Shifting Landscapes, Big Opportunities: Brands and Digital Co-op

By Luke Metcalfe


August 6, 2018

Co-op marketing plays a huge part in modern retail. But the landscape is changing. Digital’s rise means the parties involved – both retailers and brands – can expect bigger advantages. 

In our last blog, we focused on the former. If you’re a retailer, we argued, leveraging co-op dollars will boost your budget and drive more incremental revenue. You can also expect greater clarity in terms of cents spent.

But what if you’re a brand? After all – you are the one that supplies those co-op dollars. What is the relationship between the retail budget you subsidize, and your products’ performances?

Overall, co-op spending figures remain hazy. In the U.S., commentators put digital co-op spending at between $7.5 to $12.5 billion. However, because different brands have different agreements in place, the amounts received by retailers tend to vary.

The Amazon Impact

A full 83 percent of brands marketers believe co-op marketing affects their sales. Historically, however, the destination of those dollars felt something of a “black hole.” Without the right tools and a co-ordinated strategy, they lacked knowledge around how much effect their spending actually had.

Until now.

With its advances in performance reports and distribution, Amazon in particular has led brands to expect - and scrutinize - more.

Taking this surge of self-worth into account, here are four ways that the wider world of digital co-op can benefit brands.

Spend Co-Op Dollars More Effectively

Better tools mean brands can stay on top of co-op marketing campaigns. They can pick up on any areas where retailers might redistribute ad spend, for instance on branded and non-branded terms.

More Transparency…More Control

Digital co-op has shaken up the status quo, in part because brands can now go directly to would-be shoppers. Already empowered, they can quickly view how their contributions drive sales – giving them further control over negotiations.

Tailored Campaigns

Brands can also negotiate that their co-op dollars be spent on tailored campaigns (including the type of customers they want to reach, and which type of content).  Digital co-op facilitates more tailored customer engagement for brands - who can influence shoppers to buy their products over the competitions'.

Higher Sales

This is an obvious one. By leveraging their products on retailers’ sites, brands enjoy a bigger potential customer base than they may have otherwise. Promoting indirect channels has a direct effect on a brand’s overall sales!

Industry leaders. World-class speakers.

Meet them on Oct.10 for the New York Know Go: a private event on Co-op Marketing, Sponsored Product Ads and the future of Retail Media.

·         Network with retailers, brands and technology vendors.

·         Discover the best ways to spend and measure co-op funds.

·         Learn how to compete with the industry giants.

Click here for tickets

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