Casino Talks

Posted by: DrHoCasinoManager at March 7, 2002, 6:16 am

Topic: $1300? Is this for real? Forum: Winner Online

joeyl - when you plan out media buys for an online casino, webmasters can charge casinos in a ariety of ways, ranging from:

Impressions -- We pay a certain fee up front to have our banners shown x million times to web site isitors.

CPC deals -- "Cost per Click" i.e. we pay up front for a webmaster to deliver a certain number of clicks on a banner ad.

CPA deals -- "Cost per Account" i.e. we pay either up front or after the campaign for every account that is opened as a result of a campaign.

RevShare/Affiliate -- No money changes hands up front; the casino just pays to the webmaster a % of the revenue earned by the players who were referred by a particular banner campaign.

The difference, of course, is who bears the risk of the campaign performance. A casino can easily buy millions of impressions, or even clicks, from arious webmasters, but this does not mean that the impressions or the clicks will turn into paying customers. You can easily generate thousands of impressions or clicks, and burn lots of advertising money, and not generate a single dollar of deposits. Essentially, in these campaigns, the casino bears all the performance risk, since a website can deliver the contractual clicks or impressions without worrying about the quality of the people who are iewing the ads or even clicking on them.

The other end of the spectrum is the re share/affiliate deal, where the webmaster bears the risk, since if people see/click the ads but don't deposit and play, there is no revenue for the casino to share with the webmaster, and hence the webmaster doesn't get paid.

The middle ground is the CPA deal, which is somewhat performance based, since the webmaster only gets paid if accounts are opened as a result of a campaign. The reason we hate these deals is that it is possible to get accounts opened, but still not have players deposit money into those accounts -- or ery little money e.g. $20 or $50 -- which still results in a bad campaign for a casino. There are some webmasters out there who are trying to do CPA deals for as high as $250 per new account opened, which means that as a casino, you have to generate about $600 in deposits over the lifetime of the customer just to break even.

What I think is happening in gaijinsan's message is that a webmaster has basically decided to share some of his CPA fee with players to get them to open accounts. The end result, though, may be that the quality of the traffic isn't that great, since you are basically giving a way a ton of free money to get players to open accounts, which menas that you are probably attracting (gasp! forgive the word!) bonus hunters. (Said with no rancor, other than to note that they are probably unprofitable for the casino since they're going to leave to another casino once they stop getting free money.)

Casino Manager
www.drho888.com www.drho.com www.drholite.com

[This message has been edited by DrHoCasinoManager (edited 03-07-2002).]

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