Advertising should be considered an investment rather than an expense. The way you position your products and your company could mean the difference between consumers making the choice between your company and the competition. People will always do business with the company that they trust.
What is co-op and co-branding advertising?
Co-op advertising is basically getting your supplier to foot some or even the whole of the bill when it comes to advertising their products in your store. This allows them to get their products out there and noticed while also helping you out with your advertising expenses. The goal is to advertise and improve product placement and garner more sales for your business. If the arrangement works out, then it’s win-win for both parties.
Co-branding advertising is teaming up with another business or retailer that may or may not be directly aligned with your own industry. It could be as simple as a credit card offering discounts or rebates on movie tickets in partnership with selected cinemas and those same cinemas offering freebies for cardholders and their companions. Customers get to know both companies and get twice the benefits and savings.
These advertising techniques can be used effectively to market different kinds of products and services. What’s important is establishing a relationship with your supplier or another business that translates into a larger advertising budget and reach.
Getting into co-op advertising
Ask your supplier about it.
Don’t let fears of ridicule or rejection stop you from approaching your supplier regarding your advertising plan. If they don’t have the program available, create a sound business plan and present it to them. Remember, this advertising strategy has the potential to benefit all parties involved.
Be patient on the funding front.
As with all things money-related, the release of advertising funds by a company could take time. If you’re eager to get started on your new campaign, this could mean that you would need to foot or procure your advertising budget from another source and then wait for your supplier to reimburse you.
Don’t wait around for your suppliers to approach you with advertising requests, get in touch with them and find out their requirements for co-op advertising. Make the rounds of your local newspaper, television and radio stations to find out if they would also be interested in being a part of your advertising scheme and what their own co-op advertising rules are. Consider asking your supplier to provide you with promotional products with their logo printed on them, which you can give away to your customers for free.
This is black and white advertising
Get everything – the rules, regulations, amount agreed upon, payment scheme, the duration of campaign – absolutely everything in writing. Don’t give these companies a reason to back out of your deal. Make sure you cover all the bases with regard to product placement, logos and other concerns.
The ultimate goal is for your company to benefit from the advertising.
Make sure that your company name and contact information is clearly mentioned and positioned in the ads that you take out. Even though you may be advertising one product or brand in particular, the ultimate goal is for people to purchase the goods from your store and not the competition’s.
Getting into co-op advertising
”Trust, but verify.” -Ronald Reagan
If you’re planning to get into any kind of relationship, make sure that you can trust your partner. With regard to co-op advertising, your partnership should be with a company that has similar goals and principles to your own. It’s bad business to associate with a company or brand that will bring your product and reputation down. Choosing to endorse a different company is an extension of the brand promise that you give to your customers. Don’t let them down.
Get the contract in writing to protect yourself, your partner and this new venture. This will lessen if not eliminate future problems regarding how much each party is investing and receiving in this advertising strategy.
This is an advertising partnership.
Benefits gained should be mutual for a more fruitful advertising partnership. Goals and objectives should also be clear and agreed upon by both parties.
Co-op advertising is best for smaller companies that want to work on pushing a particular product or service while co-branding advertising will work best for larger businesses that want to create relationships with other industries or establishments and attract customers that wouldn’t respond to other more traditional advertising gimmicks.