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Tenancy and Hybrid deals, just how popular are they and when are they effective?

Tenancy and Hybrid deals, just how popular are they and when are they effective?

Tenancy and hybrid deals are becoming increasingly popular with clients on the network, especially across the telecoms sector. As affiliate programmes mature on the one hand, they need to seek out new revenue opportunities to stay competitive in the market. On the other, affiliate sites are continuing to grow into brands in their own right - many now expanding from online to ATL campaigns with TV and print ads – thus offering greater public exposure than ever before.

Out of all the networks’ telecoms clients, 95% of them have run a tenancy of some kind within the past three months, proving the value this sector places on hybrid deals. Depending on the client’s objectives, tenancy deals can be effective in many different scenarios. Across some of the programmes on the Affiliate Window network, they have been used to:

  • Increase brand awareness
  • Create more of a buzz around a new product launch
  • Regain traffic volumes on targeted sites
  • Heavily promote a rich consumer offer

Reasons for varying payment deals

The motives may vary and smaller merchants may favour the brand awareness that such prominent positions can offer, but in the performance channel, tenancy placements are often seen as a direct response tool that needs to drive an uplift to justify the cost. In this respect, traditional metrics may come into play to measure effectiveness including traffic, sales and revenue. For instance, one telecoms advertiser ran two one-week promotions on a cashback site with strong yet identical offers on PAYG products, one with a homepage banner/tenancy, one without. Comparing both promotions, the week in which the banner was used saw double the traffic, a 63% uplift in sales and a 39% increase in top-ups, proving useful in driving awareness, volume and quality/conversion.

Added payment on influence can be measured

For some tenancy deals however, particularly those on smaller affiliate sites, the immediate results may be less pronounced. To prove the effectiveness of some tenancy and hybrid deals it may be necessary to rely on affiliate networks/third party tracking providers to track beyond last click to justify the spend outside of the normal CPA levels. If this isn’t feasible within affiliate budgets, some clients have opted to use brand or display budgets to allocate spend according to the impact and perceived influence identified across the bigger affiliate sites. One method to test the effectiveness of these placements is with post impression tracking to investigate the influence the exposure has had and how well it’s converted. There’s an argument to suggest that if it works for a display channel why couldn’t post impression work as a monitoring tool in the affiliate space?

In Summary

In summary, it’s important to remember that the affiliate channel is multi-faceted and can be used as a brand awareness tool, as well as direct response with tenancy deals acting as one of the means of doing so. To maximise effectiveness, it is important to ensure you get the right placement and use it to showcase the best offer you can. A prominent tenancy placement will only help you to get the offer seen and merchants should ensure it is enticing with a call-to-action.

Written by: Nicola White & Daniel Fernandes – Account Directors, Affiliate Window

Lisa Chaikin

Lisa Chaikin

My primary role is to manage and coordinate Affiliate Window external public relations throughout

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