Spanish affiliate spending spikes

Spanish affiliate spending spikes

Spending on affiliate marketing by iGaming operators in Spain increased sharply last year and reached record levels in December, new figures from the country’s gaming watchdog have shown.

Published 5th February 2019

In its latest report, the Dirección General de Ordenación del Juego (DGOJ) revealed that marketing costs rocketed to €95.1m (£83.8m/$108.5m) in the final three months of 2018 – a quarterly increase of 25.11% and a year-on-year rise of 46.58%.

Of the total, advertising accounted for more than half of the expenditure (€49.8m) followed by promotions (€32.2m), affiliate costs (€9.7m) and sponsorships (€3.5m).

Spending on affiliates peaked in December with €3.9m – nearly €1m more than the total in November and a new monthly record in the country.

The total of €9.7m spent on affiliates in the final three months represented a 29.6% quarter-on-quarter increase. There was also a 36.6% quarter-on-quarter increase in advertising expenditure to €49.8m in the final three months of 2018, whereas sponsorship spending slipped slightly to €3.5m.

The DGOJ said that just under €31m was spent on affiliates in Spain last year.

Gross gaming revenue increased by 4.21% on a quarterly basis to €189.5m in the final three months of last year – a 10.74% year-on-year rise. The DGOJ had reported a 29.9% year-on-year increase in GGR in the previous quarter, through to the end of September.

More than half (52.7%) of the GGR was generated by sports betting, although the total of €99.9m represented marginal quarterly growth of 2.33%. A 5.31% quarter-on-quarter decrease in pre-match betting was offset by in-play betting, which increased by 13.13%.