The term performance marketing refers to a set of methods and mechanisms used to promote an iGaming site and aimed at achieving specific measurable results.
The tasks set depend on the geography, the legal and regulatory framework of the business and the ambitions of the entrepreneur. Most often, the results are expressed in KPI-metrics – financial performance indicators.
Note that, as a rule, performance marketing is used to promote gambling sites on the Internet, and rarely to promote land-based casinos. The advertising method is closely based on digital tools, Big Data and other progressive technologies.
The advantages of this type of marketing used to promote online casinos include the following characteristics:
Any marketing campaign and strategy is applied according to the situation here and now. The assessment depends on a number of important factors: an end-to-end analysis of intermediate results, the current economic situation in the country and in the world, political events, and the actions of competitors.
However, if with a large “eating” of money and a small return, you have to quickly turn it off.
Conversely, with good conversion rates and profitability, operators have a good incentive to invest in marketing and develop specific promotion channels.
A complex approach
A performance campaign combines different promotion methods and useful tools.
So, specialists use SEO, SMM, social media targeting, direct and native advertising. In addition, you can cooperate with affiliates, outsource some of the tasks, place target publics on marketplaces, and conduct remarketing.
As practice shows, some of the campaigns are engaged in the promotion of mobile casinos and high-tech iGaming applications for smartphones.
You can evaluate the specific results that Performance advertising gives by converting them into KPI metrics. Most often, benchmarks are related to revenue, customers, or average check sizes.
The measurability of parameters through the analysis of real sales is one of the strengths of performance marketing. It makes it easy to determine the amount of profit brought by a specific promotion channel or group of customers.
The customer pays only for the final result, including the earned profit, the number of attracted customers, and the reduction in advertising costs.
At the same time, a thorough analysis must be carried out in the context of each promotion channel in order to optimize advertising costs.
The evaluation of the success of an advertising campaign is carried out according to the following metrics:
The metric reflects the amount of money spent by an entrepreneur to encourage one client or group of gamers to take the desired action. The CPA calculation of the total advertising budget (or costs for a specific promotion channel) is made by dividing the total costs by the number of conversions.
The metric reflects the referral value of the client. Here, the specific action of the gambler is taken into account, that is, following an affiliated link, after which the client can choose to perform an action: register at an online casino, replenish a gambling account, launch several slot machines.
CRV-metric is most often used to evaluate and calculate the effectiveness of an affiliate program. Thus, the operator analyzes the costs spent on attracting one gamer in the process of cooperation with affiliates.
The customer lifetime value metric reflects the amount of funds brought by a particular gambler over the entire period of his activity in an online casino.
The parameter is calculated by multiplying the average check of a gamer by the number of completed gaming sessions. LTV is analyzed for different periods: a week, a month, a quarter, a year.
This indicator – return on investment in marketing illustrates:
the amount of direct advertising costs;
the amount of income received by the entrepreneur as a result of current business expenses.
To calculate ROI, the difference between income and expenses is calculated, which is then divided by operating costs and multiplied by 100%.
High ROI indicators indicate the effectiveness of the performance campaign, while low indicators will require reconsideration of the appropriateness of using certain promotion channels.
Parameter indicating the size of the average check. It is used to evaluate the profitability of long-term investments in relation to the total number of gaming sessions.
If the AOV metric is high, it means that the operator uses customer retention tools correctly. This means one-time bonuses, tournaments, seasonal missions, cashback and other activities provided for in the framework of the performance strategy.
To calculate AOV, the net profit received during the reporting period is divided by the number of gambling sessions conducted by players during this period of time.
To get measurable results, specialists use advertising tools in a complex way. Their list includes:
Proper use of marketing tools makes it possible to achieve effective results in ranking online casinos.
The most popular formats of performance marketing include:
Online casino promotion is carried out by a large team of advertisers, SEO marketers, analysts, programmers, writers, web designers. Together, they work on creating catchy creatives, carrying out routine maintenance on the gambling site, and making sure that advertising complies with legal and regulatory requirements in the selected country.
The implementation of a performance campaign includes the following steps.
1. Determination of goals
The tasks set must meet the following requirements: be realistic, measurable, achievable and limited in time.
It is important that any goal can work in conjunction with financial performance indicators, including conversion rate, revenue, percentage of return on investment.
The study of the customer’s business, in particular, the direction of activity, website, loyalty program, competitive environment, peculiarities of legislation in the jurisdiction and other external factors is the most important stage of performance marketing.
3. Creation of a media plan
It is a table in the form of a graph that displays the output of advertising, taking into account the promotion channels used (SEO, SMM, native integrations), goals set and planned indicators for profitability.
In addition, the document must clearly state the starting and expected KPIs, as well as indicate the time frame for achieving the goals set, the budget (general and with distribution for each channel).
This stage provides for specialists to evaluate the intermediate results of the ongoing performance campaign and promptly make adjustments. That is, inefficient channels are excluded from the media plan, while effective ones, on the contrary, receive more financial injections
Performance marketing in practice has proved its relevance and effectiveness in promoting online casinos.
This method is distinguished by relevance, integrated approach, measurability, affordable cost. It provides high promotion efficiency with concrete results, including conversion growth, profit increase in a short time.
With proper organization, a Performance campaign allows you to achieve the goals defined by the media plan.
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