Affiliate marketing in the iGaming industry is a thriving business model, offering lucrative opportunities for both operators and affiliates. However, understanding the success of affiliate campaigns needs a good grasp of key performance indicators (KPIs). These metrics not only measure performance but also provide actionable insights for optimisation. Here, we’ll break down essential KPIs in iGaming affiliate marketing and explain why they’re important.
Cost Per Acquisition (CPA)
CPA is a foundational metric in affiliate marketing. It refers to the cost an operator incurs to acquire a new player through affiliate efforts. While there are several models for earning money as an affiliate (see our article on iGaming Affiliate Rewarding Models), they are often paid a fixed fee for every player they successfully refer who meets predefined criteria, such as making a deposit.Why it matters: CPA helps operators evaluate the efficiency of their affiliate campaigns. If the CPA is too high compared to the revenue generated by the new players, the campaign might not be sustainable. For affiliates, understanding CPA ensures fair compensation for their efforts.
Lifetime Value (LTV)
LTV measures the total revenue an operator expects to earn from a single player over their entire engagement period. In iGaming, LTV considers deposits, wagers, and losses adjusted for player retention and activity levels.Why it matters: A high LTV shows that the players referred by affiliates are valuable and are more likely to remain engaged. Affiliates who consistently deliver high-LTV players are often rewarded with higher commissions or long-term partnerships.
Average Revenue Per User (ARPU)
ARPU calculates the average revenue generated by each player over a specific period. It’s typically used to analyse short-term trends and assess the profitability of campaigns.Why it matters: ARPU helps operators identify which affiliate channels drive higher-revenue players. Affiliates can also use ARPU to refine their targeting strategies and focus on high-performing audiences.
Return on Investment (ROI)
ROI is a universal metric that measures the profitability of an investment. In iGaming affiliate marketing, it evaluates the return operators receive from their expenditure on affiliate programs.Why it matters: Positive ROI indicates a successful campaign, while negative ROI signals inefficiency. Both operators and affiliates can use ROI data to fine-tune their strategies, ensuring resources are allocated effectively.
Conversion Rate (CR)
CR is the percentage of visitors referred by an affiliate who complete a desired action, such as signing up or depositing funds.Why it matters: A high conversion rate reflects the quality and relevance of the affiliate’s traffic. Operators value affiliates with high CRs, as they’re more likely to deliver engaged players. Affiliates can use CR insights to optimise their marketing materials and promotional tactics.
Retention Rate
Retention rate measures the percentage of players who continue to engage with an iGaming platform after their initial activity. This metric is crucial for understanding player loyalty.Why it matters: Affiliates who bring in players with high retention rates are invaluable to operators. Such players contribute to sustained revenue, and affiliates may be incentivised through increased commissions or exclusive deals.
Player Churn Rate
The churn rate is the opposite of the retention rate and shows the percentage of players who stop engaging with the platform after a certain period.
Why it matters: High churn rates can signal issues with player satisfaction or platform quality. Affiliates can work closely with operators to address these challenges and improve retention.First-Time Depositor (FTD) Rate
FTD rate measures the proportion of referred players who make their first deposit. It’s a critical metric in assessing the immediate impact of affiliate traffic.
Why it matters: FTD rate helps operators and affiliates gauge the effectiveness of their acquisition strategies. A high FTD rate often correlates with strong targeting and persuasive marketing efforts.
Conclusion
Mastering the above KPIs is essential for success in iGaming affiliate marketing. They provide valuable insights into player behaviour, campaign performance, and overall profitability. Understanding and tracking these metrics will not only enhance decision-making but also pave the way for long-term success in this competitive industry. By leveraging KPIs effectively, both operators and affiliates can create mutually beneficial partnerships that drive growth and revenue.