If you sell products from a national brand, you may have co-op advertising funds that can cover 50–100% of your billboard advertising campaign. It’s called co-op advertising, and every year, billions of dollars in these funds go completely unused.

We’re going to break down what co-op advertising is, how to find out if you have access to funds, the typical cost-sharing arrangements, what you need to get reimbursed, and why putting those dollars toward billboard advertising is one of the smartest marketing moves you can make.

What Is Co-Op Advertising?

Co-op advertising (short for “cooperative advertising”) is a cost-sharing arrangement between a manufacturer or national brand and a local business (think a dealership, retailer, or franchisee). The brand allocates a pool of marketing funds, and you, the local partner, can tap into those funds to run approved advertising campaigns.

Here’s the basic model:

• The national brand sets aside a co-op budget, often based on your purchase volume or sales performance.
• You run an approved ad campaign promoting their product or service (usually featuring both your logo and theirs).
• The brand reimburses you for a portion of the cost — anywhere from 50% to 100%.

In other words: you get advertising at a fraction of the cost, sometimes for free.

Common industries with robust co-op programs include automotive, home improvement, consumer electronics, appliances, jewelry, insurance, flooring, furniture, and food franchises, but programs exist across nearly every sector.

What is the Typical Cost Split in a Co-Op Billboard Agreement?

The typical cost-sharing arrangement in a co-op billboard agreement is a 50/50 split, though it ranges widely: some brands reimburse 50% of eligible costs, while others cover up to 100%. The exact split is defined in your program guidelines and is usually tied to your purchase volume or sales relationship with the brand.
Two parameters matter as much as the split itself:

An annual cap — the maximum dollar amount the brand will reimburse in a program year.

An expiration date — co-op funds frequently expire annually, so unspent dollars are simply lost if you don’t use them.

Confirm all three — split percentage, cap, and expiration — before you plan a campaign, so you can size the buy to fully use the funds available to you.


Why So Many Co-Op Dollars Go Unspent

Studies estimate that more than $14 billion in co-op advertising funds go unused every year. Why? A few reasons:

• Business owners simply don’t know the funds exist
• The application and reimbursement process seems complicated
• There’s a misconception that co-op money may only be used for print or digital ads
• Local teams don’t have the bandwidth or knowledge to navigate program requirements

The truth is, once you understand the process, it’s very manageable — and the payoff is significant.

Can You Use Co-Op Funds for Billboard Advertising?

Yes, out-of-home (OOH) advertising, including static and digital billboards, is an eligible channel in many co-op programs. If your brand partner’s guidelines permit outdoor advertising (and many do), billboards are a powerful and often underutilized way to put those co-op dollars to work.

What Is the Process for Submitting a Co-Op Plan for a Billboard?


• Check your co-op program guidelines. Contact your brand’s sales rep or log into your partner portal to review what’s covered. Ask specifically about out-of-home advertising eligibility.
• Get pre-approval. Most programs require you to submit your ad creative for approval before your campaign runs. Don’t skip this step — it’s usually required to receive reimbursement.
• Keep your documentation. Save invoices, proofs of performance, tearsheets, and any affidavits of posting. You’ll need these to file your reimbursement claim.
• Submit your claim promptly. Most programs have submission deadlines. Don’t let your reimbursement window close – set reminders if needed.

Working with an experienced outdoor advertising company can make this process even smoother — Adams Outdoor Advertising is well-versed in co-op requirements and can help you pull together the documentation you need.

Why Billboards Are a Smart Use of Co-Op Dollars

1. Billboards Offer Among the Lowest CPMs in Advertising

CPM — or “cost per thousand impressions” — is the standard metric for comparing ad efficiency across channels. And when it comes to CPM, out-of-home advertising consistently outperforms most other media.

Average CPMs by Channel:

• Digital display ads: $2–$5
• Social media ads: $5–$10
• Cable TV: $10–$20
• Broadcast TV: $20–$30+
• Billboards: $1–$5 (often lower in smaller markets)
  Source:

That means you’re reaching more people, per dollar spent, than almost any other format. When you layer co-op funds on top of that efficiency, the value multiplies fast.

2. Billboards Work Across the Entire Marketing Funnel

One of the most common misconceptions about billboard advertising is that it’s only useful for brand awareness — a top-of-funnel play. In reality, out-of-home advertising is a full-funnel medium.

Here’s how it performs at each stage:

Awareness (Top of Funnel): Large-format, high-visibility placements build brand recognition at scale. A well-placed billboard gets seen thousands of times a day by the same commuters and residents — creating powerful brand recall over time.

Consideration (Middle of Funnel): Strategic placements near your business, competitors, or relevant destinations can influence purchase decisions as consumers are actively in a shopping mindset. A billboard near a car dealership strip, a home improvement corridor, or a retail shopping center puts your message right where it matters.

Conversion (Bottom of Funnel): Digital billboards (DOOH — digital out-of-home) allow for dynamic messaging, time-of-day targeting, and even retargeting integration. A billboard that says “Turn left in 500 feet” to someone who is already in the area is a conversion tool, plain and simple.

Recent research has also shown that OOH advertising amplifies other channels — people who see a billboard are more likely to search for the brand online, engage with social ads, and respond to direct mail.

3. Billboards Build Local Presence for National Brands

This is where co-op advertising and out-of-home are a natural match. National brands want local market visibility — and a billboard featuring your business alongside their brand delivers exactly that. You get name recognition in your community. They get localized presence they couldn’t achieve on their own. It’s genuinely win-win.

4. Billboards Are Unskippable

In a world of ad blockers, streaming services, and endless scrolling, the outdoor billboard remains one of the few advertising formats that cannot be skipped, closed, or scrolled past. Every driver, passenger, cyclist, and pedestrian who passes your board sees your message. There’s no algorithm deciding whether to show it. No opt-out button.

That kind of guaranteed, unfiltered reach is increasingly rare — and increasingly valuable.

How to Design an Effective Co-Op Billboard

Co-funded billboards have to satisfy two audiences at once — the brand’s guidelines and your local market. Best practices: keep copy to roughly seven words or fewer so it reads at highway speed, give the brand logo and your business name clear co-equal placement per the brand’s co-brand rules, use high-contrast colors that hold up at distance, and include one clear action or location cue. Submit this creative for pre-approval before posting; design that violates brand guidelines is one of the most common reasons claims get denied.

How to Get Started

If you think you might have co-op funds available, here’s your action plan:

1. Talk to your brand rep. Ask directly: “Do I have co-op advertising funds available? Is out-of-home advertising an eligible channel? Do funds expire, and if so, when?”
2. Review your co-op program documentation. Read the guidelines carefully so you understand reimbursement rules, creative requirements, and submission deadlines.
3. Partner with an OOH advertising specialist. Adams Outdoor Advertising is experienced in co-op campaigns. We can help you identify high-impact placements, build co-brand compliant creative, and support your reimbursement documentation. There are also third-party services available, such as Co-Op Connect, that can assist with documentation and claim submissions.
4. Submit for pre-approval before you post. This is non-negotiable — pre-approval is typically required to receive your reimbursement.
5. Track your results. Use unique URLs, promo codes, or foot traffic attribution tools to measure the impact of your campaign.

The Bottom Line

Co-op advertising funds exist to help you market more — and spend less. If you’re not using them, you’re leaving money on the table. And if you are using them but haven’t considered billboards, you may be missing one of the most cost-effective, high-visibility channels available to local businesses.

Low CPMs. Full-funnel capability. Unskippable reach. And potentially subsidized 50-100% by your brand partner. That’s a combination worth paying attention to.

Ready to explore how co-op funds can power your next outdoor advertising campaign? Learn about available placements in your market and how we can help you navigate the co-op reimbursement process from start to finish.

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Frequently Asked Questions About Co-Op Advertising and Billboards