Acquisition & Conversion Funnels

It’s no secret or any form of enlightenment to say that Acquisition of new customers is the driving force of any business.

However when it comes to the Gaming Industry, acquisition marketing has a life of its own unlike any other industry. Most organisations split their acquisition channels into three’s: affiliates on one side, upfront paid media (PPC, CPM, … and more long term - SEO) on another and old-school media advertising for the ones that can afford it.

Out of the three, affiliates are always considered the safe bet. It’s obvious – at 30% revenue share, the ROI is dead-easy – 3.333 is a lovely figure to work with and paid back in heaps: for every £50 I pay in commission fees, I earn £150 in revenue, right? Wrong. Well, kind of.

For every positive generating affiliate, just like any other product you will also have a section of negative generating affiliates for that month. While you pay the full revenues to your positive revenue drivers, you are not “receiving” any offset from the affiliates that brought winners, or bonus abusers, or whatever other reason their month has closed in the negative. That 3.3 – is in fact not 3.3 any longer as your commissions have to be offset against the difference between the two groups.

Moreover, “no negative carryover” employed by you, most likely, as with most will mean that all negative revenue affiliates will earn commission on your own money come the 1st of next month as their winning players (hopefully) start returning funds back. Further, let’s take a look at the real cost of what a 5% payment method deposit charge can have on a casino that is sustaining a 30% deposit hold (it’s 16.6%) and add the fact that most of your providers do not care if your revenue is generated via bonus, or actual funds will mean your game cost is taking away a decent 20-25% more from your revenue.

How do the figures look now? That £150 in revenue generated is in fact much closer to £90 after your core costs are paid up and that £50 in commission seems a pretty steep deal. Ah, but I deduct my costs before you may say… great!

Do you deduct enough and do you drill that by customer? If yes, you’re a rarity and we do not meet many of you. If not, you should. As for the online media, messaging is everything. An average operation can expect to convert around 0.5-2% of unique views into clicks. That’s an average of 1%, and then further 4% of those can be expected to turn into signups, depending on the offer of course, which also happens to control the next number: 25-35% of those can be expected to convert into an active, depositing customer.

That translates into one active customer for every 10,000 unique views of your banner, on average, and that is a good result!

Our benchmarks achieved up to 4% in click-through conversions, 16% of signup conversions and up to 50% of those are made to deposit, via a wide range of systems and processes in place. If you do the math, that is a 30x better result at optimum efficiency. These figures aren’t being pulled out of thin air and if above interests you further – again, come see us. By now, you know which stand to visit.