Marketing

THERE HAS BEEN MORE CONSOLIDATION IN THE MARKET BECAUSE PEOPLE THAT DEAL WITH THIS TYPE OF REGULATION CAN USUALLY AFFORD TO HANDLE ALL OF THE REQUIREMENTS

- especially in terms of marketing practices. For our clients, we handle a lot of the heavy lifting in terms of enforcing regulatory requirements and customising profiles based on each individual jurisdiction.

SBC: In your 12 years of operation, what would you say have been the biggest changes from an iGaming affiliate perspective? Is it more of a focus on compliance?

AD: I definitely think that compliance is a significant component. It’s been a big deal in the last few years, especially because operators have started to suffer liability aspects from the actions of affiliates - this has basically shifted the paradigm.

To sum it up, I think that there has been more consolidation in the market because people that deal with this type of regulation can usually afford to handle all of the requirements. Usually, these companies - and their affiliates - are also much more structured.

For the more reputable organisations, it’s become essential to have some kind of management layer which audits their affiliate channel. We’ve seen companies, such as Sky Bet, make some sudden moves - such as shutting down their affiliate programmes. So from our perspective, this all plays well to our strengths because we’ve been mitigating the effects of regulatory requirements from dozens of jurisdictions for years.

We are confident in the sense that we can deliver on that for the iGaming markets. So I’d have to say that these are definitely some of the biggest changes that have taken place.

Secondly, from a consolidated which will affect online marketing channels, especially affiliates, in terms of pixel tracking.

HTML pixel tracking was not very reliable to start off with. But within a few months, it’ll be dismantled and disabled by the browser. In order to support active and inaccurate campaigns, operators are going to have to implement robust postback layers so that they can report back to

all of their associated partners.

This is the layer that we've been perfecting now for over 10 years. It covers all the esoteric use cases, and all of the necessary functions which allow operators to use the layer without actually requiring technical supervision.

WE HANDLE A LOT OF THE HEAVY LIFTING IN TERMS OF ENFORCING REGULATORY REQUIREMENTS AND CUSTOMISING PROFILES BASED ON EACH INDIVIDUAL JURISDICTION

perspective, we’re seeing a lot of bigger affiliates, and much more sophisticated affiliates which require more transparency. They want to know more about the company, and to know that they’re essentially partnering up with the business. They also require more visibility into the activity of the players. Now, we’re basically rewriting the new standards for affiliation in terms of transparency.

Thirdly, there have been changes from the deprecation of third party cookies. In the coming year, there’s going to be a number of changes

SBC: Given these changes to the landscape, are we moving towards a situation where operators just want to work with bigger affiliates? Or is that not the case?

AD: I think the changes in landscape

stem from the regulatory aspect, at least that’s what I’m seeing. So for a lot of the smaller affiliates, having to disclose information about their activity wasn’t received very well.

But for a more structured corporation, it’s much more straightforward to provide legal documents and disclose all of their activity. If they want to keep on working, in that sense, that’s the shockwave that we said has hit a lot of areas in the market.

There was also a consolidation wave stemming from acquisitions. So a lot of the more popular sites, and their affiliates, have been acquired by other significant players in the market. That, in turn, consolidates the power for them.

As a whole, though, even though there was significant consolidation of the market, there is still room for the smaller affiliates in the regulated environments. We are seeing that markets are gradually adapting to EVERYONE OPERATING WITH A LEGACY AFFILIATE PROGRAMME IS GOING TO COME UNDER FIRE AND LOSE THEIR AFFILIATES UNLESS THEY ACT

this too. So both the operators and affiliates have found a middle ground to work alongside one another. Because of this, we’re seeing more customised commission models and much more careful work.

SBC: You mention the wave of consolidation; does this influence what you do?

AD: It influences our operations in regards to stronger affiliates requiring more information. They are essentially educating the operators about working with them much more closely. Because they have more power, they require much more transparency. This is a win-win situation because it means that the more transparent operators are, the higher the chances of them generating more traffic from the right sources.

SBC: Coming back to the changes for third party cookies, do you think this is one of the key challenges looking into 2021?

AD: Absolutely. I think that everyone operating with a legacy affiliate programme is going to come under fire and lose their affiliates unless they act. We’ve been migrating clients from these kind of legacy affiliate platforms for exactly that reason, and due to a lack of support.

SBC: Do you want to just explain exactly what the changes are?

AD: In short, what’s going to happen is that by default, Google Chrome browsers will block third party cookies. This means that if someone clicks on your website, and that link triggers an affiliate, let's say they sign up or make a deposit. Even if your website reports a trigger and a bit of HTML code which would have reported back to the affiliate tracking software, this software will now not have access to the cookie that was planted on the user journey.

This will mean that the conversion will not be properly tracked, making it very difficult for affiliates to attribute conversions to specific traffic sources. They will solely have to rely on the reporting done by the operator. As you can imagine, this is going to be very problematic.

MAKING SURE THAT YOU HAVE A STRONG POST BACK LAYER THAT’S RELIABLE AND CORRELATES WELL WITH YOUR BUSINESS KPIS IS KEY

So making sure that you have a strong post back layer that’s reliable and correlates well with your business KPIs is key. It will allow you to investigate everything which can allow you to provide information to the relevant stakeholders - and will become fundamental for how affiliation is done.

SBC: So this affects the smaller affiliates more because they will be relying on the operator to be more transparent?

AD: That’s exactly right, and this is what we’re trying to facilitate. We also want to be the most user-friendly affiliate programme. In that sense, our reporting and our interface is helping affiliates to optimise on their work. We’re trying to give the affiliates better reports - even if they don’t use post back - to allow them to optimise on their own affiliate campaigns.

We know that the larger affiliates will use their own tracking platforms. We will allow the operators to deliver accurate data to those affiliates via an API or via post back. But for the smaller affiliates, we want to give them access to the reporting tools which will give them as much information as possible to optimise their work.

SBC: 2020 has obviously been a difficult year for everyone. How has this year panned out for Cellxpert?

AD: It’s been a rollercoaster ride. We've had to change a lot throughout the year. There have been some very significant plans which have had to change abruptly, like setting up shop in multiple locations in Europe. Then obviously, all of the conferences that have been cancelled throughout the year.

SBC: Have the conferences traditionally been a key place for you to create new business?

AD: Traditionally, yes they have been. We - like everyone - have had to adapt to those events being cancelled. But in spite of that, we are

SBC: And finally, where do you see Cellxpert in five years time?

AD: I think you’re going to see Cellxpert as the new igaming industry standard for affiliate marketing.

WE’RE LOOKING AT THE US AS A STRONG MARKET, JUST LIKE THE REST OF THE INDUSTRY, AND SO WE’RE FOCUSING ON THIS NEW POTENTIAL FOR BUSINESS

closing a very strong year, where we have seen substantial growth across all of our sectors.

Adapting to changes has been a significant challenge for us, but I think that’s a challenge we’re meeting very well in order to structure an environment for new businesses without these traditional industry conferences which were previously considered to be quite instrumental.

For everyone, I think we were all very used to the one-to-one face time at these conferences. But this new reality has been a significant change for us all and we’ve managed to adapt. As you know, we operate in the online space, so that has seen some substantial growth this year.

That’s what I think, and we’re actively looking to play that role too. You will see us expand, and grow stronger, as we look to gain a greater foothold in more jurisdictions.

We’re looking at the US as a strong market, just like the rest of the industry, and so we’re focusing on this new potential for business. We’re also looking at new possibilities within the Asian market. •

WHY US MARKET EXPANSION IS A MARATHON, NOT A SPRINT

SPEAKING AT THE RECENT Betting on Sports America - Digital, Kamran Hedjri, CEO of PXP Financial, reflected on the company’s growth stateside

As the US sports wagering market continues to evolve and open up further, expansion into new states becomes an increasingly alluring prospect for betting operators and payment merchants.

Nonetheless, the complexities of new states, adapting to different sets of regulations and engaging new consumers remains a challenge which requires meticulous strategies.

But for PXP Financial, drawing upon its strong footprint within the European market has allowed the company to bolster the growth of gambling operators when it comes to maximising engagement in the US.

Speaking on a track entitled ‘Sports Betting 101’, Hedjri disclosed that the pandemic posed a series of challenges in 2020 - and the individual regulations across the post-PASPA market did not make things any easier.

Sharing his insight on the differences between Europe and the US, he said: “I think one of the things in the US as we touched upon is the different regulations and the number of the payment options in Europe there are more varieties of the alternative payments options to the US.

“The US has got maybe a card and a wallet and a few others that we have on the horizon, that’s something that is picking up and there is going to be

IT’S NOT GOING TO BE A SPRINT, IT’S GOING TO BE A MARATHON SO YOU NEED TO BE PREPARED TO INVEST SIGNIFICANT TIME

IT IS DOWN TO PICKING THE RIGHT PARTNER, ONE WHICH CAN GIVE YOU THE RIGHT FUNCTIONALITY AND APPROACH TO THE MARKET

more. The other one is actually the issue around the conversion rates on the card processing and the rejections of the cards.”

Having first expanded into the US back in 2013, New Jersey was the first stop on PXP Financial’s US journey. As more states began to open their doors to legalised betting, the US continues to hold much potential.

Hedjri continued: “We started back in 2013, as online gaming began to be regulated in a few states. One of those states that we entered when we started was New Jersey - it was exciting for us, back then it was one of the things that were all new and exciting. We expanded into the state and our approval meant we had the first dipping of toes into the water and that we could begin to gather experience in the US market.

“It was a natural move for us as the regulations opened up as PXP has a great deal of gaming experience. As the regulations in the states started to open up, we spent around six years processing with nothing really much happening, before the regulatory market picked up and we experienced that this is the right time to go all in.”

As many firms look to replicate the success of PXP in terms of growth into US states, Hedjri pinpointed the key lessons the group would take from the journey of PXP.

“Obviously, it’s crucial that you have enough resources - it’s going to be a resource-intensive expansion,” he said. “It’s not going to be a sprint, it’s going to be a marathon so you need to be prepared to invest significant time. It is not a short term entry, it needs to be a long and sustainable plan over a

number of years.

“It is vital that this is in the mindset of anyone planning on embarking on this journey so that they are prepared for the type of game they are going into. Then it is down to picking the right partner, one which can give you the right functionality and approach to the market.”

Further emphasising the importance of selecting the right partnerships, Hedjri cited a quality over quantity approach as being the best way to get the most out of collaborations.

“You want to have the right partners, whether it’s risk management services, KYC offering or functionality, there are few correct partners in a big market,” he added. “As well as this, you should have your redundancy setup, so you’re not too reliant on one single partner.”

For domestic firms seeking expansion in the US, regulatory understanding was a factor that the PXP US CEO defined as being imperative in growth across states.

In terms of the gaming market in the US specifically, building the omnichannel journey is something that he believes will be at the forefront of innovation within the industry:

He explained: “Payment across multiple channels is going to be key for us in gaming over the next year, providing payment with no matter which device you are using is going to be key, providing the same level of experience no matter where you are sitting.

“The customer journey being secure and seamless is key, because you don’t want to have an ecommerce experience then a point of sale experience, or a mobile pad experience, whichever it is, you don’t want a different experience for customers, you want a seamless experience for your customers. This frictionless approach is critical for everyone involved in the process.”

The digital shift of the industry will also play a big role in the evolution of the market, something that Hedjri stated has been accelerated substantially by the pandemic.

He continued: “I think Covid has changed the way we are behaving, I know that everybody thought at the beginning this would be a short thing and it has lasted longer than anybody could have expected it to and this is also going to change the market.

“The push to esports, VR and other digital activities is going to be big even post-Covid when things are back to normal, these are still a big part of the gaming industry. I think digitalisation will also be pushed forward and the online experience will be increased more and more.

“Digitalisation brought on by Covid has changed the way we are working, so that is going to have a shift on cost company structures, how they spend their money and how we are interacting with each other.”

Evaluating the market, he concluded: “It is exciting and be prepared because it is going to explode in the coming years, it’s going to get really big. But if you’re entering, don’t expect it to be big from the get-go.” •

DIGITALISATION BROUGHT ON BY COVID HAS CHANGED THE WAY WE ARE WORKING, SO THAT IS GOING TO HAVE A SHIFT ON HOW WE INTERACT WITH ONE ANOTHER

VASILIJE LEKOVIC, TRUSTLY: WHAT’S NEW IN 2021?

NEW MARKETS, NEW FEATURES and a whole lot of new players are on the horizon for Trustly in 2021, writes Director of Gaming Vasilije Lekovic. Here’s a preview of the key developments you can expect to see in the next 12 months

PSD2 will bring more people to Open Banking payments

PSD2 regulation is now in full effect, requiring two-factor authentication for all online payments in the EU and the UK. This means players who want to use debit cards to deposit will need both their card and authentication device (such as their phone) at hand.

Rather than typing in card numbers, Open Banking gives players a modern

OPEN BANKING GIVES PLAYERS A MODERN EXPERIENCE BY AUTHENTICATING WITH FINGERPRINT OR FACE ID BIOMETRICS ON THEIR MOBILE DEVICES

WHEN A CONSUMER DECIDES TO TRY A NEW PAYMENT METHOD, SECURITY AND REGULATORY OVERSIGHT ARE TWO OF THEIR BIGGEST CONCERNS

experience by authenticating with fingerprint or face ID biometrics on their mobile devices.

Open Banking payments provide the seamless experience and instant gratification that meets the demands of digital-native players. Once they experience this frictionless payment method, repeat usage and player loyalty will soar in the coming months.

We’re building awareness and trust around Open Banking

Admittedly, getting players to try Open Banking payments is a challenge in markets like the UK, where consumer knowledge is relatively low and the experience is novel.

However, as we have seen in other markets, once a player experiences the speed and convenience of Trustly, a stickiness effect is created and they become our loyal customers. We are confident players in the UK will pick Trustly as their payment method of choice and that our user numbers will continue to grow.

Moreover, our research tells us that when a consumer decides to try a new payment method, security and regulatory oversight are two of their biggest concerns. Players who want to try Open Banking will look for a trustworthy solution, which is where Trustly stands out.

Working with the major banks in the UK, Trustly offers bank-level security backed up by the Swedish FSA. Present in the UK since 2016, with some of the key market leaders offering Trustly to their players in the UK for several years now, we are also recognised by the governmentsanctioned UK Open Banking Implementation Entity (OBIE).

We’re working hard to build consumer awareness in transforming markets and to let players know that Trustly has a proven track record that they can place their faith in.

In-banner Pay N Play is in the works

In-Banner Pay N Play and In-Banner Betting are two innovative solutions that we are actively exploring in 2021. This functionality will allow affiliate websites to improve conversion and reduce drop-offs by optimising registration, bet placement and overall playing experience. The use case we’re most excited about is In-Banner Betting. By utilising the capabilities of our Pay N Play product, operators will be able to offer their sports betting users a seamless experience. They can deposit, register and verify, and place a wager all in one go from the dynamic odds banners on affiliate websites.