Why Co-op Advertising Is a Win, Win, Win
Your business is only as successful as its marketing plan. And for a lot of clients, that includes taking advantage of co-operative funds. Co-op partnerships between a manufacturer and a retailer often include an agreement to share local advertising costs in exchange for brand-specific mentions. These programs support mutual growth and leverage advertising budgets by offering financial and marketing support, which is why agencies like Image Makers Advertising love them.
Understanding the co-op process and knowing how to use available funds can be overwhelming for a small business owner. But making your advertising dollars go further is all part of a hard day’s work here at IMA. Remember, it’s important that your agency understands and handles both creative and co-op compliance for print, broadcast, web, digital, and direct mail campaigns. The result? Unique and effective ads that promote your individual brand and qualify for “free” manufacturer dollars—reducing your out-of-pocket costs.
Manufacturers only pay a portion of marketing costs for businesses within their franchise—or that sell their products or services—if specific criteria are met. Rules may include showing a logo, mentioning a tagline or brand name, or sharing a current incentive. Dealers then submit a claim and the manufacturer reimburses them for qualifying advertisements. In short, it’s free money for advertising and an ideal way to help a local company build its business by selling more products from a national manufacturer.
Steps to Co-op Success
It’s estimated that manufacturers offer more than $50 billion in co-op funds each year—the majority of which go unused. Don’t leave money on the table while struggling to stay a step ahead of your competition—take advantage of co-op advertising with an agency that knows how to maintain this relationship and grow your business. Our in-house co-op team crafts unique messaging, submits drafts for pre-approval, supplies required documentation, works with manufacturer billing departments, and is available to answer questions you have along the way.
Give Co-op a Try
Take the next step in moving your business forward—establish a co-op partnership with your industry manufacturer. Pair it with the right agency to guarantee things are done correctly and it’s a win, win, win for everyone involved. Still have questions? Just ask! We’re happy to share more on this hot topic.