jkt.web.id – Co-Marketing: Expand Market Reach with Ad Collaboration , As a marketer, you will always be looking for new ways to reap great benefits from your marketing strategy. Co-marketing can be one of the ways you can do this.
You can involve two or more potential companies to collaborate and work together, so as to generate multiple benefits. In addition, co-marketing can also be a good strategy to expand target markets that have never been reached and increase brand awareness.
To learn more about this strategy, check out the full discussion below:
What is co-marketing?
According to Indeed, co-marketing is a marketing strategy where two similar brands or businesses combine their marketing to promote each other’s products or services. Meanwhile, according to HubSpot, co-marketing is the process of growing two or more businesses at the same time by working together to share expertise and offer value/products to their audience.
In this collaboration or partnership, both companies will promote content or products and will then share the proceeds from the promotion. By utilizing this good relationship, the marketing campaigns conducted will generate more leads, buzz, and awareness from the audience.
Thus, the goal of this strategy is to generate more visibility and sales by advertising to an audience that is already owned by another brand. This concurrent marketing can improve the quality of content and products, saving time, budget, and resources needed.
Difference between co-marketing and co-branding
According to Indeed, there are at least three main differences between these two concepts.
- Definition
Co-marketing involves two companies working together to produce specific marketing content, whereas co-branding is a joint effort to create a new product to sell. An example of co-marketing is two clothing designers promoting different shoes on their social media pages together.
Meanwhile, co-branding is when a famous clothing designer collaborates with an expensive clothing brand to create a new outfit out of the collaboration.
- Partnership
Co-marketing will focus on identifying the brand you want to work with as it should not be a major competitor of your product. The co-marketing you do should complement and promote each other.
You can also look for products that have a similar target audience, but sell different products or services. Meanwhile, for co-branding, you can look for a partner that suits your needs in creating the product you want.
This co-branding partner can be used as an opportunity to get certain resources that you could not reach before.
- Strategy cycle
Co-marketing generally has a long strategy lifecycle, even years. This depends on how successful the partnership is.
The better the co-marketing performance, the closer the relationship between the two businesses will be. Co-branding strategies usually have a shorter lifecycle depending on how long the collaboration product can generate revenue.
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Advantages of co-marketing
- Cost-effective because you do marketing in partnership, so some marketing needs can be met together, from time, money, and resources.
- Wider audience reach as your product can be seen by an audience of your partner’s product that has never been reached before.
- Strengthened brand identity, especially if you partner with a well-known brand. Your product’s brand identity will be much more recognized and trusted by a wider audience.
Types of co-marketing
- Ebook by creating a joint e-book that aims to educate a similar audience.
- Content marketing partnership can be in the form of blogs, videos, article content, and social media content to reach the audience of other brands.
- Webinars are quite busy being organized by businesses, especially since the pandemic. Many brands conduct webinars together to gain wide exposure.
- Event sponsorship is generally done by large companies to get wider brand exposure, even for audiences that were not previously targeted.
Example of co-marketing implementation
This co-marketing strategy was carried out by Citilink Indonesia with online shopping platform JD.ID, which was closed in February 2023. This strategy was carried out by JD.ID and Citilink in 2017.
Co-marketing is done by providing an in-flight online shopping experience, so that Citilink passengers can have a unique experience when shopping. This co-marketing strategy is in the form of a free JD.ID shopping voucher worth Rp 100,000 for Citilink customers who buy tickets through the Citilink website.
Another program is in-flight shopping where passengers can shop JD.ID products in the catalog on the plane and immediately get the desired product when landing at the destination airport. This co-marketing strategy aims to provide something new for the community so that potential customers are interested and want to try the programs offered by JD.ID and Citilink Indonesia.
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This is the explanation of co-marketing strategy that you can apply in your business. This strategy can be a potential way for you to reach new markets and mutually benefit from business partnerships.
You can experiment by running different types of ads and campaigns with various partners. However, don’t forget to take into account the costs and outputs you get from co-marketing.