Co-op Advertising
Overview
If you ever see an ad with a product and a retailer featured, it's likely a co-op ad. The cost is shared by the manufacturer and the retailer. (Or a distributor and the retailer.)
How it works
Typically, a retailer accrues a co-op budget as they buy product. Usually the budget is 5% of purchases. This 5% is the amount the manufacturer will reimburse the retailer. And typically, the reimbursement amount is 50% of the cost of the advertising.
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