Co-Op Advertising

DigiROI Marketing Channels Marketing Solutions / Co-Op Marketing

Partner with the DigiROI Marketing Co-Op team to identify available Co-Op Marketing funds to generate awareness and drive purchase intent.

What Is The Co-Op Opportunity

Most of our existing and prospective clients have access to some form of Co-Op marketing program. and many of those dollars (upwards of 55%) go unused annually. Partnering with the DigiROI Marketing Co-Op team can help you recognize those opportunities to drive incremental revenue and grow your business.

$70 BILLION Available Co-op Funds in the US

———–But Over———–

$30 BILLION Goes unused each year.

DigiROI Marketing Provides Turn-Key Co-Op Management For Our Clients

Campaign Planning and Management:

We work with brands to establish a dealer-centric campaign focusing on Co-Op, Shopper Marketing or MDF funding.

Retailer – Dealer Co-Op Strategies:

We help our clients locate, secure and use brand dollars to fund campaigns – and/or become an extension of your marketing team.

Campaign Approval

We will work with the brands to ensure all campaigns are pre-approved and brand compliant.

Claiming Paperwork:

We assist with claiming of funds, Co-Op reimbursement and proof of performance needs.

How The DigiROI Marketing Co-Op Team Assists Our Clients

  • Design marketing campaigns and streamline the entire dealer channel Co-Op process.
  • Assure Retailers/ Dealers are utilizing the Co-­Op funds they have earned.
  • Work with Brands and Retailers to create and manage Shopper Marketing campaigns.
  • The DigiROI Marketing Co-Op team is your partner – with campaign knowledge, strategies and industry expertise to drive double-counted sales growth for your business!

For more information schedule a consultation today!

Co-Op Advertising – What Is It?

In general, co-op advertising is a joint venture or “partnership” between a buyer and seller to promote sales to the consumer. Specifically, it is an agreement between a manufacturer and a retailer to share the cost of advertising at the local level.

Five key elements of all Co-op Plans

Accrual – The amount of co-op money available for advertising. This may be based on a percentage of purchase or it may be a fixed amount. Before initiating an advertising program, the co-op department should research the accrual. Types of plans:

  • a. The 100% plan – Manufacturer pays the total cost of the retailer’s ad.
  • b. Shared Plan (50%) – Manufacturer and retailer each pay a portion of the ad cost.
  • c. The Unlimited Plan – Manufacturer contributes a stated % of the cost in each ad
  • d. The Fixed Plan – Manufacturer allocated a ‘set’ amount of co-op funds per dealer not based on purchases.

Example of accrual and accrual percentage: A manufacturer sets aside a co-op fund with an accrual percentage of 2%. A retailer purchases $100,000 of that manufacturer’s product. The retailer has an accrual balance of $2000.00 to spend on advertising.

Participation or Performance – The manufacturer’s share of the cost of advertising. Depending on the plan, participation usually ranges from 50 to 100 percent.

Example of participation: A retailer that has an accrual balance of $2,000 runs a series of ads that total $1800. If the manufacturer’s participation rate is 50%, the reimbursement that the retailer would receive is $900.

Requirements – The rules set forth by the plan must be followed in order to qualify for co-op reimbursement. If the rules are not followed precisely, a claim may be rejected. Amongst the most common requirements are:

  • a. Illustration and product in ad.
  • b. Logo
  • c. Prior Approval
  • d. Competing Products

Accrual Period – The time period in which a co-op plan is in effect. Adherence to the plan will prevent loss of co-op funds, since funds are no longer available to the retailer after the expiration date of a plan.

Example of accrual and performance periods: A manufacturer offers a co-op program of 2% of all previous calendar year’s purchases. The retailers earn their co-op funds one year and spend them the next. Any purchases they made during the current year are set aside for the next year’s co-op fund.

For more information schedule a consultation today!