What is Co-Op advertising?

[Graybeard]

Co-Op advertising is when a manufacturer pays part of the advertising when the seller uses his brand name as an authorized seller.

I grew up around the furniture store business (my uncle owned 5 retail furniture stores at one point) and the national manufacturers that he bought rail cars of goods from direct offered him 50% co-op money to run full page newspaper ads featuring their brands (this was late 1970's America).

The money was pro-rata: if the ad was 1/3 Serta mattress -- Serta paid 1/6 (pro-ratea 50%) of the cost. His store ads were every Sunday full color -- the back of the first section of the newspaper -- that is a top placement in print media (like the back cover of a magazine) high-visibility.

Large header ad would be the Internet equivalent or index page large skyscraper ...

If you are a manufacturer (in this business an 'offer owner') why would you absolutely prohibit your affiliate's from using your trademark (brand) to build up a new brand? Why not allow then to use you name in authorized advertising and even help them pay for the ads that you will benefit from too?

 

[azgold]

If you are a manufacturer (in this business an 'offer owner') why would you absolutely prohibit your affiliate's from using your trademark (brand) to build up a new brand? Why not allow then to use you name in authorized advertising and even help them pay for the ads that you will benefit from too?

My thought has been that they don't want competition for their own ads and have to share profits with affiliates. But aren't they limiting their reach, increased brand recognition and additional potential profits? Seems to me they are.

 

[ksoftseo]

Thank you for sharing this

 

[Naveh Jalen]

HI Friends
Co–op advertising refers to an agreement between a manufacturer and a retailer to share advertising costs, while at the same time creating brand name awareness. A manufacturer (of brand name products), will create a co-op program for use by dealers, retailers or agents.

 

[Graybeard]

That is what I said -- I know my uncle owned a chain of furniture stores. Some of the manufacturers paid a part of our full page newspaper ads long ago (c. 1970).

If you want to brand on the internet --help your selling partners (that you can trust). Maybe, that is the issue trust

 

[azgold]

Maybe, that is the issue trust

I guess that's probably the hardest thing to come by online these days.

Reputation management.

 

[Graybeard]

for real +1
_______________________

 

[monicageller3691]

Cooperative advertising involves paid advertising messages with costs shared by retailers and manufacturers. Retailers often initiative the pursuit of co-op ads with the point being that the retailer and the manufacturer benefit when end customers buy the products the manufacturer makes and the retailer sells.

 

[Graybeard]

garbage.
The manufacturer is paying the retailer to brand his product with the public.
The retailer gets assistance with his advertising costs.
The manufacturer increase sales volume.

Norm Crosby's grandchildren progenialiate today

 

[clairedivas]

Cooperative advertising is a cost effective way for manufacturer, retailers or distributor to reach their target in markets.