In principle, the channel`s partners expect marketing companies to bear some of the costs they have to bear for the products of advertising distributors. If you don`t have a co-op advertising program as a distributor of small business products, don`t expect to receive the same advertising support as your competitor. Vertical co-op advertising serves a variety of purposes for the distributor. It can help you get new products sooner rather than later. It will inspire your partners to support your existing products. It will be easier for you to get coveted screens in store. In combination with commercial certificates, you can create retail inventories during significant sales periods. Examples of cooperative advertising – Online: The online market is now very popular and has become an increasingly important attraction as a cooperative advertising medium. Outdoors: Parties can share space on billboards and promote their products. Although traditional, it is still very popular. Door panels: With door panels, you can use both sides of the board, so parties can promote their respective products. Others: There are other media, such as newspapers, coupons, etc., In newspapers and magazines, parties can purchase advertising space and, as a result, spread the costs by deciding to each other how advertising space should be distributed. Reaction – In the current state of cooperative advertising, this is an additional burden on retailers. Instead, reports should automatically return to the manufacturing brand without distributors having to start the process. In the case of ”cooperative advertising,” advertising costs are shared by two or more parties to take advantage of the benefits of reduced marketing costs.
It can be shared by retailers with other retailers, franchisees or manufacturers, etc., for mutual benefit. This MarketingWit article talks more about this concept, as well as some examples. It is generally accepted by retailers and manufacturers of a given product, allowing them to share marketing costs. As a general rule, the manufacturer bears the maximum part of the advertising costs. This is especially useful for small retailers.