The resurgence of Media Buying?

[Greg]

I've been observing a new 'old' trend over the last few weeks and wanted to share it for some feedback. In 2009 I could count on one hand the amount of times I was asked about a media placement (outside PAL/CAL). It was an unsure market and there were changes, mergers and programs shutting their doors every month. For many of us this meant one thing, ask for a CPA. In the affiliate manager shoes we all say, 'No way, can we offer you a revenue share' and then proceed to sell the dream of lifelong commissions. Flashback May 2009, not many people were sold on the idea with a new program. Now it seems we're a little more normal again. Aside from news happening with domains in Kentucky and getting passed MasterCard, business seems to be pretty much average with the last 3-4 years. Yeah, I think it's OK to take a rev share model again. (unless you're doing PPC)

These past month I've received 10+ emails from affiliates asking me about 'advertising' on their site. This used to be very common, but like I said above, died off some last year. Is media buying making a resurgence?

The question is for affiliate managers and webmasters alike, are you offering to sell/buy more fixed media and if so - what types? I've got offered banners, email blasts, video blogging and even some merchandise give aways. What are you seeing?

[casinobonusguy]

we do not do any media buys anymore but we do require a setup cost when we take on new programs.

[simoneaton]

Sadly some affiliates do feel their website deserves a media spend and straight away this is a warning flag to me as if they need us to pay for media it means only one thing and that is they can not deliver the value of players required.

There are a handful of websites which are ok to ask for this but the rest should stick with affiliate deals as this is fair for both sides.

[Randy Ray]

Media deals are much more fair than an affiliate deal. In a media buy, the program agrees to an amount and the webmaster agrees to an amount. There's no dispute at that point; if the program doesn't think the media deal is worth it, then they can say no, thanks.

On the other hand, in an affiliate deal, an affiliates get paid whatever the affiliate program tells the webmaster he made. (The affiliate program does provide the reporting, after all.) That sounds pretty one-sided to me.

[Greg]

This is going to be the crux of the argument and why some programs (and some affiliates) will never be able to work together on a media buy arrangement. What CasinoBonusGuys said earlier is definitely the exception to the rule, a pre-paid traffic arrangement. For her, and I can personally testify to this, the traffic is very good and she's an honest partner. As for what Simon was saying, yeah - this is usually a red flag that something is not right.

However, RandyRay (in his infinite wisdom) makes a solid point that there are clear expectations on both sides. Providing that an affiliate can show honestly what his traffic is and possibly some track record on how other programs have done, this is a great model for some. Media Buying will never over-take standard affiliate deals but they are a topic definitely worth discussing.

[LadyHoldem]

I only mess with big well known sites and media buys. It's an advertising sale, wherein my website offers you players as well as brand recognition. I don't take risks on even mid-level sites anymore.

[321]

There are a handful of websites which are ok to ask for this but the rest should stick with affiliate deals as this is fair for both sides.

Media buys require an agreement between two parties.

In affiliate deals, the affiliate must agree to the destination's terms, which the destination can change at any time.

The idea that this is "fair" is pretty far-fetched. Sure, no one forces an affiliate to make a deal, but by any reasonable measure an affiliate deal is "less fair" than a media deal. That is an absolute.

Affiliate deals are fundementally unfairly skewed in favor of the destination site. Media buys empower the affiliate while not dis-empowering the destination site. The poker affiliate business is so screwed up largely because affiliates swallowed the kool-aid from the casino side of the business that "one-sided power" somehow equals "fair".

[Stephen]

Interesting discussion.

I have also had an above average number of sites asking for fixed media deals. 90% of the time it will never happen, usually because these webmasters over-estimate the value of their traffic.

Media deals are normally based on something, be it impressions, clicks, or sign ups, and when they ask for $300 for one banner, the value is nowhere near worth it.

Unlike most sites, we dont shun away from CPA and have no issues with them. I usually run whenever someone says that a banner costs $500 for 6 months. Usually it ends up throwing the money away.

[LadyHoldem]

Interesting discussion.

I have also had an above average number of sites asking for fixed media deals. 90% of the time it will never happen, usually because these webmasters over-estimate the value of their traffic.

Media deals are normally based on something, be it impressions, clicks, or sign ups, and when they ask for $300 for one banner, the value is nowhere near worth it.

Unlike most sites, we dont shun away from CPA and have no issues with them. I usually run whenever someone says that a banner costs $500 for 6 months. Usually it ends up throwing the money away.

In this example, if Google hadn't made it 'illegal' selling a link would be more lucrative than selling a banner on a high pr content heavy site.

[Mike123]

Well, one thing to factor in now in the poker world is branding effect.

What if most of your players have an account with the poker room already? Under an affiliate model, advertising that site is worthless. Why should I bother increasing their player value when I don't get paid for it by advertising some random promotion of theirs?

Also, nowadays, there's so much affiliate theft, whether it's whose cookie overrides whose, and losing your player to some rakeback/gift giving site even though you did the legwork advertising their poker room to peak the players interest in the first place.