Cooperative advertising is a cost-effective way formanufacturers, retailers or distributors to reach their targetmarkets. Although co-op advertising policies differ frommanufacturer to manufacturer, most will pay a portion of theadvertising costs and supply the retailer with photos or graphicsto use in the ad (or sometimes the entire ad itself), whether forprint, radio or television. A manufacturer’s contribution to acooperative advertising campaign can range from a large amount ofmoney to promotional gimmicks and point-of-purchase displays.
Using co-op advertising cuts down not only on your media costsbut also on your ad production and creative expenses as well. Asmart advertiser will factor co-op advertising, if available, intohis or her budget. The major drawback to co-op advertising is thatsome manufacturers have more restrictive programs than others.
Another form of cooperative advertising is sponsored by shoppingdistricts or centers, which feature an advertisement from eachretailer in the shopping center. These promotions are often foundin local newspapers for back-to-school specials, St. Valentine’sDay, Fourth of July, Mother’s Day, Father’s Day and so on.
Be careful to coordinate any co-op advertising you do withinyour overall marketing scheme. Only use co-op advertising if itmeets your needs. If you??ve chosen a different approach in youradvertising campaign, don??t switch in midstream just to takeadvantage of free advertising dollars.
Here are some tips to help you get the most out of co-opadvertising:
- Keep careful records of how much you’ve purchased from eachsupplier.
- 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 advertisingprofessional to prepare an ad you think will appeal to themanufacturer. Keep in mind the image the manufacturer presents inits own ads.
- Make sure your company’s name stands out in the ad. Your goalis not so much to sell the supplier’s product but to get customersinto 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 thembusiness. If your vendor doesn’t offer co-op advertising money, youshould look for another vendor who does.
- Be sure to follow up. Money goes only to those who submitclaims.
