Cooperative (Co-op) Advertising is a system in which two parties with a shared interest in selling a product jointly fund advertising campaigns. The textbook example is: a soft-drink manufacturer and a local grocery store split the cost of advertising the manufacturer's soft drinks. Both parties benefit: the manufacturer gains brand exposure and sales, while the store gains foot traffic and sales revenue. This model is especially beneficial for small business owners who could not afford to advertise on their own — they leverage the manufacturer's resources to reach a wider audience. Cooperative advertising is a formal industry practice: manufacturers often provide co-op funds (typically a percentage of a retailer's purchases) that can be used for agreed advertising activities. It must be carefully distinguished from comparative advertising (comparing one brand to competitors) and institutional advertising (promoting corporate image rather than specific products).