Attention to Detail

Attention To Detail

It’s been said that there’s much less co-op advertising money available these days than in the past, but those saying that aren’t the manufacturers offering the funding. Generally those comments come from media sales folk who aren’t seeing as much, retailers who aren’t buying as much, or media sales managers who aren’t devoting many resources toward it. Brand manufacturers continue to pump funding into these programs to drive local promotion and build store-level sales. The only reasons for less co-op money spent by brand dealers in the market are less purchase volume earning the co-op, possible turn-key offers from the brand for regional marketing, and the lack of support from the media level in assisting the local dealer with the co-op process.

TitleAs an example, the average auto dealer moving roughly 800 vehicles per year will have approximately $150,000 in co-op support from the manufacturer just for that new vehicle allotment (not counting anything for Certified Pre-Owned inventory or Parts and Service allocations). With that level of funding the dealer has many options in what and where to advertise and will generally have someone on staff to manage the workflow of approving co-op ad sand submitting claims for reimbursements. Many other businesses however have no such person to handle the co-op details and will often have their co-op monies expire simply because they have little bandwidth to deal with it.

Media companies have the opportunity with many local businesses to assist in the process of co-op to earn the dealer business and expand their advertising opportunities. Best practices with this are to have a designated sales assistant exploring brand programs for the sales team, providing ready-made materials for dealer presentation, and managing the details involved. Without that support, individual sales reps can try to assist local dealers where they can in just providing whatever co -op plan detail they have available and ask what help the dealer might need in making it happen. Generally co-op plan detail will include the appropriate manufacturer contact information for any specific details and the dealer will simply need assistance obtaining the creative approval of ads and the invoice/proof-of-performance requirement for claim submission.

There are always plenty of brand advertising opportunities with co-op advertising and no end to the amount of leads that can be developed by time frame, territory, category, etc.

Every dealer of brand name goods is a target for co-op sales…simply find out what you can and offer to help.

Tim Brennan, VP of Strategic Development for Recas
Tim Brennan, VP of Strategic Development for Recas

This information is provided by LSA Recas to help take the mystery out of co-op advertising. For more information on how Recas can help expand your brand advertising potential, please visit www.recas.com. Email Tim at tbrennan@recas.com. 

LSA’s First Co-op Conference: Attendance is Limited to 50

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Despite increasing interest and awareness, co-op marketing funds remain dramatically underutilized in the “local ecosystem.” Estimates show that about $35 billion of nearly $70 billion in co-op ad dollars go unused each year. The biggest challenge is that many local media sellers don’t understand co-op or how to sell it.

Co-op dollars can help brands build local awareness and help small businesses or local dealers and distributors boost their visibility as well. They can also grow media programs for publishers. About 69% of co-op programs offer digital marketing reimbursement and that figure continues to grow.

To help publishers and media sellers more effectively tap available co-op funds, we’re hosting our first LSA Co-op Conference. This half-day seminar in Chicago on September 20 (co-located with and preceding the Place Conference), is designed to get more co-op dollars into the local ecosystem for the benefit of media sellers and their customers.

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The event will bring together publishers, media sellers and brands to provide a comprehensive look at co-op advertising tactics that drive meaningful revenue growth. Here are some of the discussions you can expect to see at the event:

  • The Brand Perspective: Learn what brands are doing to drive local awareness through co-op advertising.
  • Tactical Insights: See how media sellers leverage co-op funds to close more sales and increase client ad spend.
  • Best Practices: Find out what is working and the lessons learned from co-op ad veterans.
  • Getting Started with Co-op: Discover what you need to operationalize co-op ad funds at your media organization.

Attendees will receive lunch and be able to attend a networking reception. They will also receive a free copy of a new, proprietary LSA white paper that explains best practices and shows how local media organizations can implement a successful co-op sales program.

Space is limited to the first 50 registrants. Click here to learn more or register now!

October Target List

OCTOBER 2016 TARGET LIST

Kanagawa, Honshu, Japan

Anniversaries

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Month Long Events

 

Changes to Co-Op Programs

Changes to Co-Op Programs

As co-op programs shift into a new year of availability to dealers, there is an expiration of their previous year’s allotment and a reboot to the dealer’s new allocation. Of course every manufacturer is different on how and when those co-op budgets are earned and applied, but generally the beg inning of the year is the reset button. When that happens (in the best case scenario), local dealers and their manufacturer partners are supposed to huddle up on the new year opportunities and work out some planning. Outside the larger accounts and more proactive brand managers, this happens pretty rarely.

Most co-op programs roll from year to year with very little adjustment. There may be a media type added under the program (mostly online these days) or one subtracted, but mostly the budget structure and participation remain constant from year to year. Of course with any program or agency relation, there are scheduled reviews and adjustments, but since you’re dealing with, in most cases, hundreds of local retail partners of all sizes and dozens of sales territories and distributors, changing a co-op program is a pretty big deal. And when it does happen, plenty of notice is required from the legal types.

So generally what this boils down to is a brand marketing program for dealers that doesn’t change very often, doesn’t get communicated very well through the sales channel, and doesn’t really highlight the budgets available to the local dealer. It’s kind of the perfect storm of marketing dysfunction but changing it has pretty deep ramifications.

Where you can help as an ambitious media sales person is simply to offer assistance in exploring these programs for the dealer. Sometimes it’s as easy as accessing a database of co-op plans like Recas to show what it is and who to call. Sometimes it’s a deeper dive in reaching out to the manufacturer sales rep to ask about how she can help your dealer promote their stuff. And then there’s the ad creation and documentation components that make sure the dealer is presenting properly and then claiming their reimbursement.

This month a good category of business to nail down on the co-op front would be Appliance stores. Nearly every brand in the Appliance arena has some form of advertising support for its dealer base with some being quite lucrative. More often than not President’s Day is a big advertising opportunity in this area and coincidentally, one of the major brands in the category just altered their co-op program.

Changes like that are always good opportunities to talk about co-op assistance with your local dealers…and as I used to tell my staff, simply engage the local business owner by saying “co-op” and shut up. You’ll learn a lot.

Tim Brennan, VP of Strategic Development for Recas
Tim Brennan, VP of Strategic Development for Recas

This information is provided by LSA Recas to help take the mystery out of co-op advertising. For more information on how Recas can help expand your brand advertising potential, please visit www.recas.com. Email Tim at tbrennan@recas.com. 

LSA Partner Perks Program

LSA Partner Perks Seeks to Drive
Strategic Partnerships

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Are you an LSA member that offers white-labeled services or have capacities that could benefit other LSA members? Would you be willing to extend discounts, at your discretion, to these members? If so, you can communicate these special offers via the LSA Partner Perks initiative.

LSA Partner Perks compiles discounts and promotions from members and communicates them to other LSA members. Once we have enough offers, we will publish them here. In addition, we will periodically highlight a collection of these promos in a dedicated email blast.

ONLY MEMBERS CAN SHARE AND/OR REDEEM OFFERS

LEARN MORE

Ad Packages

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Print Ad

AdBuilder has lots of amazing products on Creative Outlet that many people are unaware of. Ad packages are one of these widely unknown products.

Using an ad package as opposed to only creating one ad can be incredibly beneficial for a company or organization. They help to create a single message that audiences will be able to easily associate to your
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#13 Why Ad Packages Are Helpful

Creating a cohesive message and having a consistent theme is important when developing a series of ads. Readers will have a much easier time understanding what is being advertised, and they’ll be able to retain the information more easily. Repetition is key!

Ad packages consist of two print ads and one online ad. These allow for organizations to promote their business in a variety of mediums. Readers will then be able to have an easier time recognizing the source of the ad. They may see an online ad and see a similar ad in a magazine later on. The recognition helps them to retain the advertisement’s information.

Ad packages bring consistency to advertising. One message is easier to understand than three or four. Check them out on Creative
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Questions on ad packages? Contact us at support@creativeoutlet.com for help.

Why Co-op Has Eroded In Your Market

Why Co-op Has Eroded In Your Market

Despite the fact that over 99% of co-op programs are authorized for newspapers, their usage in the medium has been declining for years. Obviously some of that revenue has pushed over to the digital side and newspaper companies may be capturing some of that, but overall the attitude from the top of many news media operations is that co-op is so 1990.

Yeah, 1990 when the money was rolling in.

Since then there has been an explosion in media options for local businesses, while churn on the local sales side of many newspapers has eroded the relationships and trust earned from those business partners. Co-op programs have evolved to include most of these new media options and their usage has been left to the discretion of the local dealer. Those dealers are slammed with a multitude of local media opportunities on a regular basis and their business is earned by those that demonstrate value along with expected results…the ability to speak the language of co-op and manage the process is a bonus.

TitleLocal businesses that have survived the latest economic repression are as cut to the bone as the rest of us. Their sole goal in advertising is to make the cash register ring while not having to think too much about the process. Their co-op budgets have dwindled with their purchase volume and various turn-key programs the manufacturer has put in place to enhance their display, both in their physical store and their virtual storefront. The funds leftover get used (or not) to drive traffic to the store for specific brand promotions, generally not for the co-branding efforts the manufacturer might prefer.

Your brand dealers all have access to some form of dealer portal or asset management site with the brand that has material for them to customize for local promotion. The disconnect is that they are generally not ad designers. They are not media planners. They are not advertising strategists. They need direction, they need support, and they need to know what your audience means to them and how you can help them. They sometimes carry multiple brands with multiple co-op programs to manage. Unlocking the detail to those programs takes trust, and just how might you earn that?

Any market will have a wealth of opportunity with local dealers of major brands. Appliance stores with Frigidaire, General Electric, Whirlpool…Building Supply stores with Andersen Windows, Larson Doors, Owens Corning Insulation…Flooring stores with Karastan, Tarkett, or Mannington…not to mention Motorsports operations, Auto Service locations, Jewelry shops, Heating contractors, Boat dealers, Insurance agents, Hardware stores, etc.

All it takes is an interest in their business, the devotion to help them manage the details, and the ability to deliver customers from the investment in your audience.

The reason co-op has eroded in your market is that you’ve let it. As you see brand name products displayed or featured with your area merchants, simply ask about it. Their answers may surprise you. You could likely find an opportunity to step up your business and really discover what co-op advertising is all about. Hint: it’s advertising.

Tim Brennan, VP of Strategic Development for Recas
Tim Brennan, VP of Strategic Development for Recas

This information is provided by LSA Recas to help take the mystery out of co-op advertising. For more information on how Recas can help expand your brand advertising potential, please visit www.recas.com. Email Tim at tbrennan@recas.com. 

Ideas to increase local advertising!