Whether you’re a retailer or service company that offers one brand or hundreds, there’s a good chance you can bolster and save money on your marketing efforts with coop advertising. Coop advertising is the sharing of costs on advertising between a retailer or wholesaler and a manufacturer. Coop money can be set for a year or accrued as purchases from the manufacturer are made.
So what it so great about coop? Simply put, it’s free money. If your business has a marketing budget of $250,000, with 50% coop from your manufacturer(s) you can actually purchase $500,000 worth of advertising. In this instance, coop has doubled your marketing efforts while maintaining your budget.
More often than not, advertising must be approved by the manufacturer in order to receive coop dollars. The type of advertising, manufacturer’s logo size and placement, and tagline are some of the popular considerations. Some guidelines can prove strict, but designing ads that meet the criteria is worth it when you can receive 50%, 60% or more toward the advertising cost.