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Explanation of Co-Op Funds (Cooperative Advertising):
A Win-Win for Restaurateurs and Vendors

Submitted by Member:
Christopher Paul
Founder and CEO of Creative Content, LLC.
More articles about the restaurant industry can be found at  

Creative Content will be exhibiting at our International Restaurant & Foodservice Show of New York on March 3-5, 2013 - be sure to drop by their booth # 1755.

Otherwise known as cooperative funding or cooperative advertising, co-op funds simply refer to money that is provided by one of your suppliers, (typically beverage vendors), to you the restauranteur for use in advertising. The idea being that when you create an ad, for example a video- you prominently and favorably feature their product. Since this would serve the dual purpose of promoting their products as well as your business, they make funds available to share the cost. It’s a win-win.

This is no small matter, as the costs of advertising can sometimes be substantial. The additional funds provided can improve the quality of the advertising, and broaden the scope of your ad’s distribution. Many manufacturers are surprised to learn that much of this funding goes unspent, as relatively few restauranteurs seek cooperative agreements. This is money set aside for business people such as yourself that is there for the asking, yet not being used!

It’s important to note that proper communication with your vendor is important before you arrange your video shoot. Different vendors will have different criteria to remain eligible for cooperative funding. For example the duration of time their product is visible, (known as screen time), and assuring that the video is of professional quality in order to maintain their expectations of how they represent their products.

Funding is usually given after the completed product is submitted to them for review and quality assurance- so remember to hire a professional video company to avoid unpleasant surprises later.

The biggest benefit of cooperative advertising for restauranteurs is that such an arrangement with your vendors can dramatically cut your advertising costs. This will allow you to create much more professional quality videos and campaigns than you could otherwise afford. Manufacturers will often provide between 50% to 100% of the involved costs.

Below are a couple of examples from a restaurant video I shot last month. These are the most overt and obvious placements, and there are actually a couple of other shots that feature the products less prominently.

For more examples of effective product placement in restaurant web videos, please visit our website at:  


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