If you’re the owner of a dealership, co-op dollars can make a big difference in your advertising. These funds, which are offered by manufacturers, are meant to help promote their vehicles while supporting your marketing efforts. But with so many co-op opportunities available, how do you know you’re spending those dollars effectively? In this article, we’ll cover the best ways to spend co-op dollars and make the most out of your co-op marketing partnerships, both through digital strategies and in person.
Understanding Co-Op Dollars
Before we get into the nitty-gritty, it’s important to understand what co-op dollars are and how they work. Co-op advertising programs are partnerships where a manufacturer agrees to share the cost of marketing their vehicles with a dealership. Typically, the manufacturer sets aside a percentage of the dealership’s annual sales as co-op funds. These dollars can then be used for various advertising and marketing activities, often with certain conditions or restrictions attached.
Can Co-Ops Work for Your Dealership?
Yes, co-op programs can absolutely work for your dealership. In fact, many automotive manufacturers offer co-op advertising dollars to dealerships as part of their marketing support. These funds are designed to help you promote your vehicles, parts, and services while keeping consistent branding and messaging.
Does Your Dealership Have to Be a Certain Size to Join a Co-Op?
The size of your dealership does not necessarily affect whether or not you’re able to join a co-op program. Most manufacturers design their co-op programs to support all authorized dealerships, regardless of size, as long as they meet the criteria. These criteria usually include meeting minimum sales thresholds, sticking to branding guidelines, and keeping good standing with the manufacturer. Smaller dealerships can still take advantage of co-op funds, though the allocation may be proportional to their sales volume. The key is to communicate with the manufacturer to understand the specific opportunities available to you.
The Best Ways to Spend Co-Op Dollars
With so many co-op opportunities available, how do you know you’re spending those dollars the right way? Here, we cover the best ways to spend co-op dollars.
Invest in Digital AdvertisingSpending co-op dollars on online advertising is one of the most effective strategies you can pick. Platforms like Google Ads and Facebook Ads can give you highly targeted ads, allowing you to reach specific demographics that are most likely to schedule a test drive and eventually purchase a vehicle. As you’re planning your digital advertising strategy, highlight the manufacturer’s vehicles in your campaigns to make sure you’re staying in compliance with co-op guidelines. You can also use A/B testing to see which ads perform best, giving you the highest return on investment for your co-op dollars.
Use Social Media MarketingSocial media is a great tool for co-op opportunities. Platforms like Instagram, TikTok, and LinkedIn allow you to create content that showcases your vehicles. For example, you may create a short video walkthrough of a new model or a carousel post highlighting its benefits. These types of posts can create a lot of interest.
Many co-op programs cover expenses for running ads on social media. Check the guidelines to see how you can use these platforms in your strategy.
Create Dealership PromotionsYour dealership can benefit from in-store promotions funded by co-op dollars. Consider using these funds for seasonal sales events, trade-in promotions, and free add-ons. These can draw attention to the manufacturer’s vehicles while increasing foot traffic to your dealership.
Improve Your Website Your website is often the first point of contact for potential customers. You can use co-op dollars to improve your site’s functionality and content. Consider investing in great CRM software, SEO optimization for inventory pages, high-quality vehicle images and videos, and professional descriptions and blog posts. Additionally, you can use co-op funds to promote the manufacturer’s vehicles through banner ads or homepage highlights.
Online Chat FeaturesIn addition to improving your website, you can add online chat features. People want to have their questions answered quickly and easily, and chatbots can help. Here at TECOBI, we’ve designed the TECOBI Auto Bot to help car dealerships automate things like online chats and follow-ups in the car sale process. Our bot not only re-engages conversations with smart follow-ups, but it can also reach out to older leads with personalized interactions.
SMS Marketing SMS marketing simply means marketing through text messages. Using SMS marketing, you can send vehicle promotions, updates, and other notifications directly to your customers, and with the right CRM software, these processes can be entirely automated. Unlike other advertising avenues like email and social media, SMS marketing has an impressive open rate of over 90 percent, meaning you can connect with people quickly and consistently.
Email Marketing CampaignsEmail marketing is a cost-effective way to engage with your audience and promote co-op-funded vehicles. Create segmented email lists to target specific customer groups with personalized messages.
For example, you can send newsletters featuring new inventory, exclusive promotions, or tips on vehicle features. Including the manufacturer’s branding ensures you meet co-op advertising guidelines.
Invest in Local AdvertisingCo-op marketing dollars can be used to fund local advertising efforts such as radio spots, TV commercials, and print ads in local newspapers or magazines. These traditional advertising methods can still be effective if you want to connect with your local community, especially if your target audience is generally offline. Make sure your ads include a strong call to action.
Collaborate on Content CreationHigh-quality content is a cornerstone of successful marketing. Use co-op dollars to create professional photography of your inventory, tutorial videos or explainer animations, informative blog posts, or influencer partnerships. This content can be shared across your marketing channels, giving you value beyond a single campaign.
Try Out New Marketing ChannelsCo-op dollars are a great opportunity to experiment with new advertising platforms. For instance, you can try running a podcast ad, launch a geotargeted campaign using mobile ads, or start using AI in your marketing. Using new approaches can help you stay ahead of competitors while exploring what works best.
Learn More About the Best Ways to Spend Co-Op Dollars
By taking advantage of co-op marketing, you’ll not only increase sales but also strengthen your relationship with manufacturers. By using the right strategies along with the right software, your dealership can transform leads into sales.
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