The global affiliate marketing market has been gaining remarkable traction over the past few years. Valued at $19,217.4 million in 2021, it’s expected to surpass a staggering $36,902.1 million by 2030, expanding at a CAGR of 7.7% during 2022-2030. This surge reflects a growing interest among business professionals, and it’s altering the landscape of various industries, notably online gaming.
In a recent discussion with Jody Vance, Scott Burton, CEO of FansUnite (FANS.T), provided valuable insights into this thriving sector. Burton aptly stated, “We’ve built a business model that allows us to scale without the cost of scaling, which is through an affiliate model.”
Affiliates have a critical role in the online gambling landscape, helping attract potential players to websites. While several promotional methods exist, affiliate marketing has earned its stripes as the most effective iGaming marketing model. According to Demand Sage, affiliate marketing contributes up to 25% of online sales for some of the biggest brands globally. Furthermore, at least 80% of brands have an active affiliate program.
This is why Burton explained FansUnite’s shift from business to customer with its recent sale of McBookie. Unloading the Scottish sportsbook, allowed the company to extricate itself from a continually evolving legislative environment that was both costly and time consuming and focus on a cash flowing segment that is both agnostic and easily maneuvered through changing legislative landscapes. The company freed itself further with the sale of its Chameleon platform to Betr Holdings while retaining worldwide and perpetual license.
Operating as an affiliate, FansUnite’s Betting Heroes can be first in newly opened gambling markets and can easily network their business as Burton explained, “It’s a great model for us because we can go into a market, and if we find the right affiliate partners, they can drive traffic to us.”
This renewed focus has given FansUnite the opportunity to grow in an exciting region as the United States leads with 39% of the global affiliate marketing share, followed by the United Kingdom at 15% and Germany at 11%.
Burton emphasized the tremendous opportunities in the U.S market, saying, “There’s so much attention on the U.S. market right now. I think it’s a great opportunity for companies like ours to come in and capture some of that market.”
As we step into 2023, industries across the board are looking forward to harnessing the potential of affiliate marketing. This discussion with Scott Burton underscores how online sports betting and igaming companies can leverage this model for scalable growth and success in the years to come.