The power of strategic brand partnerships
By Dáire Ferguson, CEO at AvaTrade
Brand marketing is a competitive but essential factor for businesses looking to maximize brand awareness, and partnering with different brands is an effective way for businesses to reach new audiences they might otherwise not be able to.
With research highlighting that 76 percent of businesses agree that strategic partnerships are vital for delivering growth, it seems that partnering with different brands plays an instrumental role in many businesses’ success.
However, partnerships can be confusing and come with plenty of potential issues if they are not considered carefully by both parties. With unsuccessful partnerships likely to negatively affect one or both brands, it is imperative for businesses to understand the detrimental impacts poor brand partnerships can have, before they consider the potential benefits.
Powerful partnerships
Brand partnerships are everywhere, with any company from any industry having the potential to form one. From the toys in McDonald’s happy meals to the Nike and Apple watch collaboration, partnerships are becoming increasingly popular. However, they are a lot more complex than they might appear. Indeed, considering 70 percent of business partnerships fail over time, it is essential that businesses carefully consider who they partner with and make sure their goals align.
One brand that is perhaps the best example of brand partnership is Lego. Throughout the years, Lego has partnered with a range of successful brands such as Adidas, IKEA, Levi’s, and more recently 2K Games. Considering creative play is at the top of Lego’s agenda, its partnerships are continuously exploring new ways to enhance playfulness for its audience. For example, Lego’s partnership with IKEA operates under the shared belief that creative play is essential for children’s development. As such, the brands have partnered to make the household a fun and functional environment, encouraging parents and kids to play together. By partnering with brands who have similar values, Lego has managed to expand its empire into new markets whilst promoting its fun and creative agenda.
Partnering strategically
Of course, not all brand partnerships are as successful as Lego’s. Nonetheless, if businesses carefully consider any brands that they choose to partner with and contemplate any potential downfalls, they are in the best position to reap the benefits – which can often be invaluable.
For example, Netflix has strategically partnered with a myriad of brands, such as Pepsi and Google, which has confirmed its position as a reliable streaming platform. In fact, more recently, Netflix’s content partnership with Formula One™ (F1) has been extremely successful, with both brands reaping the rewards of a successful partnership. Since the docuseries aired, F1 has gained a much bigger and more diverse audience, with around 40 percent of F1 fans now being female. Whilst the docuseries might not be solely responsible for the increased fanbase, it has been an undeniable factor in reaching new fans, especially women.
Through diversifying Netflix’s content partnerships into the sports market, and with F1 utilizing a worldwide platform, to showcase the complexity behind a grand prix season, both brands were able to gain new audiences, making the partnership mutually beneficial.
Aligning values and messaging
Successful partnerships can see a wide range of benefits for both brands, but in order for this to be achieved, it is imperative that brands partner with those who align with their goals and core values.
AvaTrade’s recent partnership with Aston Martin Aramco Cognizant Formula One™ Team (AMF1) is perhaps a perfect example of a partnership between two brands with similar values. Like the bespoke racing cars built and developed by AMF1, the AvaTrade platform offers advanced technology and innovation, in addition to providing full scale support for all its traders – the same way in which the pit crew at AMF1 supports the drivers in their aim for success. AvaTrade and AMF1s partnership is, therefore, based on the core values that can make a successful trader as well as a competitive F1 team like AMF1: constant excellence in every aspect, pushing the boundaries of speed, advanced technology, and success.
As such, AvaTrade’s partnership with AMF1 aligns with their core values as, despite being from two completely different sectors, the partnership is built upon similar characteristics both brands pride themselves on, such as technological innovation and precision.
Looking ahead
It goes without saying that brand partnerships have the potential to be extremely successful, but it is important for businesses to carefully consider which brands they partner with. By learning from the mistakes of previous failed brand partnerships and ensuring that core values of each brand are aligned, businesses will put themselves in the best position possible to partner successfully.
Ultimately, if businesses responsibly implement brand partnerships, they have the potential to propel a venture to new heights that otherwise might not have been attainable.
