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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.

Germain Dermatology & Coolsculpting co-op ad

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.

Dr Pepper & Coca Cola co-op ad

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.

TriCounty Roofing & CertainTeed co-op ad

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!

SBA Loans - Still Available?

There’s been a lot of negative news these past few weeks related to business lending. You’ve probably heard there’s a credit freeze and you may think that means nobody’s lending. But Don Johnson, owner of Diamond Financial Services, New Jersey, says that’s a misconception. “Our company works with over 25 lenders so we really know what’s going on with the state of SBA and franchise lending. We’re prequalifying a little more carefully, but our success rate is still high. In the media it’s all doom and gloom, but loans are getting approved. You just have to know how to do it. Most people don’t know how to do projections or put together a loan package. Over 80% of loans get declined due to packages that aren’t complete or correct. And the rest is simply not going to the right type of lender. The money is out there, you just have to know where to go.”

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This is a fairly long interview, so here's a quick summary of the questions that were covered: