The future of the online gambling affiliate industry

[Dean_Leyland]

I saw this morning that iGaming Business had posted a link to a Calvin Ayre video, which poses the question "What does the future hold for the online gambling affiliate industry?". Quite a pertinent question for everyone on these boards I am sure you will agree. [view video here]

So, I wanted to get everyone's views on this. Where do you see our industry and 3,5 or even 10 years time?

To add my two pence (cents for you Americans), I see the industry a little less crowded than it is right now. Or at least, that's what I am hoping for. Right now there are so many new programmes launching that it is difficult for most to keep up - certainly me. I think to use an old cliché, the cream will rise to the top and the best programmes will display their longevity in this industry by seeing off the many rogue operators out there.

I also think mobile will have a big say in how things pan out. Right now, the buzz word is most definitely mobile. Everyone is scrapping to their iPhone, iPad and Android apps out there but I don't really see the marketing and promotion of these apps being fully developed yet. The next few years will see mobile marketing strategies put in place and evolved over time.

Those are my humble opinions, rightly or wrongly. What are yours?

[TheGooner]

Mobile? Really?

I guess that there is a time and a place for a good mobile application - but I'm not sure whether gambling for money is REALLY it. I see a lot of hype - a lot of start-ups - but little REAL traction in the mobile gambling space.

Perhaps you could make a case for an impromptu sports bet from fans actually at the game - but surely that casual market is only a very small percentage of the overall betting take on the event.

I also cannot imagine serious poker players preferring the small screen and lack of info of the mobile platform ahead of their PC/Laptop when it comes to making money on the felt. And I really do not see the experience of mobile casino being superior to the PC experience either.

If you are gambling cash via your mobile on a regular basis - then you probably need a visit to gambling anonymous.

[Dean_Leyland]

With the massive increase in use of tablets, mobile isn't just small screens and casual betting. iPad/Android tablet apps are a real alternative to betting online. It's only a matter of time before serious poker, casino and bingo apps are being released for these devices.

Oh and believe me, serious money is coming into sportsbetting companies via mobile betting.

[TheGooner]

I won't believe you ... well .. not unless of course you can point me to some reliable metrics.


Quote some stats and a reliable source for them please Mr Leyland ...
I'm always keen to read the facts ...

[Dean_Leyland]

haha. I am relying of the words of some good friends as opposed to documented facts and figures. Sadly totesport dont have an app for me to go off.

[universal4]

I tend to agree with both schools of thought on this....

I too think that most casino apps have fallen quite short and just can't see the mass market getting excited about gambling a lot on a phone.

I can see where a sports bettor would use their phone to check the latest lines or place a bet on an upcoming game, but I personally think they would do so mainly because it was more convenient than getting their laptop out of their breifcase or because they need to get the bet placed before they have a chance or the time to sit down at their home systems.

I do think that this trend will continue to change more as the proliferation of pads increases.

Rick
Universal4

[jarvi]

The increase in mobile ecommerce tends to indicate that people are willing to compromise in screen size/quality etc so perhaps that might translate to other industries too. Personally, I can't work out why anyone would shop online using a smartphone if needed to browse for products or services, however, obviously it is a growing trend among many users.

Can definitely see more use for sports than casinos at the moment. In game betting being one example.

[jarvi]

And a few numbers from Ladbrokes for the first 3 months of 2011

- 18% of customers bet using mobile
- 11% of total sportsbook amounts staked were from mobile
- 11% of new digital signups were via mobile

Source - Juniper Research

[nsawins]

I hate buying anything on mobile or even using an ipad. I use a blackberry for news and emails only and only if I am away from my laptop. Having said that, the younger crowd(ie 25 and younger) absolutely love the tablets and mobile devices and I can definitely see the percentage of new accounts being opened in the future continiuing to increase on the mobile platforms.

[alexpratt]

Couple of interesting stats I saw lately:

Just over 40% of Facebook traffic is now mobile so if your brand has a presence in fb and they are clicking though you better make sure your site is optimised for mobile

Morgan Stanley have said within 18months mobile browsing will overtake desktop browsing

[GamTrak]

I think mobile will be huge in the coming years and the reason that I'm developing the next version of my GamTrak Application for desktop, tablet and mobile so that I'll be ready once the US allows gambling.

Being that I'm learning (and struggling) as I go along. I've only got the GUI done and need to bind it to a database. I'm a long way from being done. http://gamtrakwebdesign.com/GamTrakApplication.html

[TheGooner]

Morgan Stanley have said within 18months mobile browsing will overtake desktop browsing

I wouldn't believe Morgan Stanley if they said the sun will rise tomorrow ...

[Muppet]

Personally I am as underwhelmed as TheGooner is with mobile gambling (referring mainly to phones here, tablets are different and you can hardly carry one in your pocket). I just don't see the attraction at all except for maybe betting on a game when I am there.

But as an affiliate I see mobile as a potential threat. If you were a casino or poker room that could release your platform on the Apple store (or android or whatever) for example, what need do you have for traditonal affiliates? The Apple store is the de facto largest affiliate site on earth, so you just release your app on there for free and pay Apple nothing. Normally its a 30% cut of the sale price, which is still far cheaper than 30% of lifetime revenue anyway.

Affiliate sites that refer players to the app store can have an affiliate account with Apple, but if the casino or poker room is giving away their app for free, the affiliate earns nothing. Sure as value add for existing players it might be great, but there is unlikely to be many affiliate programs that will attempt to concoct some kind of tracking scheme to credit affiliates for new customers that download an app from an app store, even if the affiliate referred them there. The best I can think of is affiliate site refers a player to a casino website, player registers there, then downloads the app from the app store and logs in using previously registered credentials. Not a process many sites will want to inflict on their players.

[Anthony-Coral]

The dilemma that Muppet outlines is one that we had been considering for a long time at Betfred.... should it be an app or a web platform?

We recently launched mobile betting but chose to do so via a mobile optimised web-platform as opposed to an app precisely because it gave us the freedom to include affiliates in the marketing of this. We can now offer affiliates the chance to refer players via regular web sites, mobile optimised web sites and even reverse SMS by texting an allocated keyword in to us. We can also track players to affiliates whose first time registration is via a mobile device.

In my opinion, the future of almost everything involving data exchange of some form or another will be mobile. The growth of these devices is increasing at an exponential rate and crucially it is also growing in the US, which has traditionally lagged behind Europe in terms of mobile device usage. And it doesn't only apply to on-line transactions, either. The arrival of payment via Near Field Communication is also going to revolutionise the way customers pay for their everyday items in shops and businesses

Some of you mentioned that you can't imagine anyone wanting to do 'x' on a mobile when they can still do 'y' on a desktop but the same was said in bookies shops when the idea of online gambling first became possible. For example, at Betfred I am told that way back when when the idea of moving online was first discussed years ago, the prevailing view was that it would never surpass betting shops and they would not need more than 5 or 6 people to run the online operation!

It was a failure of imagination. If things had stayed the same then bookies shops would never have installed TV's in their shops to show the races, even radio. They would have stuck with a man and a chalk board writing up the results for the gathered punters. The arrival of the internet was just the next step in that process of change and its the same with mobile.

There is the potential threat that brands will look to save money by only releasing their product via places like an app store but if we agree that the future seems certain to be dominated by Mobile then the only response for the likes of you and I is get thinking, innovate and look for those gaps and niches where we can step in and provide a service to potential customers of these products and platforms.

[EugeneK]

for sure mobile trend will be developing especially in betting, especially in live betting.
btw, recently google released a survey where it is stated that most of users use their ipads at home.

another point is that I am finding more and more players who play via their mobiles and deposit more than 1000 USD.

[big fish]

I agree with the OP, consolidation and mobile will be big trends in the new few years. That as well as social gaming on sites like FB, Google+ and those too will cross over into Mobile (Zynga Mobile)

[alexpratt]

Interesting stats here re mobile search and CTR http://www.igamingbusiness.com/conte...-search-report

[graham]

another point is that I am finding more and more players who play via their mobiles and deposit more than 1000 USD.

Wow, really? Is that from your own stats or where did you get this info?

[EugeneK]

Wow, really? Is that from your own stats or where did you get this info?

yes, from my stats.

[diceman]

WELL... I shook my magic 8ball and it said the following...

Reply hazy, try again
Ask again later
Better not tell you now
Cannot predict now
Concentrate and ask again

So I guess to early to tell lol