What is cooperative advertising?

CO-OP advertising is an advertisement in which part of the cost is shared by the manufacturer or wholesaler. This allows retailers to accept ads that they cannot otherwise afford. Cooperative advertising has a number of advantages and many companies have cooperative programs that people can use to help pay advertising. It is important to examine the contract offered before the conclusion of an agreement on confirmation that it contains no surprises. It can approach the companies from which he orders to see if he is interested in cooperative advertising. A wholesale who stores fruit could agree, in which case a grocery store would contain one or more company products in an advertising agreement. If the wholesaler approved the advertising, he would pay part of the cost.

for retailers, co-op advertising can provide advertising opportunities that would otherwise be difficult to get due to costs. Ads can be placed on television, radio or printed publications for the purpose of obtainingThe name of the trade and getting to know people with the products they carry. Especially for small businesses, cooperative advertising can change the big difference in the advertising budget.

Manufacturers and wholesalers such as cooperative advertising because it can be used to raise awareness of products on local markets. While national advertising campaigns can be valuable, advertising advertising to local communities can help develop a customer base. For example, if people see XYZ tires advertised in the national campaign and then see cooperative advertising for a tire store that sells these tires, they can be drawn to make a purchase. Usually it is also much cheaper to place ads on local markets than on national, so cooperative accenting budget goes further.

The key disadvantage of cooperative advertising is that it must usually contain products produced or sold by the manufacturer or distributor that SDthe cost. In addition, advertising must be approved before it is launched, as companies want to make sure that advertising reflects their values ​​and report. For example, a company that boasts family values ​​would not want its products to appear in suggestive or sloppy advertising.

People also use the term "cooperative advertising" to reference to advertising, which is developed together two or more retailers, while retailers share costs and develop a copy of each other. For example, three local video -ateals could connect to put advertising into paper that encourage people to rent videos locally with small businesses than to rent movies in other ways.