Cooperative Advertising, An Advertising Method That Benefits Small Businesses

Cooperative Advertising

For small businesses, of course, the budget for advertising is not the most important thing to prepare. However, this can be tricked by applying the cooperative advertising method.

Cooperative advertising can indeed be a powerful tool for young business owners. Especially if they have a limited budget to create advertisements.

In fact, advertising is very important and can even be called a vital thing to support a business so that it can be better known.

So, what exactly is cooperative advertising? Why is it called profitable for a small business? If you're curious, continue seeing the summary below, yes!

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Understanding Cooperative Advertising

Cooperative Advertising

Simply put, cooperative advertising is an advertising partnership effort between two or more companies, as reported by Tinuiti.

Typically involved with this type of advertising are manufacturers, with wholesalers and retailers because they want to increase sales of a particular product.

In conducting cooperative advertising, generally using various types of advertising.

For example, from television commercials, radio ads, magazine ads, catalog leaflets, to billboards. Unfortunately digital advertising is not the highlight of this type of advertising method.

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Pros and Cons of Cooperative Advertising

Cooperative Advertising

This type of advertising also has its own advantages and disadvantages. The following is the explanation quoted from The Balance Careers.

Advantages

1.  Save budgets.

The first advantage of cooperative advertising is, of course, that it can save the company budget to create advertisements.

By working with other businesses, of course, the budget spent on advertising can be much less than if it was done alone.

So, for businesses that are just starting out, of course, it is very helpful to have an advertising partnership like this.

2. Greater exposure

Cooperative advertising only focuses on advertising on a local scale. Even so, of course, businesses that participate in doing so will still get a wider exposure.

Even though the advertisements that are made are limited to local television and radio advertisements, of course this has greatly helped increase brand awareness.

In addition, advertising on billboards or making brochures is still effective in introducing businesses and products to the public more quickly.

3. Increase new customers

Finding new customers is uneasy. However, there is one way you can increase new customers quickly, which is by doing advertisements frequently.

So, by doing cooperative advertising, of course, a new pioneering business has a great opportunity to increase the number of new customers.

The reason is, advertising not only makes a business name even more famous, but is also able to increase the trust of potential new customers.

Deficiency

1. Lack of visibility

When doing cooperative advertising, of course, businesses must share a portion with others. This, of course, can reduce visibility.

For small businesses, of course, visibility is very important. However, in this advertising method, of course, it cannot highlight just one business.

2. Poorly conveyed messages.

The next drawback of cooperative advertising is the message is not well conveyed.

By doing this method, of course, the message conveyed is a shared message from the joint company.

So, if you want to convey a deep message through advertising, of course, it will be less effective if you use this advertising method.

That is an explanation of cooperative advertising, one of the advertising methods that can be tried for businesses that are still developing.

When you want to create advertisements by collaborating with other businesses, make sure to make clear rules so that later conflicts do not occur.

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