Co-op advertising is a cost-sharing agreement that unites a manufacturer, supplier, distributor or wholesaler and your business. The manufacturer pays for part of your advertising in exchange for you highlighting their products in your advertising. Co-op is available for all media types and usually requires you to follow specific guidelines.

Depending upon the source, figure a range from $25 to $30 billion in available co-op funding. Unfortunately, $10 to $15 billion goes unused every year.

If you have never looked into co-op advertising, you may be missing out on a great source of advertising funding. Imagine getting a supplier to pay for half of the cost for you to make a television commercial, or half the cost of a full page ad in the Sunday newspaper. This is possible by using co-op advertising. What’s more, there’s a good chance that any kind of business you have can qualify for co-op from a supplier or local agency. Assume that co-op advertising dollars exist for every product you carry.

The search for co-op dollars

The Internet is a valuable source for information on co-op funding. Use a search engine such as Google or Yahoo to search for available funding with your current products. You may also try asking each of your vendors. Keep in mind that, for every line you carry, there is — or should be — an accrual of money available to you to help you move those products. If it isn’t, you might consider finding a new supplier. Don’t forget to check into local agencies such as your utility company or government offices. For example; Alliant Energy is paying for 50 percent of a participating dealers advertising, up to $2,000 total in 2008.

For a personal marketing consultation or to request a “Marketing 4 You” topic please call me at (507) 379-3427.

7 steps to start using your co-op dollars

1. Learn about available programs: ask your suppliers, advertising representatives and search on the internet. There is also a book available called Co-Op Advertising Programs Sourcebook.

2. Determine your manufacturers or suppliers share: This is the amount or percentage they will pay of your advertising. The amount can range from 20 to 100 percent.

3. Determine accrual period: Find out when funds are earned and when they can be used. Be sure to know what is required for eligibility before placing your ad.

4. Allocate co-op money: Divide each products co-op dollars throughout the year. Your monthly budget should be consistent with your monthly sales trends for each product.

5. Meet with your media representatives: Newspapers, magazines, radio and television stations have ad reps that will help you with co-op paperwork, budget and campaign. Have them assist you in creating a campaign that will both reinforce your image while following the co-op rules. A media representative can assist you with all of the above, put them to work for you.

6. Keep good records: You need to keep accurate records of how much you spent on every ad with each manufacturer, and you need copies of the ad to submit for compliance.

7. Get reimbursed: To get reimbursed for your ad, you will need to submit a claim form that you will get from the manufacturer, along with a copy of the ad or script.

Crystal Miller is the advertising director at the Albert Lea Tribune.