Cashing in with co-op advertising and Tucson Newspapers
Co-op advertising is a joint venture between a manufacturer and a retailer to share the cost of advertising the manufacturer’s products locally. By offering co-op advertising opportunities to their retailers, manufacturers are able to increase sales volume dramatically.
Co-op money is offered to retailers either directly or through wholesale intermediaries. Generally, the amount of the allocation is relative to the retailer’s purchase of the manufacturer’s products. Some plans, however, have no bearing on purchases. Instead the manufacturer agrees to share the cost of advertising up to a given number of ads, inches or dollars.
Regardless of the details of the plan, it is vital to remember that the co-op concept will increase product movement, sales volume and profit margin for everyone involved.