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WeWork is leveraging its coworking network around the world to explore new sources of revenue outside of real estate. And it’s turning co-working spaces into destinations for events, sponsored products, and outdoor advertising.
The company is currently partnering with Recess. Recess is a platform that connects consumer brands with places and events that are likely to reach new consumers. Recess’ self-service tools allow sales teams to understand what events and locations are suitable based on geography, age and interests, and then purchase ad inventory that fits their target audience.
Rebecca Graf, WeWork’s head of ancillary revenue in the U.S. and Canada, said partnering with Recess allows it to connect with brands that want to reach people who use the coworking network.
WeWork users are also getting to know new products like never before. Some are well-known brands like PepsiCo and Sierra Nevada, while others are newer brands like Health-Ade and Milk Bar. To date, over 40 brands have used Recess to form short-term and long-term partnerships with one or more coworking spaces.
Reach your audience with experiential ad networks
“With Recess, you don’t have to keep an eye on your workout schedule, music festivals, farmers’ markets, or other events and make the trip,” said Jack Shannon, co-founder and CEO of Recess. do. He also described Recess as an “ad network of experiences” that “allows media buyers to reach audiences beyond social media and other digital marketing platforms.”
“Many experiential agencies still rely on manual work by team members,” Shannon said. “We Google Albuquerque Farmers Markets and randomly contact them to see how much it costs, when we can go, and if there are any openings.”
WeWork works directly with hundreds of brands, not just Recess. For example, Numi is the exclusive tea partner and Lavazza offers coffee. Additionally, Doordash was recently announced as an exclusive partner for food delivery. WeWork doesn’t disclose how much money it’s making from the recession, but Graf said it’s “not just about making money.” In addition to working with brands, the company also meets with agency partners, which is part of Recess’ business model.
“It’s important that the experiences of the people we work with in this space are as authentic as possible,” Graf said. “We have no interest in being like Times Square, which is why we choose very specific categories to partner with for a wide range of categories.”
Marketing tactics that look directly at the product are still effective
Avoiding being the Times Square of coworking doesn’t mean WeWork is reluctant to advertise in various locations. In the third week of January, it announced a new partnership with Captivate to bring digital outdoor advertising to nearly 200 co-working spaces.
“After years of retail doomsday pessimism, seeing the product firsthand is a powerful marketing tactic,” said Claire Tassin, retail and e-commerce analyst at Morning Consult. (According to a 2022 study by the company, many people still prefer to shop in person in categories such as groceries, household goods, apparel, and personal care products.) I am reading). And in the current economic climate, some shoppers find it hard to try new brands without having the opportunity to see the products in person.
“It’s not just the demographics that overlap, but the magic that happens when you identify the needs that make sense in the moment,” Tassin said. “Whether it’s a snack or a skincare product, if it can offer complementary value to the same target audience…it works.
Recess is an attractive option for smaller brands
Some marketers are seeing the benefits of platforms like Recess. The advantage is that it avoids the higher costs of buying ad space on social networks, while significantly reducing the manual work involved. Even small brands with a strong offline presence are often more likely to sign big events to established brands.
Smaller brands may be surprised by exorbitant fees if they try to sponsor an event through the traditional route, but Recess can be an attractive option, according to marketing consultant Kevin Simonson. . Simonson, the co-founder and CEO of Metric Digital, hasn’t used Recess himself yet, but he’s got some ideas how to use it to his advantage. For example, finding animal shelters sponsored by pet brands.
“People like the real thing,” Simonson said. “People still want to be able to touch, drink, and taste the product, but it’s really hard to do, especially on a large scale, because you need a relationship, and a real relationship is It is difficult to scale.”
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(Text by Marty Swant, Translation by Kaori Yonei/Galileo, Editing by Ryohei Shimada)
Source: BusinessInsider
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