How to approach tenancy investment in affiliate marketing

Introduction

How to approach tenancy investment in affiliate marketing is one of the most debated topics within the channel, often dividing opinion between performance-driven efficiency and strategic investment.

Some view tenancy as a key lever for unlocking scale and visibility, particularly with high-impact publishers and during key trading periods. Others see it as:

• Difficult to measure
• Hard to justify
• Less efficient than purely performance-based activity

The reality sits somewhere in the middle.

Tenancy is not inherently good or bad. Its effectiveness depends entirely on how it is used. When approached strategically, it can:

• Amplify performance
• Strengthen publisher relationships
• Unlock access to new audiences

However, without clear objectives, proper benchmarking, and alignment with your wider programme strategy, it can quickly become an expensive and inefficient investment.

This article explores how to approach tenancy investment in affiliate marketing, and how to use it as a strategic lever to support and scale performance.

What is tenancy in affiliate marketing?

Tenancy refers to paying for guaranteed placement or visibility with a publisher.

Examples include:

• Homepage features
• Newsletter placements
• App exposure
• Category sponsorships

Unlike traditional affiliate activity, tenancy involves upfront investment rather than purely performance-based payment

Why brands invest in tenancy

Tenancy is rarely just about direct revenue. It is typically used to:

• Increase visibility with a specific audience
• Support key trading periods
• Strengthen strategic partnerships
• Drive incremental performance

For broader context on media investment trends, see insights from IAB UK.

Start with a clear objective

Before investing in tenancy, define what success looks like. Common objectives include:

• Short-term revenue uplift
• Brand exposure
• Supporting other channel activity
• Driving new customer acquisition

Your objective will determine:

• How you evaluate performance
• Whether the investment is justified

Pair tenancy with a strong incentive

Tenancy rarely works in isolation.

If you’re paying for visibility, you need a reason for users to act.

Typical combinations:

• Exclusive discount codes
• Enhanced cashback rates
• Time-limited offers

Here’s how this impacts performance:

Find the best value within media decks

Publisher media decks can vary significantly. Pricing is often influenced by:

• Demand
• Historical positioning
• Perceived value

This creates opportunities to:

• Identify undervalued placements
• Compare formats (newsletter vs homepage vs app)
• Maximise visibility for your budget

Benchmark across publishers

Tenancy shouldn’t be assessed in isolation. You want to compare:

• Cost across publishers
• Expected reach
• Historical performance

Here’s a simple comparison framework:

Accept that measurement isn’t always perfect

One of the biggest challenges with tenancy is attribution. It can be difficult to:

• Isolate performance from a single placement
• Measure incremental revenue
• Separate organic vs paid impact

It can be difficult to measure incremental impact accurately, particularly given wider measurement and attribution challenges across digital advertising.

Think at programme level, not placement level

Instead of asking "did this placement deliver ROI?" Ask "is my overall affiliate programme performing efficiently?" If the following:

• ROI targets are being met
• Revenue is growing
• Publisher relationships are strengthening

Then tenancy may still be delivering value, even if individual placements are unclear.

This might be good time to run an affiliate programme audit to assess overall performance.

Consider onboarding and activation costs

Some publishers require upfront investment to:

• Gain access to their audience
• Enable promotional activity
• Integrate your programme

These costs can feel high initially, but often unlock access to otherwise unavailable audiences.

How tenancy connects to other growth levers

Tenancy works best when combined with:

• Strong commission structures
• Active publisher relationships
• Clear programme strategy

It should not be viewed in isolation, but as part of a wider approach to growth. For example, improving how you structure affiliate commissions, increasing the number of sale-active publishers, and building a strong publisher categorisation framework will all enhance the effectiveness of tenancy investment.

Common mistakes to avoid

• Investing without clear objectives
• Not pairing tenancy with incentives
• Evaluating placements in isolation
• Over-investing without benchmarking
• Expecting perfect measurement

How tenancy supports scaling your programme

Tenancy is not a standalone growth strategy. It’s an amplifier. Used correctly, it:

• Accelerates performance
• Supports key campaigns
• Strengthens partnerships

To see how this fits into the bigger picture, read how to scale an affiliate marketing programme.

EngageMore’s verdict

Tenancy is not a guaranteed growth driver, nor is it inherently inefficient. It’s a strategic lever that must be used with intent.

The most effective programmes approach tenancy with clear objectives, selective investment, and a strong understanding of where it delivers genuine value. They focus on outcomes rather than visibility alone, and ensure tenancy supports broader programme performance rather than operating in isolation.

When used strategically, tenancy can enhance performance, strengthen key partnerships, and play a meaningful role in scaling your affiliate marketing programme.

With EngageMore Growth, we help brands scale their affiliate marketing programmes with a more strategic, performance-driven approach. Whether you’re looking to unlock new revenue, improve efficiency, or take your programme to the next level, our expert team is here to support you across strategy, activation and optimisation. Explore our Growth services or let us help you build an affiliate programme that delivers results.