Global – October 27, 2026 -- Co-op advertising spending in the auto industry is rising as growing vehicle inventories push manufacturers to underwrite dealer marketing and move units off the lot.
Manufacturers fund more local dealer campaigns amid market share competition
Under co-op programs, manufacturers cover part of the cost of dealership campaigns across digital, print, TV, radio and events. Competition for local market share adds to the spending increase, according to the source.
Digital channels take a larger share of co-op budgets
Manufacturers are directing more co-op funds to social media, search engine marketing and email campaigns. Digital advertising is often cheaper and delivers measurable results, which is why manufacturers prefer to fund it. Dealers can track performance and adjust campaigns in real time, and some are testing video ads, interactive content and virtual showrooms.
EV and hybrid programs require dedicated messaging
Co-op programs for electric and hybrid vehicles often require funds to go to campaigns that stress fuel efficiency, sustainability or long-term cost savings. Some manufacturers also require content that matches consumer interest in eco-friendly vehicles.
Approved channels, branding rules and expiry dates limit how dealers spend funds
Manufacturers set program-specific rules on approved advertising channels, branding and messaging. A manufacturer may restrict spending to digital marketing or selected media types. Non-compliant campaigns risk loss of funds, and some funds expire or are only available within a set timeframe.
Dealers report complex reimbursement, restrictive guidelines and unclear eligibility
Dealers cite three recurring problems: time-consuming reimbursement claims that require detailed documentation, guidelines that limit creative freedom, and uncertainty over which expenses qualify. The source recommends that dealers seek clarification from manufacturers and names the COOPABLE platform as a tool for simplifying fund management.