Data: 69% of Co-Op Advertising Programs Offer Digital Marketing Funds

According to a recent study by Borrell Associates, co-op advertising programs in North America will be worth roughly $36 billion this year. Some estimates put the value above $50 billion. These co-op programs vary in type, but according to the study, about 69% of them offer digital marketing funding.

Similarly, a study by Brandmuscle last year showed that digital marketing outlets saw growth in co-op advertising spending.  The biggest increase in spend came from paid search, which leapfrogged billboards, direct mail and television in just one year. Website co-op spend also jumped 3%, which was the third largest increase.

Overall, the growth in consumer time spent on digital media has led to an increase in brands offering digital co-op ad programs. New digital co-op programs pop-up regularly and the LSA Co-Op team is seeing many existing programs add in new digital offerings, which are reflected in the 69%.

Despite this growth in digital co-op ad programs and spending, the Borrell study estimates that about $14 billion of co-op funds will go unused this year in the U.S. This underutilization of co-op is based on a lack of awareness and the many rules and requirements involved in accessing the funds.

To access the full size version of the chart, click here.

Also, check out the LSA Co-Op Page to learn more about the co-op opportunity and how LSA can simplify co-op access for your organization.

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