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201 GREAT IDEAS for Your SMALL BUSINESS, Third Edition by Jane Applegate

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GREAT 97 IDEA: Take Advantage of Co-op Advertising

Do you ever wonder how local merchants get their name and address featured in the glossy magazine ads for a luxury car or watch? They do it through “co-op advertising,” designed to draw customers into your store.

Ad agency executives tell me companies like Harry Winston, the high-end jeweler “tag” many of their print ads with local retail store information to boost sales.

“It's a mutual collaboration. Each one is building the brand of the other,” said Erik Dochtermann, chief executive officer of KD&E, a Manhattan ad agency.

Dochtermann said retailers typically spend 3 to 10 percent of the total sales of an item on co-op advertising. (In most cases, money doesn't actually change hands. Small retailers ...

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