Felipe Agüero, Marketing Director of Rivalo Colombia, joins the Experts team of Gaming and Media with an exclusive article that puts affiliate marketing into the spotlight, a segment that is an essential tool to boost business.
By Felipe Agüero, Marketing Director, Rivalo Colombia*
The world of affiliates has changed the traditional models of advertising, in a digital revolution that bases its principles on collaboration between users and digital development. Quickly, affiliates have become a key part of the betting industry, a business that can bring great benefits. In this article, we are going to consider important aspects of the affiliates’ models in order to take advantage of the commercial possibilities they offer.
DEFINITIONS AND MODELS OF AFFILIATES
What is an affiliate? Personally, I’m not a fan of dictionary definitions or technical words. The secret to understand a concept is to be able to explain it to someone who doesn’t know a thing about it and still delve into the depths of technicality. In this line, an affiliate is an ally of a brand, which has a massive or niche communication channel and knows the tools to effectively communicate with their group. For us, an affiliate can be an Influencer, a mass media, a website, a Tipster, or even a popular college kid.
This ally is in charge of bringing clients to our company. For this service, he/she receives financial compensation according to the type of contract or affiliation model assigned to him/her. For example, there are models of affiliates by CPA (Cost of Acquisition), which propose the payment of a fixed value for each client obtained through the affiliate. There is also the CPL (Cost per Lead). Here, a conversion is not necessarily paid, but a possible conversion is. The responsibility falls on the company to transform that Lead into a conversion. For its part, the RS (Revenue Share) is a model applicable to repurchase businesses, such as betting. The affiliate is given a commission for each repurchase that the person brought by him/her executes. This model becomes a profitable business because the customer’s useful life generates profits. Therefore, the affiliate’s mission is to bring better clients, who have extensive activity.
THE LATIN AMERICAN DIFFICULTIES
Colombia is the country where I have had the opportunity to develop some affiliate models. Both this territory and the rest of Latin America face huge tasks in relation to this issue. The main obstacle is that we are still a society focused on traditional advertising. A greater conversion is found in traditional media than in digital media. This represents a giant challenge for affiliate markets because the success of this program is that it can be measurable, reliable and easy to use, something essential in the digital world, but complex in the analog world. We have a lot to learn and an arduous educational task, of transmitting information. Of course, the task goes beyond the corporate sphere. We must understand how growing collaborative economies such as Uber or Rappi help us digitize society, and count on the help of regional Governments to expand technological modernization on the continent.
In Colombia, we have found hybrid models that help us generate affiliate habits and customs; especially, with large advertisers or the media, which often have immediate objectives. This is inversely proportional to the times of the affiliate programs, which are built step by step. For example, at Rivalo, we developed a hybrid program with one of the largest radio networks in the country. We co-created a space in radio programming and began digitizing the audience. How did we achieve this? Fortunately, radio, television and humans in general have adapted to the functionality of the dual screen. Taking advantage of this, we generated direct ‘call to action’ on the radio to produce more traffic on the affiliate website and, in this way, convert the analog audience into a measurable digital audience. Other great conversion tools are bonuses and referral programs, which help make analog conversion measurable in a digital environment. In Colombia, the regulation of online gambling has been a great move to change habits in the industry. Now, the prejudices of the sector are easier to fight and this helps people to believe more in innovations and new ways of working. Thus, bookmakers found a ‘highway for innovation.’ When this strategy can be taught and expanded to the rest of the communication industries, surely, the habits of the affiliate programs will be very well received and will have better results.
*Along more than 10 years of experience in digital marketing, Felipe Agüero, current Marketing Director of Rivalo Colombia, has been able to understand the evolution of digital platforms from different perspectives: advertising agencies, soccer teams, sports brands, software development and online sports betting.
His daily tasks involve the realization of marketing and media plans, the search and relationship with influencers, the organization of sponsorship events and the definition of communication strategies, among others.