Cooperative advertising is a cost-effective way for manufacturers, retailers or distributors to reach their target markets. Although co-op advertising policies differ from manufacturer to manufacturer, most will pay a portion of the advertising costs and supply the retailer with photos or graphics to use in the ad (or sometimes the entire ad itself), whether for print, radio or television. A manufacturer's contribution to a cooperative advertising campaign can range from a large amount of money to promotional gimmicks and point-of-purchase displays.
Using co-op advertising cuts down not only on your media costs but also on your ad production and creative expenses as well. A smart advertiser will factor co-op advertising, if available, into his or her budget. The major drawback to co-op advertising is that some manufacturers have more restrictive programs than others.
