Sales promotion marketing, using co-op advertising funds, has typically been a very promotional-based type activity.  The brand builds the ad, in which the retailer plays a minor role, then a print ad builder is used to customize it for the retailer. 

However, as suggested by this Ad Age article, Walmart is taking a unique spin on these ads.  They're focused more on the product itself, with the retailer taking the back seat in terms of visibility.  It suggests that because Walmart has established a positioning of low-price leader, they're able to run these more brand-based (or product based) ads without the need for a heave dose of sales promotion marketing messaging. 

While interesting in and of itself as a general trend, I think it's important for product manufacturers to consider how this could play out in their co-op advertising programs.  Specifically, manufacturers need to consider the role their creative and creative templates play given this information.

Our recommendation to clients of our co-op marketing solution is that they need to develop creative templates that allow for a spectrum.  At a very basic level you can create two versions of your product ad - one where the retailer plays a starring role and one where the retailer plays a minor role.  Then, fund these templates at different levels (for example, 25% co-op for one version and 50% co-op for the other).  Approaching it in this fashion allows the retailer to implement their sales promotion marketing efforts in the manner the best suits them and they're rebated at a level that is comfortable to the product manufacturer. 

Of course, this approach assumes that you have a print ad builder (or other mediums) implemented in your co-op advertising program that can manage this level of specificity.  Balihoo's channel marketing software can handle that, I hope yours can too.   

Tags:  Channel Marketing Software, Co-op Advertising, Co-op Marketing Software, Co-op Marketing Solution, CRM Marketing Automation, Retail Marketing, Sales Promotion Marketing, Trade Promotion Marketing