For SMBs with minimal budgets, digital co-op is a huge opportunity to advertise with no additional cost. With $1.7 billion available in digital co-op programs every year and $450 million of which is unclaimed, local advertisers have access to free advertising dollars.
Sales reps who leverage co-op can upsell existing advertisers to both expand the relationship and more easily achieve their digital goals, as co-op campaigns are typically larger and higher in value. At the same time, by selling co-op, reps help advertisers grow their local exposure without increasing their advertising spend.
In other words, co-op advertising is a win-win for both sales reps and local advertisers.
To help convey the benefits of co-op in your next client meeting, here are 3 reasons why co-op is highly advantageous to their business.
Tap Into “Free Money”
When advertising through co-op, manufacturers are sharing the cost of online advertising with your advertiser in exchange for having their products featured in the ads.
Local retailers can accrue co-op funds based on their purchases from a manufacturer. On the condition that the ad meets the manufacturer’s brand requirements, the manufacturer would then reimburse the retailer in part or in full for the advertising expenditures.
Leveraging co-op will effectively increase your advertiser’s budget anywhere from 70% to 300%, hence not taking advantage of such an opportunity constitutes a “waste of money.”
Associate With Big Brands
Both manufacturers and local advertisers gain from enhanced exposure at a lower cost. Advertising alongside a national brand creates a positive association, identifying them as a preferred local source for their products. Smaller retailers, in particular, have the greatest opportunity to gain by increasing their recognition through stronger, well-known brands who already have an established presence.
With more than 4,500+ co-op programs available in the U.S. alone, digital co-op advertising proves to be a sensible strategy for local retailers.
Sell More Units
Ultimately, co-op advertising is beneficial to increase the number of potential buyers and overall revenue for the local retailer. Advertisers who are eligible and choose to run campaigns through co-op will inevitably reach more customers, see more in-store visits, and as a result, more units sold.
Boosting the reach and frequency of your local advertisers will help lead to stronger brand awareness, and most importantly, more business at a lower cost.
Co-op dollars enable advertisers to expand their local presence and deploy more ad campaigns at a larger scale, without increasing their personal advertising spend. Unlock the digital co-op opportunity for your local advertiser by educating them on current promotions and co-op plans available to them today.
To apply your newfound knowledge, watch this webinar and learn how to start identifying leads as well as the best workflows to make selling co-op advertising easy.