The inevitable tendency to increase the cost of acquisition through traditional media channels, especially fueled by the rumors of possible regulation and the recently implemented legislation that opened up so many applicants and opportunities, also ends up raising the risk for operators.
For some years now, this growing movement in the cost of marketing has been generating concern, particularly for operators that are in the launching or testing phase in the national market. In several cases, the increase is already more than dozens of times what it cost 4 or 5 years ago. Increasingly expensive campaigns, with an ever-lower conversion rate is what the market has faced.
An alternative route, which presents low investment risk, is through affiliation systems. In this model, the affiliate ends up dividing or assuming most of the risk that until then fell on the operator's lap alone.
This path, which is already widely explored abroad, in Brazil is still a simple “sting” in the almost virgin forest, where operators considered “local” do not seem to care much about opening this important route. The few who take the risk offer something that can be compared with the famous Rodovia Transamazônica (Highway), however, they lose more and more space in the heart of the Brazilian affiliate for the global operators that attack the country with a lot of hope in improving their revenues.
It seems difficult to understand, but the situation is quite simple. When local companies wake up to reality, affiliates have long been addicted to foreign nectar that pays fat commissions in hard currency and is unlikely to give them priority.
Time will accurately tell you what the affiliate marketing landscape of the iGaming sector in Brazil will look like, especially in a few years' time, but it looks like it will be much more advantageous for affiliates to continue providing players to companies that have taken this important step longer.
Foreign affiliates are also investing in the country, large companies like some publicly traded, others already more “tropicalized” like Super Afiliados, which I am a co-founder, among others, already has more and more ties with foreign operators and this trend must continue.
It may not be the focus of these foreign affiliation companies to reach out to the local operator in order to help them work in this direction, but there are national companies that are willing to help when necessary. There are also experienced consultants, who bring with them important luggage acquired from abroad, to be implemented within a new operation that has not yet explored this way of marketing.
This advertising model is fantastic for the operator, regardless of how big or small their operation is. After all, there is no cost unless there is a result.
Alessandro Valente
Co-Founder and partner of Super Afiliados
Exclusive for GMB
