What is Co-op Advertising:
Co-op advertising is short for
cooperative advertising. Co-op
advertising is an arrangement between a
manufacturer (or distributor) and their
resellers to market a product or service
for the benefit of both parties. Most
well known manufacturers will give their
resellers some portion of money back as
co-op advertising funds in order to
market their products.
Co-op
advertising can be a very powerful tool
for the local business owner who has
limited advertising resources. Utilizing
the much larger resource pool of the
manufacturer which has developed
marketing campaigns and provide added
funds from such an agreement can improve
the quality of advertising, broaden the
scope of its distribution and execution,
and drive partnership between the
manufacturer and reseller. It can also
create important links between products
and the small business owner who handles
the product for the manufacturer.
All manufacturers and distributors
have certain rules that resellers must
follow in order to be in compliance as
they receive their co-op advertising funds.
These rules vary from
manufacturer-to-manufacturer and
industry-to-industry. All of these
programs require proof of performance in
order to receive co-op marketing funds, and
many co-op marketing programs require
prior approval before executing co-op
marketing campaigns.
