Auto Co-Op Ad Spending Climbs as Dealer Inventories Grow
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.