Are You Doing What’s Best With Your Co-Op Dollars, or Are You Doing What’s Easiest?

Imagine you’re a marketing director or a general manager at a dealership right now—many of you don’t have to imagine, because it’s your reality. You’re faced with a market that is dealing with a multitude of challenges, but what else is new?

Compressed margins, inventory challenges, highly competitive markets, consumer confidence, global economy, gas prices—it’s enough to make anybody question why they work in our business. 

But wait! Help is on the way, and it’s in the form of Tier III Co-Op money. That’s right, OEM’s are dumping record amounts of money into the co-op funds in 2026, upwards of $13 billion dollars–with a “B.” Surely, this is going to help you sell cars, Mr. Dealer! All you have to do is sit down with your regional rep, figure out which approved vendor is worthy of your spend and BANG! The leads will just start rolling in!

If Only It Were That Easy

Unfortunately, it doesn’t work that way. Not at all. Here’s why.

1. OEM reps are not co-op experts. I mean, they should be. But they aren’t. And it’s maddening. A lot of them don’t even really understand the various co-op portals, or how to read them. They aren’t equipped to advise dealers on marketing. But that’s not all.
2. Many OEM reps are incentivized to promote certain solutions, and it has nothing to do with which vendors are the most effective–it has to do with which vendors are the most compliant. Most OEM’s reward the vendors who play by the rules the most, not the ones who have the best technology or provide the most leads. And that leads to…
3. Cookie-Cutter solutions. In order to adhere to vendor compliance guidelines, the OEM program vendors have to play it safe—pushing the limits or getting creative can lead to getting kicked out of programs, which means they lose hundreds of potential clients overnight. No program vendor is willing to risk that, which is why your SEM strategy is nearly identical to the dealer down the street–and neither of you benefit as a result. You just get generic, blah marketing. 

Friends, if that were the worst of it, then maybe we could survive. Unfortunately, it’s just the beginning of your problems. 

You’re Wasting Money, and Nobody Is Willing to Admit It

You’re probably thinking, “Well, I’m spending $20,000 every month on Google, but it doesn’t seem to be as effective as it once was.”

Don’t worry, you’re not crazy. And you’re definitely not alone. 

Unfortunately, being in an OEM vendor program isn’t free. Intermediary program managers (you know them by name, but I’m not trying to get sued) charge tremendous fees to vendors in order to participate in the programs that they manage. A 2025 COOPABLE study revealed that the average OEM program is taking 38 percent of dealer ad spend to cover program fees and vendor fees—and the vendors don’t have a choice! 

Even if vendors want to give a better deal to their dealer partners, they can’t. Many programs mandate fees that are much higher than what those same vendors charge dealers outside of those programs. Ever wonder why the same vendor does better at OEM A Rooftop than at OEM B Rooftop? It’s likely because more of your budget is going to actual ad spend at OEM A because it’s not “in program.”

There IS a Better Way

Easy doesn’t mean good. Turnkey isn’t all it’s cracked up to be, and dealers have more choice than they think–co-op doesn’t HAVE to be spent with program vendors. Did you know that? Maybe not. And your OEM-approved vendors aren’t ever going to tell you that. Luckily, that’s what I’m here for. Follow these simple guidelines, and you’ll have more luck with your co-op than ever before. 

1. Every program is different. Some OEM’s have pretty locked down programs, especially when it comes to SEM. But many are more open than you think. Nearly every program will allow you to spend with vendors outside of program in at least a few categories–make sure to read every line of the guidelines, or hire experts to help you. 
2. A 2025 COOPABLE study showed that over 40% of dealers leave money on the table every month. Make sure that you know how much you’re earning, how much you’re spending, and where you might have opportunity to increase your spend. 
3. Get out of turnkey programs. I know, I know, it’s easy. It’s out of sight and out of mind. But you’re getting old tech, carbon copy strategies, and intermediaries leeching money out of your budgets. Look for new, exciting companies with new, exciting ideas and tech, and then work with co-op experts to figure out how you can get creative with your budgets.

And This Is Just the Tip of the Iceberg

If you want a consultation on how to make this happen at your dealership and start selling more cars because of co-op, please feel free to reach out to me at the link above. We’ll be happy to take a look at your dealership’s account and do a no-obligation review. 

Mark Baruth
CEO, COOPABLE