The recent standout news in the affiliate sector is Better Collective’s significant deal with Action Network. This deal not only marks the largest in the affiliate space to date but also indicates the interest of some affiliates in the convergence between media and sports betting in the US.
Following this move, it remains to be seen if other affiliates will follow suit. However, it is evident that Better Collective’s rivals are also actively engaging in mergers and acquisitions. An example of this is Catena Media’s recent acquisition of Lineups.com, solidifying their position as a long-time market leader in the US.
It will be interesting to observe how these two recent acquisitions impact the market shares of the top players. After reaching the pinnacle in the fourth quarter of last year, Better Collective was surpassed by Catena again in the first quarter of 2021.
Aside from these deals, affiliates have been grappling with the quality of their content. Google’s algorithm changes have greatly impacted the sector, compelling several major players to revamp their content in order to regain favor with the search engine. Some affiliates have also pursued a strategy of shifting towards paid media to protect themselves from future organic changes.
However, analysis of the results shows that this pivot towards paid media is negatively affecting margins.
