When two or more businesses agree to advertise each others' products or services.
Reciprocal Advertising Details
For many years, some businesses have seen the advantages in mutually advertising each others' products or services. For example, in the tourist industry, a popular restaurant with holidaymakers might advertise the services of a company that organizes excursions. In return, the excursion company promotes the restaurant to its clients. Neither of the two businesses is in direct competition, and both can gain new clients. Reciprocal advertising is a cost-effective way to promote an enterprise and is often used by small businesses.
The rapid growth of online marketing has seen a parallel expansion of reciprocal advertising. Nowadays, it is very easy and cheap to set up an online business. Hundreds of thousands of people have done so. However, with so many businesses vying for attention, it is much more difficult to find a market for the online business's goods or services. Online startups often try to survive on very tight budgets and cannot afford to spend a lot of money on traditional advertising. Instead, they may turn to reciprocal advertising to spread information to a wider public.
To effectively use reciprocal advertising, a business, whether online or not, should find a partner that offers a complimentary product or service. For example, a business that sells ceramic mugs might link up with a company that sells blended coffee. Doing this will allow both businesses to reach a wider public and, because both sell related products, they might both sell more. If you enter into a reciprocal advertising agreement with another business, you should ensure that the product or service that your partner offers is of good quality and that the business is reputable. You don't want to associate your business with another that has a bad reputation.
Reciprocal Advertising Example
Ana and Pablo are experienced hikers who have decided to turn their hobby into a business. They have set up a website, backed by their own YouTube channel, that offers hiking trips into the nearby mountains; Ana and Pablo act as guides and offer graded trips for small groups. They have set their prices reasonably to attract clients but have ensured that they carry all the necessary insurance. They intend to establish a reputation as a reliable, safe, and professional business.
There is a sporting goods store in the town where they live, and Ana and Pablo agree to advertise the store on their website. Meanwhile, shoppers in the store can pick up flyers about the excursions that Ana and Pablo offer. Their website also contains links to larger companies that sell hiking equipment.
In fact, Ana and Pablo have gone beyond reciprocal advertising and into the world of reciprocal marketing. The big companies that sell hiking equipment do not advertise Ana and Pablos' business but offer discounts on their goods to clients who connect to their websites through Ana and Pablos' page. For Ana and Pablo, reciprocal advertising is a cheap and effective way to publicize their business.