Advertising cooperatives: Not the same as co-op funds

Advertising cooperatives are a different beast altogether. Unlike co-op funds, advertising cooperatives cost you money. But it may be the best money you ever spend, because you enjoy high-quality production and your fair share of the clout of a substantial combined media budget.
Advertising cooperatives (also known as dealer ad groups) are common in the franchising business and the automotive business. The franchise business discovered a long time ago that it can do a much better job at advertising if it asked each of its franchisees to pony up a percentage of gross sales, which then goes into a “war chest” where it accumulates until enough cash is available to do a large-scale media buy for all the franchises together. An individual store can’t hope to do advertising on a scale to match the combined budgets of many stores. Strength in numbers is the name of the game.
The advertising cooperative also uses its money to employ the services of an ad agency that produces top-quality TV, radio, and print advertising, as well as in-store, point-of-purchase display materials, and, in the case of food franchises, menus, banners, bags, and so on. If you’re in a business that can take advantage of the media buying power and quality production provided by an advertising cooperative, be sure to get involved. Your business will most likely benefit.