The subject of emerging markets in the igaming industry is often among the easiest to broach, while simultaneously being the most complex to examine at a more granular level. This is largely due to the fact that a given market’s potential can frequently be identified better than it can be understood. No market in the igaming industry currently fits this description better than that of sub-Saharan Africa.
Two key areas that highlight the region’s array of opportunities are those of affiliate marketing and mobile in-play betting. Closely linked by their reliance on creativity and collaboration, each allows for a more thoughtful exploration of how markets in Africa will drive evolution in technology, marketing strategy and regulation.
The role of affiliates
Prior to building a plan for entry into any of Africa’s growing markets, it is important to acknowledge that each will necessitate its own unique set of requirements, especially as they pertain to affiliates. That Africa’s status as a burgeoning igaming ecosystem is being elevated at the same time as the US market enters its next stage of evolution following the PASPA repeal, offers a convenient parallel.
The respective timelines for igaming in Africa and the US differ but each now finds itself in a position where its immediate future will largely be defined by technological advancements in mobile, the immense popularity of national sports and the implementation of a suitable marketing strategy. In these regards, affiliates are ideally placed to be vital partners and resources as individual brands and markets continue to grow.
Supporting evidence points to an increasing intent on the part of affiliates to partake in the continued growth of African markets moving forward. From the perspective of Income Access, where we conduct an annual survey across our network of affiliates, 2018 saw 19% of affiliate respondents select Africa from the list of regions in which they are considering promoting moving forward.
Another result from our survey suggests that a steadily growing number of affiliates are aligned with key areas of interest within Africa’s igaming landscape. When asked about which verticals they would consider for future promotional activities, survey respondents made esports and sportsbook the top two selections with 34% and 31%, respectively.
The popularity of football and the corresponding potential it delivers to sportsbooks in African markets cannot be overstated. In the case of esports the growth is more gradual, yet still promising enough to serve as an indicator of likely opportunities ahead. The fact that Multichoice Africa, a South African-based video entertainment company, launched a dedicated esports channel – GINX Esports TV – on its DStv network last year suggests as much.
The significance of affiliates’ willingness to participate in the market is important, not just for their ability to expand the scope of a brand’s messaging but also their ability to segment and adapt to an array of market influences. In many ways, it’s as simple as understanding that a strategy that appeals to one audience will not necessarily appeal to the next.
Mobile & in-play betting
Two important product features that any brand striving for success within the African market should be mindful of are mobility and flexibility. The significance of these features, however, extends beyond gaming experiences to reflect broader social traits and routines inherent in the daily lives of those engaging with the product. Given these influences, in-play betting through mobile devices serves as an optimal solution, aligned with numerous market factors.
Sarafina Wolde Gabriel is VP of strategy at Paysafe Group’s Income Access. She focuses on growing Income Access and driving the evolution of the company’s suite of products and services and has over a decade of igaming industry experience.
An April 2018 report entitled ‘Africa – Mobile Network Operators and MVNOs’, which was produced by BuddeComm, a global independent telecommunications research and consultancy company, offers timely insights on the current state of Africa’s mobile market. For example, because of sub-par fixed-line infrastructure across many regional markets, “between 95% and 99% of all internet connections” are through mobile internet.
The report also highlights the degree of sophistication with which consumers manage their mobile subscriptions, with 99% of all subscribers using prepaid accounts that are more economically viable than standard contract plans. As a larger percentage of the continent’s population is now able to afford mobile services, it has “led to a steady increase in the subscriber base”. These points further inform relevant stakeholders of the uniqueness of the region’s mobile market and the importance of flexibility.
Moreover, not only does this make in-play betting well-suited for Africa but it also positions it to benefit from growing global demand. Revisiting the earlier comparison with the United States, a market still in its in-play infancy, it will be important to monitor ongoing developments, particularly in tech as well as regulation and M&A.
From a global M&A perspective, it was only in early October that Scientific Games, as a follow-up to its previously announced partnership with Caesars Entertainment, acquired Don Best, a supplier of real-time betting data and pricing for North American sporting events. On the tech side, the impact of data science and machine learning are already having a notable impact on product development; the continuation of that trend seems all but inevitable.
The influence of similar undertakings and initiatives will ultimately impact the in-play gaming experience of end customers in African markets. The question is at what rate.
As the ecosystem is built for those with an entrepreneurial drive, an infusion of inspired problem-solving and product development at the local level is also expected. It’s at this level that strategists, developers and even regulators possess a more comprehensive understanding of market intricacies and how in-play can engage segmented audiences through unique selling points, tailored user experiences and an appreciation of the diverse behaviours of those varied audiences.
The cross-section where affiliate marketing and mobile in-play meet is relatively easy to identify. In our 2018 survey, 75% of respondents said that they have a mobile-optimised site, with 21% of these having a complementary app. When assessing the online marketing acumen of these affiliates alongside the grassroots innovation inherent to the African market, we see that lucrative collaborations are not only possible – they’re inevitable.