Skip to main content
Instapage

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

money-cut-ripped-800

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

Comments

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 …

Another SEO tool drops the word “SEO”

This guest post is by Majestic’s Marketing Director, Dixon Jones, who explains the reasons for their recent name change.
Majestic, the link intelligence database that many SEOs have come to use on a daily basis, has dropped the “SEO” from it’s brand and from its domain name, to become majestic.com. Since most people won’t have used Google’s site migration tool before, here’s what it looks like once you press the “go” button:

In actual fact – there’s a minor bug in the tool. The address change is to the https version of majestic.com (which GWT makes us register as a separate site) but that message incorrectly omits that. Fortunately, elsewhere in GWT its clear the omission is on Google’s side, not a typo from the SEO. It is most likely that the migration tool was developed before the need for Google to have separate verification codes for http and https versions of the site.
The hidden costs of a name change
There were a few “nay sayers” on Twitter upset that Majestic might be deserting it…

6 types of negative SEO to watch out for

The threat of negative SEO is remote but daunting. How easy is it to for a competitor to ruin your rankings, and how do you protect your site? But before we start, let’s make sure we’re clear on what negative SEO is, and what it definitely isn’t.Negative SEO is a set of activities aimed at lowering a competitor’s rankings in search results. These activities are more often off-page (e.g., building unnatural links to the site or scraping and reposting its content); but in some cases, they may also involve hacking the site and modifying its content.Negative SEO isn’t the most likely explanation for a sudden ranking drop. Before you decide someone may be deliberately hurting your rankings, factor out the more common reasons for ranking drops. You’ll find a comprehensive list here.Negative off-page SEOThis kind of negative SEO targets the site without internally interfering with it. Here are the most common shapes negative off-page SEO can take.Link farmsOne or two spammy links likely won’…