Don’t Let Free Ad Dollars Go to Waste
Every marketing dollar matters—especially when it’s already yours. Yet many dealers are unknowingly leaving thousands of OEM co-op funds untouched each year. That’s money that could boost your inventory visibility, drive more foot traffic, and turn hesitant shoppers into loyal buyers.
And the stakes are only getting higher.
The BIA Automotive Report 2025 projects $12.5 billion in local media spend this year – a 4.7% jump from 2024. That’s more than we saw in 2023, when high interest rates and economic uncertainty kept many buyers on the sidelines. This rebound signals a renewed push in local advertising – and a golden opportunity to rethink your co-op strategy.
Because in today’s market, visibility is everything. And unused co-op funds? They’re not just a missed opportunity – they’re a competitive disadvantage.
In this blog, we’ll break down how dealers are using co-op dollars to fight inventory aging, re-engage buyers, and drive real growth in 2025 and beyond.
It’s Not Too Late: Audit, Activate, Maximize Your OEM Advertising Funds
Start with a Co-op Health Check
Summer sales, holiday promos, service specials – this is prime time for dealership marketing. But before you launch your next campaign, ask yourself: who’s keeping tabs on your co-op funds?
Too often, dealers assume someone else is managing it – only to find out too late that valuable dollars have expired or gone unused. That’s not just a missed opportunity – its money left on the table.
A quick co-op audit can change that. Take stock of what’s available, what’s been claimed, and what’s about to expire. This simple step can unlock thousands of OEM support and turn passive dollars into active results.
What Are OEM Co-op Funds?
OEM (Original Equipment Manufacturer) co-op funds are advertising dollars provided by manufacturers to their franchise dealers to help promote brand-approved marketing campaigns at the local level. These funds are typically earned based on vehicle sales volume or participation in OEM programs and can cover a significant portion—sometimes up to 100%—of eligible advertising costs.
But there’s a catch: they often come with strict usage guidelines and expiration dates. If not used in time or in compliance, they’re gone for good.
Use this quick checklist to get your co-op strategy back on track:
- Identify Ownership: Who is responsible for managing co-op funds—marketing, finance, or both? Clarify roles to avoid costly miscommunication.
- Review OEM Guidelines: Each manufacturer has different rules, timelines, and reimbursement rates. Make sure you’re aligned with current program requirements.
- Track Usage & Eligibility: Lean on your Autotrader rep and our Co-op Services Program to help monitor your available funds, compliance, and campaign eligibility in real time.
How to get started:
To ensure your team creates display advertising that meets OEM requirements while driving real results, follow these tips:
- Promote inventory with high-impact visuals.
- Reach in-market shoppers across multiple channels.
- Stay compliant with OEM co-op guidelines.
Autotrader offers a suite of co-op eligible advertising products designed to meet OEM requirements while delivering measurable results. Our customizable Display Advertising and Listings Packages can help you get started.
Combat Inventory Aging and Buyer Apathy
The auto market has shifted – and not always in your favor. Just a year ago, inventory shortages made it easy to move vehicles. Today? Not so much. New-car supply is back, but it’s sitting longer on lots as high prices and interest rates keep buyers on the sidelines.
At the same time, brand loyalty is slipping. Shoppers are more willing than ever to switch brands, models, or even dealerships if it means getting a better deal – or simply finding something in stock.
This one-two punch of aging inventory and buyer apathy is creating new challenges for dealers. But it’s also creating urgency. Now’s the time to put every available marketing dollar to work – including the ones you’ve already earned through OEM co-op.
Put Your Co-op Funds to Work
OEM co-op dollars aren’t just for brand awareness—they’re a powerful tool to solve real-time sales challenges. Here’s how dealers can use them strategically:
- Promote Aging Inventory: Use co-op funds to spotlight slow-moving models with targeted campaigns that create urgency and drive visibility.
- Target Conquest Buyers: Reach shoppers who are brand-agnostic or exploring alternatives by expanding your reach beyond your immediate market.
How to get started:
Breaking through local saturation and reaching the right buyers is possible with the right strategy:
- Audience Extension: Go beyond your ZIP code. Target in-market shoppers across the web who are actively researching vehicles.
- Display Retargeting: Stay top-of-mind with buyers who’ve already shown interest in your listings by serving them relevant ads throughout their digital journey.
Autotrader offers co-op eligible tools that deliver results. Better yet, these solutions are customizable to align with your OEM’s requirements—so you not only use your funds but use them effectively.
The Top 3 New Dealer Pain Points in 2025
Co-op funds have always been a valuable resource – but in 2025, they’re becoming a lifeline. As the retail landscape shifts, dealers are facing new challenges that demand sharper strategies and smarter spending. Here are the top three pain points – and how your co-op dollars can help you fight back.
1. Flooring Costs Are Climbing
Inventory levels are finally back—but now, many dealers are sitting on more vehicles than they can move quickly. The result? Rising flooring costs chip away at margins and add pressure to sell faster. Every day a vehicle sits unsold is a hit to profitability.
How Co-op Helps: Use your co-op dollars to spotlight aging inventory with targeted campaigns that drive urgency and visibility—without dipping into your core ad budget.
2. Interest Rates Are Slowing Buyer Urgency
High interest rates are making financing less attractive, stretching decision cycles and increasing price sensitivity. Buyers are hesitant, and dealers are feeling the slowdown.
How Co-op Helps: Co-op-funded advertising can keep your dealership top-of-mind and highlight special financing offers or incentives that nudge buyers off the fence.
3. Lost Loyalty Is the New Normal
Today’s shoppers are more open to switching brands, models, and even dealerships—making it harder to rely on repeat business.
How Co-op Helps: Run conquest campaigns with your co-op funds to reach new audiences and reintroduce your brand to shoppers who may have overlooked it in the past.
Overcome These Pain Points with Advanced Solutions
The auto industry never stands still – and neither should your strategy. As buyer behavior shifts and market pressures mount, it’s time to lean into smarter, more dynamic advertising solutions.
Here are a few OEM-approved Autotrader solutions designed to help you stretch your co-op dollars while tackling today’s biggest retail challenges:
- New Car Boost: Convert used-car shoppers into new-car buyers by highlighting similar monthly payments on new models.
- Advanced Ads Premium: Retarget high-intent shoppers across premium websites and social platforms with compelling creative.
- eLot: Engage real-time shoppers during their valuation and search journeys with dynamically served inventory.
We have these advertising solutions and more – click here to see which ones your OEM covers.
Custom Co-op Strategies & How Autotrader Is Helping Dealers
When it comes to co-op success, there’s no one-size-fits-all playbook. As Michelle Wright, Director of Sales at Autotrader and Kelley Blue Book, shared in a recent Wards Auto FastChat interview, the key is customization, consultation, and compliance.
Too many dealers are missing out on tens – or even hundreds – of thousands of dollars in unused co-op funds. Why? Because there’s no clear process or ownership in place. In one case, a dealer uncovered over $100,000 in untouched co-op dollars due to internal miscommunication.
Autotrader is helping dealers avoid these costly oversights by offering a hands-on, consultative approach:
Expert Consultants
Autotrader’s seasoned consultants work directly with dealers to assess inventory, market dynamics, and OEM program eligibility. They help build tailored co-op strategies that align with your dealership’s unique goals.
Custom Solutions
Whether you’re moving aging inventory, targeting conquest buyers, or promoting specific models, Autotrader doesn’t do cookie-cutter . Instead, we create flexible, data-driven campaigns that maximize your co-op potential.
Compliance & Protection
Autotrader’s Co-op Program Services simplify the compliance process by managing documentation and ensuring campaigns meet OEM guidelines. Dealers can even opt for a fully managed solution that protects them from infractions or reimbursement issues.
Top 3 Results of Maximizing Your Co-op Investment
When dealers fully leverage their co-op funds—especially with the right partner—the results speak for themselves. Here are the top three benefits of a well-executed co-op strategy:
1. Access to the #1 Most Used Third-Party Automotive Marketplace
Autotrader and Kelley Blue Book are the most visited third-party automotive sites for research and shopping1. That means your inventory gets seen by more in-market shoppers than anywhere else.
2. Higher Visibility for Your Inventory
With enhanced listings, display ads, and retargeting, your vehicles stand out in a crowded digital space. More visibility leads to more leads—and faster sales.
3. Industry-Leading Experts at Your Side
Autotrader’s consultants don’t just help you spend your co-op—they help you spend it wisely. From strategy to execution, you’ll have a team of experts ensuring every dollar delivers ROI.
By combining OEM co-op dollars with Autotrader’s digital advertising tools, dealers can turn missed opportunities into measurable growth.
Don’t leave money on the table.
Source: 2024 Cox Automotive Car Buyer Journey Study
