Collaborative marketing is a means to pool the resources of like-minded organisations in order to achieve similar growth goals. It is one of today’s marketers favourite strategies for a variety of reasons. A huge return on investment made both monetarily and in terms of the efforts allotted definitely tops the chart. When collaborating one of the basics things to be mindful of is the degree of like-mindedness of the business you choose to collaborate with.
Factually speaking, a recent report found that businesses that collaborated on joint initiatives were $430,000 better off than those who chose not to. And that the degree of openness to collaborations was directly proportional to growth in revenues.
Talking about the benefits of collaborative marketing, it helps you boost your reach, improve brand awareness and strengthen your brand image. Depending upon the type of tactic you choose to go with, you might also end up cutting costs and benefit from combined expertise.
How does collaborative marketing with other businesses work?
A great venture requires great planning. Plan and define your goals before you move forward with a particular partnership. Get everything in an agreement and design a joint social media calendar to avoid potential misunderstandings.
Effectively identifying a business you choose to collaborate with lays the foundation for a successful collaboration. When collaborating, your main aim is to increase brand awareness. Therefore, choose a business that echoes your aim and offers a complimentary service or product. Do not collaborate with your direct competitors.
After you are done selecting, it is time to reach out. When you are looking to boost your reach, make sure your collaboration pitch leverages existing statistics of your reach and the degree of your existing brand awareness. On the other hand, if you want to work on a collective ad campaign, propose a potential budget you are looking for from their end. This is necessary for them to stay on the same page as you.
Do not reveal too little or too much. Your pitch is your way to foster a potential collaboration that will require both trust and loyalty from both parties’ ends.
What does collaborative marketing entail?
These collaborations work in many ways. The two most common standards of collaboration are discussed as follows. You can either collaborate with businesses to promote your brand or service (which should complement theirs) on their social media. Or, you propose to pool resources and launch a joint product or a collective ad campaign, an offer or even a pop-up shop.
Some strategies sprouted from the aforementioned standards are discussed in length below.
Another type of collaboration that might come to your mind is that with influencers. However, those collaborations come mainly under influencer marketing. Influencer marketing involves entering a paid partnership with an influencer. In return, the influencer markets your product or service by talking about it on their social media handles. Read more about influencer marketing here.
Common collaborative marketing strategies
Co-branding or Partnership Marketing
It refers to pooling resources and splitting costs to come up with a joint campaign. Now the campaign could essentially be an ad, an offer, or a pop-up shop. Collaboration can also have two brands talk about each other on their social media via content marketing.
An example of partnership marketing is Spotify and Starbuck’s music ecosystem. Under the initiative, Starbucks employees got a Spotify premium subscription, via which they can curate playlists to play throughout the day in the shop. Read more about the co-branding marketing genius here.
As suggested by the term, it involves long-term partnerships with brands to foster anything from an ad to a whole new product. It helps brands meet their goals collectively. An example of a partnership that required curation of a product is Burger King’s with the Impossible Burger. They made history by becoming one of the first national fast-food brands to release a meatless burger.
Another example where a long-term brand partnership that did not require birthing a new product is McDonald’s and Coca-Cola’s. The burger-selling giant entered into a partnership with a soft drink giant, agreeing to exclusively sell Coke products at their outlets.
Social media collaborations
These types of collaborations basically entitle brands to collaborate with other brands with the purpose of promoting each other on their handles. This is done via leveraging content marketing to give product shoutouts to each other. Publishing their interview or releasing a podcast episode.
Our favourite means to achieve high returns is launching a giveaway. They are quite easy to set up. You collaborate with a brand to come up with specific terms and offer products in an exclusive giveaway for both your audiences. By offering the best of both worlds at minimal costs, you end up getting rewarded in terms of boosted reach. As a marketer, it is important to market the giveaway in turn by using social media ads.
Joint ad campaigns
Pooling costs to launch an ad campaign with a partner is also a way to collaborate. You find a business that offers a complementary service and launches a campaign together. The campaign, thus launched, will have both your marketing expertise at work, which is a win-win. Facebook Ads are an effective tool to realise your marketing goals.
You can also choose to come up with a deal offer for your customers. Imagine you are a business that sells organic coffee. Now, you can collaborate with a brand that sells ice cream. A joint ad campaign will talk about how great a combination both your products make and offer a discount of say 20% when bought together.
Both the businesses end up acquiring a huge chunk of the other’s customer base without spending a bomb.
Collaborations with other businesses is a two-way street, hence it is important to stay faithful till the terms of the collaboration are met. You need to be aware of your expectations as well as strive to accommodate and address your partner’s too. Also, do not skip on re-evaluating your strategy with each collaboration. Do not give up on the strategy as a whole in case a collaboration does not end up working well.
Collaborations are a great and upcoming marketing strategy given the fact that almost every pair of businesses complementing each other’s work. Intrigued? Well, we don’t see why you wouldn’t be. Happy collaborating! We at Shaktiki are here to help you with anything and everything marketing. Contact us here.