What Is Borrowed Interest

We are not talking about the interest that you pay when you take out a loan.

Borrowed interest is the practice of leveraging the recognition or image of a property or personality to try to boost your brand. It is most often used in advertising, but it has now spread to other tactics, including social media and digital ads.

Our advice is to think long and hard about using this strategy, as it rarely pays out unless the property you align with matches up exceptionally well with your brand.

Think back to this year’s Super Bowl commercials. Yes, we know that most Forge clients do not have the kind of budget to consider $7 million for a :30 second ad. But, really, what does Lionel Messi on the beach have to do with beer? And which beer brand sponsored that ad? There are always a lot of beer commercials during the Super Bowl, so that makes it even tougher to recall. There may be some water cooler conversation after the big game, but likely no lasting, associated benefits.

So many choices.

There are a variety of vehicles to consider for brand linkage: movies, video games, cartoon characters, sports figures, authors and more. There are even agencies that specialize in putting brands and properties together. Some are nostalgic, some are famous figures, some are currently hot and generating buzz. The key is to be 100% sure the property fits your brand image exactly. And the more current the property, the more expensive the price tag to work out an arrangement. Some examples include snacks or candy brands featuring promo codes for the latest online games.

Tread carefully.

Let’s say that you feel you need a recharge catalyst to jump-start attention for your brand.

Work out the details so it is crystal clear as to who is responsible for what, what the time frame is, and what you get. Define the costs and obligations, terms, and conditions. These contracts tend to be complicated.

The cheapest way to execute this kind of deal is to feature the property on your package for several weeks at retail, coinciding with social media and digital campaigns to promote it. Then work with your retail customers to include some promotional pricing and secondary displays.

After the dust settles, do the post-promotion analysis to see if the extra spend for the selected property paid out with higher-than-normal incremental sales.

At Forge, we thrive on helping clients get to the next level. We have worked with many clients putting together hard-working and thoughtful marketing budgets for growth. We develop plans that are grounded in brand differentiation and consumer benefits.

And we will always bring the conversation back to strategy. Who is your primary target audience and what do they care about most? How does your product meet and exceed their needs? How do we maximize the market opportunity and optimize return on investment? 

Importantly, we are pragmatic, focused, and energetic. We get assignments done well, and quickly.

Take the first step to a more successful business today.

1.    Hit “LET’S TALK” to schedule a free 30-minute discussion. No pressure – we promise.
2.    We’ll provide real-world case studies showing the process in action.
3.    If we’re a fit, we finalize details and get started!

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