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.
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.
| Aspect | Performance Marketing | Digital Marketing (Broad) |
|---|---|---|
| Primary Focus | ROI-driven, measurable results | Brand awareness, engagement, relationships |
| Payment Model | Pay for actions (CPD, CPA, CPM, CPC) | Various (organic, paid, hybrid) |
| Timeframe | Short-term, immediate results | Long-term, sustained growth |
| Risk Level | Lower risk, predictable outcomes | Higher risk, less predictable |
| Key Metrics | CPD, CPA, ROAS, LTV, payback period, FTD rate | Traffic, engagement, brand lift, sentiment |
| Gaming Example | Affiliate campaign paying $150 per first-time depositor | Building a community forum, creating responsible gambling content |
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
| Channel | Best For | Pricing Model |
|---|---|---|
| Affiliate Networks | Performance-based partnerships, review sites, comparison portals | CPA, CPD, Revenue Share |
| Google Ads (Search & Display) | High-intent searches, brand terms, competitor targeting | CPC, CPA (where regulations allow) |
| Facebook/Instagram (Meta) | Broad reach, detailed targeting, video creatives (where compliant) | CPC, CPM (subject to gambling ad policies) |
| Sports Media & Publishers | Sports betting audience, contextual relevance, brand safety | CPM, CPC, sponsorship deals |
| Programmatic Display | Scale, retargeting, audience targeting across premium inventory | CPM, CPC |
| Native Advertising | Content integration, editorial placements, less intrusive | CPM, 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 Model | How It Works | Best For |
|---|---|---|
| CPA (Cost Per Acquisition) | Fixed payment per qualified registration | Predictable costs, easy tracking |
| CPD (Cost Per Deposit) | Fixed payment per first-time depositor | Quality focus, aligned with FTD goals |
| Revenue Share | Percentage of NGR generated by referred players (typically 25-40%) | Long-term partnerships, high-quality affiliates |
| Hybrid | Upfront CPA/CPD + ongoing revenue share | Balancing short-term and long-term incentives |
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.
| Metric | Definition | Why It Matters |
|---|---|---|
| CPD (Cost Per Deposit) | Total ad spend ÷ number of first-time depositors | Primary acquisition efficiency metric; must be lower than LTV for profitability |
| CPA (Cost Per Acquisition) | Total ad spend ÷ number of qualified registrations | Measures top-of-funnel efficiency before deposit conversion |
| FTD Rate | (First-time depositors ÷ registrations) × 100 | Critical conversion metric showing registration-to-deposit efficiency |
| CTR (Click-Through Rate) | (Clicks ÷ impressions) × 100 | Indicates ad relevance and appeal to target audience |
| CVR (Conversion Rate) | (Registrations ÷ clicks) × 100 | Measures landing page effectiveness and targeting quality |
| ROAS (Return on Ad Spend) | Revenue from ads ÷ ad spend | Overall campaign profitability; ROAS > 1 means profitable |
| D1/D7/D30 ROAS | NGR at day 1/7/30 ÷ CPD | Early performance indicators for campaign optimisation |
| LTV (Lifetime Value) | Total NGR per player over their lifetime | Determines maximum sustainable CPD; goal is LTV > CPD |
| Payback Period | Days until cumulative NGR equals CPD | Cash flow management; shorter payback = faster reinvestment |
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.
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.
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.
| Vertical | Typical CPD Range | Key Acquisition Channels | Optimisation Focus |
|---|---|---|---|
| Sports Betting | $80-$200 | Affiliates, sports media, search, social (where allowed) | Event-based campaigns, competitive odds messaging, live betting features |
| Online Casino | $100-$250 | Affiliates, comparison sites, display, native advertising | Bonus size and wagering requirements, game variety, payment speed |
| Poker | $150-$350 | Poker communities, training sites, Twitch streamers, affiliates | Tournament schedules, rakeback offers, player liquidity, software quality |
| Slots/Bingo | $60-$150 | Affiliates, social media, display, native advertising | Aggressive performance marketing with higher acceptable CPD |
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.