Billboard Ads & Co-op Advertising Reimbursement
What is Co-op Advertising?
According to Co-op Connect (a website designed for Dealers seeking details about US Manufacturer co-op programs):
Co-op advertising is short for “cooperative advertising”. Co-op advertising is an arrangement between a manufacturer (or distributor) and their reseller to market a product or service for the benefit of both parties. Typically, a manufacturer will give their resellers some portion of money (either through reimbursement, discounted purchase price, or credit memo) in order to market their products. Billboards and other forms of Outdoor Advertising Media are traditionally reimbursed at 50% – 75% of the cost of the ad.
Co-op advertising can be a very powerful tool for the local business owner. By definition, small businesses lack resources and most small business owners are responsible for many if not all parts of business operations. Developing marketing campaigns, messaging, creative, and then executing this marketing effort is usually only thought of while lying in bed at night trying to not worry about keeping the business going.
This is where co-op advertising comes in. Utilizing the much larger resource pool of the manufacturer which has developed marketing campaigns and provide added funds from such an agreement can improve the quality of advertising, broaden the scope of its distribution and execution, and drive partnership between the manufacturer and reseller. It can also create important links between products and the small business owner who handles the product for the manufacturer. Above all, it can attract customers loyal to a certain product to a vendor whose name had not before been associated with that product.
All manufacturers and distributors have certain rules that resellers must follow in order to be in compliance as receive their co-op advertising funds. These rules vary from manufacturer-to-manufacturer and industry-to-industry. All of these programs require proof of performance in order to get co-op marketing funds, and many co-op marketing programs require prior approval before executing co-op marketing campaigns. Some of these restrictions, guidelines, and rules concerning proof of delivery is why an estimated $14 billion in available co-op marketing funds go unused every year
Billboards and other forms of Outdoor Advertising Media are typically covered as part of the manufacturer co-op program and are reimbursed at 50 – 100% of the cost of the ad. This is truly a win-win situation for both parties.
Billboard Connection (of MA) can help you locate the best available outdoor locations anywhere in the US at the lowest possible rates. We will provide you with a valuable marketing resource to help you grow your annual sales.
Reach out to us today for more details. We look forward to hearing from you: