Posted in Marketing and Strategy Terms, Total Reads: 527
Cross-Promotion is a type of marketing promotion strategy in which a product is advertised on the platform of other but related product.
i. Let’s say we want to buy a camera on an e-commerce website. While we are looking at different camera models on the website, a small advertisement on the side of the age appears which offers us to buy camera batteries or camera cover. This is a type of cross promotion where batteries/covers are advertised on the camera page.
ii. The offer of getting mobile recharge coupon on a cab ride through a taxi aggregator service is also an example of cross-promotion.
Advantages of cross-promotion:
i. The biggest advantage is that it is beneficial for both type of product sellers. In the above example, both taxi aggregator service and mobile recharge service are getting benefit from the single advertisement.
ii. It is a cost effective mechanism because two products are being promoted in an ad which reduces the total cost.
iii. It is an easier strategy and products complement with each other.
Methods of cross-promotion:
i. Joint advertisement
ii. Joint newsletters
iii. Organizing joint events
iv. Launch offers where buying both products will be more beneficial for user than buying one product.
Points to be considered before going for cross- promotion: Not all products complement with each other. It may be disastrous for both parties if their products don’t follow certain criteria. Hence, it is imperative to think on following points before going for cross-promotion strategy:
i. Are the products complementing with each other.
ii. Does products increase each other’s credibility?
iii. Is the synergy creating on joining the products?
iv. Is combining both products brings different resources on table.