Most of us have heard the saying “Nothing in this world is ever free.” While Co-Op Advertising is certainly not entirely “Free”, it is a very beneficial program for many businesses across industries! So, what is co-op advertising, which industries use it, what are the benefits of co-op advertising programs and what things should you know?
What is Co-Op Advertising?
Co-Op Advertising (or Cooperative Advertising) is an advertising partnership, as the name implies, between two (or more) companies that are involved in the chain between manufacturing, distribution, and retail. Co-Op Advertising is a way to share ad costs between involved parties and can be beneficial when seeking to improve the sales of a specific product. Many times, a business will partner with the manufacturer (or distributor) to run ads for a specific brand they wish to increase sales revenue on. The manufacturer or distributor will then pay for part, or in some cases all, of the advertising that includes their product or brand. Most Co-Op Advertising Programs have very specific brand guidelines and rules for each type of media outlet. Co-Op Advertising Programs often include an array of choices for media ranging from traditional broadcast to digital marketing efforts and everything in between.
Which Industries Use it?
There are many industries that have and utilize Co-Op Advertising Programs. Basically, if there is a national brand that sells products via retailers to consumers, you can bet they likely have an established Co-Op Advertising Program. Common examples of industry specific co-op advertising include Automotive (car dealerships), Powersports (ATVs, UTVs. Etc.), Lawn and Garden (lawn equipment, power tools, etc.), Farm and Ranch (tractor dealers, etc.), Marine (boats, watersports, etc.), Sporting Goods, HVAC Equipment (Trane, American Standard, Lennox, RUUD, Mitsubishi, etc.), Furniture, Mattresses, Electronics, and the list goes on.
What are the Benefits of Co-Op Advertising Programs?
The main benefit of Co-Op Advertising is the ability to offset your marketing costs. With a Co-Op Advertising agreement, businesses can advertise more and spend less money out of pocket because the advertising costs are either shared or covered in full by the manufacturer or distributor. This practice can increase ROI (Return on Investment) in a big way for many businesses.
In addition to the cost savings, many Co-Op Advertising Programs have marketing assets that are already created, can be used, and tweaked to meet your campaign goals and needs. This can save both time and money with production costs for advertising assets and creative, making these resources an efficient way to create co-op ads.
Co-Op Advertising campaigns often result in reinforcement of a strong brand yet creates a custom, localized feel for business retailers. Manufacturers are able to increase brand awareness and local businesses are able to advertise their products and services while marketing their own brand, resulting in a win-win situation.
What Should You Know About Co-Op Advertising?
First, you should do the research to determine if you may have Co-Op funds available to your business through a Co-Op Advertising Program. Once you determine the funds available, it is time to create a game plan for the best utilization of the Co-Op Advertising funds. You will want to work with an experienced media partner that can guide you on the best usage of your Co-Op Advertising dollars and incorporate it into your overall media plan. Strategy is very important. You will want to maximize your ad spend, be able to negotiate the best media rates, properly plan your campaign flight depending on your business and industry trends, and then plan an effective campaign with proper messaging and branding to compliment your existing campaigns.
Secondly, before planning your campaign it is important to be aware of the specific guidelines that are in place for your Co-Op Advertising Program. Most programs have standards for branding that you will have to follow. Additionally, there are often detailed rules for each media outlet (television or cinema, radio, print, Over-The-Top Television/OTT, billboards, websites and landing pages, uniforms and apparel, social media, email marketing, online banner ads, digital video/pre-roll, search engine marketing, etc.). Once you are aware of the rules, you can work on the creative. Most Co-Op Advertising Programs require submission of all creative for pre-approval prior to running your ads.
At the end of the day, you will want to work with a trusted partner who knows your business, your brand, and can maximize your Co-Op Advertising Program benefits to ensure your success.
As a leading marketing and advertising agency, Brand Ranch Media has many years of experience running Co-Op Advertising Campaigns across industries. We know how to maximize your marketing dollars by utilizing Co-Op Advertising to its fullest potential to meet your goals and increase return on investment. If you are looking for assistance with how to best utilize your Co-Op Advertising Program, give us a call at 713-309-6380 or contact us and we can gladly assist you!