Hello, community! To succeed in any vertical, having just affiliate marketing skills is not enough. You need to constantly learn something new, especially when it directly relates to the niche you plan to work in.
Today, we dive deeper into iGaming and discuss what RTP and volatility are. And if you still don’t know why driving traffic to iGaming is worthwhile, we recommend checking out our review.
What is RTP in iGaming?
We never tire of repeating that affiliate marketing is, first and foremost, about sales. And the success of any sales effort directly depends on how well you understand the factors that sell the product and its advantages.
RTP (return to player) is the return rate of a casino or a specific game. In other words, it indicates how much money a player will get back over the long term. How long is that term? That’s not precisely known. However, traditionally, when it comes to slots, RTP reflects the percentage of money returned over one thousand spins.
Let’s break it down with an example. Imagine a slot machine with an RTP of 97%. What does this mean? Essentially, it implies that if someone ends up with a loss, it will be minimal. Speaking in numbers, theoretically, if a person bets $1 per spin and makes a thousand spins, they’ll spend $1000 and get back $970.
Does it still seem like a rip-off scam? Well, keep in mind this is considered a very high percentage since an RTP above 100% simply doesn’t exist.
But why do people play at casinos, knowing they’ll ultimately lose? Because, theoretically, a player might hit a big win upfront. For example, they could win $1000 on a $1 bet, and then the casino will start taking money back. And in that case, “what’s the harm if I only lose around 3% of my deposit?”
This is approximately how it works. And it actually does. RTP is a key metric often used in iGaming advertising campaigns. Users trust this parameter because neither the casino nor the game operator can influence RTP. It is programmed during development. At least, that’s how it looks on paper.
In practice, casinos that use games allowing manipulation of RTP usually cannot compete and quickly disappear.
What is Volatility?
In parallel with RTP, there’s another important characteristic of slots and casinos – volatility. It can be low, medium, or high.
Volatility in iGaming indicates how significantly winnings and losses can vary in a game. In essence, it shows how much the RTP can fluctuate.
Here’s how it works:
- In high-volatility slots, players win less frequently and in smaller amounts, but there’s a higher chance of hitting a big payout in one spin or bonus game.
- Low volatility is about stable RTP, where winnings are small but consistent, so the balance doesn’t deplete too quickly. However, it’s unlikely to hit a large payout in one spin.
All of this is relative and becomes apparent only when playing over the long term. But that’s exactly what we care about since most offers involve working under a RevShare model. So, we need to understand what affects the user experience of our referrals and how we can motivate them to stay in the casino and spend money.
It’s also important to recognize that there are different types of players. Those who play often tend to prefer low-volatility slots, while others opt for high-volatility slots with a “win big or lose it all” mindset. Understanding this will allow you to create more personalized ad campaigns, leading to a higher ROI.
How to Use This Knowledge in Affiliate Marketing?
Personalized advertising is one of the key marketing trends to follow for high profitability. Only by understanding how casinos and their games work, what differentiates them, and who the offers are targeted at, can you create campaigns that better hit the target.
You’ll also be able to choose offers better, not just based on your profit but also considering the benefit to the player. For example, if a casino has an average RTP of around 98%, it will undoubtedly attract attention and motivate players. If this RTP isn’t just on paper, players will likely play more often. But no matter how you spin it, they’ll still end up at a loss, even in theory. And that means you’ll be earning!
It’s worth understanding that even high volatility doesn’t mean a player will mostly win small amounts while hoping for a “big win.” It primarily refers to the possibility of hitting a large sum. At least, that’s how we should frame it. Properly positioning a slot depends on your expertise in the subject!
Conclusion
RTP and volatility are key metrics in iGaming that every player, especially experienced ones, pays attention to. Affiliates also need to understand these metrics to create personalized campaigns and maximize profit from their advertising budget!
How well do you understand how modern casinos work? Share your thoughts in our Telegram community, where we discuss these and other topics!
As always, with respect, your Geek!
What is RTP and Volatility in iGaming FAQs
RTP (return to player) is a percentage rate indicating how much money a player will get back over the long term when playing in a casino/slot/game. In modern games, it ranges from 94% to 98%.
Volatility in iGaming refers to how significantly winnings and losses can vary in a game. Essentially, it reflects the level of risk embedded in the game.
Comments