For many local tire dealers, co-op marketing can feel like a secondary concern. These dealers juggle inventory management, customer service, and daily operations, so finding time to run an effective marketing campaign using co-op funds becomes a challenge.
However, without consistent promotion, dealers risk losing business to competitors who have a stronger digital presence.
One of our clients, a leading tire manufacturer, recognized this challenge and took a proactive approach with Channel Fusion.
We designed and executed a co-op blitz campaign to curb the issue. It helped dealers market their businesses and made the entire process effortless.
By eliminating red tape and offering an end-to-end solution, the manufacturer empowered its dealer network through the campaign. They were able to maximize their co-op marketing ROI —resulting in real, measurable growth.
The Problem: Millions of Dollars in Wasted Co-op Funds
Like many manufacturers, this leading tire manufacturer allocates co-op marketing funds to help its dealers promote their businesses, with the goal of driving more sales of its brand’s tires in local markets. However, some common industry-wide issues restrict the effective use of these funds.
Many tire dealers either don’t use these funds or spend them on ineffective promotional items. For example, they end up buying T-shirts, golf balls, and keychains—rather than spending on revenue-generating digital marketing strategies.
Some reasons behind the ineffective usage of co-op funds include:
- Confusing Claims Process: Many tire dealers sell multiple brands, making it even more challenging to navigate different co-op guidelines while managing their small businesses.
The reimbursement system was already complicated and time-consuming—dealers struggled with uploading receipts correctly, leading to approval delays, and many were unsure about the required documentation, causing rejections.
The added complexity of staying compliant with multiple brand guidelines made the process even more overwhelming, increasing the chances of denied claims.
Channel Fusion simplifies this by ensuring everything is automatically brand-compliant and pre-approved, eliminating the frustration for dealers.
- Lack of Awareness: Many dealers weren’t fully aware of their available co-op funds or how to use them effectively.
Some missed out on funds because they didn’t check their allocations. Others hesitated to use funds due to unclear eligibility rules.
Also, training and communication regarding co-op fund usage were minimal, leaving dealers uncertain about their options.
- Underutilized Digital Marketing: Consumers typically start their tire-buying journey online, searching for deals and promotions to find the best value at a local shop.
However, many dealers lacked the expertise to execute high-impact digital campaigns, relying on traditional marketing methods that failed to deliver strong returns.
With $5.9 million in unused co-op funds at risk of going to waste, the tire manufacturer needed a smarter, simpler way to support their dealers.
The Solution: A Hassle-Free Channel Marketing Program
Instead of expecting dealers to figure it out themselves, the company partnered with Channel Fusion. Our digital marketing experts created an automated marketing solution for their local tire dealers. That’s why, dealers could stay focused on running their shops.
How the Blitz Campaign Worked
- No Upfront Costs: Dealers didn’t have to spend out-of-pocket. Their co-op funds covered 100% of the costs. Additionally, the campaign didn’t cost anything to the brand, as the entire campaign was funded through the dealers’ co-op funds.
- Digital Packages: The Blitz campaign provided marketing packages built specifically for tire dealers. They were based on Channel Fusion’s insights from over eight years of running effective digital campaigns in their local markets.
These packages made participation easy, even for dealers without digital marketing expertise.
- Automated Fund Utilization: As Channel Fusion managed their co-op program, funds were deducted directly from the dealers’ co-op accounts. This eliminated the need for tire dealers to submit claims or paperwork.
The streamlined process reduced administrative burdens and ensured faster execution. Dealers could focus on driving more tire sales instead of managing reimbursements.
- Multi-Channel Approach: The Blitz campaign leveraged email marketing, SMS campaigns, dealer outreach and more. This ensured dealers utilized their leftover funds. With a data-driven strategy, we were able to help optimize performance and engagement of the manufacturer’s dealer network.
The Results
The Blitz campaign was not just another marketing initiative—it delivered concrete business results. The dealers who participated in the program significantly improved their sales and co-op marketing reach.
The results looked like this:
- 15.8% sales growth for participating dealers.
- Dealers who didn’t participate experienced negative growth (-5.0%), even though they were part of the branded national promotions. The key difference was that they weren’t leveraging expert-led digital advertising to promote these offers beyond their physical locations.
Without expert digital marketing, they missed opportunities to drive local traffic and sales. This highlighted the direct impact of a strategic digital marketing approach.
- A Nebraska-based dealership with 25 locations saw a 42% increase in sales.
- Co-op fund utilization during the Blitz campaign was initially calculated as 13.4% of unused funds that would have otherwise gone to waste.
That number is expected to rise to 17% by the program’s close. It translates to over $1 million in additional dealer investment in local marketing to drive sales for the brand.
Why This Matters for the Tire Industry
The tire industry is highly competitive, and local dealers often struggle to stand out. Consumers today don’t just drive to the nearest shop—they research online, compare reviews, and look for the best deals before making a purchase decision.
A strong digital presence is no longer optional for tire dealers. It is essential.
Final Thoughts
The Blitz campaign proves that when manufacturers invest to make marketing easier for their dealers, everybody wins. Dealers get more customers, the brand strengthens its presence, and co-op funds are put to their intended use.
As a result, a brand can achieve real business growth alongside their dealers, so it’s a win-win offering.
For manufacturers looking to replicate this success, the key is to provide a structured, easy-to-use, and results-driven digital marketing program.
Channel Fusion does it by eliminating complexity and ensuring co-op funds go toward high-impact strategies. With this, manufacturers can empower their dealers to compete and grow in today’s digital-first world.
Are you interested in learning how a fully managed co-op marketing program can help your dealer network thrive? Contact us today to get started.
