Skip to main content

Report: Billions In Local “Co-Op Advertising” Funds Left Unspent Annually


Ask digital agencies and marketers about “co-op advertising” and many of them have only a vague idea of what that is. Co-op advertising at the most basic level is a brand or manufacturer sharing (or subsidy) of local retailer, vendor or dealer advertising costs. This represents a pool of money in the US that some have estimated to be in excess of $50 billion annually  — much of which remains untapped at the end of every year.

Co-op report 2015 Historically this money has been used on traditional media ads, though digital utilization of these funds is growing as a percentage of the overall total. That’s according to a new report (registration required) by Borrell Associates (sponsored by Netsertive).

Tapping into these funds can be challenging and require careful and sustained effort (there are brand-compliance issues). Those “bureaucratic” obstacles is one reason why much of the money goes unspent, on top of a lack of awareness. Indeed, brand/manufacturer rules, paperwork and other barriers stand in the way of many local marketers accessing these brand funds.

While sales organizations can help in this process and minimize some of the complexity, the following survey responses from local advertisers illustrate some of the challenges to co-op participation:

Co-Op 2015

The Borrell report estimates that only 15 percent of local advertisers are currently participating in co-op advertising programs. Yet those local advertisers that are able to make it through the maze of requirements are clearly reaping benefits. The report also points out that advertisers utilizing co-op funds have much higher marketing budgets than those that do not.

Co-Op 2015

This is partly a function of more sophisticated advertisers with larger budgets taking advantage of these programs. But it also reflects that participating advertisers are able to boost their budgets accordingly.

Agencies and marketers that work with local advertisers can and should try and tap into these funds. It’s a “win” for all involved: the agency/sales channel, the brand and the individual advertiser.

The IAB also generated a report a couple of years ago that offers some foundational discussion of co-op and supports many of the arguments also advanced in the Borrell report. The LSA (whom I work for) also has resources for marketers and sales organizations seeking to learn more.

via Marketing Land


Popular posts from this blog

How to Get SMS Alerts for Gmail via Twitter

How do you get SMS notifications on your mobile phone for important emails in your Gmail? Google doesn’t support text notifications for their email service but Twitter does. If we can figure out a way to connect our Twitter and Gmail accounts, the Gmail notifications can arrive as text on our mobile via Twitter. Let me explain:Twitter allows you to follow any @user via a simple SMS. They provide short codes for all countries (see list) and if you text FOLLOW to this shortcode following by the  username, any tweets from that user will arrive in your phone as text notifications. For instance, if you are in the US, you can tweet FOLLOW labnol to 40404 to get my tweets as text messages. Similarly, users in India can text FOLLOW labnol to 9248948837 to get the tweets via SMS.The short code service of Twitter can act as a Gmail SMS notifier. You create a new Twitter account, set the privacy to private and this account will send a tweet when you get a new email in Gmail. Follow this account …

Instagram Story links get 15-25% swipe-through rates for brands, publishers

Instagram may arrived late as a traffic source for brands and publishers, but it’s already showing early signs of success, driving new visitors to their sites and even outperforming its parent company, Facebook.For years brands, publishers and other have tried to push people from the Facebook-owned photo-and-video-sharing app to their sites. Outside of ads and excepting a recent test with some retailers, Instagram didn’t offer much help to companies looking to use it to drive traffic. So they had to find workarounds. They put links in their Instagram bios. They scrawled short-code URLs onto their pictures. And they typed out links in their captions.Then last month Instagram finally introduced an official alternative to these hacky workarounds: the ability for verified profiles to insert links in their Instagram Stories.Almost a month after the launch, 15% to 25% of the people who see a link in an Instagram Story are swiping on it, according to a handful of brands and publishers that h…

Five great tools to improve PPC ads

Every digital marketer wants to reach the top position on the search engine results. However, if you’ve recently launched a new website or your niche is saturated, starting with paid search ads sounds like a good idea.Strategically created PPC campaigns can drive leads, sales or sign-ups to your websites. You know what? In fact, businesses earn an average of $8 for every dollar they spend on Google Ads.Optimizing PPC campaigns is not easy, but it’s very powerful if you do it properly. Just like SEO, it is essential to conduct extensive keyword research, optimize ad copy, and design high-converting landing pages.Fortunately, there are a lot of effective PPC tools that will help you analyze your competitors’ PPC strategies, figure out tricks in their campaigns, and improve your PPC campaigns.If you are ready to take an evolutionary leap in your PPC advertising, take a look at my list of five amazing tools to save you time, give you crucial insights, and raise money for your business.Fiv…