Billions in marketing dollars are left unused each year in manufacturing channels — and that’s a missed opportunity manufacturers can’t afford.
Co-op advertising and Market Development Funds (MDF) are designed to help manufacturers and distributors share the cost of marketing. When used strategically, they can drive impressive ROI, accelerate sales growth, and strengthen manufacturer–distributor relationships. Yet industry estimates show $14–$35 billion in co-op funds go unused annually, with only about 40% of eligible channel partners actively participating.
Rivet|MRO’s recent white paper, Strategic Use of Co-Op and MDF Funds in Manufacturing Go-to-Market Plans, explores how manufacturers can fully leverage these funds as a growth engine — and how to help distributors put them to work.
Why Co-Op & MDF Matter
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Joint investment = shared success. When manufacturers and distributors co-fund marketing, both sides work toward the same sales objectives.
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Localized impact. Distributors can run stronger, more targeted campaigns than their own budgets would allow.
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Strategic flexibility. Funds can target specific products, markets, or competitive situations — making them a powerful go-to-market tool.
Best Practices for Maximum ROI
Manufacturers seeing the biggest returns from co-op/MDF programs are:
✅ Planning early — integrating co-op into annual marketing plans, not just year-end pushes.
✅ Simplifying the process — making it easy for distributors to access and use funds.
✅ Aligning goals — ensuring campaigns directly support shared sales targets.
✅ Providing resources — offering turnkey campaigns, creative services, or training to overcome distributor capability gaps.
✅ Measuring results — tracking ROI, sharing success stories, and reinforcing participation.
Proven Tactics That Work
The white paper outlines several high-impact, co-funded approaches, including:
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Multi-channel campaigns that deliver triple-digit sales growth.
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Sampling programs with ROI of 20:1 or higher.
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Digital content and video marketing that drive sustained traffic and leads.
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Clickable catalogs that link directly to ecommerce.
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Targeted promotions that double order volume in weeks.
Real-World Impact
Case studies show the power of these programs when executed well:
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300%+ order growth from a co-funded generator campaign.
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50:1 ROI from a summer safety product sampling initiative.
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32x ROI from a cross-sell campaign into new product lines.
Closing the Gap
The 2025 Rivet|MRO Co-op Survey found most suppliers offer co-op funds — yet nearly three-quarters say less than 25% of their funds are claimed. The biggest obstacles? Complex processes, misaligned priorities, and limited distributor marketing resources. Manufacturers who bridge these gaps stand to unlock major revenue potential.
Bottom line: Co-op and MDF programs aren’t just a cost offset — they’re a high-yield growth investment. By making them simple, strategic, and measurable, manufacturers can turn unused budgets into competitive advantage.
📄 Read the full white paper here → White Paper – Strategic Use of Co-Op and MDF Funds in Manufacturing Go-to-Market Plans
