Google ads today is a cruise ship, not a speedboat: KARAMAN founder
When it comes to the highly competitive world of iGaming, acquiring new players isn’t just about getting clicksit’s about getting valuable, long-term customers. As iGaming continues to evolve, so do the acquisition strategies that define winners and laggards in this high-stakes arena. In an exclusive fireside chat with SiGMA News, Vedran Karaman, founder of KARAMAN Digital and a seasoned veteran, shares his perspective on a topic that happens to linger on every operators mind regarding marketing.
Is it time to pivot away from affiliate marketing?
Affiliates have the highest player valuebut so do Google Ads, Karaman said, diving into what he believes is the core misconception among operators. He said it is not one or the other, “Both should be part of the mix. Both channels offer similar player values, but affiliates tend to come at a higher long-term cost due to revenue share. Google Ads, despite higher initial cost per acquisition (CPAs), can be cheaper over time if campaigns are optimised well. We will come back to this with more data.
But why are iGaming operators increasingly leaning towards affiliate marketing? According to Karaman, Its easier to hire an affiliate manager, get a good welcome bonus, and push the programme than to properly optimise AI-driven Google Ads.” However, he warns that the comfort of familiarity may be costing operators far more than they realise. Karaman believes operators make two big mistakestoo many changes in too little time and not giving artificial intelligence (AI) enough data to learn.
He explains the shift in pay-per-click (PPC) management, from the manual grind of keyword-level tweaks to AI-driven ‘smart bidding,’ which optimises for actual conversions, not just clicks. He laments how many campaigns are shut down prematurely, simply because AI hasnt had time to optimise. You need volume100 conversions a day can teach the algorithm in three days. Three conversions a day might take weeks. This aligns with , which says, “It can take up to around 50 conversion events or 3 conversion cycles for the bid strategy to calibrate to the new objective, although it can be faster depending on the amount of conversion data present.”
Stuck in the past
Karaman believes part of the problem lies in legacy mindsets. A lot of marketers are still stuck in the old ways. They treat AI like manual PPC, constantly tinkering. That only confuses the system.” This is because constant changes disrupt the algorithm. In addition to that, Karaman believes, “Google ads/PPC today is a cruise ship and not the speedboat it was over five years ago.” Likening today’s AI systems to cruise ships, the gist issteering too hard or too often will capsize the whole thing. Stop switching off campaigns too early. Stop over-editing. Trust the data.” Karaman’s voice is firm, and his message is clear AI can deliver. But only if you let it.
A highlighted the dramatic rise of customer acquisition costs (CAC) in recent years, prompting operators to rethink their strategies and prioritise efficiency. The same study also revealed that the implementation of AI has not just reduced costs but enhanced the player experience. It noted, Platforms that use AI-driven personalisation have reported a 39 percent increase in player retention and a 43 percent boost in conversion rates.
Measuring success beyond CPAs
Too often, acquisition managers are fixated on CPA. But in iGaming, a high-value player who deposits consistently is more important than 10 low-quality sign-ups. Pointing to success stories, he highlights what works best is a clear balance between acquisition and retention:
Great retention doesnt help if your acquisition brings in low-value players. Good acquisition and good retention have to work hand-in-hand.
Blask chief executive officer (CEO) and co-founder Max Tesla echoes this sentiment, “The key is not just acquiring players but keeping them engaged. As competition heats up, the operators who master both sides of the equation will come out on top.”
Compliance and regulation are never too far when discussing iGaming, on the topic Karaman said, We work only in regulated markets. Everyone plays by the same rules, and we adapt our unique selling points (USPs) accordinglynumber of games, gamification, and so on.
Hidden costs
Coming back to the hidden long-term costs of affiliate marketing, a deeper look at long-term acquisition costs further supports Karamans point. PPC costs are fixed, whereas affiliate costs grow over time because of their revenue-share agreements. Citing an example, Karaman said acquiring a user with a net gaming revenue (NGR) of 2,000 over two years costs roughly 300 via PPC, compared to over 800 through an affiliate channel.
While affiliates and PPC may appear comparable in the short term, the analysis shows that affiliates become significantly more expensive over time – especially for high-value players, since affiliates continue to earn a cut of player revenue indefinitely.
