Savvy affiliate marketers are constantly clamoring for the ?next big thing? that will provide undiluted opportunities with massive potential.
In-browser online games and downloadable gaming apps are rapidly becoming just that: the next big thing in affiliate marketing.
While advertising in online gaming or through downloadable apps is nothing new, recent advances in technology and commissioning techniques have provided affiliates and app developers a largely unexplored medium that offers unlimited earning potential.
Why So Angry, Birds?
Gaming in a networked environment has existed for decades. However, only in the last few years has this vertical truly exploded.
Case in point: Rovio Entertainment Ltd, the creator of the Angry Birds franchise, announced that in 2011 the company?s total revenue was $106.3 million, driven mostly by their online Games and Advertising divisions.
With 2011 statistics such as 648 million game downloads and 200 million active users, it?s no surprise that they report 10 billion ad impressions every month. Again, consider the fact that this traffic is all being generated by closed-circuit game apps.
How Can Affiliates Benefit?
While online gaming has been around for years, earning potential associated with online games and gaming apps is relatively new. Thanks to recent advances in tracking technology and commissioning models, affiliates and game developers are now able to create revenue streams that never existed before.
Until recently, the predominant affiliate commissioning model in online gaming was on a cost-per-signup or cost-per-install (?CPI?) model, where affiliates were paid when the app or game was downloaded and installed.
While it?s the easiest to track and commission, the CPI model is limited to a singular action in which the affiliate receives a one-time payout for the up-front action.
Show Me the Rev Share!
As more and more games and apps are created, game developers are wisely turning to revenue-share payouts as a method to recruit and retain top gaming affiliates.
Treating the install/download as merely the starting point, affiliates who take part in a revenue-share gaming model continue to earn on any subsequent revenue-generating transactions that the player makes within the game.
While the technology that tracks subsequent conversions can be complex, the concept is simple. Upon successful game or app install, a relationship between player and affiliate is created. As the player continues through a lifecycle of a game performing such actions as buying in-game upgrades, making new level purchases, exchanging virtual currency, or engaging in any type of activity that generates new revenue, the affiliate reaps the benefits of ongoing commissions.
The player-engagement model is effective only if the proper tracking and commissioning infrastructure is in place to tie affiliates to these ongoing player conversions.
As this lucrative vertical continues to evolve, the most successful affiliate marketing programs will incorporate a combination of cost-per-install payouts along with ongoing player-engagement commissions.
Could affiliate marketing in the online gaming vertical be your next big thing?
Jeff Stevens is the Director of Sales for Direct Response Technologies (DRT).
Download the entire FeedFront issue 19 here ? http://issuu.com/affiliatesummit/docs/feedfront-19
FeedFront issue 19 articles can be found here as well: http://feedfront.com/archives/article00date/2012/7
Source: http://feedfront.com/archives/article005836
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