Publication date: 10 Oct 2024
The gambling market sphere is wide, dynamic and offers a perspective for working with the traffic and making profits. Each region has its own peculiarities, rules of advertising activities, advantages and objective disadvantages, which must be taken into account in order to prevent a loss.
70% of further actions in preparation for sending traffic, the possible conversion rate, as well as the final profit of the advertising campaign depend on the correctly chosen region. Together with 3S.INFO we will analyze the main criteria we recommend to pay attention to when choosing a GEO for gambling.
GEO for gambling and betting: peculiarities and differences
In affiliate marketing, all countries in the world can be roughly divided into Tier 1, Tier 2 and Tier 3 regions. This division is based on certain factors: political and economic situation, activity and income of Internet users, purchasing power and interest in products and services offered on the Internet.
Tier 1 characteristics for gambling and betting operations
Tier 1 countries have a stable, developed economy and, as a result, high solvency of the target audience.
- All the basic needs of the user are met here due to the stability in most areas (general standard of living, health care, politics, economy). Therefore, the user spends more money for pleasure, but selectively;
- In Tier 1 regions, the user gambles or bets online, not in the hope of generating income, but more as a way to spend leisure time and get an adrenaline rush. Consequently, it is more difficult to attract the user. The focus should be on audience analysis, Spy services research, creative production, video clips, texts that would significantly attract and increase the conversion rate.
- Expanded pool of traffic sources due to high level of development of Internet coverage in the regions. It is possible to work with most available traffic sources (Facebook* Ads, Google Ads, Instagram*, TikTok, YoTube). *Facebook and Instagram are blocked in Russia by court decision.
- Variety and presence of various payment systems, absence of difficulties with payments or withdrawals;
- High competition and high cost of leads for affiliates: higher advertising budgets, higher risk of losing the budget;
- In addition to a well-developed economy, Tier 1 countries have detailed and clear legislation regulating gambling. Online casinos or bookmakers need to be licensed and comply with a large number of rules in order to attract new users. Moreover, the regulator is subject to penalties and technological capabilities for blocking.
Tier 1 countries in gambling and betting generally include Belgium, UK, Spain, Canada, Spain, USA, France, Sweden.
What to consider when choosing a Tier 2 GEO?
In Tier 2 countries, the economy is quite developed and the majority of residents have a stable income. However, the public is not yet spoiled by the abundance of offers and advertisements from bookmakers and online casinos.
When selecting a GEO from Tier 2, a deeper study of the audience is necessary to understand the user’s motivation for gambling or betting (excitement / leisure / hope to get rich) and to emphasize it in the creative;
Gambling regulation in Tier 3 countries is usually either already in place or under active development.
Some countries may ban casinos and bookmakers completely, others may allow them partially (e.g. only betting or only the offline sector).
Tier 2 countries include Brazil (read the article “How to promote online betting and gambling in Brazil”), Russia, Belarus, Turkey, Japan, UAE.
How to profit from gambling and betting by choosing Tier 3 regions for operations?
Tier 3 includes regions with significantly lower economic performance across all criteria. Given the relatively low standard of living, the gambling public is quite large. They are more receptive to advertising and willing to try new things. Despite their low income, Tier 3 players are an excellent audience for gambling and betting. They make small deposits and wagers, but play frequently and consistently.
The motivation of players, and therefore the production of creatives, is quite simple: they need income, “easy money”, as well as the desire for luxury and wealth.
Regulation in these countries varies: some have no regulation at all, others are just starting and are in a state of confusion.
Gambling regulation in the region. What does it affect?
Apart from the economic situation in the country and the solvency of the population, it is worth noting the level of gambling regulation in the country. This affects the complexity of working in the region: obtaining a license or the risks of working without one, complicated advertising rules, additional restrictions from the authorities.
Countries with strict regulations, where any operation of online casinos or bookmakers without a license is prohibited. Such countries can have very complex legislation, many prohibitions and restrictions for operators. Obtaining a license is an expensive process, and operating without one is extremely difficult and problematic. It is essential to thoroughly study the laws and rules of operation in the region if one is interested in long-term profits in this niche. If the rules are violated, an affiliate may be subject to certain penalties and sanctions: from the minimum – being banned and depleting the budget, to criminal liability. Apart from the legalization of the industry, you should focus on tax rates (usually they are much higher in such GEOs) and conditions that can directly affect monetization, as well as the amount of fines in a given country for possible violations of the law.
Countries with loyal regulation, where the authorities realize that betting and gambling is an income for the country’s budget and it should be supported. Getting a license and permission to work with gambling or betting is much easier. The risks for affiliates and players are reduced because the rules are transparent and well defined. Fewer restrictions mean fewer bans and site blocks.
Countries with evolving regulations. There are a number of regions where the status of gambling legality at the legislative level is still being considered and not fully defined. Thus, no law – no severe restrictions and blocking, no clear system of operation.
Countries without regulation or with regulation only “on paper”. There are fewer and fewer of them, since the gambling industry is quite lucrative, so the authorities want to control it. Nevertheless, it is possible to actively work and develop here.
GEO Target Audience: Who Gambles?
Before selecting a GEO, it is important to research the potential players and study the target audience in the region. Criteria to consider when assessing the potential target audience for gambling and betting in the region include
- Population size. The more people live in the region, the more traffic can be attracted and the more money can be made on volume.
- Average age of the population: younger people tend to gamble more and feel more comfortable online.
- Population’s ability to pay: large deposits and high rates are good, while smaller but stable payments are also great.
- Internet, its availability and speed. This point directly affects the ad format (how quickly they will load, mobile or desktop traffic to choose), creatives (video or static), the choice of site for advertising. There are also countries where certain social networks, messengers or advertising platforms are deliberately slowed down.
- There are also countries where gambling and betting are strictly forbidden for religious reasons. This is either a complete restriction on this activity, or a restriction for the period of religious holidays, fasting, etc.
Choosing the right GEO is one of the most important factors when working with gambling and betting. The complexity of the advertising campaign and attraction of new players to the sites of bookmakers and casinos depends on it. 3SNET provides offers for every GEO! Visit, join and drive traffic!
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