During these “closed periods”,
all advertising hoardings, temporary
signs, etc, will have to be covered over,
no advertising banners or balloons can
be flown, no street trading can take place
(unless authorised), and no flyers or other
material distributed. Potentially, you cannot
even have a group of friends all carrying
the same unofficial branded bottles of
soft drink in an event zone in case it is
considered illegal ambush marketing.
The Regulations are specifically directed
at ambush marketing campaigns, described
as campaigns intended specifically to
advertise goods or services, or advertise
persons who provide goods or services
(i.e. the brand), in an event zone during
the relevant event periods. Advertising
includes displaying an advertisement
and that covers a variety of possibilities
including, in the case of an ambush
marketing campaign, carrying anything
displaying an advertisement, wearing
advertising attire or displaying an
advertisement on an individual’s body –
so forget the painted models.
But as an individual you can still go to
the games wearing your favourite branded
shell suit; as there is an exception for
individuals who are displaying advertising
provided they do not know or have
reasonable cause to believe that they are
part of an ambush marketing campaign.
And frankly, it seems unlikely that the
Crown Prosecution Service is going to take
on anything other than the most serious
cases and it should not busy itself looking
for companies to prosecute which might
cogently argue that any breach was not
intended. The real target is likely to be
either the orange clothed or similarly mass
branded mobs that are trying to harness
the goodwill attached to the Olympic events
and the mass audience from blanket TV
coverage, or the crafty worded comparative
advertising undermining the branding of
an official sponsor.
Having said all that, unless for once,
history is not to be repeated, there will
still be unofficial advertising during the
Games (as there has been in almost every
other Games in recent history) and some
businesses might think it worth taking a
risk with ambush marketing campaigns.
The IOC and the Organising Committee
have extracted a high price for the privilege
of being a Games sponsor (£40 million
to be a tier one), so they are duty bound
to ensure that the Police enforce the
draconian laws available under the
Regulations. The IOC says that any
company that tries to create a false
association with the Games, or gives the
impression that they are an official sponsor
is, “cheating Olympic athletes, Olympic
Games’ organisers and Olympic fans”.
In truth, the IOC will not tolerate anyone
trying to undermine the value of what
is a multi-billion dollar business.
This article is not intended to constitute
legal advice and is merely general comment
that may not apply to your circumstances,
therefore, you should formally engage the
assistance of a lawyer for advice before taking
business decisions in relation to the matters
covered in this article.
“ The guidance emphasises the need to avoid any use of words or imagery to single out bets on the Olympics that might imply some branding association. The recommendation is that bets on the Olympics should be marketed in the midst of other regular sports bets, without any special treatment.”
PeTer Wilson is a regulatory lawyer and the founder of his own niche firm Peter Wilson Legal that specialises in gambling and business investigations. The gambling practice has been built up over 20 years expanding from advising UK land-based businesses to an international iGaming practice with clients in over a dozen jurisdictions. Peter is known for his comprehensive industry knowledge and sensible, practical advice. He lectures widely and provides training and consulting.The firm has a wide ranging and varied business investigations practice and over the years Peter has represented both companies and individuals facing civil and/or criminal investigation by government agencies. His experience over the years includes dealing with allegations of fraud, tax evasion, bribery, money laundering and breach of statutory obligations in matters of gang master licensing, food safety, environmental law, trading standards and financial services.
ContactTel: +44 (0)208 364 1270Cell: +44 (0) 7880 734 260Email: [email protected]
Social Marketing & StrategiesEffective implementation and measurements for iGaming
Ensure your social strategy is bigger and better than your competitors.
Like it or not every operator and af�iliate now needs to incorporate social tools into the marketing mix to stay competitive. No one wants to get left behind. At iGaming Business we’ve made it easy for you with our fantastic new Social Marketing report. From the right measurements tools, to the best technologies, best partners and networks, this report will show you not just how to do social, but how to do social successfully.
Key features:
• Learn about all the key networks, their audiences, how they work and what they mean for your betting and gaming business
• Review case studies of operators and af�iliates already making a difference in the social media space
• Analyse best practice marketing methods across all networks, including measurement
• Learn how to monitor and manage your brand online, and to identify and use your in�luencers as your sales team
• Understand how social media is changing SEO and PPC, and ensure your brand makes the move from search to discoverability
• Identify the best technology support for your business from maximizing Facebook’s Edgerank to seamlessly managing social based acquisition CRM
NEW REPORT - OUT NOW!
Call +44 (0) 207 954 3489 to order your copy of iGB Social Marketing report today
www.iGamingBusiness.com
Ask for your free executive summary today quote 12HS44A and email [email protected]
iGB Affiliate JUNE/JULY 2012 41
featureSPortSbetting and the olymPicSSponsored by:
Lee Richardson, ONEworks Limited’s Director of European Sales, looks at today’s in-play betting market and how it is likely to develop into the future.
It’s ceRtaInLy no exaggeration to
describe the recent growth of ‘in-running
betting’ (IRB) on sports as explosive. IRB
can be defined as any sports bet struck
after the start of the event itself, with up
80 percent of all betting revenues made
on that event now being struck by sports
bettors ‘in-running’.
Just five years ago, the position was
probably the exact reverse, with 80 percent
of revenues being struck before the event
got under way; that’s an extraordinary
change in player behaviour, and few people,
frankly, successfully predicted the seismic
change seen since the UEFA European
Football Championships in 2008.
Nonetheless, it’s been easy to see
why consumers have taken to this new
opportunity, and the fundamental reasons
for its growth.
Live streamingFirstly, we’ve seen an explosion in the
amount of live sport being broadcast,
whether on satellite TV, over the Internet
or via the tailor-made live streaming many
operators now provide their customers on
their sites.
This live-streaming sector for
sportsbetting was embryonic just a few
years ago; now, the largest sports-rights
aggregators are making available more
than 5,000 live sports events, up nearly
50 percent from just two years ago,
with football, tennis and basketball
collectively taking the vast majority of
events and betting revenues. This live
sport is often shown at convenient times
for consumers and is now increasingly
accessible through mobile, tablet and other
apps, all of which has contributed to the
sector’s extraordinary growth.
Additionally, we’ve seen a huge uplift in
both the range of markets and the ‘depth’
of subsequent prices offered on those
markets, aided by smarter trading tools.
A good indication of the sector’s growth
can be seen in the figures published by
two listed European operators, who started
providing analysts and investors their
IRB share of total sportsbetting revenues
in 2006, realising the potential of this
buoyant new sector.
Then, it represented considerably
less than ten percent; in 2011, that share
had risen to over 50 percent, and both
listed operators forecasted this to be
“above 75 percent” for 2012 and beyond.
The all-important gross win margins
have improved too, from perhaps two
to three percent five years ago, to a far
healthier five to six percent today, achieved
largely through operators relying less on
guesswork, and employing better tools and
more accurate prices.
so where does this sector go from here?One could argue that despite all the creative
efforts of the operators, the sports bettor is
still something of a creature of habit.
A typical high-profile football match
(still clearly the most preferred sporting
event for IRB) shown live on TV, would
generate the vast majority of its total
in-play betting revenues on the traditional
‘outright’ 1X2 market.
In Europe, for every Euro bet during
the 90-minute event, perhaps 60 percent
would be on the 1X2 outright market,
30 percent on the ‘over-under’ goals
markets, and the remaining ten percent
on the many other markets available
throughout the game.
In Europe at least, consumers clearly love
playing on the two markets they know and
love, on their favourite sports, almost to the
exclusion of everything else. That position
would be similar for the Asian operator and
Asian player, albeit on the Asian handicaps
with the ‘over-under’ markets dominating.
Encouraging the consumer to expand
their betting repertoire is a constant goal for
operators, as this typically leads to margin
improvement, and it seems certain that
this will continue to dominate operators’
plans for the next decade. Having up to 90
percent of IRB bets made on just two core
markets is something operators will surely
want to adjust over the next five years.
Whether that’s a continued search for
new betting markets that better piques the
interest of players, or by growing the share
of ‘other’ markets through better promotion
remains to be seen, but the search will
no doubt continue. Adjustment of the
pricing of those events will also likely
be a future requirement for operators,
and a development from suppliers.
One notable feature over the
past few years has been the gradual
‘commoditisation’ of pricing, particularly
on the key markets of the number one
IRB sport, football.
The increasing use of automated trading
tools and the collation of market prices
through their associated algorithms have
tended toward homogenous prices, thus
removing any obvious differentiation for
operators who use the same tools, and
perhaps tending against customer loyalty.
Those operators who choose to use
software suppliers with human traders to
support their trading platform and trading
tools will surely be at an advantage as
they continue to find sustainable ways of
offering their customers value, and beating
their competitors in the ultra competitive
in-play market over the next five years.
WHAT’S NEXT FOR IN-PLAY BETTING?
Lee RIchaRdson is Director, European Sales at ONEworks Limited and can be reached at [email protected]. www.oneworks.com; [email protected].
iGB Affi liate JUNE/JULY 201242
FEATURE SPORTSBETTING AND THE OLYMPICSSponsored by:
IN-PLAY BETTING BY NUMBERS
Sports offered 1 or more times in the 14 day trial – by companyFigure 1
The biggest growth driver for sportsbetting in recent years has been the proliferation of in-play betting, widely cited as the new battleground for European sportsbooks. Here, we examine the industry’s fi rst in-play betting report, carried out by GamblingData, which provides a unique insight into the companies at the forefront of the real-time wagering phenomenon that is driving huge growth across the sector.
IN BECOMING THE new battleground on which sportsbooks now compete against each other both online and via mobile, in-play betting has established itself as the key revenue driver for most, if not all adoptive sportsbetting operators. However, until recently, there had been little independent market research that could allow us to better understand the impact of this dynamic market trend on the nature of betting and the strategies that operators now implement as a result.
The fi rst research of its kind to surface was released in September 2011, published by GamblingData in conjunction with Sporting Solutions. The ‘In-Play Betting Report’ sought to examine the growth of live betting in two parts: a qualitative analysis of the in-play offering of fi ve leading sportsbooks in tandem with an examination of the impact that in-play is having on the sector itself.
Since then, GamblingData has issued an updated version (Winter 2012 In-Play Tracker) that comprises eight companies over an extended 14-day period to gain a more developed insight into the average number of markets and events that today’s betting operators are offering.
The reportIn providing statistics from GamblingData’s Winter 2012 In-Play Tracker (IPT), we can see that live sports streaming has become an integral component of today’s in-play betting offerings; the report detailing how the volume of events streamed by the leading sportsbook operators is matching the rate of overall in-play growth.
In its inaugural quarterly IPT report, GamblingData found that Bet365 led the way in terms of both sports covered and events offered within its in-play proposition, while William Hill was observed to offer the most in-play markets per event.
Taking place between Saturday November 26 and Friday December 9, 2011, the survey compared the in-play offerings of eight of the leading sportsbooks – 12Bet, Bet365, bwin, Ladbrokes, Paddy Power, Sportingbet, William Hill and Unibet – within specifi ed ten minute betting windows during the 14-day survey period. The survey was designed to capture information during two ‘football Saturdays’ as well as successive UEFA Champions League and Europa League weeks, but also more off-peak periods during the remainder of the period.
The survey found that Bet365 came top in terms of sports offered, with the Stoke-based fi rm offering a total of 20 sports, ahead of Ladbrokes and Unibet, which each offered 15 sports, bwin with 13, Paddy Power and William Hill with 12, Sportingbet with 11 and 12Bet with 10. (See Figure 1: Sports offered one or more times in the 14-day trial.)
Bet365 also led the competition by some distance in the key battleground of the number of events offered, racking up 534 in total. Sportingbet was next in line with 358 events over the same period ahead of bwin with 317, Ladbrokes with 313, William Hill at 297, Paddy Power with 280, 12Bet at 279 and Unibet at 277. (See Figure 2: Number of events – by company.)
However, when it comes to in-play markets offered per event, it is William Hill that emerged at the top of the pile. The company’s average number of markets per event within the 14-day survey came to 53, well ahead of the 30 recorded by its nearest rival in the metric, Ladbrokes. Next best was Sportingbet with 25, Bet365 at 24, bwin with 23, Paddy Power at 22, Unibet with 11 and 12Bet with an average four markets per event. (See Figures 3 and 4: Number of events and average markets per event – by company.)
iGB Affi liate JUNE/JULY 2012 43
FEATURESPORTSBETTING AND THE OLYMPICSSponsored by:
Number of events – by companyFigure 2
Number of events (excluding fi rst two days of survey) – by companyFigure 3
Number of events and average markets per event – by company
Figure 4
iGB Affiliate JUNE/JULY 201244
feature SPortSbetting and the olymPicSSponsored by:
Dr Mark Griffiths, Professor of Gambling Studies at Nottingham Trent University, provides a brief psychosocial overview of in-play betting.
For those oF us who watch football
on the television in the UK, it is almost
impossible to watch a game without seeing
the many gambling adverts alerting us
to the fact we can now bet on over 60
in-play markets while watching the game.
Should I wish to, I can bet on everything
from who is going to score the first goal,
what the score will be after 30 minutes of
play, how many yellow cards will be given
during them game and/or in what minute
of the second half the first free kick will
be awarded. What’s more, it has been
estimated that 2012 will see 3,000 live
events a month on which punters can bet.
There are also sporting events that may
come to the fore in the in-play market (with
betting on cricket and tennis being ones
that I would pick out to rival the dominance
of the football markets).
Demand and technologyOver the last decade, there appears to have
been a marked shift in gamblers wanting
instant 24/7 gratification when they bet
or gamble. They also want to be able to
gamble instantly on anything they desire,
so gaming operators have to offer a vast
array of games and markets on which the
gambler can bet. Consumers also want
to be paid their winnings instantly (i.e.,
immediately after the result or outcome
is known). Technological developments
such as cloud computing mean that
instantaneous gambling by (and for) the
masses is now a reality. Live betting is
going to become a critical activity in the
success of the future online and mobile
gambling markets. It is already showing
that it can be a major revenue generator
for anyone in the sportsbetting market (for
any company in the sportsbetting market,
it is quickly turning from a betting option
to a betting necessity). It also means that
gaming companies are having to outsource
much of their trading and event generation.
The move towards cloud computing in
the gaming industry is already underway.
In 2011, Bet 365 adopted a cloud computing
solution to reduce the latency of its core
betting system as a way of improving
gamblers’ experiences on its website. In
layman’s terms, it speeds things up for
those accessing the website and can handle
large simultaneous demand. The use
of cloud computing in Bet 365’s in-play
betting system now means that punters
can increase their stake in less than two
seconds with the system now being able to
support millions of gamblers concurrently.
More recently, in December 2011,
International Game Technology (IGT)
announced its ‘IGT Cloud Solution’ that
will allow operators to provide seamless
gaming experiences across land-based,
mobile and online devices.
In addition to increasing revenue,
companies offering in play
options will also use the platform
to increase betting session times
(and therefore increase their
profits), as well as using it to
cross-sell to other products
in the company’s gaming
portfolio (simply as a result
of customers spending
more time interacting
with a company’s games and
products). Some companies
also view sportsbetting not only
as a revenue generator but also as
a casino acquisition tool. There
also appears to be a changing
demographic with online customers
becoming younger, and more tech-savvy,
particularly as the new ‘digital natives’ have
never known a world without the Internet,
mobile phones and interactive television.
As the CEO of OpenBet, David Loveday,
commented in a news release recently,
“The periodic ritual of predicting a daily
or weekly series of events is no longer
the mainstay. Today’s punter wants to be
able to turn on their gadget of choice and
instantly be offered an array of real-time
betting opportunities with immediate
results… Sportsbetting is growing in what
is offered, how it is offered, when it is
offered, where it is offered, and to whom
it is offered… Like the financial markets,
volatile events produce increased liquidity,
and increased liquidity produces greater
revenue to the operator.”
This also means that to stand out
from the crowd in a fast growing market,
gaming companies have to have a USP –
something that marks them out as
different from their competitors.
In-play betting is arguably the fastest
growing form of gambling in the UK
and the country’s leading in-play
bookmaker, Bet 365, made over £500
million last year. What the ‘in-play’ markets
have done is take what was traditionally a
discontinuous form of gambling – where
you make one bet every Saturday on the
result of the game – to one where you can
gamble again and again. What’s more,
gaming operators have quickly capitalised
on the increasing amount of televised
sport. In contemporary society, where
there is a live sporting event there will
always be a betting consumer. In-play
betting companies have both catered for
the natural betting demand but introduced
new punters in the process. The weekly
or daily bettor is now seeing the whole
sporting event as an entertainment
experience (a “natural side order to
the live action” as I saw it described).
Mind GaMes
Dr Mark GriFFiths is Professor of Gambling Studies at the International Gaming Research Unit, Nottingham Trent University.
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
fe
br
ua
ry/m
ar
ch
2012
february/march 2012
Dennis neilanDer on nevaDa anD the Us
Department of JUstice clarification
Grooveshark foUnDer, Josh GreenberG
GooGle on GaminG
the start-Up affiliate
toolkit the essential guide for new entrants to market
APRIL/MAY 2012
w
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
AP
RIL
/MAY 2
012
w
AP
RIL
/MAY 2
012
AP
RIL
/MAY 2
012
AP
RIL
/MAY 2
012
THE SEARCH
FOR TOMORROW’S
WORLDExperts Discuss the Future of SEO
EMERGING MARKETS: ASIA AND THE US
INTERNET ENTREPRENEUR: NEIL PATEL
THE SECOND COMING OF ONLINE POKER
THE AFFILIATE GUIDE TO PINTEREST
JUNE/
JULY
201
2
INFO
RMATI
ON, I
NSIG
HT AN
D A
NALY
SIS F
OR T
HE BUSIN
ESS OF
INTE
RACTI
VE GAM
ING
JUNE/JU
LY 2012
SportS
bett
ing
and th
e oly
mpicS
“An invaluable resource for anyone in the online gambling affi liate industry”
Send a free subscription to a colleague:
www.iGBAffi liate.com
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING
INFORMATION, INSIGHT AND ANALYSIS FOR THE BUSINESS OF INTERACTIVE GAMING FOR TOMORROW’S
FOR TOMORROW’S
FOR TOMORROW’S
FOR TOMORROW’S
FOR TOMORROW’S
FOR TOMORROW’S
FOR TOMORROW’S
INFO
RMATI
ON, I
NSIG
HT AN
D A
NALY
SIS F
OR T
HE BUSIN
ESS OF
INTE
RACTI
VE GAM
ING
lympic
More than just a magazine. Go to iGBAffi liate.com for free videos, articles and resources on the affi liate market.
We’re committed to bringing out the super affiliate in you
JOIN THE INCOME ACCESS NETWORK TODAY+1 514 849 8595 [email protected] www.incomeaccess.com
2011
W
INNER
BEST AFFILIATENETWORK
Much has changed within online poker over the last few years. That’s why iGaming Business have produced a brand new 4th edition of The Global Business of Poker. This new report offers you a comprehensive overview of the key markets and includes forecasts up to 2015. If you are in the business of online poker you cannot afford to miss out on this essential business intelligence.
This valuable report will allow you to develop and execute a successful online poker experience and give you the key data and analysis to allow you to easily identify and exploit new opportunities. The Global Business of Poker gives you in-depth analysis on the factors affecting growth in the industry; including the Smartphone revolution and it’s affect on poker offerings and how social gaming is now part of the online poker mix. You will �ind a range of intelligence to inform and shape your business strategy.
The 4th edition is unrivalled in the breadth and depth of case studies of the major online poker sites and networks. You will be able to clearly see who the winners and losers are in this sector, which business models are the most successful, how companies are increasing revenue and the most effective marketing strategies. The Global Business of Poker will allow you to learn from the experience of others and avoid some of the pitfalls along the way.
Summary of contentGrowth of online Poker - Regional Overviews and demographics - Major Poker Properties –Online Poker Market - Mobile Poker Market - Poker and Social Media - Poker and TV- Commercial Models in Online Poker - Marketing, Sponsorship and Poker Prize Funds - Regulation - Outlook and Forecasts
NEW 4TH EDITION
OUT NOW!
To order your copy of The Global Business of Poker (4th Edition) or receive a free executive summary, simply email: [email protected] and quote 12HS44A or call our sales team on +44 (0) 20 7954 3489. www.igamingbusiness.com
The Global Business of Poker (4th Edition)
iGB Affiliate JUNE/JULY 2012
INSIGHT
46
With the first anniversary of Full Tilt Poker’s shock collapse fast approaching, Julian Rogers charts the rise, and spectacular fold, of a former online giant.
With its quiRky cartoon graphics
and vast array of peculiar avatars, Full Tilt
Poker emerged from the pack to become
the second biggest poker site in the world
with estimated revenues of $500 million in
2010, according to Forbes magazine. At its
peak, upwards of 20 million pixilated hands
were being dealt every day.
Founded by Ray Bitar and a group of
pro poker players in 2004, Full Tilt’s
proprietary software, provided by Tiltware,
was slick and user-friendly while the lobby
was soon full to capacity with all-important
players and big guaranteed tournaments,
24/7. In online poker terms, however, this
was a late launch; the first online poker site
to accept real money wagers appeared in
cyberspace way back in the dotcom boom
times of 1998. Full Tilt, though, had an ace
up its sleeve to get the poker room noticed
in an increasingly crowded marketplace.
As part of an aggressive marketing
assault, the site’s owners made it their
mission to sign up a panoply of the
game’s brightest talent – from dyed-in-the-
wool Las Vegas legends to multi-tabling
Internet poker starlets. Full Tilt’s moody
monochrome TV adverts showcasing the
bulging stable of poker pros was a key
marketing ploy to entice new players. These
pros also appeared on high-profile TV poker
games with the famous Full Tilt Poker
logo emblazoned across their clothing.
Amateurs saw this and put their trust, and
their cash, in the site. It was also the first
operator to introduce the groundbreaking
‘Rush Poker’, which is where players are
instantly transferred to a new table and
dealt a new hand when they fold. Perfect for
‘action junkies’.
With poker celebrities playing exclusively
on the site, it became a hub for eye-
watering high stakes action, particularly
on the heads up tables. Finnish pro Patrik
Antonius and Swede Viktor Blom (Islldur1)
contested a $1.3 million pot on Full Tilt in
2009, making it the largest in online poker
history – a record that still stands today.
Anyone, provided they had sufficient funds,
could lock horns across the virtual felt with
the likes of Phil Ivey, Tom Dwan (durrrr),
Gus Hansen et al. Or you could just observe
and learn from the sidelines. For a time,
Full Tilt looked unstoppable in its pursuit
of the industry’s chip leader, PokerStars.
What could possibly go wrong?
Dark daysEventually, though, it did go disastrously
wrong. Full Tilt Poker imploded on June
29, 2011 when its Alderney licence was
suspended (later revoked in September),
and was accused by the US Department of
Justice (DoJ) of defrauding poker players
to the tune of $300 million. Prosecutors
labelled the operator a “massive Ponzi
scheme” and said the business should have
had $440 million in player funds but, in
fact, held a relatively paltry $60 million in
its accounts. “Full Tilt insiders lined their
own pockets with funds picked from the
pockets of their most loyal customers while
blithely lying to both players and the public
alike about the safety and security of the
money deposited with the company,” said
US Attorney Preet Bharara. When the news
broke that Full Tilt was in dire straits, a
‘run’ on the bank was inevitable.
Full Tilt’s troubles sent shockwaves
through the poker world while the negative
publicity was exacerbated when the story
was splashed across the mainstream media
The Fall OF aN eMPIReFigure 1:
Black Friday’s impact on real money cash game player accounts as of May 2011
Site/Network Net change(avg. players)
Net change(%)
Left US Market
PokerStars -7734 -26%
Full Tilt Poker -5538 -32%
Cereus Network -1542 -76%
Still in US
Merge Network +735 +77%
Bodog +184 +28%
Cake Network +155 +28%
Everleaf Network +3 +1%
European Majors
PartyPoker +358 +10%
iPoker Network -13 -0.4%
Ongame Network -102 -4%
888poker +77 +5%
Source: PokerScout
Full Tilt TimelineJune 2004Full Tilt Poker is launched by parent company Tiltware with involvement from poker pros Chris Ferguson, Howard Lederer, Phil Ivey, Andy Bloch, Mike Matusow and Jennifer Harman.
September 29, 2006US Congress passes the Safe Port Act which includes a last-minute amendment known as the Unlawful Internet Gambling Enforcement Act (UIGEA). UIGEA forces many leading online gaming companies to flee the US market. Full Tilt Poker and PokerStars continue to operate in the US.
April 15, 2011The fated ‘Black Friday’. The FBI seizes the ‘.com’ domains of Full Tilt Poker, PokerStars, Ultimate Bet and Absolute Poker. The US Attorney’s Office in the Southern District of New York serves indictments against various owners.
iGB Affiliate JUNE/JULY 2012
INSIGHT
47
and financial press. Accusing the business
of being a Ponzi scheme was bound to grab
the attention of non-poker players. The
game’s credibility was facing its toughest
challenge thus far. If depositors couldn’t
trust poker sites to ring fence their funds
for the sole purpose of playing cards then
the whole industry was under threat.
Naturally, the salient question on most
people’s lips was how this could have
happened to a poker operator as large at
Full Tilt? After all, poker is a relatively risk-
free business, unlike a casino or sportsbook
– it is peer-to-peer gambling as opposed
to playing against the house. All Full Tilt
had to do was process players’ deposits
and withdrawals, run the poker software
effectively, and take a cut of the action
(rake). Was it diabolical mismanagement
and/or a Ponzi scheme?
The DoJ says the owners and the board
used player funds to pay themselves $443
million between April 2007 and April
2011. Co-founder and poker pro Howard
Lederer is reported to have pocketed $42
million while Bitar took $41 million. Chris
Ferguson, another founding member and
2000 World Series of Poker Champion,
was allocated $85 million, although he
received (just) $25 million.
Even after the business went into
financial meltdown, up to $10 million a
month was being paid to the owners. It also
seems some pros were loaned money from
player funds. By September last year, it was
revealed that the stricken company owed
$390 million to players around the world,
including $150 million to US players. It
was a complete financial mess and getting
to the bottom of what exactly was going on
behind the scenes at Full Tilt wasn’t going
to be a facile task.
hidden truthsIt is thought that Full Tilt began
experiencing financial problems in
the autumn of 2010 due to the US
government’s determination to stifle poker
sites’ payment processors. The bosses
kept quiet as player accounts were credited
with ‘ghost’ funds but the problem came
when winning players tried to withdraw
this non-existent money. But the final nail
in the coffin was Black Friday on April 15,
2011, a date that still brings US players
out in cold sweats, especially those whose
main source of income came from playing
cards online. This was when the FBI seized
Full Tilt’s domain (along with PokerStars
and UltimateBet/Absolute Poker) and
indicted them in a hard-line clampdown
on online poker in the US. This was a very
serious problem for Full Tilt because a
significant proportion of its customers were
Americans. Black Friday decimated player
numbers (Figure 1).
The site promised to release players’
money but as time passed this pledge
increasingly looked like another bluff.
Angry customers – some trying to retrieve
up to six-figure balances – were left
frustrated at Full Tilt’s silence, apart from
the drip-feeding of banal statements on
a poker forum. The site was licensed on
the island of Alderney and the Alderney
Gambling Control Commission’s
(AGCC) handling of the situation was
being called into question. The prolonged
information vacuum enraged those with
seemingly lost funds.
In the wake of criticism that it had
failed to properly monitor Full Tilt or
intervene more promptly, the AGCC
launched an independent review
conducted by Peter Dean, the former
Chairman of the British Gambling
Commission. In it, Dean stated that
AGCC “fulfilled its statutory obligations
in relation to FTP and that its actions
were appropriate, timely and fair”.
André Wilsenach, Executive Director
of the AGCC, said the report made
valuable recommendations on how
they can make improvements in the
light of what has happened. He did,
however, concede that none of this will
compensate those players who have lost
money as a result of Full Tilt’s actions
and that he has “great sympathy for
them”. He also added: “As the report
confirms, a regulatory regime cannot
be proof against deliberate concealment
or deception.”
A buyer’s marketIn a surprise twist, PokerStars is thought to
be in negotiations with the DoJ to acquire
Full Tilt’s assets and reimburse players.
This development came out of the blue
after months of protracted takeover talks
and legal wrangling by France’s Groupe
Bernard Tapie (GBT) – the eponymous
investment company run by businessman
Bernard Tapie – to buy the site. But a deal
with GBT and the DoJ, thought to be in the
region of $80 million, collapsed recently
and news quickly emerged that PokerStars
was interested in a deal, although
PokerStars has refused to confirm this.
If the sale goes through then PokerStars
will significantly tighten its stranglehold
on the online poker market, which isn’t
always in players’ interests. However, one
thing is certain: this sorry mess cannot ever
be allowed to happen again to Full Tilt or
any other poker site. The damage to the
industry could be too great next time.
The industry’s reputation was definitely
tarnished. Likewise, Lederer and Ferguson
have been accused of being crooks and
some ex-customers say the business was
a fraud from the outset. If true, were the
pros playing with their own money or
innocent players’ cash? Were the colossal
pots genuine? I guess we will probably
never uncover the full truth. Of course, for
the affected players their primary concern
is whether they will ever see their money
again. There’s a lot resting on the outcome.
JuliAn RogeRs is a freelance journalist with 10 years’ experience specialising in business, sportsbetting, poker and news reporting.
June 29, 2011The Alderney Gambling Control Commission (AGCC) suspends Full Tilt Poker’s licence “in the public interest because of the seriousness and urgency of the matter”.
July 4, 2011Full Tilt Poker’s ‘.fr’ licence is suspended by French regulator, ARJEL.
September 29-30, 2011The AGCC revokes Full Tilt’s licence following an investigation and subsequent hearing in London. Groupe Bernard Tapie (GBT) is confirmed as the pending buyer of the company and its assets.
April 24, 2012 The GBT deal collapses over the structuring of player repayment. PokerStars emerges as a surprise buyer of the company in a deal to settle its own affairs with the DoJ.
iGB Affi liate JUNE/JULY 2012
INSIGHT
48
After digesting the demise of Full Tilt Poker amid the fallout from 2011’s game changing ‘Black Friday’ and all of its wide reaching implications, poker affi liates may feel that the composition of their marketplace has markedly changed as we move through 2012. Jeremy Enke, Founder of Poker Listings, assesses the mood of the affi liates currently plying their trade in the poker affi liate market.
On April 15, 2011, the online poker
industry was forever changed when the US
Department of Justice seized four of the
largest US-facing online poker sites. Known
as ‘Black Friday’ in the industry, this day
will forever go down in infamy as one of the
most signifi cant events ever to transpire in
the world of online poker.
Since Black Friday, the industry has
seen an overabundance of speculation
and predictions in blogs, forums, and
other publications on what the future of
online poker may hold. As each week
goes by, so do the various news stories
and articles about ‘potential regulation’
in the US. At this point, the only thing
certain about the future of online poker
in the US market is its uncertainty.
On the front lines and reporting many
of these stories every day are hundreds of
poker affi liates controlling thousands of
websites. In fact, there is no greater group
in the online poker industry with their
fi ngers on the daily pulse of this ever-
changing marketplace than that of poker
affi liates and poker affi liate managers.
With this in mind, we went directly to
this group at PokerAffi liateListings.com
to get their predictions for the second half
of 2012 and beyond.
POKER AFFILIATE FORUM: FORECASTS FOR 2012
“ With the intra-state model of regulated online poker, it will be imperative that a third-party, and not a bureaucratic agency, manage the player experience.”
Affi liate predictionsAnonymous“After Google will have successfully shot down 90 percent of gambling affi liate sites by the end of 2012, will AdSense be made available for gambling again as of 2013?”
available for gambling again as of 2013?”
KevinMcC – PAL (DropoutGotRich.com)“Not much will change by the end of 2012, but down the road I can see the US and Canada being regulated with little or no plans to keep smaller affi liates around. Work hard diversifying and growing your business in the second half of 2012.”
Work hard diversifying and growing your business in the second half of 2012.”
Cookarelli11 – PAL
“I predict that when we do see US
regulation it will be in the form of individual
states opening up and pooling their
resources to offer intra-state online poker.
Similar to how many states already
collaborate with their lotteries, such
as with Powerball, this may be the only
way to ensure enough liquidity and
players to effectively operate a regulated
online poker site.”
iGB Affi liate JUNE/JULY 2012
INSIGHT
49
Future role As you can see, the predictions and
speculation coming from the affi liate side
of the poker business is also fi lled with
uncertainty. The other major concern for
poker affi liates in the US is not only what
future legislation might look like, but
also what their role in a newly regulated
industry would be. If individual states do
indeed begin regulating online poker in the
fashion predicted by one of the affi liates in
this article, it’s hard to envision these states
utilising affi liate marketing.
Regardless of any of the predictions
or speculation out there, we should all
keep in mind that it is an election year
in the United States and online poker
is low on the priority list for many
politicians. With so many hoops to jump
through and political nonsense in the
United States, most poker affi liates would
be extremely surprised if there were
any type of regulation passed before
the New Year.
As mentioned earlier in this article,
poker affi liates are on the front line of the
industry and are often a liaison between the
players and operators. As poker affi liates,
we are very receptive to what types of
promotions, bonuses, and software best
converts and retains players. However,
when we look into the dark and murky
world of online poker legislation in the US,
these conversations seem to be missing.
Instead, it’s all about legalisation, how the
taxing authorities will work, what kickback
the politicians will get, and how the states
will benefi t best.
At the end of the day, for any poker
operation to be successful, you have
to put the players fi rst and take into
consideration the overall player experience.
This is where it will be critical even in a
regulated environment that professional
organisations with industry experience
be involved. With the intra-state model of
regulated online poker, it will be imperative
that a third-party, and not a bureaucratic
agency, manages the player experience.
Another prediction coming from the poker
affi liates, and one that is actually realistic, is
that there will fi nally be a resolution to the
Full Tilt Poker debacle this year. Circulating
around the rumour mill is that PokerStars
has struck a deal with the United States
Department of Justice to purchase the
assets of its once biggest rival. Also
expected out of this deal is that PokerStars
would payout the more than $300 million
currently owed to both players and affi liates
since Black Friday. Only time will tell if this
comes to fruition. However, all indications
at this time seem quite positive.
Nevertheless, for the rest of the year
and even beyond, the hot topics in the
online poker industry will remain those
that deal with US legislation. The
uncertainty will remain, and there is
no guarantee that things will be better
or worse for poker affi liates should
we see US legislation pass.
And while it’s impossible to predict
exactly what will transpire in the online
poker market over the next six to 12
months, we are seeing an increase in
strategic partnerships and joint ventures
within the industry. Both online poker
operators as well as the US land-based
casinos are strategically positioning
themselves should regulation, either state
or federal, pass within the United States.
With so much uncertainty in the current
US market, the best strategy for anyone in
the industry is to be diversifi ed and ready
for a variety of outcomes.
“ For all practical purposes, both state and federal governments are clueless when it comes to effi ciently running a proper online poker operation. Even if we do see some form of legal online poker within the United States this year, my fear is that the player experience will be lacking to say the least.”
Anonymous
“The large Las Vegas casinos are already in the
advanced planning stages of being major players
regardless of how legislation shakes out. I could
envision a partnership of some sort between the
casinos, the states, and an existing online poker
operator to provide the software platform. With
the large amounts of lobbyist money pouring into
this cause, however, thinking that there will be
regulated online gambling without the involvement
of Las Vegas casinos would be silly.”regulated online gambling without the involvement
Jeremy – PAL (PokerAffi liateListings.com)“My prediction is that we’ll be making new predictions and speculations about what will happen with online poker in 2013 right around the New Year. I don’t foresee any major regulation taking place given the fact that we are in the midst of an election year in the US...“For all practical purposes, both state and federal governments are clueless when it comes to effi ciently
running a proper online poker operation. Even if we do see some form of legal online poker within the United States this year, my fear is that the player experience will be lacking to say the least.”
iGB Affiliate JUNE/JULY 2012
INSIGHT
50
The mobile gambling market is in a constant state of flux. Betting on mobile devices is growing at a rapid pace in line with a massive upswing in live betting, leading to widespread expectations that this platform will form in excess of 50 percent of all interactive revenues within 12 to 18 months. Mobile casinos are gaining traction alongside sportsbetting and the underlying technology from operating systems, devices and mobile networks evolve seemingly on a daily basis.
mobile is now a platform that
affiliates must now wholly embrace.
However, with the constantly changing
landscape, it is imperative to keep
abreast of all that is going on in order
to achieve success.
Juniper Research has been the de facto
standard for projections in the mobile
gambling space for quite some time,
and the long-held view was that mobile
gambling would be worth $48 billion in
wagers by 2015. This particular report was
written prior to the emergence of the tablet
market and, therefore, referred to mobile
handsets only. The revised projections,
in a report issued in June, show a massive
hike in revenues and some interesting
data regarding products.
●● In 2011 more than $19 billion was
wagered on mobile devices, of which
Japan and the UK accounted for more
than 70 percent.
●● Total wager on mobile devices expected
to hit $100 billion per annum by 2017,
generating gross win of more than $5.2
billion. This is a figure that incorporates
both mobile handsets and tablets (in
particular the iPad).
●● Sportsbetting currently accounts for
nearly 70 percent of wagers, although
with the growing mobile casino market,
Juniper expects that within the next few
years, gaming products will overtake and
dominate sportsbetting on the platform.
●● The future growth of casino and
gaming products is related to several
developments that are currently in the
early stages of fruition.
●● The big gambling companies who are
currently focussing almost exclusively
on mobile sportsbetting will deploy and
market casino and gaming products as
part of their mobile mix.
●● Long Term Evolution and its big brother
4G will enable better and smoother game
play as bandwidth for mobile devices
will dramatically improve. Sportsbetting
doesn’t require the consistent bandwidth
of gaming which is one of the reasons
why it is the early contender on the
platform. Though on the horizon, 4G is
not an immediate-term game changer
as 3G has yet to fully roll out and those
technologies aren’t yet close to being
exhausted for the companies that parted
with lots of cash for the licences and
need to recoup their investment prior to
repeating the process with 4G.
●● A new mobile-only market is fast
emerging and will continue to grow.
Customers in this segment tend to be
lower depositors but higher margin
players and they do not consider
themselves ‘gamblers’. Instead, they look
at the softer games and slots purely as
entertainment. This market is currently
served well by operators such as All Slots
Casino which has a range of products for
this demographic, but it will continue its
fast growth as more operators begin to
actively target these players.
Two years ago, pre-World Cup 2010,
mobile contributed less than one percent
of most operators’ revenues if, indeed, they
had a product offering on the platform at
all. Now it is a completely different picture.
In Paddy Power’s recent results, it reported
that mobile sportsbetting stakes are
up over 200 percent forming 25 percent
of all stakes, and that the platform
accounted for 29 percent of all active
players by February.
Betfair, another key player, has seen
11 million bets and £5.8 million revenue
generated through the mobile division in
its last financial year, and William Hill
exceeded its mid-2013 target of £5 million
weekly turnover on mobile having already
hit a weekly average of £7.3 million in the
recent trading period and it has now revised
its target for mobile to reach 40 percent of
all sportsbook turnover.
TechnologyIt is known that regular bettors are twice
as likely to own a Smartphone and that
consumers who bet and play via both
mobile and desktop place up to 50 percent
more bets. Smartphones have been the key
to the explosive growth of mobile gambling,
and the UK now has over 50 percent
Smartphone penetration.
While the iPhone is currently dominant
amongst gamblers, this will not continue
to be the case indefinitely, despite the ‘cult’
of Apple:
●● Nokia is the world’s leading
manufacturer, driven by feature phones.
The company missed out on the early
Smartphone market, however, it has
recently announced a range of entry-level
low cost Smartphones – presumably to
target its existing customer base by way
of the upgrade cycle.
●● Samsung has more global penetration,
and as an isolated device, Samsung’s
Galaxy S2 outsells the iPhone. With
the Galaxy S3 on the market in the past
month, this handset supremacy is likely
to continue.
●● Android accounts for 30 percent of
all Smartphone mobile web, and is
growing faster than iOS with projections
that as many web visits will come from
Android-based phones as iOS by the
end of the year.
The Mobile GaMblinG MarkeT
iGB Affiliate JUNE/JULY 2012
INSIGHT
51
Tablets are the fastest growing
technological device in history, driven
by the iPad, although over 60 Android
powered tablets were launched in 2011
from the key manufacturers.
Apple sold 11.8 million iPads in its fiscal
second quarter and a UK Tablet Survey of
2011 found that two in three tablet owners
are aged 25 to 54, with 60 percent of this
group being male. 81 percent use their
tablets for online search and it is known
that currently conversion rates on tablets
are similar to desktop, yet they are typically
10 to 15 percent cheaper.
AdMob research shows that tablet traffic
is on the way to overtaking that of desktop.
A survey it conducted found that:
●● 77 percent of respondents said
their laptop usage decreased after
buying a tablet.
●● 28 percent said the tablet is now their
primary computer.
●● 82 percent said they primarily use their
tablet at home.
marketingThe sale of Smartphones escalated
throughout 2011, and this has had a
profound effect on mobile web usage.
Affiliates now understand that an
increasing percentage of their natural
traffic is coming from a mobile device and,
therefore, in order to capitalise on this
business they need to make the relevant
adjustments in order to cater to this market.
Primarily, this means redirecting traffic
according to the platform that the player
originated from and working with operators
who offer both mobile and online solutions.
The affiliate tools offered by Brightshare,
one of the most advanced affiliate networks
in the mobile space, are an example
of what is necessary to be successful
on the platform.
●● Specific mobile optimised banners in
terms of size, look and feel and legibility
for a small screen.
●● A variety of mobile promotions targeted
at cross-selling platforms and attracting
the new mobile-only demographic.
●● I-frame sites for player game download
using push technology.
●● Affiliate customisable mini-sites
for Smartphones.
●● QR Codes uniquely coded
to each affiliate.
seo and PPCTo facilitate mobile search, Google has now
incorporated a Smartphone-user-agent to
Googlebot-Mobile, which aims to provide
a ‘better search experience for Smartphone
users’. Since the mobile gaming market
has taken off, there is evidence that natural
search results vary widely between mobiles
and desktops. The Smartphone-user-agent
will cause search results on mobiles to be
further distinguished from desktops.
Web pages that are not optimised for
mobiles are likely to lose rankings in
search results pages.
Mobile searches have quadrupled in
the last year and one in seven searches are
now carried out via mobile. A few months
ago, Google announced that mobile-only
campaigns drive 11.5 percent more click-
throughs than campaigns simply imported
from PC AdWords.
Search on mobile is vastly different
to search online. Due to screen size and
factors such as touch screen typing and
small keys, there are relatively few long-
tail searches on mobile, so the affiliate
has a limited amount of words in which
to anticipate and understand what the
customer is looking for. In addition,
although available on both Internet and
mobile, people use the predictive text in
the search box much more on mobile
than they do online.
social – mobileOn average, people install 25 apps on their
Smartphone, but only use 12, of which
most will be social network apps. Though
separate phenomena, social media use and
mobile growth are constantly intertwined.
This is especially the case for gambling and
in-running betting. The marketing agency,
GMR, recently reported data from KT Tape
which found that people are ten times
more likely to check Twitter or Facebook
for breaking news than sports radio, and 81
percent prefer the Internet for their sports
news. They also found that when watching
a sports event on TV, 83 percent of viewers
will simultaneously check sports social
media sites, and 63 percent will do the
same when actually at the stadium.
425 million users, representing over
half of Facebook’s user base, accesses the
network via mobile on a monthly basis, and
mobile is outgrowing desktop use at a ratio
of two to one. In the UK, Facebook sees 60
percent of its activity on phones and tablets,
representing one in every two minutes of
mobile Internet use. This is despite the
fact that Facebook does not have a strong
mobile product, something which was a
significant part of its under-impressive
IPO. The purchase of Instagram and recent
changes to the mobile platform from a
marketing perspective demonstrates its
push forward on this platform.
Earlier this year, Facebook revealed
a variety of mobile-centric products,
including the introduction and 2012
roll-out of the Timeline feature on mobile
as well as enabling brands to advertise in
mobile news feeds through Sponsored
Stories. Prior to this, corporate/affiliate
pages on Facebook mobile have had almost
no functionality; custom apps haven’t
worked without complications, tabs haven’t
translated, etc.
In addition, until Q1 2012 there had
been no way to advertise to Facebook
users on mobile devices. Now, Sponsored
Stories premium ad units will appear
in mobile news feeds. Considering the
many users who access Facebook from
a mobile device, marketers now have a
significant opportunity to embed sponsored
advertisements within mobile feeds.
Even more recently, Facebook
announced that it was allowing advertisers
to buy its mobile ads (Sponsored Stories)
without having to buy desktop ads at the
same time. Previously, these ads could
only be bought for distribution together.
Because ads appear in people’s news feeds,
it’s not yet clear how well they will work on
the mobile platform as the relevant news
versus spam question may prove especially
acute on small Smartphone screens where
people are increasingly accessing Facebook.
In summary, the options for Facebook
advertising (including mobile) are now:
●● All placements: this option includes
right-hand side plus News Feed desktop
and News Feed mobile.
●● All desktop placements: this option
includes right-hand side plus News
Feed desktop.
●● News Feed (desktop and mobile): this
option includes News Feed desktop plus
News Feed mobile.
●● News Feed desktop: this option includes
News Feed desktop only.
●● News Feed mobile: this option includes
News Feed mobile only.
Aideen Shortt is an experienced consultant, author and researcher in the gambling industry with 12 years of work across all sectors and verticals. [email protected].
iGB Affiliate JUNE/JULY 2012
INSIGHT
52
Being competitive in today’s global economy now hinges on the ability to interact with consumers online. Social networks have democratised information and empowered consumers. As a result, user networks are changing how customers refer products and services, and ultimately make decisions.
The relaTionship beTween
customers and business is changing and
will continue to evolve as social media
permeates our culture and society.
InSites Consulting conducted an in-
depth study into social media in over 30
countries and has reported that awareness
of Facebook is close to 100 percent, that
58 percent of Facebook users log-in at
least daily, and the average session lasts
37 minutes. However, despite the wide
assumption of many businesses, social
media is more than just Facebook. In
Europe, 50 percent of users are a member
of only one social network (Facebook), but
on average, people join 1.9 social networks.
In the US it’s 2.1, Brazil 3.1 and India 3.9.
FacebookFacebook is undoubtedly the giant in the
social media world. It currently has over
900 million users, including 30 million
in the UK and is expected to pass the one
billion mark in the coming months. The
average user has 130 friends and spends
approximately 700 minutes per month on
the site, with an average session time of
37 minutes. In fact, more than 50 percent
log-in daily. Facebook has overtaken Google
as the most visited site on the Internet, and
despite mobile not being its strong point
the statistics on that platform are no less
impressive, with one in every two minutes
on the UK mobile Internet spent viewing
and interacting on Facebook.
TwitterTwitter is a micro-blogging service
that allows its users to broadcast short,
140-character messages to groups of
‘followers’, yet people commonly think
of Twitter as a variant of Facebook.
This pairing erroneously implies that
the two services are used for the same
purpose, even though the platforms are
very different. Facebook is a few-to-few
communication network designed for
sharing information and life events with
friends. Twitter, on the other hand, is a one-
to-many information broadcast network.
Twitter registered its 500 millionth user
in February 2012, of which over 140 million
are active, generating in excess of 340
million tweets and handling over 1.6 billion
search queries per day.
Google+The big question around Google+ is
whether or not it can mount a serious
challenge to Facebook’s dominance. Google
originally addressed social media as early
as January 2004 with the launch of Orkut,
which was actually one of the world’s
first social media platforms. However,
despite being launched within a month
of Facebook’s limited Harvard launch, it
never gained the same levels of traction as
MySpace (which was once the dominant
network) and the fast emerging Facebook.
Google+ reached 20 million users in 24
days, 1,011 days fewer than Facebook, and
in a company update in January 2012, CEO
Larry Page said Google+ had more than 100
million active users (over 60 percent daily
and 80 percent monthly).
There is much scepticism around the
definition of ‘active users’ as it refers to a
range of products, and the statistic could
mean that users simply check their email
or go to a Google map, as once logged
into the wider system, a user is auto-logged
into Google+.
The reason Google+ has so much power
is because of Google search, and since the
Google Panda update, the social signal
is a strong cue in search. A few months
ago, Google incorporated Google+ into its
algorithm which impacted SERPs. Around
the same time, it also included its +1
‘endorsement feature’ and since then, +1
has been widely adopted with the button
now being served over five billion times
per day globally. In mid-January, Google
announced its most radical transformation
to date, with a new ‘Search Plus Your
World’ format. It finds both content that’s
been shared with you privately along with
matches from the public web, all mixed
into a single set of listings allowing people
to search against both the broader web and
their own Google+ social graph.
beyond the big threeWhile Facebook, Twitter and Google+
each have their own reasons behind their
importance they are not the only networks
for affiliates to consider in a holistic social
strategy. YouTube (owned by Google) is
arguably the most under-rated social media
site. Digital marketing agency Latitude
Group has identified that YouTube visits
make up 23 percent of all social media
traffic, and the site is long known to be
the world’s second largest search engine
(behind Google).
Pinterest is the latest darling of the social
media world. It has grown from a niche
network to a massive site in a matter of
months, being the fastest standalone site
in history to reach more than ten million
monthly unique visitors. Tumblr is an
emerging player in social media, having
nearly tripled its audience in the past 12
months and the network hit 20 billion
posts at the end of March 2012.
The new report, Social Media Strategy and
Implementation, researched and authored by
Aideen Shortt, is available for sale from iGaming
Business. [email protected].
The New BusiNess Paradigm
Looking for a partner?
We don’t hire shady account managers.In fact, our team is among the most professional, experienced and friendly in the industry. And not a bad-looking bunch, either. Learn more at: europartners.com
iGB Affiliate JUNE/JULY 2012
INSIGHT
54
Virgin Games’ Pierrick Leveque asserts that if there was ever a device that was fit-for-purpose for the gaming industry, it is the tablet, and now is the time to get in shape to welcome it.
As A Premise to our chat about
tablets, I’d like you to participate in a brief
experiment that should hopefully get your
attention. Follow these five easy steps:
1. Open Google Analytics and select your
primary site
2. Open menu: mobile > devices
3. Update date range: compare last month
with same month in 2011
4. Check iPad stats report
5. Faint
Still standing? This either means you’re
already doing something about what you
saw, or you’re planning your retirement.
I wish it wasn’t just one or the other, but
current trends indicate that tablets are
the brightest young stars of our digital
entertainment age, and marketers will
ignore them at their peril.
Landscape and trendsShortly after the launch of the first iPad,
research firms started laying out forecasts
on the growth of the tablet market, and they
got it wrong. Very wrong. So wrong, in fact,
that the much lauded original estimates are
described as ‘comical’ by today’s experts,
some missing actual figures by as much as
100 percent.
Interestingly, analyst re-forecasts on
tablet growth still happen on a very regular
basis. In its latest draft, insight group
IDC currently estimates that global tablet
shipments will reach 106.1 million units in
2012, up from a previous forecast of 87.7
million (Figure 1).
It has already been a formidable success
story for such a high-end device, but
trends tell us this is only the beginning.
Analysts predict that market expansion
will be fuelled by two factors: huge growth
in device penetration and increased
production of cheaper devices from a wider
range of manufacturers. These factors are
already blurring the profile of your typical
tablet device user, from affluent tech-savvy
early adopter to anyone between the age of
four and 100 who can use their fingers. For
40.3 million active PC Internet users in the
UK, there are 26.3 million active mobile
Internet app users, yet only three million
tablet owners.
Also, you can always trust money to
smell money: in 2010, venture capital-
backed businesses forked out $123 million
in mobile marketing and advertising. In
2011, they invested close to $600 million.
DevicesDespite our frustrations with ring fencing,
privacy matters, extortionate App Store
commissions and high device prices, you
have to give it to Apple. The company has
single-handedly created the digital music
market, the Smartphone market, and now
the tablet market with the iPad.
I remember doubt and shrugs, postures
and irony from many in the UK tech media
when the first iPad – that ridiculously
oversized iPhone – came out. Fast-forward
to today, and usage data tells us that a tablet
is not a Smartphone, and nor is it a PC. It’s
a new media consumption device we didn’t
know we needed. Apple told us we needed it.
It’s all about vision, and despite Google
toying with self-driving cars and interactive
glasses, or Facebook having close to a
billion penny-pinching users, no other
digital age behemoths have so far managed
to monetise vision as well as Apple.
In Q4 2011, the iPad still held 54.7
percent of the UK tablet market, down
from 61.5 percent in the previous quarter.
Why? Android.
The increasing number of device
manufacturers shipping low-priced,
Android-based tablets means that Google’s
OS is expected to overtake Apple’s
worldwide market share by 2015.
Noticeably, Amazon’s Kindle Fire is
widely expected to lead the fight against
the iPad. Sold for $199 (£125) in the US,
the minimalistic seven-inch product
has raised consumers’ awareness of the
category worldwide. At the time of writing,
licensing deals have held up the Kindle
Fire’s arrival in the UK and the rest of
the world, but if the impact it’s had on
the US market is replicated – up from a
Figure 1
Worldwide media tablet shipments split by OS historical and forecast* 2010 – 2016 (units in millions)
2010 (actual)
19.4
2011 (actual)
68.7
2012 (forecast)*
106.1
2016 (forecast)*
198.2
Android iOS Others
Online GamblinG, iPads and TableTs
iGB Affiliate JUNE/JULY 2012
INSIGHT
55
29.4 percent share of the Android tablet
market in September 2011 to 54 percent in
February 2012 – Apple execs are in for a
nail-bite-fest next Christmas.
The forthcoming Windows 8 mobile OS
has also gathered decent feedback so far. It’s
too early to tell whether it’s set to become a
worthy contender, but one thing is certain:
corporate and licensing deals will be as
important as product quality if Microsoft
wants ‘8’ to take off. Whatever happens, and
looking at growth predictions (Figure 1), it
will take a daring player with deep pockets
to step into an arena where the Apple and
Google titans are playing tug of war.
is it a bird? is it a plane?While a Smartphone is primarily a phone,
a tablet is free from such commitment,
which makes it everything you want it to be.
It is a bird in Angry Birds, it is a plane in
Paper Plane HD, it’s a phone, it’s a PC, but
it’s none of them really.
To understand the disruptive nature of
the tablet and the virtual space it occupies,
let’s let usage data do the talking. The
Internet Advertising Bureau (IAB) recently
completed a survey on digital media
devices, and its research will illustrate
our topic (for full details please visit the
IAB website).
Why?When asked what they prefer about using
tablets, most people reply that they like the
fact it’s (physically) easy to pick up, that the
interface is easy to use, that it provides them
with an experience in the format they like,
and that is has the entertainment they want.
Where? 74 percent of tablet usage happens at
home. Tablets have caught up with PC/
laptops for the ‘Most used device in the
living room’ award. They are also the most
used digital devices in the kitchen as they
make very good chopping boards. Or recipe
books maybe. In any case, it’s mobile, but it
doesn’t seem to travel very far.
When? 50 percent of tablet usage happens after
7pm, with after work and weekend peaks.
51 percent of tablet usage happens while
watching TV (35 percent for mobile, 33
percent for PCs/laptops). Mobile usage
data show different patterns: early morning
peaks, countless bursts of activity during
the day, and evening peaks too. Tablet
usage is more sustained and happens
in downtime, when people have more
time to quench their curiosity.
What? The nature of tablet user activities
flows very naturally from this primarily
homebound, downtime usage. For users in
the survey, tablet usage has improved their
digital life on three fronts:
1. Entertainment – 49 percent of
respondents prefer their entertainment
(music, video, games) on tablet rather
than on a laptop/PC (29 percent) or a
mobile (22 percent). Tablet owners also
watch videos for 28 percent longer than
desktop users.
2. Exploration – 42 percent of respondents
prefer using a tablet for exploration
rather than a PC/laptop (36 percent)
or a mobile (21 percent). Tablet owners
prefer to search on a tablet than on
any other device. Still on search, and
gauged against mobile, the tablet share
of paid search clicks is currently at five
percent and is predicted to grow by 0.5
percent each month until the end of the
year. To put this in perspective, tablet
penetration is currently four years behind
Smartphones, yet the share of paid clicks
is only one year behind.
3. Buying stuff – an even cleaner split here:
72 percent of tablet owners purchase
from the device weekly. On average,
they also spend more than four hours
shopping via tablet every week.
A new orderWhat usage data and trends are telling us
is that the tablet holds a space of its own.
This space is growing, but it is doing so at
the expense of other media consumption
devices, increasingly cannibalising the
entertainment, exploration and retail
activities from PC/laptops and mobile.
In today’s tag cloud world, PC/laptop
reads: ‘work’, ‘personal admin’,
‘weekdays’, ‘secure’.
Mobile is about ‘quick updates’, ‘snacking’,
‘morning’, ‘evening’, ‘communication’,
‘news’, ‘always ready’, ‘on the go’.
Tablet is ‘downtime’, ‘evening’, ‘weekend’,
‘retail’, ‘entertainment’, ‘relaxed creativity’,
‘exploration’ and ‘preferred formatting’.
In the ever-changing world of digital
media consumption, mobile is a snack,
tablet is a meal, and using your pc/laptop
increasingly feels like doing the washing up.
What is one to do?It’s not all doom and gloom, and every
device still has its place in our digital
ecosystem, but I believe it’s time for more
online gambling affiliates to start putting
two and two together:
●● Usage data demonstrates that tablet
cannibalises exploration, entertainment
and retail traffic from PC and mobile.
●● Tablet market growth has defied all
expectations so far, and shows no
sign of slowing down.
As online gambling operators or affiliates,
we are in the business of exploration
(search), entertainment (games) and retail
(deposits, revenue). If a device was ever fit
for our sector, this device is a tablet, and
it’s time to get in shape to welcome it. 46
percent of tablet owners are more likely to
use a site if it is optimised for tablets, and
this alone should be challenging affiliate
marketing strategies right now.
epilogueUltimately, the ball is now in the affiliate
corner. Virgin Games might be converting
players coming from mobile-allergic
websites, but for each visitor making it
through, how many dropped off right after
landing on non-optimised affiliate home
pages? The answer closes our circle: go
back to Google Analytics and check out
your homepage’s mobile and iPad bounce
rate. Now faint again.
Pierrick Leveque is Head of Acquisition at virgin Games, managing the home grown affiliate program as part of the overall customer acquisition strategy. “Affiliate Program of the Year” eGr Awards 2010 and 2009 “Best casino/Gaming Affiliate Program” A4u Awards 2008 “Best Bingo Affiliate Manager” cAP/iGB Awards 2009.W: www.virgingames.com/affiliates e: [email protected]: www.pierrickprk.wordpress.com T: (+44) 208 237 1563
“ In the ever-changing world of digital media consumption, mobile is a snack, tablet is a meal, and using your pc/laptop increasingly feels like doing the washing up.”
iGB Affiliate JUNE/JULY 2012
INSIGHT
56
More channels for more visibility, by Nicky Senyard, CEO, Income Access.
The coNTemporary markeTer,
on both the operator and affiliate side,
has at their fingertips an unprecedented
quantity of marketing channels from which
to choose. Online, these channels include
(but are not limited to) a website, social
media platforms, email and mobile. Offline
marketing channels tend to be what many
would associate with traditional advertising:
television, radio, print, and direct mail.
While it may seem intuitive that more
marketing channels mean easier access
to an audience, in practice, the results
have been paradoxically the opposite.
More marketing channels can mean
a less effective reach.
That’s where an integrated marketing
approach comes in. Through integrated
marketing, you utilise a consistency-
based approach across multiple channels.
In the end, this sort of multi-pronged
campaigning can be used to generate a
marketing reach that exceeds the sum of
its parts and helps increase ROI and brand
value. Given today’s advertising landscape,
integrated marketing is a particularly strong
tool, especially for brand recognition and
reputation, which can lead to successful
outcomes in the long run. As today’s
audiences are used to receiving information
through a variety of channels, adopting a
strategy of integration is a strong way to
ensure that your message is heard.
Integrated marketing is often referred
to as a strategy that is deployed as a means
of implementing a pre-defined marketing
plan. The channels of your integrated
marketing mix should work together to help
you get the result you want. For instance,
your social media channels could fluidly
work with television or radio advertising to
help reach a diverse audience and achieve a
higher customer acquisition goal. The key
is that all involved parts are executed in a
consistent and timely manner.
BenefitsAn integrated approach to your marketing
strategy can have a variety of benefits for
both your brand and business. When
it comes to stock investment, brokers
always emphasise the importance of
diversification. Integrated marketing
provides you this with the diversification
of your marketing campaigns and market
reach. That is, if you focus your entire
marketing strategy on your website,
changes in Google’s algorithms can
have strong effects on your page ranking
and visibility and ultimately impact on
your desired goal. Thus, by deploying an
integrated strategy such as email or mobile,
you can help counter any negative effects of
changes in one channel or approach.
Integrated marketing can also be an
advantageous tool for building a brand’s
reputation. It is one thing for potential
customers to receive email promotions for
your brand. The impact is entirely different if
audiences see information about your brand
in their inbox, in their search results, and on
the social media that they use. Also, since
there is a different audience for newspaper
adverts and Facebook posts, a multi-channel
approach means greater exposure to a
variety of demographics. By integrating
your marketing, it is possible to leave no
stone unturned when it comes to potential
customers. Overall, a brand that is promoted
through a multitude of channels is in a better
position to be recognised and remembered.
By initially adopting an integrated
method, you help your business prepare for
expanding into channels. As there is already
a look and strategy in place, entering a new
channel requires less planning. Another
benefit is that since you do not focus all
of your efforts on a single channel, you
decrease the possibility of over-saturating a
channel past an optimal ROI.
So just how do you integrate marketing channels? The key words to remember are variety,
timing and consistency, and since you
will be utilising several channels of
communication, it will become vital that
you are transmitting the same message
across all of them. An example would be
that if you are trying to get more customers
to participate in a tournament, make sure
that your website prominently displays that
promotion and that your tweets relay the
promotion to your Twitter followers and
conveniently link to it. In the end, when
people see or hear of your brand, they
will have a stronger association with your
promotion and if successful, come back to
look for more similar events.
Thus, when integrating your marketing
channels, make sure you have a long-term
plan already in place. It can be difficult
enough to rapidly alter your strategy for a
single channel; do not make it any harder
by having to do so for multiple channels.
A particularly good way to help
integration is through the use of a
comprehensive analytical tool that allows
you to measure the performance of each
channel for the same campaign. With the
visibility on the outcome of your various
channels, you can tweak your focus to the
channels that have the strongest results.
For instance, if you see that a certain print
ad is converting the best, you can then
put the same ad on your website and, in
turn, link to that site in your social media.
If your personable interactions with your
audience through social media are what
convert best for you, you can then adjust
your print ads to focus on stellar customer
service. With analytics, you can also test
out the efficacy of a new channel you are
considering incorporating before you fully
integrate it with the rest of your marketing
efforts. With this testing, you will only end
up allocating time, money, and effort to a
channel that you know pays off.
Integrated marketing is by no means a
new concept; however, the expansion of
media channels through which audiences
can be reached has now made it particularly
relevant for marketers to leverage. In
addition, a well organised presence on
numerous channels can increase brand
recognition and value, while strong
analytics can readily help you identify the
efficiency of each channel. Ultimately,
integrated marketing will give you the
advantage of flexibility, innovation, wider
market reach and intelligence on your
campaign performances.
Integrate Your MarketIng
Nicky SeNyard is ceO of income access, overseeing their independent iGaming affiliate network, market-leading affiliate software and expert affiliate management services.
Join us at the oldest and biggest event dedicated to the Spanish speaking iGaming market, iGB Espana 2012.
This year, iGB Espana will return as part of the Barcelona Affiliate Conference, maximising your exposure to the Spanish market. With all the latest developments and marketing strategies in this Spanish conference and Spanish speaking affiliates and exhibitors, this event will compliment the learning & networking flavours of BAC and bring you an international event with a local focus.
Take your place in one of Europe’s biggest markets and reach 400+ million Hispanic Speakers.
New for 2012, BAC incorporates
11th-14th octoBEr 2012 inSidE thE Bac Expo
www.iGBEspana.com
event statisitics• 2011 saw 403 delegates attend
• 91% of delegates were native Spanish speakers
• 47% of delegates were affiliates
• 89% of delegates rated the event ‘Good’ or ‘Very Good’
• 5% worked exclusively in the Latin American Market, 73% attract traffic from LatAm & Spain
• 100% of conference sessions were (and will be) in Spanish with expert speakers in their fields helping you create language specific strategies
iGB Affiliate JUNE/JULY 2012
INSIGHT
58
With this issue’s focus trained on a significant summer for sportsbetting affiliates and operators, iGaming marketing consultant Matthew Castillo investigates how businesses can retain the new players they acquire around major events.
This suMMer, we’ll have a number
of colourful events filling our sporting
calendar starting with the UEFA European
Football Championships and continuing
with the London Olympics. These one-off
events (as they occur only once every four
years) gather so much publicity and hype
around them that they manage to attract even
those who are not avid sport fans but maybe
want to show their support for their national
team. Marketers try to piggyback on these
events as it gives them the chance to tap into
a large audience with a view to expanding
their customer base. Gaming is no different.
Such events make it possible for
sportsbook operators to tap into a seasonal
type of customer; one who is only attracted
to large, widely publicised events. This
represents a potential gold mine for these
businesses as it gives them the chance
(which does not come along regularly) to
try to secure a portion of this infrequent
business and convert it into loyal or more
regular customers.
So how can companies tap into this
potential gold mine? What can be done in
order to entice infrequent customers to
become more regular visitors even after the
event finishes and the hype phases out?
The usual response to such a situation
is to improve the marketing machine
by trying to make the offering more
personalised and tailored for infrequent,
seasonal customers. While this approach
will produce some results, it does lack a
clear integrated strategy and customer
understanding that could turn these one-
off events into successful and profitable
customer recruitment campaigns.
The best way to try and harness this
opportunity is by analysing and mining
data of customers that were attracted
through similar events such as the
World Cup (2010) and the last
Olympic Games and were lost soon
after the event. By analysing these
patterns and characteristics, companies
can start working out the typical profile
of casual customers and devise a marketing
strategy around them.
Such an analysis makes use of
predictive models whereby the profile
of each customer would correspond to
the likelihood of his/her action. Most
companies already have predictive models
in place that tell them the expected lifetime
value of a customer by analysing initial
revenue streams. This has to be replicated
in order to determine the profile of these
infrequent customers that are attracted
to singular or one-off events. Without
knowing in advance which new customers
are likely to be hit-and-run customers, one
could run the risk of devising a retention
campaign that sacrifices too much potential
revenue from the customers who would
have revisited your website even in the
absence of any offer.
In simpler words, if you offer all new
customers a 100 percent bonus on their
next deposit, those that would have come
back regardless of the bonus will typically
end up depositing less money of their
own. Additionally, targeting new customers
with a generic retention promotion runs
the risk of alienating the portion of new
customers who would have returned to
your website but, perhaps, were looking
at other forms of promotion such as loyalty
points or cross sell offers.
Hence, a predictive analysis of past events
and related customers would allow your
system to identify the new customers who are
likely to return on their own and those who
typically will not return again after the end
of the event. By integrating this modelling
technique (as detailed in the diagram) into
your marketing campaign, promotions could
be better used in order to retain occasional
new customers without alienating others.
why invest in such a system?One-off events generate a lot of buzz
around them and create a stream of
potential customers that is difficult to come
across through normal business. In the
absence of targeted retention strategies,
new customers will simply come into
the system and leave as the buzz and
enthusiasm of these one-off events fades
away. This is not to say that such strategies
will enable you to retain 100 percent
of new seasonal customers as, by their
nature, many will stop playing regardless
of incentive, but it will enable you to retain
a small portion of business which would
have otherwise been lost. Even by retaining
ten percent of these new customers, one-
off events would have been turned into a
successful acquisition campaign. The good
thing about this modelling technique is
that the system is always being fed with
new data and, hence, models adapt to the
changing customer behaviour, enabling
you to be continuously more targeted and
precise in your marketing campaigns.
Special eventS: turning One-Off cuStOmerS intO repeat BuSineSS
Customer enters the system
Customer is compared to previous customer models and a predicted profile is developed
Profile 1A customer that is likely to be one-off
and cease to play after the event
ActionProvide bonuses and other incentives
to attract customer back
ResultA percentage of targeted customers would
have converted into repeat business
ActionTarget customer with promotions
that will increase his/her value
ResultCustomer moves ahead
in player lifecycle
Profile 2A customer who is likely to keep playing
on the company’s platform
iGB Affiliate JUNE/JULY 2012 59
feature
As we head into the third quarter of 2012, iGaming Business Finance Editor, Melissa Blau, takes a look back at the key events of the previous 12 months and identifies a selection of companies that have the potential to be key players in the short to mid-term future.
A year in reviewReflecting on the past 12 months, there
have been positive trends in both regulation
and operation that continue to preoccupy
both the headlines and our thoughts.
Geographically, Europe continues to
plough forward, though not without its
setbacks. Over the past year, we have seen
the legalisation of slots in Italy, which
has enjoyed more success than operators
had initially expected. We have also seen
the opening of the Danish market which,
surprisingly, went according to plan.
However, the same can’t be said of Spain,
which was expected to open on a similar
timescale to Denmark, but the good
news is that the Spanish market was only
delayed by six months and by mid-summer
should be well on its way to completing the
initial phase of the process, having finally
started issuing licenses in June. Germany
was a surprise contender this year with
Schleswig-Holstein beginning to issue
licenses. Sadly, Greece was the one
casualty that was stymied by its own
economic issues.
On the other side of the pond in Canada,
lotteries continue to move forward starting
with Lotto Quebec and then the British
Columbia Lottery Corporation (BCLC)
which has tendered for the expansion
and improvement of its gaming offering.
In addition, the Ontario Lottery and
Gaming Corporation (OLG) is making
a concerted effort to follow suit and
there is hope that the provincial lottery
will continue along that path.
In the US, while at the surface it feels like
Groundhog Day with little actual progress,
the past two months (April/May) have
witnessed a massive change in sentiment.
At least for now, serious discussions
about a federal solution have taken a back
seat to a more reasonable state-by-state
solution. In December, the Department of
Justice’s clarification acted as the necessary
catalyst igniting state lotteries to begin
taking the reins to expand not only into
online lottery sales but also into poker and
possibly casino. The state of Nevada also
completed its regulations and began taking
applications for intra-state operators and
suppliers. All of this has led to a surge in
European interest with many companies
stepping up their efforts to better position
themselves for regulation.
On the darker side of regulation, the
past 12 months will also be known for the
shakeout of Black Friday which culminated
in Full Tilt Poker’s public demise,
compromising the reputation of the well-
respected Alderney Gaming Commission
along the way. Will PokerStars buy the assets
of its largest competitor? This remained a
mystery at the time of writing but if it is the
case, it could once again change the poker
landscape for European operators.
Away from the regulatory front, the
past 12 months will best be known for the
explosion of social gaming. Previously,
most operators scoffed at social gambling as
a means to acquire customers, dismissing
it as a significant independent business
sector. The Caesars acquisition of Playtika
($150 million effective price with earn-out)
and the IGT acquisition of Double Down
casino ($500 million with earn-out) sparked
the interests of investors and operators
alike. Mainly due to the recent explosion of
casino style games on Facebook, the frenzy
of social gaming has catapulted the subject
to the forefront of operators’ agendas. And
why shouldn’t it? Regardless of Europe or
the US, social gaming remains the only
legal touch point to the consumer for the
vast majority of jurisdictions.
The year ahead and the likely key performersLooking ahead over the next 12 months,
which companies do we see as the best
positioned and the best able to capitalise on
current trends? With increased regulations
and the escalating costs associated with
abiding by them, will the big keep getting
bigger? Are there opportunities for country-
specific companies such as Winamax?
Do the smaller operators have a chance
to effectively compete without becoming
a regulatory cesspool for bigger operators
to offload their unwanted business as they
seek to cleanse themselves? Certainly, if
I had the answers, I wouldn’t be writing
this article. At this point, we can only try to
point to the likely candidates who are in a
position to make significant strides forward
over the rest of this year and into 2013.
The IndusTry’s Key Performers
“ Illinois’ success both in online lottery ticket sales and iGaming expansion is critical to the development of the sector throughout the US.”
iGB Affi liate JUNE/JULY 201260
FEATURE
bwin.partyWhile the company is still digesting
the synergies from the merger of the
two largest companies in the sector
(bwin and PartyGaming), bwin.party
continues to fi re on all cylinders: US,
Germany, France, Italy, Spain, now
social gaming, not to mention the
fact that it is a leader in every vertical
(sports, casino, bingo, poker). Most
recently, it became the fi rst company to
announce its intention to pay the €33
million in back-tax payment to the Spanish
government. In the past 12 months, the
company was the fi rst to announce a
large-scale joint venture with two leading
US operators, MGM and Boyd and has
recently announced its imminent launch
into social. At the beginning of May, the
company continued the development of its
US presence by announcing a partnership
with California’s United Auburn Indian
Community to offer online poker in
the state, pending “suitable” intra-state
legislation. If bwin.party can keep executing
on all fronts and maintain its leading
position into regulated markets then
it could be one of the most prominent
iGaming brands of the coming year.
888The surge in 888’s share price is indicative
of the company’s prospects. Only a year
ago, the company was on the brink of
crisis with a decline in poker as well as
having questions raised as to its ability
to pay the earn-out out on its Wink
bingo acquisition. However, within a
year of its management change, the
company released Poker 6 which saw
its Poker Scout liquidity ranking shoot
from between 12th and 15th to fourth.
Most recently, 888 reported a 94 percent
increase in EBITDA and a 26 percent
growth in revenue. Rarely has any company
experienced such a change in fortune
outside the shockwaves of UIGEA and
Black Friday. In the US, 888 has been one
of the leading contenders for the supply
of poker into the US market, passing
‘suitability’ with the Nevada Gaming
Commission as a supplier for Caesars’
World Series of Poker. In addition, the
company was one of the fi rst applicants
for full licensing in Nevada as a software
vendor. Still hungry for more, 888 was
recently rumoured to be in late stage
discussions with Trump.
PlaytechPlaytech’s aggressive acquisition and joint
venture strategy has further propelled the
company as the leading online gaming
supplier for regulated markets. Not even
the negative public image stemming from
its recent battle with joint venture partner
William Hill has prevented operators from
buying the Playtech solution. The company
continues to offer a superior back-end
platform and turnkey product as well as
a willingness to acquire whenever the
company believes there is a weakness in its
product strategy.
While some believe the company will
have diffi culty getting licensed in the
US, these rumours remain speculative.
Playtech’s goal of achieving a premium
listing on the London stock exchange
“ The recent breakdown in discussions by Groupe Bernard Tapie to acquire Full Tilt has given PokerStars the opportunity to buy the assets of its former nemesis, which would further its position in both regulated and unregulated markets.”
iGB Affi liate JUNE/JULY 2012 61
feature
over the summer remains a priority and
is rumoured to be the motivation behind
the delay in acquiring the social gaming
assets currently owned by Playtech’s largest
shareholder, though those assets could
nicely round out Playtech’s product offering
for those potential clients who only operate
in regulated markets.
AmayaThere have been some bold predictions
coming from this little-known Canadian
company. Amaya has stated to City and
Wall Street analysts that it is expecting to
undergo rapid growth which is astonishing
considering the company only turned
profi table last year when it focused on
higher margin business from the purchase
of Chartwell. The company will now be a
combination of a couple of failed software
providers merged together: Chartwell
and Cryptologic.
Amaya burst on to the scene with its IPO
in 2010, the proceeds of which were used
to fund acquisitions such as the Cryptologic
stock, and Chartwell. The company’s bold
growth predictions and the aggressive
nature of its CEO have certainly helped
fuel its share price. Amaya has won
numerous government contracts around
the world and its CEO is predicting big
returns from its mobile SMS business in
Moldova, Kenya, Uganda and Armenia.
The Amaya IPO was named the best-
performing tech IPO in Canada in 2010.
If the company can meet its CEO’s own
expectations then he will have successfully
turned two non-performing companies
into something of value.
us land-based suppliersThe US land-based suppliers as a group
have fi nally woken up and are now
running at full speed. IGT, Bally, WMS
and Shuffl e Master, each have their own
unique strategy. IGT has taken an early
lead in social with the acquisition of Double
Down, but can the company parlay that
into a B2B strategy? Shuffl e Master hired
game developer guru Louis Castle, and
then acquired one of the leading European
poker suppliers, Ongame. WMS confused
the market with the aggressive launch of
its B2C site, Jackpotparty, with a suite of
excellent proprietary games, yet, limited
any success by marketing exclusively
into the crowded UK market. In a recent
about face, WMS acquired casino and
skill game supplier, Jadestone giving the
company a much needed B2B strategy.
Bally Technologies has taken a different
approach altogether, offering a content
agnostic approach with the purchase of
the Chiligaming back-end platform.
Which US supplier will land-based
operators want as their preferred partner?
Could it be a combination of the four?
ZyngaZynga is the ‘PokerStars’ of the social poker
market boasting over 30 million players
a month. No one has seriously tried to
challenge the behemoth’s position as the
leading operator of poker on Facebook.
Investors took notice of the company
during Facebook’s IPO which stated that
Zynga represents 12 percent of Facebook’s
total revenue. Pundits estimate that poker
represents 21 percent of Zynga’s revenue.
Going forward, Zynga’s role in real money
gambling remains unclear, but it’s likely
that with 30 million poker players, which
“ Playtech’s aggressive acquisition and joint venture strategy has further propelled the company as the leading online gaming supplier for regulated markets.”
iGB Affiliate JUNE/JULY 201262
feature
MelissA BlAu has been in the online gaming sector for 8 years as both an operator and advisor. In her current capacity, Melissa is an advisor focused on bridging US and European interests. Through her consulting company, iGaming Capital she has been advising mainly land based companies in developing their online gamingstrategy as well as advising cross border merger & acquisitions. Prior to the iGaming industry, Melissa co-managed a $450m media technology venture fund. Melissa has a B.A. from the Wharton School, University of Pennsylvania and an MBA from Harvard University. [email protected]
accounts for 2.5 percent of Facebook’s
revenue, Zynga will likely be a major player,
at the very least as an affiliate in the US,
and/or as an operator in regulated markets.
The company’s recent shift to become a
B2B provider, leveraging its marketing
machine and access to players, represents
only one of a number of recent moves
to maintain cash flow. If social blurs
into real money gambling, as industry
insiders hope, Zynga will certainly be
one the key influencers.
Caesars interactive entertainment (Cie)Caesar’s Interactive Entertainment remains
the most well positioned casino operator in
the US in the eventuality of either federal
or state regulation. Caesars is the only
US land-based operator to launch in the
UK, albeit on a small scale, in an effort to
develop first-hand marketing experience.
This is despite its previous failure with its
Luckyme.com subscription bingo site. This
time around, Caesars has put its money
where its mouth is, and boldly acquired the
number one Facebook casino app, Playtika,
for an initial effective price of $90 million
(now estimated to be $150 million with the
earn-out). Caesars is well positioned should
Facebook enter real money gambling. The
company’s understanding of operating in
the tricky Facebook environment, coupled
with its management team’s gambling
experience could place CIE in prime
position if Facebook moves into real money
gambling post-IPO.
Jackpotjoy (Gamesys)Jackpotjoy has done wonders trying to keep
itself out of the spotlight. Despite being
one of the largest online bingo brands, the
company has chosen to remain private,
turning away coveted private equity money
that could have lined the founders’ pockets.
Its success in the UK bingo and scratch
card market has remained unrivalled, but
it hasn’t all been smooth sailing, with the
expansion into Spain being slower than
expected. Despite this, the company has
leveraged its lead in the UK bingo and
soft games market going ‘all-in’ on virtual
currency on Facebook. The company has
dedicated significant resources to create its
success on Facebook from scratch. Similar
to Caesars, Jackpotjoy remains incredibly
well positioned to take advantage of real
money gambling should Facebook change
its mind in regulated markets, both with
its world class gaming operations and
leadership position on Facebook.
PokerstarsBlack Friday was certainly a severe kick to
the teeth. Having taking out its two largest
competitors, everyone expected events of
April 15, 2011 to have set PokerStars back.
Not only has PokerStars remained in its
dominant position, but the removal of its
largest competitors has only strengthened
its position. Despite indictments issued
by the US government, and the escalating
war with its former payment provider
that was rumoured to have led to Black
Friday, PokerStars is still successfully
fighting in key regulated markets across
Europe. Best practices, operationally, have
led the company to maintain its licence
in Europe and retain number one spot
in selected markets. Full Tilt Poker, on
the other hand, wasn’t so lucky. With the
founders rumoured to have taken out
an unwarranted amount of cash, leaving
co-mingled player deposits unprotected,
Full Tilt lost its licenses and became the
scorn of the industry, most notably by
US authorities, calling the company a
‘Ponzi scheme’. The recent breakdown in
discussions by Groupe Bernard Tapie to
acquire Full Tilt has given PokerStars the
opportunity to buy the assets of its former
nemesis, which would further its position
in both regulated and unregulated
markets. If the four-year back-tax in Spain
doesn’t squelch this mastermind plan then
the next 12 months will be an interesting
period for PokerStars.
illinois lotteryIllinois, through its lottery, has been on the
forefront of Internet gaming in the United
States. After years of pushing federal
government and the US Department of
Justice (DoJ) for clarification on its ability
to sell lottery tickets online, the Illinois
Lottery finally got its answer on December
23, 2011, when the DoJ issued a statement
that the Wire Act only pertains to
sportsbetting and not to the lottery. This
paved the way for the Illinois Lottery to
begin selling tickets over the Internet for its
Mega Millions game. The timing couldn’t
have been better; tickets went on sale for
the first time the same week that Mega
Millions climbed to its all time record-
breaking jackpot of over $600 million.
More recently, Illinois Senate President,
John Cullerton, introduced amended
legislation in May to protect Illinois
from the ‘hostile federal legislation’. The
legislation proposed to set-up a division of
Internet gaming within the Department
of the Lottery, which would be authorised
to offer online gaming to players who are
physically present within the state as well
as to enter into multi-state agreements.
Illinois’ success both in online lottery ticket
sales and iGaming expansion is critical to
the development of the sector throughout
the US. If successful, it could easily pave
the way for other lotteries as the model case
study from which they base their plans.
More details including sponsorship packages, conference schedule,
offi cial hotels, all the parties and much more will be available soon on
www.BarcelonaAffi liateConference.com
BARCElona
aFffi Iliate conference11th-14th October 2012 The Fira de Barcelona
This event will bring you:
1600 Expected delegates
Over 100 Affi FIliate Programs
70% AfFiliate attendees
Conference sessions that will increase
your revenue
Amazing networking parties, in
incredible venues, in a stunning city
And all this
FREE for afFIfi liates
New for 2012, BAC incorporates
iGB Affiliate JUNE/JULY 201264
feature
As we reach the midway point in 2012, we enter a period of both reflection and prospecting as we seek to analyse whether the lessons of 2011 have been addressed in the calendar year to date. Following on from Melissa Blau’s forecast of companies to watch over the next 12 months, we take a look at some of the key personalities interviewed by iGaming Business and iGB Affiliate over the last year and the insights that they each offered on the industry, US regulation and business.
US REGULATION Congressman John Campbell“I come from the
libertarian wing of the
Republican Party and
I believe that adults
should be able to engage in practices that
they enjoy if they don’t hurt other people.
Gambling is one of those practices. I
made it clear in the committee that I don’t
personally gamble. Not because I think
it’s evil but because it doesn’t hold a lot of
fascination for me. But a lot of people do
and I think that we should not be banning
them from doing that online.
“In America, what we say now is, ‘you
can gamble in all these different places but
you can’t do so online’. Well that’s not a
good policy for online. You can buy alcohol
or cigarettes online. We have a number of
regulated practices that are allowed online.
This is about the only one that we allow you
to do in a bricks and mortar facility that we
don’t allow you to do online and that just
doesn’t make sense.”
Senator Jeff Danielson, Iowa“There’s no doubt
that the Department
of Justice’s (DoJ)
opinion cleared the
way for states to be bold experimenters in
online gaming… we believe it opens up the
possibility of forming inter-state compacts
under the US Constitution.
“I want people in Iowa and America
to know that this is Ameri-CAN, not
Ameri-CAN’T. They need to understand
that this is an emerging market and
to do nothing, to put our head in the
sand, is not what we’re used to doing.
We need to have a thoughtful deliberate
policy here and understand that we can
accomplish this just like Europe and Asia
have already shown us.”
Senator Raymond Lesniak, New Jersey“New Jersey’s
leadership has
prompted more
attention to the issue of iGaming; whether
that prompts federal legislation, which I
do not believe will ever occur, or whether
it prompts other states to get involved, on
their own or through compacts.
“It’s not the ideal situation – I don’t
even believe it’s the ideal situation. I believe
the ideal situation is one regulator rather
than multiple states, but we’re not going
to get that because the mood in
Washington is to contract federal
government, not expand it. Internet
gaming being regulated out of Washington
would be seen as a huge expansion of
federal government. And that’s on top
of the morality objections about the
expansion of gaming. So I think there’s
been a recognition that the only way this
is going to happen is through the states.”
Michael Jones, Superintendant of the Illinois Lottery“The expansion of the
lottery is a legislative
question and I think that the DoJ letter
which, in essence, clarifies that the Wire
Act only prohibits sportsbetting, created a
great deal of momentum for the gaming
community at large, far beyond lotteries. I
certainly think most lotteries quite logically
will try to broaden their player base by
creating or emulating the e-commerce
channel used by millions of people who are
philosophically in favour of the lottery, but
who we are currently irrelevant to.
“I don’t think we set out to be pioneers,
we just set out to competently execute the
intent of the legislation passed two years
ago. This is certainly a work in progress
and I don’t think we’re there yet; but we
will be there soon.”
Mark Lipparelli, Chairman of the Nevada Gaming Control Board “We’ve visited many of
the jurisdictions that
already regulate online gaming and we’ve
tried to glean as much education as we can
knowing full well that we may do things
differently. We have a great relationship
with our colleagues in other markets, but
we also respect that we may approach it
differently from them primarily because
that’s our history; we set a high bar for
licensing and we’re not going to change that
just because someone’s an online entity.”
A YeAr in Words
“ I want people in Iowa and America to know that this is Ameri-CAN, not Ameri-CAN’T. They need to understand that this is an emerging market and to do nothing, to put our head in the sand, is not what we’re used to doing. We need to have a thoughtful deliberate policy here and understand that we can accomplish this just like Europe and Asia have already shown us.”
iGB Affiliate JUNE/JULY 2012 65
feature
THE FULL TILT CRISIS
Peter Dean, author of the report into the Full Tilt saga commissioned by the Alderney Gambling Control Commission.“Alderney’s regulatory system for gambling
is comparable to those prevailing in other
well regarded jurisdictions, and AGCC is
respected round the world as a regulator
demanding high standards of probity from its
licensees. Deplorable as the episode covered
in this review has been, it is nevertheless an
example of regulation working as it should.
As soon as plausible evidence of irregularities
came to light the regulator acted promptly
and proportionately. An investigation was
instituted, findings made, a hearing held,
judgment delivered and sanctions imposed.
Due process was followed.”
Aideen Shortt, iGaming Consultant, in an articleon the Dean Report“Several times
in the report, Dean outlined that
Alderney is ‘comparable’ to other
jurisdictions and actually states that
the procedures followed by the AGCC
in this entire process is an example
of ‘regulation working as it should’.
Yet the very fact that the debacle
happened at all is surely, in some part,
due to less than appropriate licensing.
If more than $300 million of player
funds cannot be paid back, then despite
whatever process was followed to manage
the crisis, something is seriously lacking.
Although the scrutiny of the Dean
Report found that the AGCC behaved
appropriately, it could be argued that the
refusal of Full Tilt to disclose its owners’
details directly, its willingness to flout the
regulations in its move from Kahnawake
and its failings and slow response with
regard to the AGCC inspections were
collective red flags.”
Preet Bharara, US Attorney in Manhattan “Full Tilt was not a legitimate poker
company, but a global Ponzi scheme.
Full Tilt insiders lined their own pockets
with funds picked from the pockets of
their most loyal customers while blithely
lying to both players and the public
alike about the safety and security
of the money deposited.”
BUSINESS AND MARKETING Ed Birkin, Analyst at Barclays Capital “Ask any investor
or analyst involved
in online gaming
stocks what the key driver of share price
performance is and they’ll inevitably say
‘regulation’. 2011 was a year notable for
many reasons, and it is unsurprising that
the three key events to affect the listed
gaming operators could all come under the
‘regulatory’ heading.
“The first, and arguably most
significant in terms of share price reaction,
was the announcement that Germany
intended to impose highly restrictive
online gaming regulations, designed
to close the market to foreign online
operators. Secondly, shortly afterwards,
came the US indictments against
PokerStars, Full Tilt et al. This led to a
sharp rally in a number of poker stocks as
investors forecast a significant inflow of
players to European listed operators, and
a potentially imminent opening of the US;
however, neither of these occurred. Finally,
as the year was coming to a peaceful close,
the Department of Justice released its
opinion on the Wire Act, and the poker
stocks once again rallied sharply at the
expectation of a US opening.”
Josh Greenberg, co-Founder, Grooveshark“The thing that holds
most people back from
starting a company is
the lack of will to take that initial leap. One
of the things that has really helped me out
is that I used to look at starting a company
as such a daunting task – the paperwork,
the legal stuff, hiring people, making a
website – there’s so much stuff to do.
But if you boil it down, there’s always
a first step. Then, after that, there is
one more step, then another step and
all of a sudden if you take the sum
of all these little steps, you have a company.
Most people think that starting a company
is such a massive, grandiose process
that they never do it. The actuality is
that if you take it one step at a time,
you make it happen.”
Neil Patel, Serial Entrepreneur “You need to create
a good product or
service that solves
a problem. And not
just something everyone else is doing,
but something unique. If you can’t solve
problems you won’t be able to create
a big business. It doesn’t matter if we
are in a digital revolution or a bad economy,
solving problems is the best way to create
a thriving business.”
“ Full Tilt was not a legitimate poker company, but a global Ponzi scheme. Full Tilt insiders lined their own pockets with funds picked from the pockets of their most loyal customers while blithely lying to both players and the public alike about the safety and security of the money deposited.”
iGB Affiliate JUNE/JUly 201266
webmaster world
Michaela McNamara, Editor at CasinoAffiliatePrograms.com, offers the lowdown on the concept of ring fencing and how it can positively impact your affiliate business before examining the repurcussions of the Google Penguin update on the facing page.
MaNy affiliates have wondered, “What is ring fencing?” and more importantly, “how does it affect my business?”
A ring fence allows an operator to control the extent to which its players can affect an affiliate’s winnings. To break things down, ring fencing can be explained as isolating ‘whales’, or big time winning players, to mitigate the negative effect they have on your losing players. Basically, if an affiliate has a winner in one casino, it does not affect the income you have within that casino or other casinos in this program. If your affiliate program implements the concept of ring fencing, then your negative results from one casino do not impact your positive results from the others.
Most cases of ring fencing are not public, so affiliates don’t always know about it. That’s why many affiliate programs can boast that they do not carry over a negative balance when, in reality, they do – it can just be hidden at times. Ring fencing that is in the open and part of the Terms and Conditions from the outset are more tolerable to affiliates. If affiliates know right away if ‘Player A’ wins a large sum, such as
$20,000, they can agree to have that player quarantined until they play back this win. Once they have played that win back, they are then tagged to the affiliate once again.
Some rooms choose to ring fence their players together. Often, the players coming from these rooms are the biggest fish, or the ‘losers’. These rooms do this to protect their ‘fish’ from the network ‘whales’.
impact on affiliatesFor the programs that do not advertise that they carry forward the negatives, it is important to clarify the Terms and Conditions. For all the affiliate knows, you may be losing out in the long run if they have aggressive ‘fencing’, ‘quarantine’ or ‘adjustment’ policies.
The best programs are those who simply absorb the negative and don’t resort to any of the aforementioned policies. However, they take a hit when the winning player drops money in the next payment cycle or month. The best approach is to pick only the programs that openly mention that they support ring fencing. If they don’t mention any such thing, ask your affiliate manager (or go through the Terms and Conditions more thoroughly).
Ring fencing is a great practice to protect your players too. This is not uncommon for sportsbooks that are also on other poker networks, for obvious reasons. With that said, it may present a good opportunity to convert your poker players to ring-fenced rooms. It’s a great conversion opportunity for affiliates.
Note: many affiliates often mistake ring fencing with ‘bundling’, but the two are in fact, quite different. A program is said to ‘bundle’ when it throws all the casinos in one pot, and when an affiliate has a winner in one of them, his earnings with all of the casinos get wiped out. When a program bundles, it is financially wisest to only carry one casino from that group so to minimise losses.
What is Ring Fencing?
“ If your affiliate program implements the concept of ring fencing, then your negative results from one casino do not impact your positive results from the others.”
iGB Affiliate JUNE/JUly 2012 67
webmaster world
Now that the iGaming world is reeling from the Google Penguin update, we’ve been able to get a better grasp of its impact and how it has affected the iGaming community.
a few weeks have now passed since Google unleashed its Penguin update on April 24 and plenty of casino affiliates are feeling the impact. The question remains, “Are there some positive effects from the sweeping refresh?”
In mid-May, Matt Cutts, Head of Google’s Webspam Team, laid out the good, bad and ugly aspects of the Penguin, the Panda and negative SEO.
was Penguin a success?Shortly after Penguin’s launch, SEO forums lit up with posts from webmasters who felt they’d been unfairly penalised by the refresh. The best example was probably Viagra.com, the official site of the well-known drug. Thanks to Penguin, this site was no longer indexed, while legions of spammy, counterfeit Viagra sites kept high page rankings. (That particular problem has since been addressed.)
However, according to Cutts, many of these problems, including the Viagra problem, pre-dated the Penguin update. Cutts did concede the refresh did cause a few of what he called, “false positives”.
“We’ve seen a few cases where we might want to investigate more, but this change hasn’t had the same impact as Panda or Florida,” he explained.
Still, fighting a false positive caused by Penguin isn’t as simple as fighting one caused by Panda.
While Cutts acknowledges that, “no algorithm is perfect”, Google is not entertaining reconsideration requests from sites that may have been unfairly penalised. Cutts recommends these sites do whatever they can, and wait for the next refresh to roll out.
Negative seOWhile Google has been placing emphasis on link networks and low-quality inbound links, many site owners have worried about the impact of negative SEO. Cutts discounted the idea that a webmaster could point low quality links at a competitor to bring down their page rank.
While negative SEO may join keyword density in the SEO hall of legends, the impact of unnatural link networks is still very real.
link-up with troubleAfter Penguin, many web publishers got the idea that links were behind their page ranking drops, but Cutts seems to dismiss those concerns as mere coincidence. He pointed out that bad link warnings went out well ahead of Penguin. Link warnings, according to Cutts, are almost always followed by a big drop.
Penguin’s impact on affiliatesCutts is quick to point out that Google considers Penguin to be a big success. What’s more, he says that for every site that dropped, another one rose. In his mind, that’s a good thing. In the CAP forums, gaming affiliates didn’t necessarily share Cutts’ enthusiasm.
On a thread entitled, “So, How Much Traffic Did You Lose?” in the CasinoAffiliatePrograms.com forums,
CAP members shared the impact of Penguin on their sites:●● A member said that his sites that had ranked between one and five had dropped all the way down to 799.●● Another member reported that his traffic dropped from 170,000 impressions a day, down to just 22,000.●● On the other end of the spectrum, one member woke up on ‘Penguin Day’ to find his bingo site getting 50 percent to 70 percent more traffic.
Bounce backMany site masters impacted by Penguin have been frantically removing links in hopes of undoing the damage, but that may not be enough. Cutts and (Danny) Sullivan1 both say that, in some cases, bouncing back from Penguin may involve starting over from scratch.
google Penguin imPact examined
“ In some cases, bouncing back from Penguin may involve starting over from scratch.”
Michaela McNaMara is editor at casinoaffiliatePrograms.com (caP), the world’s largest online gaming affiliate marketing community. With more than 11,000 members, caP is the internet’s primary location for online gaming brands and affiliate marketers to come together and do business.
caP is owned by affiliate Media, inc., an independent online publishing company focused solely on affiliate marketing. Our experts gather, create, and publish information about affiliate marketing and share it with the larger worldwide community to help affiliates better promote leading internet brands world-wide (and profit by doing so).
1Danny Sullivan, Editor of Search Engine Land
iGB Affi liate JUNE/JULY 2012
WEBMASTER WORLD
68
DATA CENTRE
INTERNATIONAL MARKET SNAPSHOT
Rank ....................................................Name Domain1 Lottery Post ..................................... www.lotterypost.com 4.68%
2 FreeSlots ......................................... www.freeslots.com 4.00%
3 Florida Lottery .................................. www.fl alottery.com 3.97%
4 NY Lottery ........................................ nylottery.ny.gov 3.63%
5 PCHSlots.......................................... slots.pch.com 3.31%
6 Pennsylvania Lottery ......................... www.palottery.state.pa.us 3.26%
7 Texas Lottery Commission ................. www.txlottery.org 3.14%
8 WorldWinner .................................... www.worldwinner.com 2.87%
9 Massachusetts State Lottery Commission ..... www.masslottery.com 2.51%
10 California Lottery .............................. www.calottery.com 2.45%
Rank .............................................Name Domain1 The National Lottery ..................www.national-lottery.co.uk 25.42%
2 Betfair ......................................www.betfair.com 7.02%
3 bet365 .....................................www.bet365.com 6.60%
4 Sky Bet .....................................www.skybet.com 3.87%
5 William Hill Sports Betting ..........sports.williamhill.com 3.45%
6 Racingpost.com ........................www.racingpost.com 2.92%
7 Ladbrokes Sportsbook ...............sports.ladbrokes.com 2.89%
8 Paddy Power .............................www.paddypower.com 2.57%
9 Jackpotjoy ................................www.jackpotjoy.com 2.50%
10 At The Races .............................www.attheraces.com 1.90%
Rank .............................................Name Domain1 FDJ ..........................................www.fdj.fr 19.55%
2 PMU.fr ......................................www.pmu.fr 18.74%
3 PMU Progress ...........................www.parier.pmu.fr 10.10%
4 Les Secrets du Jeu ....................www.secretsdujeu.com 7.02%
5 turf.fr ........................................www.turf-fr.com 6.30%
6 BetClic France ...........................fr.betclic.com 6.19%
7 Ludokado ..................................www.ludokado.com 3.86%
8 Genybet ....................................www.genybet.fr 2.88%
9 Casino La Riviera .......................www.casinolariviera.com 1.91%
10 bwin France ..............................www.bwin.fr 1.69%
TOP TEN GAMBLING SITES IN THE US, APRIL 2012
EUROPEAN SEARCH ENGINE MARKET SHARE
TOP TEN GAMBLING SITES IN THE UK, APRIL 2012
TOP TEN GAMBLING SITES IN FRANCE, APRIL 2012TOP TEN GAMBLING SITES IN FRANCE, APRIL 2012
US DEMOGRAPHICS BY AGE UK DEMOGRAPHICS BY AGE
40%
32%
24%
16%
8%
0%
40%
32%
24%
16%
8%
0%
10.33
17.416.48 17.3217.01 19.7722.6618.84
33.52
26.66
18-24 25-34 35-44 45-54 55+ 18-24 25-34 35-44 45-54 55+
FEMALE 48.27%
MALE 51.73%
FEMALE 49.25%
MALE 50.75%
The market data reports from Experian Hitwise provide us with a structured breakdown of the target audiences within some of the major international markets. Here, we look at the most visited gambling sites in the US, UK and France as well as comScore’s breakdown of the most used search engines in Europe for the month of April.
Source: comScore
Google sites (45,470MM/79.5%)
Yandex sites (3,840MM/6.7%)
eBay (1,942MM/3.4%)
Mail.ru Group (952MM/1.7%)
Microsoft Sites (652MM/1.1%)
Total Internet (57,181MM/100%)
iGaming Business
■ Issue 72 ■ January/February 2012
The DoJ ‘Christmas Present’The Fall and Rise of US iGaming Congressman John Campbell on Federal ProgressLobbying and US Legislation New Jersey’s Quest for Legal Sportsbetting
Wire Act clarifi cationbuoys industry
USWired
foriGaming
Plus:PricewaterhouseCoopers Global Gaming ReportInterviewå Walter Bugno, CEO, GTECH G2US Lotteries and the Private SectorKPMG on Mobile Gambling
Join 3,000 iGaming ProfessionalsDublin 22nd – 25th May 2012
iGaming Attendees FREE!www.iGamingSuperShow.com
Plus:
Sector Analysis from Ernst & Young
and Barclays Capital
Live Poker Tournaments
In-play Betting Supplement
Marketing at the London Olympics
iGaming Business
■ Issue 73 ■ M
arch/April 2012
iGaminG
Busin
ess
Info
rmatIo
n, InsIg
ht and analy
sIs for th
e busIn
ess of I
nteractIv
e gamIn
g
Issue 74 m
ay/Ju
ne 201
2
igamIng busIness | Issue 74 | may/June 2012
Plus:
Black F
riday
: One
Year
on
Senato
r Les
niak a
nd th
e Silic
on Stat
e
a Fair P
ress?
iGam
ing’s
Reputa
tion m
anag
emen
t
The a
Sa on Gam
bling
advert
ising S
tanda
rdsbr
IngIng down
the h
ouse
The D
ean Re
poRT
anD Th
e
Demise
of full
TilT p
okeR
Join the leaders in the igaming industry and subscribe today!
A subscription to iGAminG business offers you:l 6 copies of iGaming Business magazinel iGB Marketplace Directory worth £75l 6 copies of iGB Affiliate Magazinel The iGB Affiliate Directory worth £75l iGB Jurisdictions Directoryl iGaming Business Newslines delivered twice weekly l Access to all the latest news, events and jobs in
the industry on www.iGamingBusiness.coml An exclusive 10% subscribers discount
on iGB intelligence reports
SUBSCRIPTIONS
www.iGamingbusiness.comfor more information and to subscribe today please contact [email protected] Quote 12Hs44A
““iGB has industry leading editorial that’s always highly
topical. The use of guest writers allows readers to
view issues from a different perspective, sparking fresh
thinking and debate.”
Simon Burridge, CEO of Virgin Games
iGB Affiliate JUNE/JULY 2012
webmaster world
70
data CeNtre
Search marketing agency, Greenlight, has released its latest report into search traffic trends within the gaming sector for the month of April. Here, we can see the latest from the UK market in relation to search queries for the traditional iGaming verticals: casino, poker, bingo and sportsbetting.
The mosT recenT monthly report from search marketing agency, Greenlight, shows a marginal increase in overall search volumes in comparison to February’s data. April’s figures show an increase in overall search volumes to 859,603 having fallen to 736,470 in February, which represented the second lowest figure since June 2011.
Perhaps not surprisingly, searches for sportsbetting-related content overtook bingo to claim 37 percent voice of share with 314,512 searches, establishing it as the most searched keyword, or at least, the term with the most cumulative searches with regards to variations (sportsbetting/bets/betting/etc). The numbers for bingo related keywords fell from 288,883 in February to 260,145 in April, with poker slipping back into third place having dropped from 193,411 in the last reporting period to 148,417. Casino keywords remain the least searched although they did see an increase this time around, jumping from 122,719 to 136,529.
The increase in searches is almost wholly driven by a spike in sportsbetting keywords, which we can attribute to a variety of seasonal sporting occasions that occur in April and May, such as the Grand National, the end of the Premier League season and Champions League final and this year, the likely influence of the UEFA Euro 2012 Football Championships in Ukraine and Poland. Yet, although this uptake does represent positive momentum, it is something of an anomaly in comparison to the downward trend since June 2011.
The uniform decrease in search volumes can be attributed to any number of factors, one of the likeliest being the changing search patterns of the UK betting demographic. As consumers become more aware of how they navigate between the sites they use to bet or play at, their reliance on search engines decreases for short-tail terms such as those detailed here, but may increase for more specific, longer-tail keywords for which is it almost impossible to monitor and chart successfully. Many of the searches recorded for these core keywords such as ‘bingo’, ‘casino’ and ‘poker’ are more likely to be the reserve of those new to betting online, or those seeking information rather than ‘action’, hence the constant presence of Wikipedia in the Greenlight results.
The results for sportsbetting are also slightly muddied by the presence of short-tail terms such as ‘bet’ and ‘betting’ which although are grouped into the sports results, don’t necessarily represent accurate sports betting traffic.
summary of data ●● Searches for gaming-related keywords in April 2012 totalled 859,603 up roughly 123,100 on the previous reporting period (736,470).●● Sportsbetting-related terms (314,512) accounted for the significant majority share of searches made. Bingo-related terms (260,145) although notably decreased, still accounted for the second highest search group. ●● Overall, in April, Ladbrokes, Paddy Power and Wikipedia.org were the three most visible websites in natural search achieving 35%, 28% and 19% share of voice, respectively.●● Cheeky Bingo maintained its lead as the most visible website for
bingo-related search terms, with Costa Bingo and Foxy Bingo making up the top three. ●● Casino770 was the most visible website for all casino-related keywords, surpassing Ladbrokes and Intercasino.co.uk who were second and third respectively.●● For poker-related queries, Wikipedia remained the most visible website, ahead of Poker Listings and PKR.●● Paddy Power is now the most visible website for sportsbetting related terms ahead of Ladbrokes and Oddschecker with two Grand National-specific sites also in the top six.
UK iGaminG Search TrendSNum# Domain Monthly
Reached
Volume
Monthly
Missed
Volume
Percentage
Reached
1 ladbrokes.com 299,153 560,450 35%
2 paddypower.com 239,662 619,941 28%
3 wikipedia.org 162,344 697,259 19%
4 oddschecker.com 156,464 703,139 18%
5 cheekybingo.com 155,883 703,720 18%
6 costabingo.com 126,265 733,338 15%
7 grand-national-guide.co.uk 119,960 739,643 14%
8 betfair.com 119,056 740,547 14%
9 foxybingo.com 109,482 750,121 13%
10 888.com 108,256 751,347 13%
11 galabingo.co.uk 95,797 763,806 11%
12 aintree-grand-national.net 91,072 768,531 11%
13 williamhill.com 88,449 771,154 10%
14 betfred.com 82,017 777,586 10%
15 tombola.co.uk 80,809 778,794 9%
16 bet365.com 79,621 779,982 9%
17 jackpotjoy.com 79,285 780,318 9%
18 pokerlistings.com 75,303 784,300 9%
19 partybingo.com 74,610 784,993 9%
20 casino770.com 74,358 785,245 9%
21 skybet.com 63,531 796,072 7%
22 coral.co.uk 63,469 796,134 7%
23 racingpost.com 61,955 797,648 7%
24 intercasino.co.uk 57,390 802,213 7%
25 comparebingosites.co.uk 56,775 802,828 7%
26 betting-directory.com 56,678 802,925 7%
27 pkr.com 56,664 802,939 7%
28 888sport.com 55,504 804,098 6%
29 pokerstars.com 55,224 804,379 6%
30 whichbingo.co.uk 53,016 806,587 6%
31 bingoport.co.uk 49,351 810,252 6%
32 skypoker.com 46,916 812,687 5%
33 betrescue.com 45,350 814,253 5%
34 freebingo.co.uk 45,239 814,364 5%
35 bet770.com 44,493 815,110 5%
36 onlinebingofinder.co.uk 43,345 816,258 5%
37 miniclip.com 42,782 816,821 5%
38 olbg.com 41,146 818,457 5%
39 partypoker.com 40,595 819,008 5%
40 madaboutbingo.com 39,062 820,542 5%
41 888ladies.com 37,859 821,744 4%
42 latestcasinobonuses.com 37,089 822,514 4%
43 32redbingo.com 37,078 822,525 4%
44 spinpalace.co.uk 37,062 822,540 4%
45 redbusbingo.com 36,018 823,585 4%
46 pacificpoker.com 35,139 824,464 4%
47 pokerstars.co.uk 34,660 824,943 4%
48 wtgbingo.com 34,600 825,004 4%
49 games.com 34,557 825,046 4%
50 32red.com 34,001 825,602 4%
iGB Affiliate JUNE/JULY 2012
webmaster world
71
data CeNtre
The most visible websites for bingo-related keywords in natural search (April 2012)Num# Domain Monthly
Reached
Volume
Monthly
Missed
Volume
Percentage
Reached
1 cheekybingo.com 155,883 104,262 60%
2 costabingo.com 126,265 133,880 49%
3 foxybingo.com 109,482 150,663 42%
4 galabingo.co.uk 95,797 164,348 37%
5 tombola.co.uk 80,809 179,336 31%
6 jackpotjoy.com 79,285 180,860 30%
7 partybingo.com 74,610 185,535 29%
8 ladbrokes.com 62,479 197,666 24%
9 comparebingosites.co.uk 56,775 203,370 22%
10 whichbingo.co.uk 53,016 207,129 20%
11 bingoport.co.uk 49,327 210,818 19%
12 freebingo.co.uk 45,239 214,906 17%
13 onlinebingofinder.co.uk 43,345 216,800 17%
14 madaboutbingo.com 39,062 221,084 15%
15 888ladies.com 37,859 222,286 15%
16 32redbingo.com 37,078 223,067 14%
17 888.com 36,720 223,425 14%
18 redbusbingo.com 36,018 224,127 14%
19 wtgbingo.com 34,600 225,546 13%
20 bingo770.com 29,515 230,630 11%
The most visible websites for online casino-related keywords in natural search (April 2012)Num# Domain Monthly
Reached
Volume
Monthly
Missed
Volume
Percentage
Reached
1 casino770.com 74,358 62,171 54%
2 ladbrokes.com 57,641 78,888 42%
3 intercasino.co.uk 57,325 79,204 42%
4 888.com 50,414 86,115 37%
5 wikipedia.org 43,191 93,338 32%
6 latestcasinobonuses.com 37,089 99,440 27%
7 spinpalace.co.uk 37,050 99,480 27%
8 32red.com 33,979 102,550 25%
9 mansioncasino.com 33,751 102,778 25%
10 imdb.com 27,490 109,039 20%
11 goldentigercasino.com 23,457 113,072 17%
12 casinoaction.com 23,222 113,307 17%
13 netbet.org 22,576 113,953 17%
14 luckyemperorcasino.com 22,380 114,149 16%
15 allfreechips.com 18,343 118,186 13%
16 onlinecasinobonus.co.uk 17,370 119,158 13%
17 gambling.com 15,385 121,144 11%
18 ukcasino-club.co.uk 15,137 121,392 11%
19 galacasino.com 13,071 123,458 10%
20 paddypower.com 12,723 123,806 9%
The most visible websites for online poker-related keywords in natural search (April 2012)Num# Domain Monthly
Reached
Volume
Monthly
Missed
Volume
Percentage
Reached
1 wikipedia.org 83,309 65,108 56%
2 pokerlistings.com 75,303 73,114 51%
3 pkr.com 56,647 91,770 38%
4 pokerstars.com 55,224 93,193 37%
5 skypoker.com 46,916 101,501 32%
6 miniclip.com 42,782 105,635 29%
7 partypoker.com 40,565 107,852 27%
8 pacificpoker.com 35,139 113,278 24%
9 pokerstars.co.uk 34,660 113,757 23%
10 wsop.com 31,701 116,716 21%
11 thepokerpractice.com 26,112 122,305 18%
12 fulltiltpoker.com 25,777 122,640 17%
13 games.com 25,173 123,244 17%
14 thefreepokerroom.com 17,314 131,103 12%
15 texasholdem-poker.com 16,517 131,900 11%
16 888.com 15,983 132,434 11%
17 ladbrokes.com 15,899 132,518 11%
18 247freepoker.com 14,139 134,278 10%
19 pagat.com 13,511 134,906 9%
20 freepoker.org 12,921 135,496 9%
The most visible websites for online sports betting-related keywords in natural search (April 2012)Num# Domain Monthly
Reached
Volume
Monthly
Missed
Volume
Percentage
Reached
1 paddypower.com 221,362 93,150 70%
2 ladbrokes.com 163,134 151,378 52%
3 oddschecker.com 156,389 158,123 50%
4 grand-national-
guide.co.uk
119,960 194,552 38%
5 betfair.com 110,065 204,447 35%
6 aintree-grand-national.net 91,072 223,440 29%
7 williamhill.com 83,606 230,906 27%
8 betfred.com 81,999 232,513 26%
9 bet365.com 78,217 236,295 25%
10 skybet.com 63,531 250,981 20%
11 coral.co.uk 63,469 251,043 20%
12 racingpost.com 61,955 252,557 20%
13 betting-directory.com 56,678 257,834 18%
14 888sport.com 55,504 259,008 18%
15 betrescue.com 45,286 269,226 14%
16 bet770.com 44,493 270,019 14%
17 olbg.com 41,036 273,476 13%
18 bluesq.com 32,639 281,873 10%
19 bet.com 27,100 287,412 9%
20 wikipedia.org 26,268 288,244 8%
Source: Greenlight
iGB Affiliate JUNE/JULY 201272
marketplace
advertising & Pr
Game On
www.gameon-marketing.com
Global Gaming Events
www.globalgamingevents.com
Media Skunk Works
www.mediaskunkworks.com
Omni-lInx
www.gamb-linx.com
aFFiLiate netWOrK
Bet365
www.bet365.com
Betsson
www.betsson.com
CAP
www.casinoaffiliateprograms.com
CPA Industry
www.cpaindustry.com
Game On
www.gameon-marketing.com
aLternative gaMing
Affstars
www.affstars.com
BingO aFFiLiate PrOgraMs
Affiliates United
www.affutd.com
Bet365
www.bet365.com
Betsson
www.betsson.com
CAP
www.casinoaffiliateprograms.com
Gala Coral
www.galacoral.co.uk
Live Partners
www.livepartners.com
Market Ace
www.market-ace.com
Star Games
www.stargames.com
Virgin
www.virgingaming.com
CasinO aFFiLiate PrOgraMs
888
www.888.com
32Red
www.32red.com
Aff Europe
www.affeurope.com
Affiliate Club
www.affiliateclub.com
Affiliate Lions
www.wgmg.co.cr
Affiliates United
www.affutd.com
Asian Logic
www.asianlogic.com
Bet-at-home
www.bet-at-home.com
Bet365
www.bet365.com
Betfair
www.betfair.com
Betsson
www.betsson.com
Brightshare
www.brightshare.com
CAP
www.casinoaffiliateprograms.com
Casino City/GPWA
www.casinocity.com/cy/
Commission 365
www.commission365.com
Commission Lounge
www.commissionlounge.com
Europartners
www.europartners.com
Everest Poker
www.everestpoker.com/en
Fortune Affiliates
www.fortuneaffiliates.eu
Gala Coral
www.galacoral.co.uk
Gambling Affiliation
www.gambling-affiliation.com
GURU
www.gururevenue.com
iGame
www.igame.com
Intertops
www.intertops.eu
Live Partners
www.livepartners.com
Logispin
www.logispin.com
Mr Green
www.mrgreen.com
MyBet
www.mybet.com/en/
Paddypower
www.paddypower.com
Referback
www.referback.com
Roxy
www.roxypalace.com
Slotland
www.slotland.com
Stan James
www.stanjames.com
Star Games
www.stargames.com
Victor Chandler
www.victorchandler.com
Welcome to the Market Place listings section of iGB Affiliate
magazine. All listings are taken from the 2012 version of
our iGB Affiliate Directory; a 150 page guide to the affiliate
programs and service providers who are currently active
within the iGaming sector.
To request a free copy of this publication or to have
your company listed please contact Richard W on
E: [email protected] or
T: +44 (0) 207 954 3437
bet365affiliates.com
www.gambleaware.co.uk
Officially sponsored by
7314 bet365 affiliates (148x52+3mm). 24/11/2011 15:38 Page 1
bet365affiliates.com
www.gambleaware.co.uk
Officially sponsored by
7314 bet365 affiliates (148x52+3mm). 24/11/2011 15:38 Page 1
iGB Affiliate JUNE/JULY 2012 73
Virgin
www.virgingaming.com
Vuetec/Dublin
www.dublinbet.com
FinanCiaL sOLutiOns
Aff Europe
www.affeurope.com
Bet365
www.bet365.com
CAP
www.casinoaffiliateprograms.com
Easy Forex
www.easy-forex.com
LCG
www.londoncapitalgroup.com
Plus500
www.plus500.co.uk
24option
www.24option.com
Aff Europe
www.affeurope.com
PayMent sOLutiOns
Intercash
www.intercashuk.com
Wire Card
www.wirecard.com
Algocharge
www.algocharge.com
EMS
www.emspaymentsolutions.com
Netteller
www.neteller.com
POKer aFFiLiate PrOgraMs
Affiliates United
www.affutd.com
Asian Logic
www.asianlogic.com
Bet365
www.bet365.com
Betfair
www.betfair.com
Betsson
www.betsson.com
Commission Lounge
www.commissionlounge.com
Everest Poker
www.everestpoker.com/en
Guru
www.gururevenue.com
iGame
www.igamefamily.com
InterPartners
www.interpartners.com
Intertops
www.intertops.eu
Live Partners
www.livepartners.com
MyBet
www.mybet.com/en
Paddypower
www.paddypower.com
PKR
www.pkr.com
Poker Tracker
www.pokertracker.com
Stan James
www.stanjames.com
Star Games
www.stargames.com
sKiLL gaMing aFFiLiatePrOgraMs
Affiliates United
www.affutd.com
Bet365
www.bet365.com
Betsson
www.betsson.com
Gala Coral
www.galacoral.co.uk
Live Partners
www.livepartners.com
Paddypower
www.paddypower.com
Star Games
www.stargames.com
sPOrts Betting
Affiliates United
www.affutd.com
Asian Logic
www.asianlogic.com
Bet365
www.bet365.com
BetDaq
www.betdaq.com
Betfair
www.betfair.com
Betsson
www.betsson.com
Brightshare
www.brightshare.com
CAP
www.casinoaffiliateprograms.com
Gala Coral
www.galacoral.co.uk
iGame
www.igamefamily.com
International All Sports
www.iasbetaffiliates.com
Intertops
www.intertops.eu
Ladbrokes
www.ladbrokes.com
Live Partners
www.livepartners.com
Logispin
www.logispin.com
Lux bet
www.luxbet.com
MyBet
www.mybet.com/en
Oddsfutures
www.oddsfutures.com
Paddypower
www.paddypower.com
Redbet
www.redbet.com
RGS Malta Ltd
www.starlottosport.com
SportingBet
www.sportingbet.com
Sportsbet.com.au
www.sportsbet.com.au
Stan James
www.stanjames.com
Vbet
www.vbet.com
Victor Chandler
www.victorchandler.com
bet365affiliates.com
www.gambleaware.co.uk
Officially sponsored by
7314 bet365 affiliates (148x52+3mm). 24/11/2011 15:38 Page 1
iGB Affi liate JUNE/JULY 201274
WEBMASTER WORLD
HAS ANYONE REALLY ever bothered to defi ne or totally understand the function and purpose of ‘affi liate relationships’? In the simplest of fashions, it adds up to free advertising for the company availing themselves of same and the end result is a commission, payment, ‘kick-back’, some defi ned percentage of the monies earned by the organisation to whom said affi liate will send users with money to spend and, in turn, receive a pre-determined stipend for doing so. Lots of technology to keep track here and, likely, more trust than computerised tracking.
Affi liate alliances are so high on the priority list for gaming that there are conferences organised specifi cally for them; speakers, stands, bookmakers vying for their loyalty. A site, for example, that analyses and critiques or applauds various offshore operations can do, has done, extraordinarily well. Their audience is the audience being sought. Small mom and pop shops/sites consider this found money and free trips to conferences paid for by said bookmakers seeking to entice them into loyalties of some sort. The entire thing is an anomaly in the world of wagering and has achieved signifi cant status.
Affi liate relationships are not new to the world. Many companies use them and issue credits of some sort to the party providing the advertising space and, with suffi cient credits earned, they can then procure any one of a number of
the products of the vendor. Space for product, links that convert to sales and freebies to you in return.
In the world of gaming, however, cash speaks volumes.
And, with all the sports that permeate our lives, possess them, have us tuning out all else on a given weekend, we now have the eclipse upon us, that which can blot all else if embraced properly: the Summer Olympics. Is this the ‘one-off’, as it is being addressed, of every four years? Can the populace at large be convinced that they might know enough to venture a few bob on the eventual outcome of any of the events… and there are more than enough to go around.
Other than the US, where else can you fi nd more bookmakers than you will in the UK? How about nowhere.
Known over the ages as the best of amateur sports, that has long since changed. Rest assured that the odds are already being posted on every event and site, or will be in the days ahead. What the heck, wagering always adds a new twist to the event, the sport, a touch of enhanced enthusiasm. Besides, you can walk in and place a wager, go to a site, download the app allowing same on your mobile or tablet or just doing it in a friendly fashion with your cousins in Sydney or Chicago.
I would not count on, nor venture into the world of in-play wagering if that should be offered. Rather, who will win is good
enough to attract multitudes and extend the rooting interest… the real bottom line of placing a wager, suffering for anywhere from minutes to hours, or, conversely, rejoicing when that winning goal is scored in the 89th minute.The Olympics are upon us, and the gathering in London in just a few weeks will see thousands of athletes, an untold number of events and competitions, tens of millions watching and great numbers attending. But, can a good number of those in attendance and an even greater number traversing all those affi liate sites be enticed to click hither and thither, to place a wager? I am not sure, but they can certainly be told to “just do it!” by those affi liates who are salivating at the thought of some serious cheques coming to them.
Welcome to the worlds of the Internet and affi liate marketing where anything at all is possible and the proof of the pudding being in the results that, apparently, justify it all. Who can argue with that? Certainly not I.
NOBODY ASKED ME, BUT...
MICKEY CHARLES is President and CEO of The Sports Network, an international real-time sports wire service with customers throughout North America and Europe. www.sportsnetwork.com
www.gambleaware.co.uk
NEWSEASONNEWPLAYERSNEWOPPORTUNITIESbet365affiliates.comIN ANOTHER LEAGUE
8055 bet365 Affiliates AW:1 18/06/2012 12:10 Page 1