How Co-op Advertising Works
Under a typical co-op advertising program, a manufacturer sets aside a percentage of a retailer's annual purchases as an 'advertising fund' — often 1–5% of purchases. The retailer can then use those funds for local advertising that meets the manufacturer's guidelines (logo placement, product mentions, approved creative). The retailer runs the ad, submits proof of performance (affidavit of performance, air dates, invoice), and receives reimbursement from the manufacturer.
Why TV is a Strong Co-op Category
Manufacturers favor TV co-op because it delivers their product in a high-quality visual environment with the endorsement of a local retailer and — for sponsored segments — sometimes a local TV personality. TV also provides verifiable proof of performance (affidavits, air logs) that manufacturers' compliance teams can audit easily. Local TV co-op campaigns can amplify both the retailer's local presence and the manufacturer's product, making it genuinely beneficial for both parties.
Who Offers Co-op TV Advertising Programs
Most major consumer product manufacturers — automotive, appliances, consumer electronics, paint, flooring, insurance carriers, and many others — offer co-op programs. If you're an authorized dealer, retailer, or franchisee, you likely have co-op funds available that you may not be tapping. Contact your manufacturer's rep or check your vendor agreements for details on what's available and what qualifies.
How to Claim Co-op Funds for a TV Campaign
The process varies by manufacturer, but typically involves: confirming your available co-op balance with your manufacturer rep, reviewing the manufacturer's advertising guidelines (approved logos, required copy, restricted claims), booking your TV placement and ensuring the creative meets the manufacturer's standards, running the campaign and obtaining an affidavit of performance from the TV station, and submitting the affidavit along with invoice and tearsheet (a copy of the ad content) to the manufacturer for reimbursement.