Over the past year, you may have seen the hype about the vertical casino market taking of. To those who have been in this game it comes as no surprise.
According to MRKTHUB research, the casino market belongs to the most popular verticals running at the moment. Casino offers are growing into the hottest new vertical and it is making its way to the masses at an alarming rate. As with any hot, new vertical that comes along, affiliates are all wondering “How can I make it work for me?” Here we have broken down a few key points. Read on to find out the details.
What is the casino vertical and how does it work?
Casinos are an online gambling platform that allows users to play and win money by betting (basic stuff; so far so good). As with most casinos, online and offline, the chances of winning are smaller than losing money; as they say casinos are not built by the winners.
Still, the value per customer is worth it for the casinos. The goal of the casinos is to create a long time investment of value by hooking users on the games for as long as possible.
Casinos use a combination of metrics such as lifetime value and lead to deposit rate to identify their most valuable customers. In an industry where user data is vital, predicted lifetime value helps casinos limit the guessing game of online marketing campaigns. After all, focusing more on the ones that bring high value is better than a shotgun approach aimed at everyone.
In general counts, the more data, the more detailed the analysis of your traffic can be. This does not mean you’re totally out of the game as a smaller affiliate; they can also take advantage of predicted lifetime value.
Very plainly said; the predicted lifetime value equals the amount of money a customer spends with the casino over a certain time, minus the cost of the acquisition of that user. Networks will communicate this lifetime value with you, so that you can scale or adjust for your target audience.
How do I pick an offer?
When getting started in the casino vertical and picking your offer, there are a couple of considerations to take into account.
CPL, CPA or Revshare?
Running on revshare is choosing to work directly with the casino. If you make this decision you are often already aware of your players lifetime value. If you are still in the process of mastering the Casino vertical, it’s recommended that you go for a CPA or CPL setup. This is because it will be better for testing and generating cash. Make use of an affiliate network to gain access to a variety of offers and they will, in turn, help you optimize your traffic and minimize your risk.
Online gambling is a great vertical, but you will have to deal with Facebook taking down your accounts due to policy violations if you are using them as your traffic source. The high payouts of CPA casino (Think 200+ Dollar) more than cover for this inconvenience and there are some strategies you can use. Remember, little sales will earn big CPL. In addition they will also generate more leads on a lower payout.
Starting off with CPL deals on new offers will gain you more data. Once you know that your players convert after initial sign up, you can always switch to CPA.
Direct vs Affiliate network
Casinos are easy to track down so working with them directly is way easier than the secret society of Nutra offers. Does this mean you have to do it this way? Not at all, there are plenty of other good affiliate network options to check out as well.
You want to work directly with casinos if you know you can bring value to their offers. Direct casinos will often provide the opportunity to work with them via revshare; an appealing option if your customers are consistently ranking high on a predicted lifetime value.
Networks (with some exceptions out there) will not offer you a revshare deal. The hassle to measure, optimize and monetize it in the backend is often not possible for them or is just not worth it. Working with a network means working on CPL or CPA, which has some benefit since you also reduce the risk.
Western Europe keeps on going strong. Even though the US is attracting a lot of attention with the new opportunities, such as social casino, the market in Europe continues to grow. Different trends going on in Europe at the moment are worth having a closer look at. A few such notable examples are in Denmark, Spain, and the UK. All three of these countries show a significant growth in the first months of 2018, which has steadily pulled through in the second half of the year (so far).
Regulations and recent legislation shook up this year and caused a shift in geos for casino offers. The Netherlands lost its competitive edge with policy changes in March, 2018 and traffic shifted to the Nordics.These changes show that more than ever that it’s important to diversify. If you have a tried and tested offer, there is no reason that it shouldn’t work elsewhere else.
The UK has solidly proven itself over the past few years and continues to show growth. Besides taking advantage of this trending growth, operators and suppliers are also gaining a better understanding of data collection and optimization. This indicates that there is a good chance that the UK will remain the global online market leader in terms of scale and product maturity. This means that you will find well-performing offers in the UK that really know what they are doing. If you can deliver the quality they’re looking for, this is definitely a geo full of good opportunities.
Which network to choose?
If you need help picking an offer, check out Gotzha. They are probably the best network you can choose if you want to run CPL and CPA casino offers. They work with the big casinos in the affiliate space and have lots of great offers and exclusive deals. The action that users need to take in a CPA flow is making the first-time deposit. The amount the user must deposit varies; sometimes it can be a single dollar, or it can be around $25. You can find many different deals with Gotzha and it’s worth doing a little research. For a small, first time deposit you will get a higher CR, but most likely also a bit lower of a payout. The Gotzha affiliate managers specialize in the casino vertical. As a result, they will be able to guide you in the right direction when it comes to making choices on which offers, geo’s and flows to run. You can sign up with them here to get started.