The Decline of Marketing and the Rise of Brand Partnerships

Digital marketing reach is declining. Getting new customers is expensive and more competitive than ever before. The days of organic marketing reach has disappeared as social platforms like Facebook, Instagram and Pinterest try to turn their once free platforms into revenue generating companies. Additionally, advertising prices continue to rise as businesses are now paying 122% more per ad unit on Facebook than they did just a year ago (Source: WebPro News). 

Email, banner ads, and other advertising and marketing methods have also become less effective as digital engagement decreased overall by 40% in 2014 (Source: Simply Measured). Companies that form strategic partnerships work with already loyal audiences and yield a higher engagement rate than other sales and marketing methods could achieve on their own. 

Often organizations are tasked with finding new strategies to grow their businesses. Whether for new customer acquisition, product/market acceleration or branding and awareness, a strategic partnership can often be the key to unlocking new strategic advantages quickly.

Partnerships give companies instant credibility within a like-minded targeted group of potential customers. When a company endorses another company’s products or services with its existing customers, it offers the partnering company a more meaningful connection than marketing or sales can accomplish alone. 

In addition to the increased awareness that partnerships provide, mergers and acquisitions are often a result of a successful partnership. A successful partnership can also often provide data proof points that a company needs to sponsor an acquisition. 

“Also known as strategic partnerships, the practice of co-branding now extends to industries as far ranging as cosmetics, hotels, restaurants, fashion, household products, and charities, to name only a few. If done well, these partnerships are innovative because they are new, unexpected, and they achieve brand objectives that not only reinforce an image, but also increase awareness.

Innovative partnerships serve several strategic purposes. Carefully selected associations can enhance the images of each. The resources both brands bring to bear are greater than either could afford alone, resulting in a synergistic impact that generates higher levels of brand awareness for both.” - Inc.

Understanding which partners are right for your company is the first step in strategic growth. Flourish is focused on helping companies source, plan and maximize strategic partnerships. We hope this guide gives you a foundation for understanding the importance of partnerships while providing a fundamental framework for planning your own partnership strategy. Effective partnerships can have a dramatic positive impact on a company’s growth.  Contact [email protected] for the full version of the above strategic partnerships study.