When Publishers Win, Everyone Wins – PerformanceIN
When Publishers Win, Everyone Wins – PerformanceIN When Publishers Win, Everyone Wins – PerformanceIN
Posted: 17 Jul 2019 12:00 AM PDT
With skepticism ever increasing around advertising fraud, transparency, and even programmatic, a long-standing marketing model has risen to the forefront that’s a win-win for everyone: performance marketing.
According to eMarketer, affiliate marketing spend will reach $6.8 billion by 2020. According to Business Insider, 15% of all revenue driven by the digital media industry comes from affiliate marketing. But why is it that we’re seeing such a rise in performance marketing, and how is it one channel that seemingly benefits everyone involved?
Performance as a monetization channel Throughout the years, publishers have tried a number of models to monetize their content, from subscriptions to sponsored content to video ads to memberships and events. But each of these models comes with their own challenges.
Videos, for example, are becoming increasingly selective when it comes to running ads, as YouTube continues to set stricter rules for who can monetize their videos. And with sponsored content, publishers have to walk a fine line between generating income and losing authenticity with followers. No one wants to be seen as hawking something in public that they may not use in private. On the other end of the spectrum, advertisers have to risk their budget on sponsored posts, which may or may not translate into new customers.
When publishers win, everybody wins Enter performance marketing. Where publishers have more control over what they promote, and advertisers only pay when they score a new customer or lead. Through channels like affiliate marketing, publishers can link to products they know, love, and use. And they can do so in a very natural, almost native way — as they mention the products in blog posts, Instagram Stories, or review pages.
Whereas sponsored posts can feel overly constructed and unnatural, affiliate links can be small, subtle, and discrete. They can also be inserted directly into copy, avoiding old models like banner ads (which consumers tend to be blind to these days).
And this model is just as much of a benefit to advertisers. Instead of shelling out thousands of dollars for mega-influencers, or hoping to find a diamond in the (niche influencer) rough, advertisers can trust publishers to self-align with the partner programs and products that fit them — and their audience — best. There’s no risk to advertisers because they only pay a commission when they generate a new customer. The better the affiliate performs, the more the merchant sells.
Performance marketing even gives new brands a better shot. Instead of needing to compete with massive advertising budgets, they can be effective with a grass-roots approach and a stellar affiliate or referral program. Just take a look at how brands like Blue Apron have grown. It’s one reason why affiliate marketing programs are increasingly referred to these days as partner programs. That’s exactly what they are: a publisher and an advertiser partnering together in a mutually beneficial relationship.
But publishers and advertisers aren’t the only ones winning in this equation. Even consumers get a better experience. Instead of display ads interrupting every video, feed, or scroll, they can simply consume uninterrupted content from the creators they enjoy most. This nurtures an environment where consumers actually want recommendations for products and brands. Who wouldn’t prefer that over the feeling of being chased down by advertisers?
Looking to the future So what’s next for this chapter in performance and partner marketing? As technology offers more personalisation and publishers are able to hone in on their niche audiences, conversions will increase. More and more advertisers will likely leave the risky view-based (CPM) and install-driven (CPI) models in favor of the true value of cost per conversion (CPA) models.
To make themselves more lucrative options for publishers, brands and advertisers will need to have their partner marketing game on point. This includes purpose-built partner marketing technology with reliable tracking across app and desktop, flexible payout structures, real-time data, transparency, automation, and finally, optimisation tools to see which kind of content performs best.
Performance marketing has been around for over a decade. Even so, with emerging technologies, partnerships, and social media channels, all feels new again. For perhaps the first time in the industry, there’s an opportunity for a win-win-win for publishers, advertisers, and consumers alike.
And that’s good news for everybody.
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Gaming Innovation Group reports Q2 2019
Gaming Innovation Group Inc. (GiG) reports Q2 2019 revenues of €31.0 million and an EBITDA of €2.5 million.
“With the second quarter behind us, the outlook has improved. I am confident that the recent strategic actions we have taken will lead to revenue growth and an improved bottom line in H2. It has been a quarter with some headwind, primarily due to a tougher Swedish market.
Our global expansion will be driving sequential growth in both B2C and B2B in H2 and we will manage that growth with a strong focus on execution as the Company is heavily focused on improving earnings per share.”, says Robin Reed, CEO of GiG.
Financial highlights Revenues for Q2 2019 were €31.0m (36.9), impacted by the Swedish market and termination of a customer contract in Q4 2018 EBITDA was €2.5m (1.7) in Q2 2019, corresponding to an EBITDA margin of 8.1% (4.6) Revenues for the B2B segment in Q2 2019 were €13.1m (15.6). EBITDA was €2.1m (4.4) Revenues for the B2C segment in Q2 2019 were €19.6m (24.2), with a positive EBITDA of €0.4m (-2.8) Other operating expenses quarter-on-quarter decreased by 2% in Q2 2019 as a result of increased efficiencies and cost-savings across the organisation Cash flow from operations in Q2 2019 was €3.2m (8.2)
Operational highlights GiG partnered with New Zealand’s largest entertainment company SkyCity Entertainment Group on 21 May for a turnkey, fully managed online casino solution, launch date was 8 August One new brand was signed to Platform Services in Q2 2019, two customers were launched in April with an additional three brands in the pipeline for launch. The total number of brands on the platform is 35 Rizk launched a dedicated and branded live casino studio on 11 June and the brand was also launched in India In August, GiG divested its brand Highroller to affiliate and operator Ellmount Gaming Ltd. for a total price of €7 million. The acquirer will become a B2B customer of GiG and continue to operate Highroller on GiG’s platform GiG was granted B2B and B2C licences for online casino and sports betting in Spain and a Class II licence in Romania, allowing affiliate marketing A new SEK400m senior bond was issued on 14 June with a SEK1,000m borrowing limit, refinancing part of the existing bond and credit facilities
Outlook The Company is expecting both sequential revenue growth and improved bottom line as its global expansion is driving growth in both B2B and B2C in H2 Growth will be managed with strong focus on execution and cost control
Investor presentation and webcast:
CEO Robin Reed will present the Q2 results at 10:00 CET at Helio GT 30, Grev Turegatan 30, Stockholm. The presentation will be given in English and available live via webcast and via a telephone link. Questions can be asked via this web link:
Dial-in numbers for participation in the telephone conference: