This week we caught up with Pixie, Welcome Partners CEO, to get further insight on the growth of affiliate marketing in the CIS region. The interview and summary has been captured below.
WP: The iGaming market has been growing fast since 2016. In 2013 operators enjoyed the seo traffic from affiliates and that was enough. In 2014 Russia’s regulator and media watchdog -Roskomnadzor (or RKN) – blocked gambling websites for the first time and gradually increased numbers of banned sites to thousands per year. As affiliates’ review websites got banned too on a regular basis, the industry started extensively scaling media buying. The CPA market boomed thanks to CPA deals in gambling that are significantly higher than in any other industry. It attracts affiliates from other niches and provides long-term growth. In 2019, the e-commerce market turnover in Russia accounted for about 28 Billion EUR, with Russia being listed among the top-five fastest growing online markets. (source). In a word, it is an attractive and competitive market, with over 100 Million online users.
WP: The online market is actively changing in terms of regulation and legislation, and this factor has a profound impact. Roskomnadzor made many international brands to exit the Russian market since 2014: 888, Bet365, Betsson, Bwin, Ladbrokes, Pinnacle, Unibet, William Hill, and others. Due to RKN bans, the volume of seo traffic was not stable and that resulted in boost of CPA marketing. More media buyers came to the niche and gambling affiliate programs began to learn how to evaluate and work with CPA traffic on a big scale.
WP: Doing business in Russia is still full of challenges coming from legal complexities and dominance of local players, so a company that wants to enter this market, should take it into account. You may have heard about one popular and practically haunting casino brand in Russia, I won’t mention it here. This casino made a bright and bold launch through integration with some pop celebrities on YouTube. At the same time, it made this brand very toxic and their domains get banned extremely often thus making it harder for affiliates to work with them. Reaching into affiliate community takes time as anywhere else, one needs to attend key affiliate conferences, offer good CPA and Revshare deals, launch new casino brands, provide weekly payments, and organise parties (yeah, Russian affiliates adore celebrating their success). Affiliate managers shall always be there to provide timely support.
WP: Affiliates want bigger deals, operators want better ‘playing’ traffic. Some of our affiliates tried their luck to be an operator, some have succeeded, the majority did not.
AI: How has your business established its brand and network during this period?
WP: We’ve been going since 2013. WelcomePartners is an embodiment of gambling in Russia thanks to our hard and truly devoted work of our employees. I think these 3 points are the key to why I think we have established ourselves as a leading network in this market:
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