GoPro cut a deal yesterday with Red Bull to be the brand’s official camera provider, an alliance that plays to both brands’ strengths, although it may not save the struggling electronics company.
Red Bull’s focus on video helped it earn the Genius title in L2’s Digital IQ Index: Beverages Brazil. The brand leads the Index in both Instagram video count and engagement: it posted more than 80 videos in Q4 2015 alone, garnering over 160,000 interactions. Most depict extreme sports such as skateboarding, wakeboarding, and surfing, GoPro’s area of expertise. In fact, many are even shot with the camera maker’s devices.
GoPro also uses videos to dominate the social landscape. Amateur users can submit their own productions for a chance to be featured on the brand’s social pages, and hundreds of athletes, musicians, and bloggers star in more professional branded content. As a result, GoPro has a Facebook community more than twice the size of the average brand’s, and it generates 27 times the average amount of engagement on Instagram – achievements that helped the brand attain Gifted status in L2’s Digital IQ Index: Consumer Electronics.
However, the brand’s stock fell 82% this year amid falling sales, as smartphone cameras and cheaper alternatives produced by Chinese rivals reduced demand for GoPro’s devices. While the partnership with Red Bull might boost the brand’s stock price, it might not be enough to convince consumers that they need GoPro cameras.