What is Automotive Co-op Advertising?

With nearly 150 years of auto manufacturers selling through dealerships, the automotive industry has the most robust co-op advertising ecosystem of any industry.

Automotive co-op advertising setup through the manufacturers for the local dealers to run local ads that includes a specific mention of a brand (Ford, GM, BMW, etc.), who in turn repays or credits the local dealership for all or part of the cost of the advertisement. These manufacturers want to reach their target demographic in the same way their dealerships want to advertise to their local customers and community.

Who is offering Automotive Co-op Advertising?

There are a large number of auto manufacturers that have their own co-op advertising programs. Here are a few: Audi, BMW, Chrysler, Dodge, FIAT, Jeep, Ram Trucks, Ford, GMC, Honda, Kia, Land Rover, Lincoln, Mazda, Lexus, and Volkswagen to name a few.

These programs apply to new and some used vehicles (mainly Certified Pre-owned). Toyota even offers a co-op program for leasing/rental cars.

Why are people using Automotive Co-op Advertising?

Co-op advertising is a partnership between the manufacturers and the neighborhood dealerships to share the cost of advertising at the local level. Co-op advertising is a real, cost-effective way to minimize media costs and ad production expenditures while increasing ROI by reaching more of the target audience.

How do Automotive Co-op Advertising Programs Work?

Each manufacturer has their own co-op advertising program, which includes how accruals are earned, how much is earned, the time period the accruals can be used, what type of advertising the accruals can be used on, the rules for proof of performance, and a lot of other rules and regulations that must be followed (like brand guidelines and even ad approvals).

Is Automotive Co-op Advertising Worth it?

The short answer is ABSOLUTELY! Manufacturers are investing in dealerships’ local marketing, so why not take advantage? Ford recently doubled the amount of co-op advertising funds available for their dealerships. Not having to pay full retail price for advertising is a no-brainer, and many times the manufacturers have pre-made graphics, designs, messaging, promotions, and pricing as part of the marketing assets available for auto dealers.

There is also a huge opportunity for the advertising and marketing agencies which support automotive dealerships. Because the manufacturers are giving co-op advertising dollars to dealerships in order to market in their local areas, this money can be utilized by marketing agencies and publishers to make the dealership’s marketing budgets go even further.
Finding out who has automotive co-op advertising programs is easy with Co-op Connect. We have a list of manufacturers, all of the details of their programs, contact information for the program administrators, and all of the program requirements.

Click here to learn more about how Co-op Connect can help.

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