Jumpstart Automotive Group

The money that automotive dealers stand to make from manufacturer co-op advertising programs is significant: some manufacturers pay dealers back up to 50% of their co-op advertising costs and then there’s the money earned from sales that the co-op advertising drives. Co-op advertising is clearly a win for both the dealer and the manufacturer.

So why don’t more auto dealers take advantage of the programs? Because qualifying for those dollars is a pain in the patooshka.

With a few simple fixes, dealers say, co-op advertising could be more profitable for dealers and manufacturers alike.

What It Takes to Get Co-op Ad Dollars Back

Automotive manufacturers spend millions of dollars and countless hours crafting brand campaigns. It makes sense that they want dealer co-op advertising to augment this investment. Each manufacturer creates a set of guidelines that the dealer must follow in order to qualify for reimbursement. Unfortunately, this is where the system breaks down.

While some manufacturers provide clear directions to qualify for co-op advertising dollars, most provide dealers with dense 100-page+ handbooks filled with legalese. Dealers must follow guidelines to the letter in order to recoup their costs.

Some manufacturers offer a pre-approval process, in which a dealer submits an ad to the manufacturer for review before the ad is run. This process usually involves a lot of back and forth before the manufacturer grants pre-approval, costing both parties valuable time and money.

Even once pre-approval is granted, the dealer is not guaranteed to receive advertising co-op money (though, to be fair, most ads that receive pre-approval do qualify in the end). Some manufacturers dispense with the pre-approval process entirely, leaving the dealer to just submit and hope for reimbursement.

5 Ways to Make the Process Easier

With the automotive industry looking to gain every efficiency it can, there’s never been a better time to improve the co-op advertising process. Here are five quick fixes:

1. Go digital
   Most manufacturers require dealers to fax or mail hard copies, even of online ads. Going digital cuts hard costs on items like ink and paper, and saves time, reducing worker costs, too.
2. Create templates
   Ford Motor Company, for example, provides dealers with a form that works like a checklist, making it easier to get an ad “right” the first time.
3. Revise rules for ease of use
   Much of what’s included in these tomes could be accomplished through a strict template or form (see #2). Simplify guidelines, making them easier to understand and implement.
4. Speed pre-approval
   Cut the pre-approval process time from a typical 24 hours to 12 hours. Going digital could help.
5. Be open to new ideas
   Establish an appeal process. Some ideas may not fit enforced guidelines, but may drive sales. The online world changes fast, and it’s important to be nimble to adapt.

For dealers, co-op advertising dollars are money on the table. For manufacturers, co-op advertising is one of the most direct ways to reach customers in the purchase cycle. Making it easier to benefit everyone is a step whose time has long come.