What is cooperative advertising?

Cooperative advertising is a type of advertising agreement between the manufacturer and the product dealer. The manufacturer and retailer form an alliance that will pay for the cost of advertising to increase sales. The product manufacturer often provides money to the retailer for the purpose of buying local ads. The product manufacturer knows that the seller is an important part of the sales process. If a retailer can sell multiple products, the manufacturer will be able to produce more products and sell them to a retailer. This means that the manufacturer is interested in the success of the retailer. In order to promote the success of the retailer, the manufacturer agrees to conclude an agreement on cooperation with advertising. This is done so that the retailer can use money to buy advertising on its local market. Buying advertising on the local market is usually much cheaper than coming up with a national advertising campaign. Local retailers will be able to get much better offers for local advertising with this method. Because products are sold at local level, retailers want to get involvedto their local area and address consumers in the best possible way.

In most cases, the vast majority of money used for cooperative advertising are spent on news advertising. Many studies have shown that this type of ad is more successful than other available methods. A smaller percentage of money is spent on television and radio ads. In some cases, Internet marketing will also be money from cooperative advertising programs.

Cooperative advertising programs are based on sales volume. This means that companies that sell the most products get the most advertising dollars from the manufacturer. Usually, manufacturers have several retailers they work with. This means that they have to allocate money that will be spent on cooperative advertising programs to businesses that will use them best. Companies that produce sales will receive most of the advertising dollars.