Dealership Co-op &
Tiered Advertising.
Co-op advertising reimburses a dealer for part of its ad spend when the creative follows the manufacturer’s rules and the right proof is filed. Tiered advertising splits that spend across Tier 1 (national OEM), Tier 2 (regional dealer associations), and Tier 3 (the individual dealership) — each with its own audience and compliance requirements.
Tier 1, Tier 2 & Tier 3 Advertising Explained
Automotive advertising is organized into three tiers, each funded and controlled by a different party. A dealer who understands where each tier ends and theirs begins can plan local campaigns that complement — rather than duplicate — what the brand and the region are already running.
Tier 1 — National OEM advertising
Tier 1 is the manufacturer’s own national advertising. The OEM funds and controls it to build the brand, launch new models, and shape how the marque is perceived nationwide. Dealers don’t run Tier 1, but it sets the brand standards every lower tier has to respect.
Tier 2 — Regional dealer & local marketing associations
Tier 2 is regional advertising run by groups of dealers organized into dealer associations or local marketing associations (LMAs). Pooled funds promote the brand and current offers across a metro or region, giving a market more weight than any single store could buy alone.
Tier 3 — Individual dealership advertising
Tier 3 is the advertising an individual dealership runs to drive shoppers to its own showroom, inventory, and service drive. This is where most co-op reimbursement lives, and where compliant creative and clean documentation directly affect how much manufacturer money a dealer can recover.
How OEM Co-op Reimbursement Works
Co-op (cooperative) advertising lets a dealer use manufacturer funds to offset part of its local ad spend. Programs vary by brand, but the underlying mechanics are consistent: produce compliant advertising, run it, then file a claim with proof. The general flow looks like this:
- Compliant creative: ads must follow the OEM’s brand standards — approved logos, taglines, legal disclosures, offer language, and required brand elements. Non-compliant creative is the most common reason a claim is denied.
- Eligible media & spend: each manufacturer defines which channels and costs qualify and how much it will match, so plans should be built against the brand’s current co-op guidelines before media is bought.
- Proof of performance: dealers submit documentation that the approved ad actually ran — commonly tear sheets, affidavits, invoices, and copies or recordings of the creative.
- Claim & deadlines: claims are filed with the OEM or its co-op administrator within program deadlines; complete, accurate paperwork is what gets the dealer reimbursed.
Specific percentages, caps, eligible channels, and deadlines differ by manufacturer and program, so the rules that apply to a given store should always be confirmed against that brand’s current co-op guidelines.
Why Compliant Creative & Documentation Matter
Co-op money is only as good as the paperwork behind it. An ad that performs beautifully but breaks a brand rule — or runs without the right affidavit and tear sheet — can be disqualified, leaving real manufacturer dollars on the table. Two things protect the claim: creative built to the OEM’s standards from the start, and a complete proof-of-performance trail captured as the campaign runs, not reconstructed afterward.
That combination is also what makes tiered planning pay off. When Tier 3 creative is compliant by design, a dealer can run more aggressive local campaigns knowing a portion of the spend is recoverable through co-op-aware media buying rather than coming entirely out of store margin.
How RadioVision Produces OEM-Compliant Co-op Creative
RadioVision has produced automotive advertising since 1993, with 100% of creative built in-house through our BrainLab production studio. Keeping production in-house means co-op compliance is engineered into the creative from the first concept — approved brand elements, disclosures, and offer language — instead of being patched in to satisfy a claim later.
Because we run omnichannel campaigns across broadcast, CTV/OTT (including our Airstrike targeting), Google, social, and email, we also generate the certified documentation a dealer needs to claim across every channel: affidavits, tear sheets, recordings, and proof-of-performance records. As a GSA contract holder, RadioVision is accustomed to the documentation discipline co-op programs demand.
Co-op and tiered planning are one part of a complete automotive marketing strategy. We pair compliant creative with automotive advertising planning, dealership PPC, and automotive CTV/OTT so every tier of spend works toward the same showroom and service goals.
Frequently Asked Questions
What is dealership co-op advertising?
Co-op (cooperative) advertising is a program in which a vehicle manufacturer (OEM) reimburses a portion of a dealer’s advertising costs, provided the advertising follows the OEM’s brand and creative rules and the dealer submits the required proof. It lets dealers stretch their local ad budgets using manufacturer funds.
What is the difference between Tier 1, Tier 2, and Tier 3 automotive advertising?
Tier 1 is national advertising run by the OEM to build the brand. Tier 2 is regional advertising run by dealer associations or local marketing associations (LMAs) for a group of dealers in a market. Tier 3 is advertising by the individual dealership to drive traffic to its own showroom and inventory.
How do I get co-op reimbursement?
Generally you produce advertising that complies with your OEM’s co-op guidelines, run it, and then submit a claim with proof of performance, such as tear sheets, affidavits, invoices, and copies or recordings of the creative. Each manufacturer sets its own rules, deadlines, and eligible media, so compliant creative and complete documentation are essential to getting reimbursed.
Does RadioVision handle co-op documentation?
Yes. RadioVision produces OEM-compliant creative in-house through its BrainLab production studio and supplies the certified documentation dealers need for co-op claims, including affidavits, tear sheets, and proof-of-performance records across broadcast, CTV/OTT, digital, social, and email.