Over the past year, you may have seen the hype about the casino vertical further increasing. Not surprisingly!
According to MRKTHUB research, the casino vertical belongs to the most popular verticals to run at the moment. Casino offers are growing into the hottest new vertical and it is making its way to the big crowd fast. And as with any hot new vertical that comes onto the scene, affiliates are chiming in with “Can I make it work?” “and how?!”.
The short answer? Absolutely! The longer answer? Read on to find out all 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. The goal of the casinos is to create a long time investment value by hooking users on the games for as long as possible.
As with most casinos, online and offline, the chances of winning are smaller than on losing money. Still, the value per customer has to be worth it for the casinos.
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 data takes over, predicted lifetime value is helping casinos to limit the guessing of online marketing campaigns. After all spending more on the ones that bring high value is better than a shotgun approach for them.
In general counts, the more data the more detailed the analysis on your traffic can be. This does not mean you’re out of the game as a smaller affiliate, they also can take advantage of predicted lifetime value.
Very plain said, 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 your target audience.
How do I pick an offer?
When getting started in the casino vertical and picking your offer there is a couple of considerations to make.
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 is recommended to go for a CPA or CPL setup. It will be better for testing and generating cash. Make use of an affiliate network to have access to a variety of offers and they will help you optimize your traffic and minimize your risk.
Online gambling is a great vertical but you do have to deal with Facebook taking down your accounts due to policy violations. The high payouts of CPA casino (Think 200+ Dollar) cover for this, little sales will earn big. CPL, on the other hand, will 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
Casino’s 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? No, there are for sure 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 have the opportunity to work with you on revshare. Which for sure is an interesting option if your customers are bringing in a high lifetime value.
Networks, some exceptions there, will not offer you a revshare deal. The hassle to measure, optimize and monetize it in the backend is often not possible or not worth it. Working with a network means working on CPL or CPA, which is fine 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 are going on in Europe which are worth having a glance at. One of them being Denmark, Spain, and the UK. All three of them show a significant growth in the first months of 2018 which is steadily pulled through in the second half of the year (so far).
Regulations and legislations shook up this year and caused a shift in geos for casino offers. The Netherlands lost its competitive edge with the updates in March 2018 and traffic shifted to the Nordics. These changes, showing more than ever that is it’s important to diversify. If you have a tried and tested offer, there is no reason that shouldn’t work elsewhere.
The UK has proven itself over the past years and keeps on showing growth as well. Not only growth keeps on progressing also operators and suppliers are gaining a better understanding of data collection and optimization. Good chance that the UK will remain the global online market leader in terms of scale and product maturity. For you, this means you will find well-performing offers in the UK that 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