Co-op Advertising

What Is Co-op advertising?
Co-op Advertising is the manufacturer and the retailer working together to move more merchandise and stimulate sales. It’s a simple but effective plan to inform consumers where to buy merchandise, with the cost of advertising shared by both the manufacturer or distributor and the retailer.

How Does Co-op Work?
There are varying types of cooperative advertising plans offered by manufacturers, but all have the same basic ingredients. Co-op money is offered to retailers by manufacturers, either directly or
through distributors, to advertise their products.

co-op-advertis-1Earned Co-op Programs
With most branded merchandise the retailer buys, the manufacturer/distributor assigns a percentage (usually 2-5%) of the purchase price to an advertising fund. this fund accrues as additional purchases are made.

Fixed and Unlimited

Many manufacturers offer plans that have no relationship to purchases, but are fixed or unlimited. With fixed plans a manufacturer will co-op as many ads as the retailer wishes.

Normally, the manufacturer’s agent or distributor will provide the retailer with the total of the advertising funds accrued. They will also provide copy and acquaint the retailer with any guidelines that the manufacturer insists on in the preparation of the script.

What happens to the Co-op Funds if You Don’t Use Them?
Absolutely nothing…and that is the sad part. At the end of the period all unspent funds are returned to the company and labeled unused. These funds are irrecoverable, and unfortunately, represent a significant proportion of all co-op money. That’s why we say, “Not using your earned co-op dollars is like throwing away free money.” It’s your co-op money; plan to use it now.

How Can We Help?
Contact your Catamount Radio Sales Representative at (802) 775-7500 to set up a no obligation FREE CO-OP AUDIT.