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Affiliate Marketing in LatAm - Strategies That Work

Dive into affiliate marketing in LATAM: strategies, verticals, success stories, and trends.
Affiliate Marketing in LatAm - Strategies That Work

To effectively connect with the Latin American audience, many advertisers in the iGaming industry are increasingly choosing to launch affiliate programs in this region. If you are one of them, it is essential to gain a better understanding of affiliate marketing in Latin America.

Affiliate marketing can enhance your brand awareness and ROI. By strategically defining the commissions for their affiliates, advertisers can expand the reach of their marketing campaigns with minimal initial risk, only paying when a goal is achieved.

This article will explore the competitive landscape and various industry sectors, investigating the most promising areas for LATAM in terms of affiliate marketing. We will also analyse how brands are achieving success in the region and uncover the most effective marketing strategies in Latin America, among other insights.

Here, we have compiled essential information to help you stay ahead of the competition and elevate your business. Let's dive in and discover the key elements that can propel your business to the next level.

Why Affiliate Marketing Has Become So Important in LATAM

In the affiliate industry, advertisers incur costs for verified impressions or conversions, eliminating expenses associated with irrelevant or ineffective ads. Thus, teaming up with affiliates will help your businesses in different ways.

Essentially, affiliate marketing is a type of performance-based marketing in which a business rewards its affiliates for each customer brought or desired action by the affiliate’s marketing efforts.

Let's consider who is involved in the affiliate marketing process: the merchant, also known as the retailer or brand, and the offers for the affiliate, which each brand, the affiliate, and the customer created.

The success of affiliate networks and marketers hinges on their ability to drive relevant traffic to their advertiser clients. Evaluating quality goes beyond gut feelings or educated speculation; instead, it necessitates sophisticated tracking technologies, such as click-throughs, app downloads, and conversions, to validate the value of ad traffic affiliates provide.

However, this task becomes challenging as campaigns generate escalating volumes of data and traverse various touchpoints, ranging from social media and mobile apps to coupon and review sites.

LATAM-Countries
Source: https://blog.rollerads.com/2023/06/21/latam-el-dorado-of-affiliate-marketing/

What Are the Most Promising Affiliate Marketing Verticals In LATAM?

Latin America's affiliate marketing scene has witnessed a thriving digital marketplace, encompassing countries in Central and South America, as well as the Caribbean. As a result, Latin America now holds a 2% share of the global digital ad market, amounting to a substantial $11 billion. The best part is that ad prices remain moderate here, and the market is not yet overly saturated.

Speaking regionally, in Brazil, affiliate marketing is substantial. The country stands as one of the largest consumer markets for this industry globally, boasting an overall population of over 220 million as of 2021. Brazil is also considered the leading ad market in Latin America and one of the world’s largest ad markets, having generated an ad revenue of 12.5 million US dollars in 2019.

Mexico is another country in LATAM experiencing growth in the affiliate marketing industry. According to a report by Statista, this industry in Mexico is expected to grow by 10.4% annually from 2021 to 2025. Additionally, Colombia is a country in LATAM with expanding opportunities for affiliates and brands interested in the market. According to a report by Statista, affiliate marketing in Colombia is anticipated to grow by 9.5% annually from 2021 to 2025.

Most promising affiliate marketing verticals in LATAM:

E-commerce or e-shops:

E-commerce stands out as one of the most promising affiliate marketing verticals in Latin America. According to a report by Statista, the e-commerce market in Latin America is projected to grow by 19.4% annually from 2021 to 2025. E-commerce platforms such as Amazon, Mercado Libre, and Linio are popular in the region.

Health and wellness:

Health and wellness represent another promising vertical in Latin America. According to a report by Statista, the health and wellness market in Latin America is expected to grow by 7.8% annually from 2021 to 2025. The region's growing middle class, increasingly health-conscious, presents an opportunity for affiliates to promote health and wellness products.

iGaming:

iGaming emerges as one of the most promising affiliate marketing verticals in Latin America. According to a recent report by Converting Team, Latin America is a significant and lucrative territory for gaming offers. The report highlights high stakes and substantial earnings, emphasising the importance of not missing unique offers in profitable GEOs.

The most profitable LATAM regions for iGaming in 2022 include Brazil, Peru, and Chile. Brazil alone has more than 207.3 million people, making it the sixth most populous country in the world. Additionally, the official Spanish language in the region facilitates the production and localization of creatives. With the right strategy and approach, affiliates can generate substantial profits from gaming offers in Latin America.

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Source: Statista

The Most Effective Affiliate Marketing Strategies for iGaming in LATAM

As affiliate marketing rapidly expands in Latin America, we can observe the evolving trends that are shaping the industry. Here are some of the latest trends and most promising verticals in affiliate marketing in LATAM: Influencer Marketing:

The collaboration between LATAM casinos and influencers often involves a strategic partnership where influencers promote the casino's brand, games, or promotions to their followers.

Mobile-First Approach:

With the increasing number of mobile users in Latin America, affiliate marketers are focusing on mobile-first strategies to reach a wider audience. For instance, mobile apps and mobile-optimised websites are becoming increasingly popular in the region.

Affiliate Marketing Programs:

Many casinos, including those in LATAM, operate affiliate marketing programs. Influencers can join these programs to become affiliates. They receive a unique affiliate link, and they earn a commission for every player who clicks on their link and signs up or makes a deposit.

Video Content:

Video content is becoming an increasingly popular marketing strategy in Latin America, and affiliate marketers are leveraging this trend to create engaging content that resonates with their target audience. Video content can be used to showcase products and services, provide tutorials, and share testimonials from satisfied customers.

Social Media Marketing:

Social media platforms such as Facebook, Instagram, and Twitter are widely used in Latin America, and affiliate marketers are using these platforms to reach out to their target audience. Social media marketing can be used to promote products and services, build brand awareness, and engage with customers.

Programmatic Advertising:

Programmatic advertising is gaining popularity in Latin America as it allows advertisers to target their audience more effectively and efficiently. Programmatic advertising uses algorithms to automate the buying and selling of ad inventory in real time.

Sponsored Content:

Influencers may create sponsored content that features the casino. This could include review videos, live streams, or social media posts showcasing the casino's games, features, and promotions. Sponsored content is often compensated either through a flat fee or a combination of a fee and performance-based incentives. Exclusive Promotions and Bonuses:

Casinos may collaborate with influencers to offer exclusive promotions or bonuses to the influencer's audience. This could include special codes or links that provide the influencer's followers with unique benefits when they sign up or make a deposit.

Live Streaming:

Many influencers, particularly in the gaming and casino niche, engage in live streaming. Casinos may partner with influencers for live streaming sessions where they play casino games, interact with viewers, and promote the casino during the stream.

Event Collaborations:

Influencers might be invited to attend or host events organized by the casino, such as game launches, tournaments, or special promotions. These events provide opportunities for influencers to create engaging content and connect with their audience.

Branded Giveaways:

Collaborations could involve influencers hosting giveaways sponsored by the casino. This encourages audience participation, increases brand awareness, and attracts new players to the casino platform.

Gambling:

The inclination to gamble and the desire to make "a lot of money at once" are common traits for most people, and Brazilians are no exception. However, it's not advisable to create creatives with offers to earn money. In Brazil, ads featuring entertainment, bonuses, new and popular slots, tournaments, etc., tend to perform well. Also, don't forget to use creatives with jackpots and success stories. It's just a matter of presenting them correctly.

Betting:

Football, volleyball, MMA, basketball, tennis, Formula 1, and motorsports are the most popular sports in Brazil. Therefore, it's worth using them in your creatives. Additionally, news headlines, upcoming match announcements, betting tips, and well-known athletes can work well.

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Examples of iGaming advertising in LATAM.

How iGaming Brands are Succeeding in LATAM

Brazil is one of the countries with the most opportunities for advertisers who want to start an affiliate program in the iGaming sector. To illustrate this, let's now take a closer look at a real example of how one brand boosted its results.

In a strategic move to boost clicks and registrations for online casinos featured on SlotsCalendar, a three-month campaign targeting the Brazilian market through Facebook unfolded. This initiative played a pivotal role in expanding SlotsCalendar's digital presence and connecting with the vibrant Brazilian gaming community.

Campaign Overview

With a generous €60,000 budget allocated over three months, SlotsCalendar executed a Facebook campaign. Operating on an unrestricted account, the seasoned platform made weekly budget adjustments based on performance metrics, with conversion rates and ROI serving as critical benchmarks. This adaptive strategy enabled real-time spending optimization throughout the campaign.

Target Audience and Market Research

Recognizing that general player demographics remain consistent globally, the key to success lies in resonating with specific audiences. SlotsCalendar's campaign in Brazil thrived on a profound cultural understanding. This insight informed our strategy, aligning messaging and targeting with the unique preferences and behaviours of Brazilian users.

Ad Creative and Messaging

Local expertise played a vital role in crafting ad creatives, incorporating Brazilian slang for enhanced relatability. SlotsCalendar spotlighted popular local games, revealing that no deposit bonuses during registration outperformed traditional welcome offers. The robust recognition of the promoted brands further underscored the importance of brand trust in the campaign's success.

Targeting and Optimization Strategies

A rigorous testing and optimization approach characterised the campaign. The initial month dedicated 20% of the budget to testing, followed by a 30% allocation for optimization in the second month. In the final month, strategically deployed 50% of the budget toward high-performance strategies. From 200 creative variants showcasing 50 bonuses from 20 brands, our focus narrowed to the top four operators, maximising budget efficiency and campaign impact.

Results and Analytics

The campaign yielded an impressive outcome, generating over 250,000 clicks and 40,000 registrations for SlotsCalendar partners. The top four operators accounted for over 70% of these figures, showcasing the effectiveness of our targeted approach in the high-volume Brazilian market. Despite lower individual player value and conversion rates from registrations to first-time deposits, the campaign in Brazil mirrored success in other markets with specific adaptations.

While Brazil presented lower costs and player value, the substantial volume contributed significantly to overall success. An intriguing observation was the elevated rate of newsletter subscriptions, translating, however, to lower-than-expected conversions. The SlotsCalendar campaign in Brazil underscores the nuanced approach required for success in diverse markets.

How can marketers stay ahead?

Marketing providers in Latin America can stay ahead of the curve by utilising cutting-edge tracking technology as the region's digital advertising market grows and changes.

Enhanced monitoring enables organisations, networks, and linked categories of companies to:

• Gain a deeper comprehension of campaign performance • Handle partner and client relationships effectively. • Automate payments and address problems with quality such as Bot fraud and cookie stuffing

Above all, though, sophisticated tracking provides the influence of openness and data-driven decision-making affiliate marketing, assisting suppliers in surpassing their client's expectations, adjusting to circumstances, and eventually developing and prospering in the digital advertising market of Latin America.

Challenges and Opportunities for Affiliate Marketing

Challenges

Affiliate marketers are partners that mediate the relationship with brands and potential audiences. As such, their primary concern will always be a matter of how to bring more traffic that converts to said brand. As an example from the iGaming industry, conversion means to either acquire and utilise a certain bonus/promotion or to jump straight to depositing cash. If successful, the affiliate receives a commission.

There are two types of bonuses that the brands usually give out: "deposit" and "no deposit". For slot machines found in casinos, these are also called "free spins". Herein lies the most common challenge. Most people, either new or returning, will almost never engage with depositing cash.

Moreover, for them, these promotional offers are but free money to play with. A severe amount of players will take advantage of these and only play when they can get a bonus; otherwise, they won't. In the gambling community this is commonly referred to as "bonus laundering".

To overcome this challenge, an affiliate has to achieve the following:

• Communicate with the brand on how to advertise promotions that give out just the right amount, but not too much. The right amount can be defined as enough to show the full capabilities of the casino/sportsbook one time.

• Write very good descriptions of the brand and what they have to offer.

• Make it convenient to see the full scope of promotions available and help players get to their destination, upon choosing.

• Be a trusted source of information.

Another common issue is that of player retention. Gambling is a type of addiction that the World Health Organisation officially recognises as a health concern, akin in severity to adultery and drug abuse. As bad as this sounds, the gambling industry relies on this to make stupendous profits.

Affiliates, in turn, find themselves concerned with how to take advantage of people who are already hooked, and get hooked those who yet aren't. For this, they need to get creative.

One of the most popular techniques, by means of which they achieve their goals, is taking advantage of something called "the hive mind". Note that the gambling industry is not the only one using this, as eCommerce is another field that utilises it. All that has to be done is to convince a non-hooked visitor that millions of people are already playing in said casino or bookie, and the hive mind will take effect.

However, there are multiple factors that account for the final decision. For Latin America in particular, these can be:

Regulatory & legal: different countries in LATAM have varying regulations regarding online gambling, and these regulations can change frequently. Navigating through a complex and evolving regulatory landscape poses a significant challenge for iGaming affiliates. Some countries in LatAm may have legal restrictions or prohibitions on online gambling. This can limit the scope and opportunities for iGaming affiliates to operate in certain regions.

Payment processing related: it can be challenging in regions where financial systems are not as developed or where there are restrictions on online transactions. This can affect the ease with which players can make deposits and withdrawals, impacting both the iGaming operators and their affiliates.

Cultural and language differences: the continent consists of diverse countries, some vastly different. Tailoring marketing strategies to resonate with various audiences while overcoming language barriers can be a hurdle for iGaming affiliates.

Lack of awareness & competition: in some regions, there might be a lack of awareness or understanding about online gambling. This can make it difficult for iGaming affiliates to attract and educate potential players. The market in LatAm is growing, and as a result, the competition among affiliates is increasing. Standing out in a crowded market and acquiring a share of the audience can be challenging.

Technology infrastructure: access to stable and high-speed internet can vary across different parts of the LatAm region. This can impact the user experience for players and the effectiveness of online marketing strategies in LATAM.

Customer trust and security: establishing trust in online gambling platforms is crucial. Concerns about security, fair play, and the legitimacy of iGaming operators are barriers that affiliates need to overcome.

Economic factors & taxation: economic conditions in some LatAm countries may affect the disposable income of potential players, influencing their participation in online gambling activities. Taxation policies for online gambling vary, and affiliates may face challenges related to tax compliance and reporting.

Ultimately, affiliates that base their conduct on data, adapting and adjusting to the local environment, are the ones to come on top.

Opportunities

The most obvious observation here is the fact that the LatAm market consists of a fresh audience, hence why it is such a hotspot. As of December 2023, the 33 countries comprising this part of the world have surpassed a collective population of 667 million (including Mexico, Central America and The Caribbean). It is a growing and vibrant place with great promise.

The regulatory environment is perhaps the primary catalyst that draws attention. The legal status of online gambling can vary widely across the different constituent countries, and regulatory changes impact the industry. Affiliates are obliged to stay informed about the latest regulations. They are, needless to say, currently quite dynamic.

An interesting approach to achieving goals is creating localised content, such that is culturally and linguistically relevant. By tailoring marketing strategies and materials to the specific preferences and nuances of each target market within the region, an affiliate can predispose the audience.

Consideration for the preferred payment methods in each country will enhance user experience, thus increasing conversions.

Joining reputable affiliate programs can also provide access to a wide range of iGaming brands and products. Programs that offer competitive commission rates, reliable tracking systems, and comprehensive marketing materials.

And finally, it should be mentioned that South America is not North Korea. People there have increasing access to the rest of the world in almost every measurable metric. A thoughtful affiliate will leverage SEO, content marketing, mobile optimisation, social media, as well as emphasise on networking.

To sum it up

In this article, we covered:

• The booming market

• Untapped potential

• Promising verticals

• Effective strategies

• Cultural understanding

• Challenges to navigate

• Opportunities for innovation

Latin America has emerged as the El Dorado of affiliate marketing, offering a lucrative landscape for digital advertisers. With a 2% share of the global digital ad market, totaling a staggering $11 billion, the region presents a unique opportunity for marketers. Countries like Brazil, Mexico, and Colombia are witnessing significant growth in the affiliate marketing industry, with promising verticals such as e-commerce, health and wellness, and iGaming capturing the attention of both affiliates and brands.

As the industry evolves, effective strategies like influencer marketing, a mobile-first approach, and programmatic advertising are shaping the affiliate marketing landscape in Latin America. Successful campaigns, like the one executed by SlotsCalendar in Brazil, highlight the importance of cultural understanding, targeted messaging, and strategic optimization in achieving impressive results. However, marketers must navigate challenges such as regulatory complexities, payment processing issues, and cultural diversity while seizing the abundant opportunities presented by a burgeoning market.

By leveraging data-driven decision-making, adapting to local nuances, and embracing innovative approaches, marketers can stay ahead in this dynamic and promising affiliate marketing terrain.

💡Library of sources:

LATAM: El Dorado of Affiliate Marketing - Roller Ads Blog

LATAM Spotlight: Affiliate Marketing in Brazil - AccelerationPartners

Affiliate marketing in Latin America - Affluxo.com

Need an Expert Guide to Latam Affiliate Marketing in 2023?

LATAM Affiliate Marketing: Find the Way to Latin America’s Heart - PropellerAds Blog

High Paying Affiliate Programs in Brazil -

Top 10+ Affiliate Marketing Companies in Brazil (2023) - TechBehemoths

iGaming in LATAM: Top GEOs 2022 · Affiliate Marketing Blog

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