Key Advantages of Co-op Programs and OEM Partnerships

November 4, 2016

Co-op programs have a reputation in the automotive industry — and it’s not always clearly understood. Too often when we ask someone how a co-op works, they respond: A manufacturer gives a dealership free money to increase their advertising budget.

In reality, it’s not that simple. The money supplied by manufacturers for co-op advertising often comes with guidelines because, by definition, a co-op is a cooperative society, business, or enterprise. Basically, when a dealership opts to enter into a co-op with an OEM, all advertising efforts become a joint enterprise with benefits to both parties.

Find out how co-op programs can actually benefit your dealership when used effectively.

2 Ways Co-op Programs Help Dealerships and Manufacturers

Run consistent, brand-specific ads that match the OEM.

In the past, most advertising was done over broadcasts, posted on billboards, or written in print. With the majority of automotive advertising migrating to the digital realm, OEMs have begun to adjust their guidelines to account for this shift.

A huge benefit of co-ops for both manufacturers and dealers is that they can boost reputations and market exposure. When a dealership can align their campaigns directly with an OEM, it creates trust in consumers and leads to an increase in conversions. For manufacturers, having reliable local dealerships can raise brand awareness and create a larger, loyal customer base.

Budget advertising campaigns more effectively.

For local and individual dealerships, advertising budgets vary and are sometimes completely overlooked. Co-ops can essentially provide financial services in exchange for branding and advertising cooperation. Sadly, millions of dollars in manufacturer co-op funds goes unused each year. So why not put that money to good use?

For OEMs, partnering with dealerships allows them to increase marketing in local areas, for less money than it would cost to run their own campaign. In addition, co-ops are a great option for individual dealerships with small advertising budgets. When a small-budget dealership partners with a manufacturer, the combined advertising efforts can enhance the dealership’s digital presence and create more conversions.

OEM partnerships can also be extremely beneficial for dealerships with larger budgets. With added co-op financial support, dealerships can create more focused, specialized ads to enhance their existing campaigns.

Beneficial OEM Partnerships Available Through MAX Digital.

Co-ops through MAX Digital are easy for dealerships and optimal for OEMs. As the sole provider of OEM integration, MAX Digital has access to original VDPs and ads for an OEM’s vehicles. This way, manufacturers can maintain their brand’s value by helping a dealership advertise its inventory the way it was meant to be sold.

Thanks to a partnership with BMW and MINI Corporate, we are able to offer a discounted package rate for all individual BMW and MINI dealerships. This package includes the entire Marketing and Sales Platform, and we’ll keep the process easy by submitting all reimbursements directly — so you don’t have to do anything.

If you’re interested in learning more about how MAX Digital can help your dealership, contact us today or schedule a free product demo.