What is co-op advertising?

Co-op advertising refers to a collaborative marketing effort in which a manufacturer and a retailer partner together to promote the manufacturer's products. This arrangement often involves sharing advertising costs. Typically, the manufacturer provides funds or resources to help the retailer run advertising campaigns that feature their products, effectively leveraging both parties' strengths to maximize reach and visibility.

This partnership allows retailers to benefit from the brand recognition of larger manufacturers while also providing manufacturers with increased exposure and sales through the retailer's established customer base. The strategy is particularly effective because it encourages retailers to actively promote the products, ultimately benefiting both the manufacturer and the retailer involved.