Why our CPL business model
Experts predict that by 2024 the iGaming industry will be worth a staggering $100 billion. This is a combined effort from all kinds of online betting and gambling like online casinos, sports betting, bingo, lotteries, online poker games, and more. We have recent technological advancements to thank for the substantial growth spurt, combined with exciting gamification and very fluid innovation.
Still feeling a little sceptical about the statistics? Advidi agrees. That’s why we always run our own numbers internally. We witnessed that the iGaming vertical grew by approximately 40% in the last 8 months. This likely comes down to two main drivers:
- Retention programs run by big casinos to engage with players
- A focus on expanding our portfolio with CPL casino offers
Asking yourself how you can cut yourself a share of this $100 billion vertical? Read on to learn more about the CPL business model.
CPA vs. CPL Casino Offers
The CPA commission model is well known to the media buyers in the iGaming space. In the flow to register new casino players, the commission to the affiliate is paid after a certain qualification requirement is met. This qualification is usually the first deposit (baseline), or even further activity after the baseline is reached.
The baseline is a monetary value set by the casino that can be higher than the initial deposit in order to determine the quality of the registered player. This also helps to root out players who make a first deposit but never play again. Simply put, the casino pays for an active user.
In the CPL model, the casino pays for all registered players even before they make any deposits. The model can be based on a DOI or a SOI flow (with or without email confirmation).
To guard against 0 Player Value, online casinos that work on a CPA model usually move the baseline above the minimum deposit. For example, if the casino minimum deposit is $10, the baseline is $15. That means that the player needs to make a second deposit of any amount to reach the baseline, and this is the moment when the conversion fires.
The higher the baseline, the bigger the confirmation for the advertiser about the quality of the player. But at the same time, a higher baseline means a more challenging conversion point, which can make the offer less attractive for the affiliates.
Things change when the advertiser (the casino) is new on the market, or is in the process of entering new markets. Their goal will be to generate as much brand awareness as possible, which in turn will lead to new registrations. In such a case, the advertiser can opt in for a CPL model, or a CPA model in which the baseline is as same as the minimum deposit. The main KPI here is to grow the database with as many new registration as possible.
Benefits of the CPL model
The CPL model is particularly interesting for affiliates who work with a network. It is especially useful for beginners in the vertical who want to learn about how their traffic behaves without losing lots of money. At the same time it’s good for experienced affiliates who want to test new angles and new offers before further scaling. Certain advertisers can also benefit from the CPL model, such as when they’re preparing to enter new markets.
In short, with the CPA model the risk is mostly on the affiliate side, while with the CPL the risk is on the advertiser side. That being said, CPL is sometimes preferred by affiliates who want to test a new offer and see how their traffic behaves. Since it’s easier to convert, they are most likely to earn money right away.
We mostly suggest CPL to affiliates who aren’t that familiar with the vertical. But also to all other affiliates who utilise a traffic source mainly outside of SEO/SEA. These affiliates usually work directly with the casinos themselves. However, as a general rule, CPL converts better than CPA.
The main takeaway here is that if you want to test new GEOs and trial the casino vertical, CPL is your best starting point. Monitor how it converts, how it works with deposits and the backend spend. Once you’re confident in the flow, make the switch to CPA. Consequently, if you’re confident in your flow and your traffic is hitting the right target, then you’re best off just focusing on CPA since it pays 10 times as much.
CPL traffic sources
Aside from Facebook, there are other traffic sources that convert well within this vertical. For example, SMS and/or Email have also proven successful. A great tip would be to test out your Email database to see what percentage are converted on casino offers. This can be effective testing for affiliates who currently monetise their database in other verticals. The CPL model is the perfect medium to test how your database reacts in iGaming, while this is less efficient with the CPA model. We’re always ready to help affiliates who own Email lists to set the flow for casino offers. If you’re one of them, or if you are interested in hearing more about how to promote Casino on Facebook, get in touch with us.
If you’re completely new to Facebook traffic, we always advise to start with smaller and less competitive GEOs, like those in Eastern or Central Europe. That’s because the real-time bidding for leads on Facebook in these countries isn’t that high. The opposite is true in more attractive GEOs (Tier 1), where the CPC sometimes reaches $10-15.
We offer a wide range of GEOs in our portfolio, including Hungary, Italy, Czech Republic, Poland, Greece, as well as LATAM and South-East Asian countries and many more. Once you master the less competitive markets, you’ll be prepared to move onto more intense ones like Canada, New Zealand and Australia.
Flows and creatives
The good news is that the CPA and CPL angles are pretty much the same. The message is always “Deposit money – Win money”. From our experience, the best creatives follow the same logic: emotion + happy + winning money. A top tip is to make use of video assets, where emotions of joy and excitement are so much more tangible. Picture witnessing the very moment a player lands a win. The jumping, screaming and grinning. It’s absolutely infectious.
This angle is called “Emotion + Slots”. The main creative is a recording of the person playing an online casino game, while in the corner there’s a module displaying moving Slots. This clearly signals that they play on an online casino, and not a lottery for example.
Factoring in FTDs
Our system is set up to follow FTD in real time. This is the main metric our feedback depends on. FTD stands for ‘first-time deposit’ and calculating this percentage affords you with some key insights. The formula is simple enough: total registrations / depositing players x 100%.
Casino CPL advertisers are always looking for a FTD percentage (FTD%) of 10% or higher. That means 10% of all leads start depositing money to the casino. In the CPL model, casino advertisers pay for every single registration. So if the FTD% is too low (i.e. too few active players), they’re likely to run at a loss.
Knowing the FTD% means you’re in a position to ask for higher POs or decide to switch to the CPA model. It will also help to prevent you being paused by the advertiser if the FTD% is too low. In any scenario, you’ll empower yourself with the ability to be more proactive and less dependent on advertiser feedback.
Working with a Network
Big online casinos don’t usually work with CPL offers directly. This model is normally run via affiliate networks like Advidi. Besides having the widest range of CPL offers available, we provide lots of internal support on things like setting up the flow and live traffic feedback. We can tell you in real time how your traffic looks to the advertiser, which will give your campaign the longest lifespan possible.
We can track and share the First Time Deposit (FTD) percentage, which gives an indication of how many players signed up, and how many of them spent money. Our system is set up to follow the FTD constantly, and we can provide quality feedback even before the baseline is hit. Our affiliate managers monitor the behaviour of your traffic and advise you as to which GEO to target next, when to slow down, when to scale up, and give suggestions on the daily volume of your traffic.
If you own a database, or you’re experienced with SMS or Facebook traffic, get in touch today to launch your first campaign right away.
Do you have more questions? Reach out to your AM or email email@example.com.
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