I recently caught up with co-owner and marketing mastermind behind Boston co-retail space For Now, Kaity Cimo. She runs the space with friend and business partner Katharine ReQua. They opened a year ago and have played home to over 80 brands in that time.
A Complete Guide to Collaborative Marketing for Brands
Ever heard the saying ‘two heads are better than one’? Well, the same holds true in business. When it comes to marketing your brand, collaboration is often the key to success.
In fact, a recent report found that mid-sized businesses that collaborated on joint initiatives were $430,000 better off than those that didn’t and that more collaborative businesses had much greater revenue growth than less collaborative businesses.
To help you to leverage the power of collaborative marketing for your business, we’ve put together a guide that breaks down how the concept works, companies that have seen success with it, and how you can try it out on your own.
What is collaborative marketing?
Collaborative marketing is the act of combining your company’s resources, assets, and funds with other companies in order to better accomplish your marketing goals.
To put it another way, it’s working with businesses with similar interests to accomplish more through your marketing efforts than you could on your own.
The end result is a symbiotic relationship: both parties combine their strengths for the benefit of both of them.
How does collaborative marketing work?
Collaborative marketing works like this:
First, you identify a brand that you might be interested in partnering with. This brand shouldn’t be a direct competitor, but they should be one that complements your own brand and shares a similar audience or marketing goal.
After that, you can reach out to that brand to ask them if they’d be interested in collaborating with you. Typically, collaborators will use either their budgets or their reach as cross-promotional currency.
In the former case, this might mean pooling your marketing budgets together to purchase a joint advertisement that you wouldn’t have been able to afford alone. In the latter case, this might mean promoting each other’s products to your own audiences in order to double your reach.
Collaborative marketing can take many forms. It could range from something as simple as giving a ‘shout out’ to another company on social media in exchange for one in return, to a full-scale joint ad campaign and anything in between.
We’ll talk more about what collaborative marketing looks like later and outline some ideas and strategies that you can try.
Difference between collaboration and co-branding
Marketers often use the terms collaborative marketing and co-branding interchangeably but, while similar, these aren’t quite the same thing. There’s a subtle but important difference between them.
Collaboration is more of a marketing effort, whereas co-branding is more of a branding effort.
In a co-branding relationship, two brands will work together to create a joint product that represents both of their brand identities. Here’s a great example of this from Taco Bell and Doritos.
This Taco Bell cross-over menu item used a Doritos shell and sold over 1 billion units the year it went on sale. As you can see, the product represents both brands at the same time, aligning them together and strengthening each brand’s reputation.
In collaboration marketing, we rarely see two brand identities being melded together in this same way.
Some people also confuse collaborative marketing with influencer marketing as both marketing techniques involve partnering with a third party, but again, these are two different things. In this scenario, influencers are almost always paid for their promotional assistance making it more of a transaction than a collaboration.
Pros and cons of collaborative marketing
To help you to figure out whether or not to invest your time and money into collaborative marketing, let’s take a quick look at the main pros and cons:
|Reach new audiences
Brand collaborations can potentially double your audience size and help you to reach highly-targeted potential customers
|Takes time to set up
Setting up a collaborative marketing campaign requires a lot of back and forth communication; it can take a lot of time to get going.
Splitting the cost of a traditional ad between multiple brand partners can dramatically reduce costs.
|Less creative control
You have to be willing to compromise to create a campaign that works for both brands, and that means giving up some creative control.
|Strengthen your brand
Collaborative branding with the right partner brand can strengthen your brand’s credibility and recognition by association.
In bad brand collaboration, the benefits might be weighted unequally, with one company coming away much better off. That’s why it’s important to choose the right partner brand.
Two brands working together means you get to leverage the best of both of your strengths to create bigger and better campaigns.
Working together can be difficult if you disagree with your partner brand about the details and execution of your campaign.
How to get started with collaborative marketing
There are plenty of ways to get started with collaborative marketing. To help you to get thinking about some initial ideas, we’ve put together some of our favorite strategies below.
Referral marketing, sometimes called affiliate marketing, is when your brand partners generate targeted leads for your brand through referrals, usually in exchange for some sort of commission. It’s a great, simple, and effective way to utilize collaborative marketing.
All you need to do is set up your referral program, then give your brand partners their own unique tracking links and promotional tools like banners, etc. After that, they can start sending customers your way.
How you choose to set it up is up to you. Many brands opt for CPA (cost per acquisition) referral models in which partners are paid per acquisition (usually a sale). You can set it up in-house or work through a platform like Share a Sale.
Another great way to utilize collaborative marketing is to host an Instagram takeover. This is when a brand or influencer acts as a guest host on another brand or influencers Instagram channel. It’s a great way for brands to cross-promote content in a way that is mutually and equally beneficial.
There are two ways to go about this:
- You can take over another brand’s Instagram feed
- You can invite someone you want to partner with to take over yours
Or, you could do both at the same time! By taking over your partners you’ll instantly be able to reach and promote your brand in front of their entire audience.
If you go down this route, make sure to partner with a brand or influencer that has similar goals and buyer personas to your own as well as a similar following size.
Collaborative content marketing
Collaborative content marketing is when you create and share content in collaboration with a strategic brand partner. Here are some examples of what we’re talking about:
- Guest posting – publishing content on a partner’s blog can be a great way to generate targeted leads and build your authority in the space.
- Expert roundups – creating a piece of content and reaching out to other businesses for quotes is a great way to build relationships and boost the share of your piece.
- Podcasts – consider collaborating with a similar brand on a podcast and share it with both of your respective audiences to double up your reach.
- Interviews – invite a key figure at a partner brand for an interview and publish it on your blog. After that, they can share it with their audience (free exposure for your blog) or even invite you for an interview in return.
You can split the cost of a traditional advertisement with one or more partners to reduce the cost. This works great when it comes to regional or more local collaborations.
For example, let’s imagine that you own a small boutique fashion store in a small shopping mall. Rather than advertise your specific store, you could advertise the mall itself and split the cost with the rest of the businesses operating there.
Everyone benefits equally, and the cost is significantly lower.
Another great collaborative marketing strategy is to set up exclusive promotional deals and discounts for your partner and vice-versa.
For example, a fast-food restaurant might give a coupon for a discount at the local cinema with every purchase, and the local cinema might do the same in return. In this example, both parties benefit without being in direct competition with each other.
Mailing list exposure
As we all know, email marketing is still one of the most effective marketing channels out there with an unbeatable ROI. As such, one of the best ways to utilize collaborative marketing is to ‘share’ your mailing list with another, similar brand.
An easy way to do this is to place an ad for your product in another brand’s email campaign to reach their mailing list. This works best with similar brands as the more targeted mailing list, the better the ad will perform.
In fact, this is exactly what we do here at Ampjar – we connect awesome, like-minded brands together for joint email campaigns. So, if you’re interested in trying this collaborative marketing strategy out, make sure to check out Amplify.
If you don’t have much of an email list to share just yet, now’s the time to start building one.
Awesome examples of collaborative marketing
If you want to see what effective collaborative marketing looks like in action, look no further than the partnerships below. All these companies killed it with their brand collaboration marketing campaigns.
McDonald’s and Hasbro
McDonald’s have been teaming up with Hasbro for over a decade for one of the most successful annual fast-food promotions of all time.
Every year, they launch the ‘McDonald’s Monopoly’ event, which gives diners the opportunity to enjoy everyone’s favorite board game while they dine by collecting tokens and matching up colors for the chance to win big prizes.
It seems to be a match made in heaven as the co-marketing campaign has been a roaring success for both brands.
For McDonald’s, the campaign goal was to increase sales and footfall across the board, and it’s exceeded targets for 12 years in a row. It’s good news for Monopoly too, having lead to a 159% increase in positive sentiment for the board game.
Uber and Spotify
This collaboration between Uber and Spotify is the perfect example of complementary brand relationships. These brands aren’t direct competitors, but they complement each other perfectly.
Throughout the campaign, Uber passengers could connect their Spotify apps to the car’s radio in order to control the music, providing brilliant cross-promotional exposure for both brands. Spotify added value to the Uber experience and created hype that boosted rides, while Uber provided a massive amount of exposure for Spotify.
It also helped that they both had similar target market’s. Both focused heavily on the ‘millennial market’ and were huge names in the tech space.
Levi’s and Google
Google recently teamed up with Levi’s for an exciting partnership campaign nicknamed ‘Project Jacquard’. The brands worked together to develop an exciting new wearable tech product – an interactive denim jacket.
The jacket was designed to allow cyclists to use their phone by tapping or swiping their jacket sleeve, eliminating the need to pull out their phone (which is, of course, dangerous).
This partnership definitely borders on co-branding as the main goal of both brands was to strengthen their respective images, but it’s still worth mentioning as it was so successful.
The campaign generated a ton of interest and successfully unified both brand’s strengths. The result was a product that oozed not just style and sophistication, but also functionality and innovation.
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