Online gaming has been in a state of flux for over a decade. Changes in regulations, laws, and licensing have shifted how people around the world can access their favorite games.
Affiliate marketers are creating stability in this marketplace by helping to promote online gaming offers. This work lets today’s gamers know what games offer the best opportunities, even during these uncertain times.
It is also an industry that comes with a significant amount of risk. Although the global economy has risen steadily since 2008, several recessions within the online gaming community have held back this industry from its full potential.
The Nature of Affiliation Is What Creates Risk
When an affiliate marketer partners with an online gaming company to promote games like live blackjack, then a vertical relationship forms. Each marketer relies heavily on the revenues they earn through commissions when securing a new customer.
With high levels of competition in this space, affiliates must turn to organic marketing efforts. SEO techniques can provide a competitive edge, but it can also cause the rankings of an online casino website to drop because of black hat methods.
Affiliate marketing giants like Catena Media, Raketech, and XL Media have all seen stock prices fall by at least 25% since 2016. Some saw drops as large as 53% over the past 12 months.
Although the digital gaming industry has climbed mountains in recent years, it has also experienced significant valleys. Slower growth in the regulated American markets and stringent rules implemented in Europe are causing companies significant financial hardships.
How Can Things Start Changing for the Better?
The first step must involve diversification. Affiliate marketers who go all-in with online gaming can find lucrative rewards waiting for them, but it is unwise to put everything into one partnership. Each network must participate in a broad range of verticals to ensure successful outcomes occur with consistency.
Then there must be renewed creativity with the marketing process. Strict regulations in Europe are hindering growth because of a lack of innovation. Italy might have a law that bans all forms of gambling advertisement in the country, but that doesn’t mean outreach efforts can’t happen in other ways.
Is it risky to scale activities upward when uncertainty about sales taxes, politics, and regulation changes are impacting the way that online gaming companies approach business decisions? Absolutely.
Affiliate marketers must also understand that the most significant rewards happen when companies are willing to take risks to achieve success.
Investors have been bullish on the partnerships between affiliate marketers and online casino companies in the past. That attitude hasn’t disappeared. It is up to the industry to decide that it is willing to push forward toward unknown outcomes instead of staying in its comfort zone when approaching new revenue streams.
Some may be waiting for countries to become more lenient or for regulated markets to see an increase in revenues. If that is the case, those agencies might be waiting for a long time.Follow us on