OPINION: ANALYSING ADVERTISING COMPLIANCE

Racing Post, Head of Betting, Brian Morris recently spoke to Trafficology’s Tim Poole about affiliates and the UK’s current clamour for increased gambling advertising regulation. Read the extract below.

A storm is coming. That’s what Gambling Commission Programme Director Ian Angus said would happen if the standard of UK gambling advertising fails to improve. While plenty has been said about the volume of advertisements within the UK, it’s the quality of adverts – and an alleged lack of responsibility within them – that prompted the Gambling Commission’s most recent warning. Chief among Angus’ concerns were misleading practices from operators and adverts appealing to under-18s.

It was an example of affiliate marketing, however, that the Programme Director branded “some of the most appalling ‘adverts’ I have ever seen.” Examples of these were not specified – perhaps by design, to keep the industry firmly on its toes. But the point stands, all the same, and raises one important question: just how much are affiliates to blame for the current situation?

Brian Morris, Head of Betting at the Racing Post, explains how bad practice is becoming increasingly rare. He stresses the biggest issues stemmed from affiliates previously viewing themselves as “completely separate” from betting partners. “There have been some examples of affiliates who viewed themselves as completely separate to their partner betting companies and didn’t respect the responsibility they had in terms of regulation or compliance, as long as they could generate revenue,” Morris explains to Trafficology.

“Thankfully, these examples are very rare now, and the affiliate managers at betting companies deserve a lot of credit in this regard, as they have worked closer with their key affiliates and removed those who refused to comply.” As Morris suggests, compliance should be a “cornerstone” of an affiliate’s approach.

Without it, there can be no notion of long-term success. He says: “Advertising compliance should be a cornerstone of every affiliate’s strategy. “There have been numerous examples of the major betting companies refusing to work with affiliates when there is even the slightest chance they may be pushing the line on what is acceptable. “The bottom line is successful affiliates in the short, medium and long term will fully adhere to all guidelines and principles laid out by regulatory bodies and their partner betting companies.

The analysis backs up recent comments from Remote Gambling Association CEO Clive Hawkswood, who insisted “any suggestion the industry has been ignoring the ‘warning signs’ is very wide of the mark.” Perhaps the storm can be avoided, after all. Certainly, it seems the majority of affiliates have heeded past warnings. For them, Angus’ latest comments should serve only as a reminder – and perhaps a message to anyone hoping the compliance discussion is merely a temporary distraction.

It is a different story for operators, Morris argues. He says: “It seems the current focus on the volume of advertising is largely related to TV advertising, where affiliates would have a limited presence, and potentially sponsorship, where again affiliates would be very small relative to the betting companies. “It is incumbent on betting companies to work with regulators to find a solution that is sustainable in the medium term. “With regards to affiliates, it is probably fair to say they have lagged behind operators in terms of wider advertising standards, but that is no longer the case. “The Gambling Commission has made it clear major betting companies are responsible for the regulation of the affiliates they partner with, and this responsibility has led to an overdue increase in the advertising standards applied by affiliates.”

Despite its arduous nature, there appears to be a simple formula: greater advertising compliance benefits operators, affiliates and consumers alike – and should, in turn, reduce the threat of regulation. Yet, if the Gambling Commission is to clamp down further, affiliates who rely on traditional forms of advertising are sure to feel the pressure.

“It is obviously difficult to speculate what level of regulation may or may not be implemented in future, but it seems likely the strongest affiliates will be those who provide a service or content that can generate traffic as a standalone product,” Morris explains. “These affiliates will also have the advantage of being able to generate new sign-ups outside what may be viewed as traditional advertising. “Those affiliates who only exist to drive traffic to a sign-up page may find themselves under increased pressure.”