Cipher and Australia-listed IXUP want to shake up the relationships between media and sports betting ops by giving both more information.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
Their joint venture, Convertr, would allow both sides of a marketing partnership to securely match customer data that could open more sports betting revenue opportunities.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
For example, if a sportsbook has a customer who only bets on basketball but its media partner knows the customer reads golf stories regularly, the sportsbook could learn that through the Convertr platform and start to build personalized offers.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
The product is possible through IXUP’s encryption that allows both sides to upload data to the Convertr system, Cipher CEO Adam Fiske said.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
Australian sports betting test
The two partners put Convertr through a pilot program during the 2022 Australian Football League Finals and achieved “extremely encouraging results,” a release from IXUP said. That led to signing the agreement with the hopes of launching in the first quarter of this year.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
Ultimately, Fiske is selling Convertr as a product that can empower affiliate operators and media companies to have a greater role in their partnerships with sportsbooks.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
It is an opportune time, as many sportsbooks are turning to retention and profitability.
Business By The Books: How New JV Could Enhance Sports Betting Marketing Partners
Revenue model likely a mix
While Convertr is a software as a service-based product that typically includes a subscription fee, Fiske said revenue sharing could be included since that is standard within the sports betting industry.
Cipher is doing the legwork on marketing and sales, but IXUP is carrying the heavy load with its secure data collaboration technology.
Cipher will pay an IP Exclusivity Fee of around $170,000, which will be funded through revenue of the JV. IXUP will take 75% of revenue until that fee is paid and the deal reverts to a 50-50 share.
IXUP will also create a…
..