Co-op Advertising (Co-operative)

Co-op advertising is a manufacturer-retailer cost-sharing program. The manufacturer agrees to reimburse a percentage (typically 50–100 percent) of a local retailer's ad spend when the ad prominently features the manufacturer's product and follows the manufacturer's creative guidelines. A local appliance dealer running a radio spot for a specific washing machine brand might get half the spot's cost refunded by the manufacturer.

For radio stations, co-op is a revenue multiplier. Every dollar of retailer spend potentially doubles through manufacturer reimbursement, making the total budget the station sells against much larger. Sales reps who understand co-op rules well: and can help local retailers navigate the paperwork: routinely close buys that would otherwise be too small to justify a pitch.