“The entry of sports media brands into the US sports betting arena has intensified competition, but this trend has also created collaboration opportunities. While sports media brands have a strong online presence and a built-in audience, many of them choose to partner with affiliate companies like The Game Day. These cooperative efforts allow media companies to simplify the complexities and resource-intensive tasks involved with affiliate work.
“Affiliates bring specialised knowledge and expertise in the betting industry, making them valuable partners for media brands aiming to diversify their revenue streams.
“Despite the growing competition, the expanding US sports betting market offers ample space for both traditional affiliates and sports media brands. The market’s growth unveils a broader audience to target and more opportunities to fulfil demand for betting content services.
“At The Game Day, we are evolving, expanding and gradually transforming into sports media brands in our own right. We are investing in quality original content, developing engaging platforms and building a brand presence that resonates authentically with sports enthusiasts.
“This evolution positions affiliates to not only compete but also collaborate with established media brands, ultimately contributing to the vibrant, competitive landscape of the US sports betting market.”
Heiman pushes the idea that although the competition is getting more intense, the room is there for multiple sports media companies and affiliates to operate in the US sports betting market. However, this is a market that has seen the fall of several sports betting operators in recent months, with MaximBet, PointsBet and Fubo Sports all baulking at the sheer cost of continuing operations.
However, with the affiliate market, channelisation is the name of the game and affiliate companies already come armed with expertise from other markets.
Next, Heiman talks about the impact that the affiliate market could see with sports media companies using their already established customer bases to channel customers.
What is the impact on affiliates going forward if more media brands decide to use/channel their existing customer bases?
“First-party data has always proven valuable. Many affiliates either build (or should be building) such marketing information. Media brands’ existing customer databases are often large; however, they may not translate seamlessly into “sports bettor” and more so classify as casual betting enthusiasts.
“The affiliates continue to add enhanced value through becoming not only an “articles destination,” but also an education hub for the sports fan wanting to learn more about casual (and newly legal) sports betting. This value gained through content will help affiliates compete (or partner up) better with media brand entrants newly entering the affiliate space.”
Heiman’s point about sports media brands having a large database of people that is not necessarily geared towards being translated into sports bettors is entirely accurate. Many that buy products and services from sports media companies may not be eligible to bet and under the legal age of requirement, while others could be those that are broadly uninterested in betting at all.
In the end, this comes down to how vast the pre-existing customer databases are – for the likes of Fanatics, which has sold billions of dollars of sporting merchandise to people around the globe, the list is huge. So, despite many not being interested or eligible to bet, many more will be.
For the existing affiliates, Heiman’s comments that those companies will have built existing databases is spot on – the likes of Better Collective and Catena Media will have customer bases to draw from. However, the sports media companies could still dent affiliates’ business by using their own existing customer information.
This led into the final question, where Heiman addressed the historical use of information by sports media brands and affiliates.
Has this been seen in other places before, if so what happened in those countries?
“Globally, the surge in first-party data importance stems from heightened privacy concerns impacting third-party tracking systems, a vital tool for effective targeting and retargeting in the affiliate realm. Privacy measures, notably seen in iOS and other platforms, have significantly restricted third-party tracking, pushing businesses, especially affiliates, to prioritise their own first-party data for marketing strategies.
“Europe, with the enforcement of the General Data Protection Regulation (GDPR) in 2018, exemplifies this shift toward data privacy. GDPR mandated explicit consent for data processing, necessitating greater reliance on first-party data and clear user consent for data use. The trend is mirrored in other regions too, like the United States with the California Consumer Privacy Act (CCPA), underlining the global movement toward user privacy and control over personal data.
“The heightened value of first-party data lies in its reliability and direct connection with users, offering precise insights into behaviour and preferences – all with user permission. As affiliates invest in cultivating their databases, they gain a deeper understanding of their audience, facilitating accurate targeting, personalised marketing and improved user experiences.
“By leveraging first-party data effectively, affiliates can minimise dependency on third-party systems and costly ad channels, ultimately optimising marketing endeavours and giving their audience a better user experience.”
While Heiman discusses giving users a better experience (UX) by leveraging first-party data, the point he makes about the restrictions on what can and can’t be used – especially in Europe – is clear.
Sports media brands might have a list of consumers that they can target, but the companies may not have any idea what the conversion rate of those customers will be. Affiliates, meanwhile, will have a better idea of this as they are using databases and techniques designed to channel bettors to operators.
Overall, this means that affiliates do have competition in the US in the form of sports media companies that are trying to invade the sports betting market. However, for sports media brands, this is harder due to their existing lists being less targeted than the affiliates’ – despite the fact that sports media companies may have much bigger and broader customer bases to single out.
The affiliates continue to add enhanced value through becoming not only an 'articles destination,' but also an education hub for the sports fan wanting to learn more about casual (and newly legal) sports betting
