LSA Co-op Advertising 101 Presentation

Introduction

• Presenter: Phil Harris
• Session Details:
  • Recorded for future reference.
  • Questions can be typed and will be addressed at the end.
• Objective: Understanding Co-op Advertising.

What is Co-op Advertising?

• Definition: Agreement between manufacturer and retailer to share advertising costs to create brand awareness.
• Media Types:
  • Local media: newspaper, radio, TV, digital, etc.
  • Creative ads: Restaurant placemats, websites, social media, etc.
• Available Co-op in the US: $70 billion, with $30-$35 billion unused annually.
• Importance of Co-op:
  • Increases advertiser expenditure and competitiveness.
  • Helps tap into large marketing funds.

Benefits of Co-op Advertising

• For Retailers and Advertisers:
  • Increases ad spend without extra cost from pocket.
  • Drives customer retention and reduces churn.

Challenges in Co-op Usage

• Complexity and different programs deter usage.
• Retailers lack time and knowledge to manage co-op.

Co-op Process and Tools

• Tools & Resources:
  • Manufacturer contact information for ad approvals and claims.
  • Search tools for finding co-op opportunities.
• Reimbursement Methods:
  • Credit memo or check.

Co-op Terms and Definitions

• Accrual Percent: Percentage of dealer purchases allocated to co-op balance.
• Participation Percent: Manufacturer’s reimbursement rate for ads.
• Accrual Period: Timeline for earning co-op funds.
• Performance Period: Timeline for using co-op funds.
• Claim Requirements: Specific documentation needed for reimbursement.

Co-op Plan and Targeting

• Co-op Plan Overview:
  • Manufacturer-specific plans with contact info, ad specs, and media types.
• Targeting Strategies:
  • Identifying potential co-op opportunities and promotions.
  • Utilizing tools like dealer locators and ad planners.

Co-op Sales Process

• Steps for Implementing Co-op Sales:
  1. Targeting: Identify potential co-op clients.
  2. Set Up Advertiser Call: Engage client interest.
  3. Prepare Ad Packet: Include media information and co-op materials.
  4. Present Proposal: Use co-op dollars to increase ad spend.
  5. Get Approval and Implement: Secure ad run approval and manage claiming.

Best Practices

• Engage Advertisers: Regular communication and prepared materials.
• Proposal Development: Customize based on available co-op balances.
• Retention Strategies: Use co-op as a tool for customer loyalty.

Closing

• Future Sessions: More webinars to come.
• Final Thoughts: Importance of customer-centric co-op strategies.

Additional Resources

• Recast Main Page: For updated tools and resources.
• Manufacturer Plans: Access and utilize different manufacturer co-op plans.