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 If you advertise in any way,
the following information could show you how to find
and utilize untold advertising dollars you may not
be aware of.
In the mid 80’s I was an account executive for a
radio station located in Santa Rosa, California.
During that time I became very familiar with what is
referred to as co-op advertising.
Co-op advertising is a great source of advertising
dollars. And there is so much of it available to
people, yet most people know very little, if
anything, about co-op dollars.
Interestingly, I was one of the only reps at the
station who made sure my clients knew about this
benefit. The reason was simple, there was more work
involved in getting my clients set up, and yet,
there was financial gain for both my client and
myself by taking time to help them stretch their
marketing dollars.
Co-oping is where you put in money for advertising
and the manufacturer of a product you sell also puts
in money. Often it is as much as 50% of the
campaign. It is a great way to stretch your
advertising campaign and to beef up your campaign.
Unfortunately, even though the money is available if
conditions are right, many people either aren’t
aware of this or if they are they think it’s too
much work to meet the criteria. Granted, in some
cases it is, but often utilizing co-op money is a
great way to stretch your marketing budget.
There are many co-op-advertising opportunities
available if you plan to do advertising on the
Internet. Not all are good investments though. Check
opportunities out very carefully before making a
final commitment.
Using co-op dollars is an excellent way to build a
stronger relationship with your retail suppliers and
to generate a lot more traffic in your store or on
to your web site. If the overflow of business is
handled correctly you will increase your sales and
profits.
The great thing about using co-op dollars when you
are dealing with standard media is that your account
rep can handle the paperwork for you. Many retailers
hesitate using the “hidden” dollars due to
feeling intimidated by the paperwork, the unknown.
Not only can the rep help you with the paperwork,
they can also help you to build the campaign.
However, before you trust them completely, find out
what their experience is, what successful campaigns
they have spearheaded and get some references. Take
the time to do some research upfront to save money
over the long run.
The reality is, if they are professionals in the
truest sense of the word, they will be more than
willing to take much of the paperwork burden off of
you by handling it. After all, the more value an
account rep creates for their clients the greater
chance for an ongoing business.
Co-op dollars are not limited to retail businesses.
Often, there are hidden dollars for non-profits.
There are city and state funds that are set aside to
help various organizations increase their visibility
and reach.
One nice thing about using co-op dollars from a
large manufacturer is that brand names do attract
customers to your business—that's why you offer
them. Advertising specific well known brands will
increase your foot traffic. Harley Davidson has an
amazing co-op program they offer to their retailers.
It is a primary reason they have done so well. They
encourage advertising based on specific guidelines.
It is to the advantage of an advertiser to utilize
these dollars. Manufacturers in virtually every
industry want to help with advertising costs. They
are very aware that when you correctly advertise
their brand name product you will probably sell more
of it, thus increasing your orders.
The disadvantage of co-op advertising can be the
restrictions set by the manufacturer. Often, they
have such rigid guidelines about how to design the
ad that you may lose all control of creative
expression. For example, their logo may have to be
positioned in an exact location in order for them to
co-op the campaign.
If you are working with someone who claims to be an
expert at advertising and they know nothing about
co-op dollars they are not the expert they claim to
be. Be aware.
Areas that you need to be educated on are program
terms and reimbursement schedules. In some cases it
can take months to receive reimbursement for a co-op
campaign. In other cases, the company you are
cooping with will send the money directly to the
media source. Be sure to check this information out
in order not to run into a cash flow problem.
Advantages of co-op advertising
- Extra money to advertise
- Account executive can do the paperwork
- More frequency
Disadvantages of co-op advertising
- Restrictions by manufacturer
- No guarantee it will work
- Limited creativity in ad copy
Before making a final decision, research your
options on co-op advertising. You may be pleasantly
surprised with what you discover.
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