Co-op

[wernerradio]

I am taking a broadcast sales class this semester. Our teacher is a little past her prime (or very nuts). I am wondering if Co-op is used a lot in sales. Our teacher makes it sound like its used all the time and never runs out. I tend not to beleive most of what she says...<P ID="signature">______________
Joshua Werner
http://www.wisconsinbroadcasting.com
90.3 WRST-FM Oshkosh
Station Manager & Webmaster
http://www.uwosh.edu/wrst
[email protected]</P>

 

[LITTLEBLONDEGIRL]

> I am taking a broadcast sales class this semester. Our
> teacher is a little past her prime (or very nuts). I am
> wondering if Co-op is used a lot in sales. Our teacher
> makes it sound like its used all the time and never runs
> out. I tend not to beleive most of what she says...
>
Co-Op is used often for advertising. Co-op dollars are offered during a certain period as well as many stipulations are on it as well. Many local advertisers are not aware that they have FREE money at their disposal. Crazy, huh?
And YES, it does run out. Also, many companies that used to offer co-op $ no longer do!
Hope this helps

 

[rg]

> > I am taking a broadcast sales class this semester. Our
> > teacher is a little past her prime (or very nuts). I am
> > wondering if Co-op is used a lot in sales. Our teacher
> > makes it sound like its used all the time and never runs
> > out. I tend not to beleive most of what she says...
> >
> Co-Op is used often for advertising. Co-op dollars are
> offered during a certain period as well as many stipulations
> are on it as well. Many local advertisers are not aware
> that they have FREE money at their disposal. Crazy, huh?
> And YES, it does run out. Also, many companies that used to
> offer co-op $ no longer do!
> Hope this helps
>
Co-op is still big in certain industries... I remember hearing that something like 90% of record store (or Best Buy's new music campaigns, etc.) ads involve co-op money from the record labels. Major department stores often pair up with clothing and cosmetic manufacturers on co-op biz, too.

However, most of the co-op money probably does go to "waste" because either nobody knows it's available (whether it be the media salesperson or business owner) or people are too lazy to put in the extra effort (generally harder to sell than a simple spot schedule and, from what I've heard, there's a mountain of paperwork for the retailer).

 

[Braswell]

> from what I've heard, there's a mountain of paperwork for the retailer...

We have a simple policy for co-op. We GUARANTEE the advertiser that, if they'll allow us to handle ALL the paperwork, we'll get the money. If we fail, they don't owe us for the dollars that would've been co-op.

Try it...it works.
<P ID="signature">______________
Jay Braswell - Moderator
Atlanta/North Florida/South Carolina/Georgia Boards</P>

 

[salesdawg]

We have a simple policy for co-op. We GUARANTEE the advertiser that, if they'll allow us to handle ALL the paperwork, we'll get the money. If we fail, they don't owe us for the dollars that would've been co-op.

Try it...it works.

Interesting tactic...............it's ridiculous how many people won't advertise because they don't have the money for it, yet they are too lazy to get co-op to pay for it............

If I owned a business and someone wanted to give me money to advertise it, you bet your bottom dollar I'd take advantage of it!!

 

[tjthedj]

When we took over some small market stations in the 70's, we literally DOUBLED our billing in a few months due to co-op.

We too, did the paperwork, so the advertiser only had to sign it. Does the Radio Advertising Bureau still have the co-op binder with alot of listings? That used to help us put a dent into the newspapers, too.

It always amazed me that so many retailers were unaware of what they could get for "free" or at least "cheap."

 

[amfmsw]

Sort of binder... www.rab.com

 

[Stewy]

Exactly right, Jay Braswell! All you need are their dealer numbers, the website addresses for the coop (or dealer number then call the manufacturer abd they'll give you the web, get what they've earned, how long to spend it, download the scripts or write your own and SUBMIT FIRST FOR APPROVAL, run it fill out the paperwork (not hard, just tedious) and then EVERYBODY gets paid! RAB has a good list of what's available but you'll make a lot more just going door to door and asking the local guys...can I do your ads using your coop dollars and you don't have to pay me until you get the credit on your account...

 

[amfmsw]

Be sure there's enough $$ available to do an EFFECTIVE schedule. That means a frequency of 5 in a week for a first time radio user. Otherwise, it's a one time sale, and another misinformed retailer saying to their friends: "I tried radio and it didn't work". Be careful...and be sure to notarize the scripts and schedules.

 

[Stewy]

Exactly! Frequ of 5 if you have access to schedule builder or something. If not use the old programmers rule of 40-45 spots per week spread thoughout ALL dayparts and ALL days. Depending on you market, might be way too much though. If that's the case then load up a couple of very key days and PRAY HARD.

 

[amfmsw]

40 - 45 is a good start. Shoot for 60 that first week, even if it means bonusing evenings, weekends and/or overnights. You want to be able to walk back into that small business and have the first words said to you: " Wow, everybody tells me that they heard me on the radio". Then, you can back off to a maintenance schedule they can afford, even without co-op. You don't even want tio tell the retailer about the bonuses until they're running. Under promise, over deliver.

Good Luck.

ps. pick up a copy of "The Wizzard Of Ads"