Online Ad Growth Prompts ACB's Study of Co-op Advertising

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Online Advertising is continuing to gain momentum. What can Manufacturers do to support their retailers? ACB’s analyses of select Manufacturers’ Co-op programs offering online advertising as an eligible medium to their retailers includes the review of online ad reimbursement percentages and documentation requirements.

Standards for online advertising are in most cases identical to those for "traditional" media such as print and broadcast

With online advertising continuously evolving through the explosion of all types of Internet media, the landscape of Co-op advertising is transforming as well. Today, fewer than 33% of manufacturers have a formal Internet advertising Co-op policy. An increasing number of manufacturers are acknowledging the value of online advertising and are requesting assistance in incorporating it into their local retail Co-op programs.    

What steps should manufacturers be taking now? The creation of a well written Internet Co-op program, installation of sound business processes and the development of turn-key programs will all contribute towards a manufacturer’s ability to capitalize on this media opportunity.

ACB has collected Co-op advertising guidelines for various types of online advertising; including Paid Search and Banner/Display ads, Web Hosting and Website Development. The manufacturers span several industries enabling ACB to provide a well balanced cross section of information relevant to the Co-op marketplace.

Recognizing that online advertising is a relatively new entry into the Co-op ad space, ACB found that several manufacturers have not yet documented their requirements by specific online ad ‘format’ (i.e. banner, search) but are instead specifying consistent guidelines as relates to all online advertising.

ACB’s findings include:

  • 40% of the programs require the retailer to receive Manufacturer approval prior to the start of online advertising campaigns
  • Only 15% of the programs limit the amount that can be spent in support of online advertising
  • 95% of manufacturers’ pay for online advertising at the same reimbursement rate as other eligible media (i.e. 50% of total media costs)
  • Logo and branding requirements are consistently stressed as critical in all online advertising
  • Standards for online advertising are in most cases identical to those for ‘traditional’ media such as print and broadcast
  • Aggressive manufacturers are reimbursing 100% for manufacturers’ sponsored programs. These programs are typically provided by turn-key vendors which maximize the manufacturers brand and marketing standards

Additional information, reimbursement percentages and documentation requirements for various online advertising formats can be found in ACB’s complete Online Co-op Advertising Study white paper.

For the complete copy of Online Co-op Advertising Study, contact ACB.

The Advertising Checking Bureau, Inc. (ACB) remains uniquely qualified to address the Co-op/Trade Promotion, Local Search Engine (SEM) Marketing Solutions, Ad Tracking, and Incentive Program Management needs of manufacturers and retailers. ACB is headquartered in New York City, with production offices in both Memphis, TN and Tempe, AZ.

For additional information, contact ACB.

Russell E. Mann
Vice President, Marketing


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Russell Mann