Media opportunities for affiliates targeting the UK – outside of search

On 17 October Google UK reversed its 2004 decision banning PPC on gambling-related search terms. This change in direction may lead to the biggest shift in the UK gaming industry since UIGEA in September 2006.

Affiliates have been the core of gaming operators’ marketing strategy for some years. In part thanks to Google’s refusal to accept bids on gambling terms; natural search was the only way to take advantage of the power of search – and take advantage affiliates have. A favourite topic of conversation at affiliate conventions are rumours of how much money X is making and how many players Y is delivering.

Google’s u-turn means paid search will take on the importance it does in other industries. In many verticals search budgets account for a third of online spend. While the Google change may mean that gaming becomes more widely accepted, and the market grows as a result, it seems reasonable to expect that PPC budgets will come from less efficient or accountable areas of current spend. Affiliate budgets will suffer as traffic goes direct to operators from paid search listings rather than via affiliates.

So, what can affiliates do to safeguard their traffic and revenues? It depends on the size of the affiliate, their revenues and margins as to what marketing opportunities are available to them.

It is worth looking at the tactics of other industries and the gaming operators themselves for inspiration. There isn’t room here to explore all opportunities so I will limit thoughts to the two largest media types, print and TV, assuming many affiliates are less familiar with these media than online.

Print is the biggest medium by advertising spend in the UK. National press may be an option for large affiliates; and the readerships of the largest publishers such as the Sun with 8 million readers are enticing. But it is the smaller, targeted magazines that offer opportunities for smaller affiliates. Integrated partnerships with Poker and Casino titles such as WPT, Poker Player or Gambling Online Magazine are certainly worth exploring.

One idea for working with relevant magazines builds on work done by operators such as PKR who have used CD tip-ons to distribute their software clients. Affiliates could consider asking operators for their software client, tagged so that the account source will be recognised on activation, and bundle all the clients onto a CD along with some useful tools. The CD is then distributed through relevant magazines (and other channels potentially) with the affiliate generating revenues from accounts acquired.

The second avenue to explore is TV. Ofcom reports online advertising spend outstripped that on mainstream TV in the UK for the first time last year. Overall spend on TV however, including digital channels, accounts for £3.5 billion compared to online’s £2.8 billion and remains the second largest advertising medium in the UK after print. Gaming companies have embraced TV since it became legal to advertise in September 2007. Total gaming spend, according to Nielsen Media Research, was £36m between January and August 2008.

Confused.com, an affiliate behemoth in the financial products arena, by way of contrast, has an annual budget of approximately £25 million for TV. Gaming products are not “needed” in the same way the consumer needs car insurance, mortgages or life insurance but the comparison is an interesting one.

TV campaigns need not be expensive. ITV primetime will be costly due to the size of its audience but the market’s fragmentation means there are smaller digital channels such as Dave, E4 and Fiver to suit correspondingly smaller budgets.

81% of the IAB/ Thinkbox study’s respondents watched TV while using the internet. 57% said a TV ad prompted an online search. And 21% made an online purchase after viewing a TV ad. The power of TV is not in doubt. It isn’t right for a lot of smaller affiliates. But for the Poker Listings, Casino Choices and Bingo Ports of this world it is worth considering.

Finally, we’ve considered above the line media spend but let’s not forget PR. Major comparison sites have become consumer watchdogs in the search for value and generate significant column inches for their brands. Such PR can be generated without upfront cost although the resource investment can be large. Could you become a spokesman for the gaming consumer?

In summary, affiliates can take advantage of many media types and marketing methods outside of natural search. The question is – will it pay? Affiliates do not always come from media backgrounds and experience is useful when negotiating deals with savvy media owners. The difference between rate card and deal price can be more than 50% so, if in doubt, enlist someone with experience or employ a media agency which can help you over the potential pitfalls and advise on tactics and budgets.