Co-op advertising success is all about cooperation

September 14, 2011  |  by Cecilia Riegel

Why is it so difficult to execute co-op media programs? On paper, it should be simple. Both retailer and brand have the same goal in mind: to create a program that drives sales. It should be a win-win. Yet many co-op advertising programs end up falling short of both sides’ expectations.

Those expectations are key to the successful execution of a co-op program. Clear communication of goals and expectations up front is the only way to bring those expectations into alignment. A few simple steps at the beginning of the process can go a long way towards making sure both parties reap all the benefits that co-op advertising offers.

Establish clear goals and expectations for
your program

Do you want to reinvigorate an established product line that has had flat sales? Launch a new product? Expand your brand’s footprint into a new territory? This may seem simple, yet you’d be amazed at how many brands run a co-op program out of sheer inertia: “It’s what we’ve always done.”

Establish a co-op budget during the marketing/media plan development process

Co-op should never be an afterthought to the media planning you undertake. Properly executed, co-op can extend traditional media buys or allow for a more flexible, “localized” spend within a market.

Set specific guidelines in advance for funding and branding

Establishing the rules for funding in advance will give you control of how your brand is featured within your retail partner’s advertising and the amount of your funding commitment. Brands that don’t have established guidelines are often subject to lengthy and difficult negotiations that can ultimately fracture the relationship between retailer and manufacturer and result in inefficient budget expenditure.

Branding guidelines will vary depending on the type of advertising. For print you may want to require that the featured product or your logo be a certain size.  For broadcast you may require that your brand or product be featured for a specific period of time within the commercial, or that your brand/product will be featured exclusively.

Ensure retailer media buys align with your program goals

All the Nielsen share in the world is useless if your grocery store co-op advertising partner features your vegetarian food product devoted to big game hunting. If the media buy does not reach your brand’s target audience effectively, you may want to decline participation.  If you don’t have the resources internally that will provide target audience information, ask your ad agency or even a local media vendor to provide it.  Media representatives have a ton of research at their fingertips and are looking for an opportunity to work with you.

Establish verification and measurement regimens

A clearly defined and straightforward process for verification of vendor participation and measurement of media reach and impact is critical to determining the ultimate success of any co-op program. Standard requirements often include:

• Submission of a detailed claim form
• Duplicate media invoices as generated by the media vendor
• Proof of performance, which is usually an original tearsheet for print ads, a photograph for out of home or signed affidavits of performance with airtime detail from broadcast media vendors
• Claim deadline (Claims must be submitted within a specified timeframe such as 90 days after the advertising runs)
• Definition of the percentage of the campaign cost you will fund; this may vary depending on the type of advertising or the amount of exposure your brand will receive.

Market your co-op marketing program

Billions of dollars in co-op funds are not used each year, simply because retailers are unaware of what’s available. Perhaps it’s because the focus is on large chain retailers at the expense of smaller independent or regional retailers, or because compliance to rules is unnecessarily complex. No matter why, low participation rates (50% or below) mean there is something not working with the retailers' programs.

Using these six steps gives your brand a great foundation for any co-op marketing program. But in order to build on that foundation, make sure these things are clearly communicated to your retail partners and resellers—and be open to their needs and goals. In the end, a well-planned, structured co-op program that manages expectations of all parties will strengthen partnerships and reap rewards (and profits!) for both.