A recent study showed that fewer than 50% of channel partners participate in co operative advertising programs. Another study showed that as many as 70% of those who don’t participate were either unaware of available funds, or unsure of how to claim them.
Couple that with the $70 billion that brands spend every year in discounts and incentives to encourage their partners to run matching campaigns, and it’s both frustrating and very expensive to run these programs when partners don’t engage.
So why are so few partners participating, and of those who don’t, why are so many unaware or unsure of how to leverage these programs? Let’s look at some of the most common obstacles and how to overcome them to improve participation rates.
There are several roadblocks that brands knowingly and unknowingly throw up that make it more difficult for local marketers to participate in these programs. Some of the most common include:
If partners don’t know about your programs, are unable to meet strict requirements for participation, or are overwhelmed with your requirements, they are much less likely to take part. These barriers are designed to add structure to the program and improve ROI from your investments, but in the end, they only push potential high-growth partners away, making the problem worse.
The goal of every good channel marketing program is to maximize participation rates, reduce friction for partners, and generate more revenue both locally and for the brand. It’s designed to be a symbiotic relationship – both parties benefiting from a carefully allocated co operative advertising fund.
To achieve this goal, unnecessary barriers and friction need to be removed and replaced with a streamlined, smarter approach.
Partners should be able to participate without jumping through reams of paperwork and carefully worded agreements. They should be able to leverage these funds even with smaller internal teams and limited marketing resources. They should be able to tap into the combined expertise of your brand’s marketing team without sapping all of your resources with support requests.
Technology can make this a reality.
Our eBook, How to Simplify Channel Partner Marketing and Improve ROI, touches on some of the most common challenges faced by both brands and local dealers and distributors in maximizing the value of co-op funds. In it, you’ll learn how a platform approach that eliminates obstacles can vastly increase your participation rates and provide the transparency and ROI reporting you need to prove the value of your programs. Download the eBook to learn more.