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Marketers Struggle to Show Client-Specific Co-op Ad Opportunity

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With co-op advertising, most local retailers and SMBs don’t have the time to access co-op program information, get prior approvals, create and deliver ads, send claim documentation, etc. This is where local marketing and media sellers come in. But why is an estimated $35 billion in co-op left unused each year?

According to a new LSA survey of 178 marketing and media professionals, 42% said the biggest challenge with co-op is “showing a client the specific co-op opportunity for them.” The “specific opportunity” for a local business depends on the amount of accrued co-op funding which is typically a percentage of local sales for a particular brand. This figure is usually accessible on a dealer portal, which requires log-in credentials.

Other obstacles to co-op include: handling the paperwork (36%), working with the brand (31%), claiming and proof of advertising (21%), selling co-op (11%) and explaining co-op (10%). While co-op presents a major revenue opportunity for marketing providers, it is largely unrealized.

The data comes from the Local Search Association’s recent report, “Tapping the Multi-Billion Dollar Co-op Advertising Opportunity.” To access the chart above, click here.

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