Damage Limitation

Amid the current doom and gloom pervading the gaming and affiliate industries – and we don’t use that phrase lightly – we have plenty of positive, forward-looking content to present to our readers in this edition of Trafficology. Later in this publication, we bring you analysis and insight from ActiveWin, PlayAttack, Solitics, Oddspedia, Braze and CasinoGuru. Plus, who better to generate some positivity than Usain Bolt in this month’s Play Hard interview?

But at the same time, we can't minimise the severity of COVID-19. The whole world has slowed to a crawl and some industries, like travel and tourism, are suffering fatal blows as a result. While the sphere of online affiliate marketing has a digital advantage over many other sectors, the impact of so many sporting events being cancelled remains huge. Tier-one operators such as Flutter Entertainment, William Hill and GVC Holdings have projected $100m-plus reductions in EBITDA and, in turn, affiliates will feel the heat from that monumental drop in traffic.

While damage is inevitable, damage limitation can make a huge difference: there is still vital business to be had, after all.

Getting creative

It would be naïve to suggest there is a complete solution for every problem thrown humanity’s way: just look at global warming. Sports betting affiliates cannot simply rebuild the sporting calendar by themselves, for instance. But it would also be defeatist to suggest there can be no plan of action to improve the situation. Our own experience with AffiliateCon Sofia proves that school of thought.

Originally scheduled for 12-13 May, the third edition of our affiliate event in Bulgaria has now been postponed due to the pandemic. As AffiliateCon Founder Julian Perry said at the time of cancellation, our team had spent two years building the event and hundreds of affiliates were already registered to attend. Now, the event will instead take place on the same dates in 2021.

But crucially, we haven’t left it there for 2020. On 12 May, we will be running a virtual AffiliateCon conference, where some of our best speakers will still be on hand to provide their advice and expertise – advice that might be even timelier if everyone remains homebound come May. This isn’t to boast or promote our event, of course, it’s simply to show there are ways around the situation currently confronting us all head-on. No strategy can totally defeat or account for the coronavirus – but effective planning can certainly limit its damage.

Making tough decisions

Affiliates have reacted to the pandemic in a variety of ways and, like in any other industry, tough measures have to be enforced on a temporary basis to ensure the long-term survival of a business. From ensuring all employees work from home to suspending freelance hours, decisions have to be taken swiftly. Unlike those running hotels or flying passengers around the world, affiliates can salvage their operations in a far more stable manner if the correct calls are made.

Another crucial step, especially for sportsbook affiliates, is to switch to a far more casino/poker-centric model. This may not be what football betting preview sites want to aim for in a perfect world. Equally though, it could end up being a matter of choosing between new channels of revenue or succumbing to no revenue at all. In fact, we have seen online casino and poker thrive during the COVID-19 pandemic – with players looking for more home-based mobile entertainment than ever. This can function hand-in-hand with verticals like virtual sports and esports, too. There's a growing vacuum to fill.

The transition will have to be well-managed – die-hard sports fans won’t take kindly to being bombarded about other verticals – while responsible gambling should always be at the forefront of any messaging. Likewise, no customer should feel disturbed by a sudden overload of excess communication. But if you're an affiliate that solely looked towards sports betting prior to this summer, the unfortunate short-term truth is that has become a luxury that's no longer affordable, no matter how strong your brand is.

Alas, we aren’t living in a perfect world right now: revenue will fall and businesses will suffer. But, if you're prepared to adapt to the requisite changes, there is light at the end of the tunnel. For an industry predominantly online and not reliant on land-based visits, this storm can be weathered.