Advertising Cooperatives (Co-ops) can be cost-effective ways for manufacturers, retailers and distributors to reach their consumers.
These advertising co-ops are partnerships between retailers and manufacturers where an agreement is made to share advertising costs locally. Utilizing co-op advertising correctly will not only cut down on media costs but also on ad production and creative expenses at the same time.
While the benefits of using an ad co-op are strong, be sure to ask yourself these 5 questions before determining if a co-op is right for you:
1. Is it permitted by my parent company?
Prior to any negotiations, make sure company rules and regulations permit the utilization of co-op advertising. If you are not the parent company and are unaware if a co-op is allowed, make sure to check in! It is very likely they are permissible, but better to be safe than sorry!
2. Is it within our budget?
It would be in your best interest to factor co-op advertising into the advertising budget, if possible. One major drawback to co-op advertising is that some manufacturers have more restrictive programs than others. Make sure it is well within your budget to participate before jumping in!
3. Does it fit into our marketing scheme?
Be careful to only coordinate co-ops that go along with your overall marketing agenda. It should only be used if it truly meets your needs and will help you in the long run. Utilizing an agency to manage your co-op is a great way to be sure it will improve your marketing efforts.
4. Are there other franchises in my area willing and able to contribute?
Scope out potential partners in your area and figure out if they are not only willing but also capable of contributing to the advertising efforts. There might be many potential partners who would be more than willing to join a co-op, but if they don’t have the means to contribute their fair share then the co-op loses its benefit.
5. Does corporate provide adequate support?
Co-op advertising policies differ from group to group. That being said, most parent brands will provide some type of corporate media support and will provide franchisees and agencies with assets to use in local advertising. Make sure there is a foundation set to make the best use of your local funds.
Advertising co-ops can be some of the most powerful tools in your advertising and marketing journey. While powerful, it is important they are utilized correctly. If you’ve officially concluded that a co-op is right for you, here are our top 5 social media musts and 6 Secrets to making it a success!
Working with franchises and co-ops are what we do best! Let us boost your business and help you make the most of your local marketing budget. Your new local strategy is a call away.