SBC News Voice of the Sports Betting Industry
SBC looks to introduce its members and readers to new and upcoming companies in the igaming sector. This week we feature an exclusive interview with Claire Wellard Affiliate Director for IHRE Consulting specialists in performance and affiliate marketing. Claire has over nine years experience in acquisition marketing working with igaming leader brand such as Bodog, mybet and Ads.com.
SBC: Hi Claire, can you briefly explain how IHRE consulting was formed, and what Services IHRE Consulting provides to its clients?
CW: Ihre Consulting was launched in 2010 by Edward Ihre. He has been in the industry for around 10 years or so now, working in various well respected positions including Managing Director of Ladbrokes Poker and Director of Partnerships and Affiliations for PokerStars. During this time he realised there was a gap in the market for an agency who could provide both operators and affiliates an intermediary; someone who could see both from both perspectives, remain impartial and enable both parties to find the best and most suitable relationships. With this, Ihre Consulting was formed.
We are able to help affiliates to find operators which suit their needs, both in terms of markets they are looking for and the deals they want, as well as assist operators in finding the best affiliates for their target markets. We work for free for the affiliates and can take care of anything from a one off deal to multiple deals. Many affiliates ask us to handle all of their deals, saving time on the negotiation and leg work, leaving them to focus on their day to day business. We have a full page on our site of testimonials from extremely well respected affiliates who use our services time and time again.
Operators call upon our services to make introductions and recommendations, covering areas such as software providers, payment solutions, staffing and marketing.
SBC: Affiliate Marketing seems to have become a tougher market for igaming operators to manoeuvre in – why is this?
CW: The whole affiliate marketing landscape has changed over the last 7 years, with one of the biggest turning points being UIGEA in 2006, as well as the ever changing legal situations within Europe. Some of the bigger operators in the industry have been forced to close their doors with a lot of new operators fast appearing (and some disappearing almost as fast).
This has made affiliates more sceptical and wary about who they promote and work with. A lot of affiliates have had their fingers burnt and lost a lot of money from the operators who have gone under, some of which were larger, well known brands. We see a lot more affiliates asking for insertion fees, tenancy agreements and CPA’s from the new operators, because until they see proven results and durability, they are less willing to take a risk.
Affiliates also analyse T&C’s quite closely and are now a lot more open about their experiences and problems with operators on the forums. A couple of bad comments and operators can find it very difficult to recover, especially for less established brands. We also find that affiliates like to stick to who and what they know. There are some who can afford to take risks, some who will test the water with new operators, but a lot believe that if it isn’t broke, than don’t try to fix it. These factors make it a lot harder for new operators to prove to affiliates they should start promoting them in key (moneymaking) areas of their site.
SBC: Do you think that there is a lack of understanding by igaming operators in terms of how affiliates and acquisition marketers operate?
CW: I’m not sure there is a lack of understanding as such, but I do think that in the past and perhaps even currently, some operators do question (rightly or wrongly) the benefit of affiliate marketing. I have heard discussions about how much of the operators business is dependent on affiliate revenue and whether it is healthy, and could the same spend be more effective as direct advertising (i.e. TV, radio, direct media sales etc).
I also think part of the lack of understanding within the affiliate marketing space, could be from affiliate managers not asking the right questions of affiliates. I think some affiliate managers are quite happy to ask very broad, general questions and accept the players which are sent to them. Perhaps there is a lot we could all learn from affiliates, and the way they conduct their business, to assist us in becoming better affiliate managers. After all, if they are successful, they are doing something right! Whether they would share any tips and tricks is another matter 😉
We at Ihre Consulting believe that affiliates are an extension of the sales team and are ambassadors in their own rights for the operators. Perhaps we could use the example of car dealerships. They are the ones out there promoting the brands and hence they need to be as fully informed as possible about the brands they promote; similar to the car salesman. He needs to know everything about the car that they are selling both in terms of performance & comfort (what makes you a better car/gaming brand than BMW/particular gaming brand) and how do you treat me as customer in terms of insurances, services once I have bought the car, i.e. promotions, bonuses, handling of my money). I think that once operators AND affiliates see themselves as partners, a relationship will be built which will be long-lasting and mutually beneficial.
SBC: What common mistakes does IHRE consulting witness operators make when dealing with affiliates?
CW: As we discussed, I think one of the biggest problems right now is regarding the operators who make changes to their T&C’s and implement that across all affiliates, old and new. This is specifically the case regarding any commission changes. This has been a “hot” topic lately, as we have seen a few programs implement new T&C’s such as minimum player amounts per month, or if you haven’t referred a new player in 5 months, but have existing players still playing you will receive a reduced commission etc. Affiliates have been, for obvious, reasons extremely disappointed and unhappy with these types of changes. They have signed up and promoted operators in good faith, after checking their T&C’s only to feel, for want of a better phrase “ripped off”.
I think another common complaint is radio silence from the operator / affiliate manager. We all know there are times you are overworked, stressed, have hundreds of emails to deal with, as well as those times you just don’t immediately have the answers for the affiliate. I do believe a little honesty goes a long way. Just We always acknowledge receipt of their emails and let our clients know it may be a few days before we will respond to their request. I have seen many cases where affiliates are angry with a total lack of response, especially when they have a problem with something. Just a little response and acknowledgement goes a long way and keeps the affiliates from publicly naming and shaming someone who hasn’t taken care of them.
SBC: Focusing on new technology take up. Can affiliate marketing be a proven acquisition channel for new technologies such as mobile, or are these verticals simply too singular and better suited to high coverage advertising such as TV?
CW: Personally I think that this channel will start to explode soon. e-Marketer estimates 60% of UK mobile phone users have a smartphone and another report estimated 62% of smartphone users plays games. Operators have already started gearing their products to this vertical, and we have seen a few provide their affiliates with a presentation on how best to promote their product in the mobile space. We have also seen affiliates making their sites mobile friendly, at which point they ask us for the operators who are ready to go and are already available for the mobile user.
I think operators still see the value in affiliates in the mobile space. They have been working hard to ensure that the tracking works, the product works and also how to help the affiliate to promote their product to get maximum results.
SBC: Regulations of affiliate marketing in certain EU member states has been discussed and could come into practice, How do your team feel about these possible changes?
CW: The changes have been happening for a while, with Italy, Denmark and France to name just a few. We as a company have had to adapt to these changes and remain on the ball with who is working in which territories. Some affiliates will steer clear of unlicensed operators in particular markets, while others won’t. We need to be able to provide for both, and so far we have (just!). It is a challenge, and personally I wish it was clear cut, one rule for all, but I can’t see that happening, at least not in the short term. So while each country continues to debate and decide, we have to remain open and available for each of the markets out there to ensure we can provide for our affiliates.
SBC: Where do you and IHRE see potential growth and value in igaming operations through performance marketing?
CW: We began in 2010 with one operator. Right now we seem to have operators contacting us on a weekly basis asking us to work with them. We have grown to a team of 6 and currently have around 80 operators on board (we culled a few just recently!).
The industry will continue to grow and learn, and I think with all the challenges, both the operator and the affiliates have been through, it has made the industry closer. We now rely more than ever for support and advice from our peers and we have seen affiliates working closer together with trusted friends on new projects; looking at the new opportunities, sharing the experience, and risk to venture into these new markets / business opportunities.Regarding growth for operators, I think mobile is definitely one to watch, as well as Forex which seems to be another hot topic at the moment.
SBC: Finally If you could change anything about Igaming market, what would you change?
CW: I love the industry, even with its trials and tribulations. I wish the regulation issues weren’t as complex and I also hope that operators can learn from others with regards to how they treat their affiliates. We only need to look at AGD, CAP, GPWA etc for the repercussions and damage it can do to their reputations. As I once heard “you kick one of us, you kick us all”. I think the affiliates have become a very close knit community now and feel very strongly about taking care of not only themselves but others.
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For More information on IHRE Consulting marketing services Click Here .To view Claire Wellard’s Linkedin Profile Click Here
IHRE Consulting – http://www.ihreconsulting.com
