Definition: Advertisements by retailers that include the specific mention of
manufacturers, who---in turn---repay the retailers for all or part
of the cost of the advertisement
Cooperative advertising is a cost-effective way for
manufacturers, retailers or distributors to reach their target
markets. Although co-op advertising policies differ from
manufacturer to manufacturer, most will pay a portion of the
advertising costs and supply the retailer with photos or graphics
to use in the ad (or sometimes the entire ad itself), whether for
print, radio or television. A manufacturer's contribution to a
cooperative advertising campaign can range from a large amount of
money to promotional gimmicks and point-of-purchase displays.
Using co-op advertising cuts down not only on your media costs
but also on your ad production and creative expenses as well. A
smart advertiser will factor co-op advertising, if available, into
his or her budget. The major drawback to co-op advertising is that
some manufacturers have more restrictive programs than others.
Another form of cooperative advertising is sponsored by shopping
districts or centers, which feature an advertisement from each
retailer in the shopping center. These promotions are often found
in local newspapers for back-to-school specials, St. Valentine's
Day, Fourth of July, Mother's Day, Father's Day and so on.
Be careful to coordinate any co-op advertising you do within
your overall marketing scheme. Only use co-op advertising if it
meets your needs. If you??ve chosen a different approach in your
advertising campaign, don??t switch in midstream just to take
advantage of free advertising dollars.
Here are some tips to help you get the most out of co-op
advertising:
- Keep careful records of how much you've purchased from each
supplier.
- If you try something unusual, such as a sales video or catalog,
get prior approval from each vendor before proceeding.
- If you're preparing your own ads, work with an advertising
professional to prepare an ad you think will appeal to the
manufacturer. Keep in mind the image the manufacturer presents in
its own ads.
- Make sure your company's name stands out in the ad. Your goal
is not so much to sell the supplier's product but to get customers
into your store.
- If a manufacturer has no established co-op program in place,
pitch your ad campaign to the vendor anyway.
- Expect vendors to help out; after all, you're bringing them
business. If your vendor doesn't offer co-op advertising money, you
should look for another vendor who does.
- Be sure to follow up. Money goes only to those who submit
claims.