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Co-branding is a form of online advertising in which a website owner sends a website visitors to another company's page that incorporates the owner's branding. In co-branding, an affiliate or merchant with a separate website/storefront is able to direct traffic to that website from another storefront. When visitors click on the link, they are directed to the affilate's electronic storefront in the hope that they will purchase the affiliate's products.
If a company sells merchandise that complements another company's merchandise, it can be an effective fit for co-branding opportunities. Before co-branding, however, companies must realize that there are definite disadvantages to this type of marketing technique. First and foremost, any electronic storefront enlisting co-branding techniques must take into account the obvious fact that there are now two brands, not just their own, being advertised. Also, if an affiliate is not thoroughly vetted and operates its business in an undesirable manner, this will definitely reflect poorly on the original website or electronic storefront.