Performance Marketing

Performance marketing is a results-driven approach where Gaming companies pay only for specific, measurable actions—such as registrations, first-time deposits (FTD), or qualified player acquisitions. Unlike traditional digital marketing that focuses on brand awareness and long-term engagement, performance marketing prioritises immediate, trackable outcomes with clear ROI attribution. For Gaming operators, this means optimizing every dollar spent on player acquisition to maximise player lifetime value and minimise customer acquisition costs.

Performance Marketing vs Digital Marketing

While performance marketing is a subset of digital marketing, understanding the distinction is crucial for Gaming marketers. Digital marketing encompasses all online marketing activities (SEO, content marketing, social media, email), while performance marketing specifically refers to campaigns where payment is tied to measurable actions.

AspectPerformance MarketingDigital Marketing (Broad)
Primary FocusROI-driven, measurable resultsBrand awareness, engagement, relationships
Payment ModelPay for actions (CPD, CPA, CPM, CPC)Various (organic, paid, hybrid)
TimeframeShort-term, immediate resultsLong-term, sustained growth
Risk LevelLower risk, predictable outcomesHigher risk, less predictable
Key MetricsCPD, CPA, ROAS, LTV, payback period, FTD rateTraffic, engagement, brand lift, sentiment
Gaming ExampleAffiliate campaign paying $150 per first-time depositorBuilding a community forum, creating responsible gambling content
Performance Marketing Channels for Gaming

Gaming operators leverage specialized performance marketing channels optimised for player acquisition and monetisation. Each channel offers unique targeting capabilities, creative formats, and measurement approaches tailored to online gambling regulations and player behavior.

Player Acquisition (PA) Networks

ChannelBest ForPricing Model
Affiliate NetworksPerformance-based partnerships, review sites, comparison portalsCPA, CPD, Revenue Share
Google Ads (Search & Display)High-intent searches, brand terms, competitor targetingCPC, CPA (where regulations allow)
Facebook/Instagram (Meta)Broad reach, detailed targeting, video creatives (where compliant)CPC, CPM (subject to gambling ad policies)
Sports Media & PublishersSports betting audience, contextual relevance, brand safetyCPM, CPC, sponsorship deals
Programmatic DisplayScale, retargeting, audience targeting across premium inventoryCPM, CPC
Native AdvertisingContent integration, editorial placements, less intrusiveCPM, CPC

Affiliate Marketing Structures

Affiliate marketing is particularly important in Gaming due to regulatory restrictions on direct advertising in many jurisdictions. Affiliates operate review sites, comparison portals, tipster communities, and bonus aggregators that drive high-intent traffic.

Commission ModelHow It WorksBest For
CPA (Cost Per Acquisition)Fixed payment per qualified registrationPredictable costs, easy tracking
CPD (Cost Per Deposit)Fixed payment per first-time depositorQuality focus, aligned with FTD goals
Revenue SharePercentage of NGR generated by referred players (typically 25-40%)Long-term partnerships, high-quality affiliates
HybridUpfront CPA/CPD + ongoing revenue shareBalancing short-term and long-term incentives
Key Performance Marketing Metrics for Gaming

Gaming performance marketing success depends on tracking the right metrics at every stage of the player lifecycle. These KPIs help optimise campaigns, allocate budget efficiently, and maximise return on ad spend while ensuring regulatory compliance.

MetricDefinitionWhy It Matters
CPD (Cost Per Deposit)Total ad spend ÷ number of first-time depositorsPrimary acquisition efficiency metric; must be lower than LTV for profitability
CPA (Cost Per Acquisition)Total ad spend ÷ number of qualified registrationsMeasures top-of-funnel efficiency before deposit conversion
FTD Rate(First-time depositors ÷ registrations) × 100Critical conversion metric showing registration-to-deposit efficiency
CTR (Click-Through Rate)(Clicks ÷ impressions) × 100Indicates ad relevance and appeal to target audience
CVR (Conversion Rate)(Registrations ÷ clicks) × 100Measures landing page effectiveness and targeting quality
ROAS (Return on Ad Spend)Revenue from ads ÷ ad spendOverall campaign profitability; ROAS > 1 means profitable
D1/D7/D30 ROASNGR at day 1/7/30 ÷ CPDEarly performance indicators for campaign optimisation
LTV (Lifetime Value)Total NGR per player over their lifetimeDetermines maximum sustainable CPD; goal is LTV > CPD
Payback PeriodDays until cumulative NGR equals CPDCash flow management; shorter payback = faster reinvestment
Performance Marketing Strategies for Gaming

1. Creative Testing & Optimisation

Continuously A/B test ad creatives (video, static, native) to identify highest-performing variants within regulatory constraints. Test different hooks, game showcases, bonus messaging, and calls-to-action. Winning creatives should be scaled while underperformers are paused. Ensure all creatives comply with local gambling advertising regulations and include responsible gambling messaging where required.

2. Cohort-Based Budget Allocation

Analyze performance by player cohort (registration date, channel, creative, geo) to identify high-LTV segments. Allocate more budget to channels and creatives that drive players with strong deposit frequency and monetisation. Pause or reduce spend on cohorts with poor retention or low ROAS. Pay particular attention to geo-specific performance due to regulatory and cultural differences.

3. Incrementality Testing

Run geo-holdout tests or randomized controlled trials to measure true incremental lift from campaigns. Not all registrations are incremental—some players would have found your site organically. Understanding incrementality prevents over-attribution and wasted spend on campaigns that don't drive true growth. This is especially important when evaluating affiliate vs. direct channels.

4. Automated Bidding & Machine Learning

Where available and compliant, leverage platform algorithms that optimise toward your target CPD or ROAS. Feed conversion events (registrations, FTDs, qualified players) back to ad platforms to improve targeting. Machine learning can identify high-value players more efficiently than manual targeting, though gambling ad restrictions may limit available optimisation features.

5. Retargeting & Re-Engagement

Create performance campaigns targeting lapsed players (7+ days inactive) with special offers, reload bonuses, or new game launches. Retargeting typically has lower CPD and higher conversion rates than cold acquisition. Use email, push notifications, and display retargeting to bring players back. Ensure all reactivation messaging complies with responsible gambling guidelines.

6. Affiliate Relationship Management

Build strong relationships with high-performing affiliates through competitive commission structures, exclusive bonuses, and dedicated support. Top affiliates can drive significant volume of high-quality players. Monitor affiliate traffic quality closely to prevent fraud and bonus abuse. Consider tiered commission structures that reward affiliates for player quality, not just volume.

7. Geo-Specific Optimisation

Different regions have vastly different CPD, LTV, and ROAS profiles due to regulatory environments, competition, and player behavior. Licensed markets (UK, Malta, New Jersey) have higher CPD but also higher LTV and regulatory protection. Emerging markets may have lower CPD but require different payment methods and bonus structures. Optimize bids, creative, and offers by geo for maximum efficiency.

Performance Marketing Best Practices

Set Clear KPI Targets

Define target CPD, FTD rate, D7 ROAS, and payback period before launching campaigns. Without clear targets, you can't determine if a campaign is successful. Targets should be based on your player LTV curve, vertical (sports betting vs. casino vs. poker), and regulatory environment.

Implement Robust Attribution

Use tracking platforms and affiliate networks that accurately attribute registrations and FTDs to specific campaigns. Proper attribution is essential for calculating true ROAS and optimizing budget allocation. Implement server-side tracking where possible to avoid cookie-blocking issues. Track both last-click and multi-touch attribution to understand the full player journey.

Balance Scale and Efficiency

Don't optimise purely for lowest CPD—you may sacrifice scale. Find the optimal CPD where you can acquire sufficient volume while maintaining positive ROAS. Scaling often requires accepting slightly higher CPD to reach broader audiences. Monitor both efficiency metrics (CPD, ROAS) and volume metrics (FTDs, active players) simultaneously.

Prioritize Compliance

Ensure all performance marketing campaigns comply with local gambling advertising regulations. This includes age restrictions, responsible gambling messaging, bonus terms transparency, and prohibited targeting (minors, self-excluded players, vulnerable groups). Non-compliance can result in fines, license suspension, and reputational damage that far outweigh any short-term acquisition gains.

Monitor Fraud and Bonus Abuse

Implement fraud detection systems to identify suspicious registration patterns, duplicate accounts, and bonus abuse. Work with affiliates to prevent incentivized traffic and click farms. Track player quality metrics (deposit rate, average deposit value, churn rate) by source to identify low-quality channels. High registration volume with low FTD rates often indicates fraud or poor traffic quality.

Test and Iterate Continuously

Performance marketing requires constant optimisation. Test new channels, creatives, landing pages, bonus offers, and targeting strategies regularly. What works today may not work tomorrow as competition increases and player behavior evolves. Maintain a structured testing roadmap and document learnings to build institutional knowledge.

Performance Marketing by Gaming Vertical

Different Gaming verticals (sports betting, casino, poker, slots) have distinct player acquisition dynamics, metrics, and strategies. Understanding these differences is crucial for effective performance marketing.

VerticalTypical CPD RangeKey Acquisition ChannelsOptimisation Focus
Sports Betting$80-$200Affiliates, sports media, search, social (where allowed)Event-based campaigns, competitive odds messaging, live betting features
Online Casino$100-$250Affiliates, comparison sites, display, native advertisingBonus size and wagering requirements, game variety, payment speed
Poker$150-$350Poker communities, training sites, Twitch streamers, affiliatesTournament schedules, rakeback offers, player liquidity, software quality
Slots/Bingo$60-$150Affiliates, social media, display, native advertisingAggressive performance marketing with higher acceptable CPD
Measuring Performance Marketing Success

Success in Gaming performance marketing requires tracking both short-term efficiency metrics and long-term profitability indicators. Monitor these key areas:

Acquisition Efficiency

Track CPD, CPA, FTD rate, and registration-to-deposit conversion rate by channel, creative, and geo. Identify which sources deliver the lowest cost per quality player.

Player Quality

Measure average FTD amount, deposit frequency, GGR per player, and retention rates (D1/D7/D30) by acquisition source. High-volume channels with low player quality may not be profitable despite low CPD.

Profitability

Calculate ROAS, LTV:CPD ratio, and payback period for each channel. Ensure you're measuring true profitability by including all costs (platform fees, bonuses, payment processing, customer support) in your calculations.

Compliance & Risk

Monitor fraud rates, bonus abuse rates, chargebacks, and self-exclusion rates by source. Track compliance with advertising regulations and responsible gambling requirements. High-risk traffic can result in regulatory penalties and license issues.