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Local Click ​​​​​​​Advanced Development Solutions

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January 04.2022
1 Minute Read

Co-op Advertising: A Win/Win Proposal

An easy way for a small business to broaden it's marketing budget is through cooperative advertising. Cooperative advertising, or as often abbreviated Co-op, is when a manufacturer of goods, for usage by service providers or for resale, compensates the advertising company in part or completely for advertising expenses that involves its products. These programs are extensively available due to the fact that quite simply they save the manufacturers of products money. Bottom line is that regional advertising rates available to the advertising company are at least 20% lower than national advertising rates. Therefore, the advantage for the producers of products is increased brand name recognition within that market at the lower local advertising rates, improved reseller relations, and far more.

Nevertheless, cooperative advertising programs are an integral part of the manufacturers own strategic marketing plan and for this reason they may not only vary from manufacturer to manufacturer but from item to item.

Also, because these programs are an integral part of the manufacturers strategic marketing plan, strict rules and guidelines are often placed on cooperative advertising dollars. These rules and regulations might cover media channels selected, product placement, ad positioning and size, and a lot more. In addition, there may be a separate set of standards that the marketing company should follow for monetary reimbursement of advertising expenses.

Because of the perceived intricacy of cooperative advertising; companies might feel intimated by the rules and policies, not inquire about cooperative advertising opportunities, or for assistance. An entrepreneur or manager must ask every vendor that provides the business with products about what cooperative programs are available to them and how their business can make the most of these programs. Once the advertising company has actually developed its cooperative advertising programs with its suppliers, all necessary details need to be shared with the representatives of the selected media channels to ensure appropriate execution of the advertising to meet the producer's rules and policies.

Cooperative advertising is a win/win proposal for the manufacturer and the company doing the advertising. These programs allow producers to increase brand recognition in the market at the much lower regional advertising rates and permit the advertising company to increase its marketing budget at no additional expense to their business. All small businesses must actively pursue these valuable cooperative advertising opportunities.


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