A Primer on Cooperative Advertising and Outdoor Ads
A Primer on Cooperative Advertising and Outdoor Ads is a guest post brought to you from ADstruc.
What is co-op advertising?
Cooperative, or co-op, advertising is a common practice where two parties share the cost of an advertisement for their mutual benefit. Co-op is popular with franchises, retailers & manufacturers, and local businesses.
All photos courtesy of Todd Turner, Adams Outdoor Advertising
Larger parties (e.g manufacturers, brands, and franchisors) typically covers the lion’s share of an ad’s cost via reimbursement or in trade. This makes local advertising affordable for your business, while simultaneously lowering out-of-pocket and inventory costs.
Is it worth it?
Absolutely! Co-op programs often reimburse 50-100% of eligible media costs.
If you’ve ever seen an ad for your “Tri-state,” “Area,” or “Local” Honda/Toyota/Ford/Lincoln dealer — that’s co-op at work. And co-op programs aren’t always controlled by corporate parents. Local auto dealers representing the same brand often pool their marketing funds together to get volume discounts on media.
Even major national brands use co-op to help promote partnerships.
What kind of media can I buy with coop?
Depending on the program, there can be a wide range of eligible media: TV, Radio, Outdoor, Print - even Google Adwords & banners.
Home & health services, hardware & furniture stores, and food franchises are three of the biggest users of outdoor co-op advertising. In all of the examples shown, both the local business and the franchise logo are prominently featured. This co-branding is a common requirement.
Why should I spend my co-op dollars on outdoor ads?
Outdoor advertising brings customers in the door, reaches people on the move, enables awesome creative, and is very affordable. With that kind of return, it’s the perfect medium for co-op!
The CPM chart and billboard pricing map below illustrate how outdoor stacks up against other media and the average costs in several markets: CPMs for competitive media - courtesy of OAAA
Four week billboard costs in major DMAs
Where can I find out about co-op programs and eligibility?
Check with your manufacturer, franchise, or brand rep to see if they have a co-op program. Even if they don’t, you may be able to negotiate a beneficial deal. After all, co-op benefits both parties! You can also use Recas to investigate co-op opportunities.
How do I buy outdoor advertising?
At ADstruc, we make buying billboards and outdoor media a snap. Our planning and buying tools are intuitive and put you in control. Because nobody knows your business like you do.
Check out ADstruc online or give us a call at 646.692.4966. Our team is ready to help you plan and execute an amazing coop campaign!
Making A Difference In Your Community - Rainbow International®
Picture this - serving the needs of your community, while being able to run a business? Seems like a pretty good deal! One of the franchises that offers this is Rainbow International® - a post-disaster restoration service franchise for water damage, smoke, fire, and mold in homes.
Choosing Between a Franchise and Starting a Business
Owning your own business has always been a linchpin of the American Dream. With the advent of franchising, prospective owners now face a choice between running an independent business and operating their business unit as part of a franchise system. Put differently, they can launch a brand new restaurant churning out specialty cakes and ice cream sundaes, or open a Cold Stone Creamery location. Determining the right option for you comes with some complexities, but there are a couple of primary factors to consider: Your risk tolerance and your personality type.
5 Tips for Finding the Right Franchise
So you’ve decided that a franchise is the right path for you? Now comes the exciting part—choosing among hundreds of franchise opportunities. Here are questions to ask yourself to help narrow the field:
