European online lotteries sector


The growing opportunity for affiliates in the European online lotteries sector


The affiliate marketing opportunity

In the largely duttered and competitive nature of today's iGaming affiliate space, the promotion of online lotteries via affiliate marketing is quickly becoming a niche with real earning potential. Although ‘lottery’ doesn’t quite have the SEO power of poker, bingo or sportsbetting, it is a growing market with a bright future. Indeed, for those affiliates already promoting online lotteries, a key strategy in enhancing your offering would be to adopt lottery-based games as side products in your promotional campaigns for bingo and casino, where there is significant potential for cross selling between the demographics. A similar approach can be adopted by casino and bingo affiliates, who can develop their portfolios by adding lottery products as side games (side/mini games represent a high portion of revenue for bingo operators across the industry).

For those affiliates who have yet to venture into the lotteries market, it’s important (and good) to know that the major lottery brands have a strict policy of transparency in their program administration, so affiliates are provided with daily updated reporting functionality in their accounts. The majority of these brands also strive to provide their affiliates with stimulating commission packages and attractive promotions so as to build a successful partnership with longevity as its bedrock. The commission plan will usually be very similar in its structure to other iGaming products: a) revenue share deals, whereby affiliates can generally earn up to 40 percent on the total value of sales from their referred players; b) CPA deals, which is very attractive for those affiliates who require constant cash flow to reinvest the money to maintain their websites, run contests and new promotions; or c) Hybrid deals, which are a combination of CPA + rev share (this is an unrivalled commission structure in the lottery affiliate industry at present).

In addition, affiliates will continue to earn revenue from their referred players for as long as they continue to advertise the lottery brands.

The most popular methods used by lottery affiliates to build traffic and increase conversions are as follows:

• Applying a good SEO strategy to increase organic results with the most popular keywords for online lottery. According to Google’s keywords tool, there isn’t much SEO competition for the term ‘lottery games’ in Europe.
• Using all social media channels such as Facebook, Twitter and especially YouTube, helps to grow a community for your players as they spread the word with their friends and contacts.
• Writing unique, fresh and interesting content together with organising attractive weekly contests stimulates users to return and keeps them happy.
• Regular posts in related forums and chat rooms encourage new players to buy lottery tickets.
• Email marketing with attractive bonuses and tailored marketing messages can be beneficial for those with their own database.

Combining all of these methods can have a huge impact on an affiliate’s chances of conversion and lead to increased profitability and gradual, steady growth.

Optimum gains

Increasingly, lottery games and products are becoming one of the most popular forms of interactive gaming on the market, due in no small part to the fact 1 that online lottery interfaces offer players an easier, diverse and more exciting way to enjoy lotto games. That ease of use, combined with the game’s existing popularity, spells big marketing potential for iGaming affiliates in the European market, where there is (at the moment at least) a low competitive threshold for this product.

Although it’s a smaller niche, the opportunity for lottery affiliation covers almost as much ground as any other segment of online gaming. There are a great number of online lottery sites that offer games in a dozen or more languages, helping to increase this product’s popularity, particularly across Europe.

All of this suggests that the optimum time to promote online lotteries is while the competitive affiliate market is still small and far from the convoluted, saturated environments currently blighting some of the more traditional verticals.

That optimum time would be now. The strength and market share that lotteries command are well-known within the industry and this will gradually attract more and more affiliates to enter the lottery landscape. For affiliates, first mover advantage will be key.
 
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