CO-OP ADVERTISING: MAKING THE MOST OF CO-OP DOLLARS

Making the Most of Co-op Dollars

It seems like such a no-brainer.
US manufacturers allocate approximately $36 billion to $70 billion, annually, as co-op funds for which many (if not most) local SMBs, dealers, retailers and advertisers qualify to add to their advertising budgets.

Some brains are obviously not so clear about the value and availability of co-op dollars, and how to use them, because approximately $14 billion to $35 billion are never used. It’s difficult to imagine why local advertisers disregard the stacks of cash manufacturers are pushing across the table at them, and not claim their fair share.

According to 2016 research from the Local Search Association (LSA), which is THE premier co-op database with thousands of programs, including TV and digital plans, “43% of US small businesses sell national brands that potentially qualify for co-op funds,” but only 42% of them have actually used those dollars.