You may (or may not) already be aware that manufacturers offer co-op funds to help offset the costs of advertising and marketing efforts. These are often existing programs readily available to dealerships – but not every dealer is aware of the extent to which these funds can be used or if they’re eligible to use them. OEM co-op funds are a massive opportunity for dealerships to subsidize – or, in some cases – completely cover advertising costs. But it’s crucial that dealers take advantage of this opportunity because if too many dealers underutilize these funds, it may lead to manufacturers decreasing funding from these programs.
By utilizing your co-op funds, you maximize your ROI and strengthen the partnership between your dealership and the manufacturer(s) you represent. This partnership is crucial, and the manufacturers are invested in your success. If you haven’t leveraged your co-op funds for digital services, it may seem daunting to get started, as each co-op-eligible service is different. That’s why we’ve put together the top 5 ways to use your co-op funds – so you can kickstart your marketing strategy for a fraction of the cost
#1: Leverage Each Manufacturer You Represent
For dealers who represent multiple manufacturers, it’s essential to leverage each one’s co-op funds. Don’t limit yourself to one source of funds. Take the initiative to connect with each OEM representative, inquire about your eligibility, and regularly ask about available co-op funds. Remember, some manufacturers don’t advertise their co-op programs, so you’ll only learn about them if you ask.
Remember that OEMs have guidelines to help ensure your digital promotions represent their brand and yours. Review the requirements or connect with your OEM representative if you’re considering a multi-branded promotion before launching.
#2: Prioritize Digital Solutions
Don’t forget to think of digital solutions when considering ways to spend your OEM co-op funds. It’s important to remember that co-op programs benefit both you and the manufacturers. Manufacturers aim to promote their brand to as many potential buyers as possible; leveraging digital platforms is the most effective way to achieve this. Digital solutions are easily trackable and malleable, extending the promotional reach beyond traditional, more local methods.
Digital solutions for OEM co-op funds can include advertising options such as social media, search engine marketing, display advertising, and even automated email marketing. You can potentially receive a 50% to 100% discount on OEM-branded advertising costs using your co-op funds. It is essential to diversify your advertising efforts and leverage multiple digital platforms.
While many dealers prefer traditional marketing like outdoor billboards, it’s important to remember the scale of digital marketing and how far it can extend your brand’s reach. Think of it this way: you could spend $10,000 on 1 billboard or $10,000 on 1,000,000 digital billboards. What’s more – these “digital billboards,” aka digital advertising, are only shown to interested users, making those million appearances that much more valuable.
Learn more about Dealer Spike’s co-op-eligible digital marketing solutions here.
#3: Be Creative and Think Outside the Box
Many dealers may not realize that manufacturers are often open to new ideas about using co-op funds. Each OEM is different! Some may have strict, detailed standards, while others might not. Speak with your OEM rep to learn their preferences.
Even with strict guidelines, it is always worth asking before you assume a new idea won’t work. You’d be surprised how many manufacturers will green light a project simply because you asked. Just be sure to get their official approval before proceeding.
Don’t feel locked into specific modes of advertising. Shake it up and see what avenues can be explored. For example, co-op funds can be used to launch interactive social media campaigns or even get ads on YouTube. Additionally, some manufacturers may even cover the costs of media and apparel for events or promotions.
#4: Manufacturer Approval and Compliance
This strategy is short, but it cannot be overstated. It is paramount that you comply with the manufacturer’s guidelines when using co-op funds. Always check for any pre-approval requirements before spending and communicate regularly with the manufacturer to comply.
A non-compliant co-op eligible service could result in the manufacturer denying funds. Don’t risk your relationship with your OEM! Always get the approval first.
Learn more about Dealer Spike’s website co-op eligible services here.
#5: Track Everything
One of the most critical strategies for co-op program success is to track everything. Keep every receipt! This applies to both literal spending receipts and every other trackable source of proof.
This means tracking the performance of your co-op-eligible service. Digital advertising makes this easy with software automatically tracking metrics like views, click rates, conversions, etc. For traditional marketing methods, you might track things like coupons or flyers brought back into your store and ask customers where they heard about you.
On the business side, remember that some co-op programs operate like reimbursements, so tracking everything you spend on your co-op-eligible service is vital. Keep a copy of every invoice and receipt and label it with its appropriate nomenclature.
Lastly, document all OEM approvals (or other important communications). This will ensure that you can provide your own records if there’s any question of compliance.
Keep all your records in a centralized place for each co-op-eligible service so they’re easily found when needed. The last thing you want when securing your co-op funds is to lose an invoice!
These strategies will get you up and running towards co-op spending success! Let’s recap:
- Utilizing OEM co-op funds benefits dealers by cutting – or, in some cases, completely covering – costs for advertising and marketing efforts.
- Remember to contact manufacturers for help. It’s in their best interest to see you succeed!
- By tapping into all your manufacturers, leveraging digital advertising, getting creative with campaigns, staying compliant, and tracking all spending, you can maximize your co-op funds and significantly enhance your ROI.
Remember, your OEMs are invested in your success and are a valuable resource for guidance and support, so don’t hesitate to contact them.
Start making the most of your OEM co-op funds today! With Dealer Spike, you can stay updated on the latest trends, tips, and best practices.