Have you considered supplementing your advertising budget by using Cooperative Advertising? Cooperative advertising is an agreement between a manufacturer and a retailer that reimburses the retailer for advertising the manufacturer’s product.

Cooperative advertising reimbursement funds can be used to offset advertising expenditures. Instead of cutting back on print, electronic, direct mail or interactive advertising, which reduces their effectiveness, your company will be able to place an effective advertising program at a reduced cost. With manufacturers reimbursing a sizable percentage of your advertising expense, it is a good way to get your message out to the consumer while keeping your advertising costs down.

Let us guide you through this cost effective budgeting tool.

First, make sure you have funds available and find out the guidelines of the co-op program…

1. What percentage will the manufacturer reimburse?

2. What products do you need to advertise?

3. What are the advertising requirements?

4. When do the funds expire?

Next, check with the manufacturer about pre-approval requirements. If the manufacturer does require pre-approval, make sure you have a written copy of this. You will not be reimbursed without it.

Finally, you must gather all the information needed to submit your claim and obtain your funds in a timely manner. Most submission must be done in a sixty to ninety day period. The deadlines are strict. Keep the following in mind…

1. If you are doing radio or television you will need to provide a notarized script and invoice from the station(s). Television also requires a DVD of the spot.

2. Print advertisements require a tear sheet or e-sheet (electronic tear sheet) from the newspaper or magazine along with an invoice.

3. Direct mail advertising requires an invoice, a postal receipt and a mail sample.

4. Interactive advertising requires an invoice and screen shots of banners from the media website. If you have a pre-roll video you will need a DVD.

Coop funds are paid to you by check from the manufacturer, or can be done as a credit to your open account with the manufacturer. Who wouldn’t want to supplement their advertising budget with cooperative advertising? If you’re considering co-op but it sounds a little overwhelming or too time consuming, a professional advertising agency will be able to help you receive the greatest benefits from your cooperative advertising account.