Study: 70% of Co-op Users Plan to Increase Ad Spend in 2019

It’s estimated that around half of the nearly $70 billion allocated co-op advertising funds each year go unused. These funds come from agreements between manufacturers and retailers to divide marketing costs in order to provide brand and product awareness in local markets.

A new advertiser survey conducted by BIA offered some insights about businesses that utilize their allocated co-op ad funds. Of the 1,500 respondents, which ranged in size from 1 employee to more than 500, 21% are using co-op funds. Of that group, 70% plan to increase their ad spending next year; and 50% expect to increase their non-ad promotional spend as well.

Among the 21% using co-op, the top media being purchased are YouTube (37%), streaming audio (36%) and enhanced listing in App (32%). PPC advertising was farther down the list (27%).


Despite plans to increase investments in 2019, the majority of advertisers still aren’t taking advantage of available co-op funds. The number one reason according to the survey (after co-op not being relevant to the business) is lack of awareness: unfamiliarity with co-op programs (30%), followed by being unaware that co-op funds are available (19%).

However, nearly 17% of advertisers not currently using co-op said that they would if their sales rep could walk them through the process, while 67% said they might.

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The survey reveals a gap between general awareness of co-op funds and the ability to navigate the process and unlock those funds. According to a 2017 LSA co-op survey, 42% of media and marketing firms’ said that the part of co-op they needed the most help with was showing a client the specific opportunities available for them.

To learn more about how you can help your clients uncover their available co-op funds and maximize their ad investment by finding plans that work for them, visit, call 877-990-COOP or email for more information.

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