Introduction. Co-op Advertising Funds. Eligibility for Co-op Reimbursement. Program Overview

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1 Introduction National advertising, FDAF and LMDA advertising, and your local advertising all play a critical role in moving consumers toward the purchase of a new Ford or Lincoln Mercury vehicle. Through clear, consistent, brandcomplementary advertising, we can continue to build a powerful marketing presence that enhances our base of satisfied, loyal customers and drives sales growth. To help you create brand-enhancing new-vehicle advertising that keeps current customers coming back, Ford Motor Company (FMC) and the Ford and Lincoln Mercury Dealer Councils are pleased to launch the Ford and Lincoln Mercury (FLM) Dealer Advertising Co-op Program. All FLM dealers are automatically enrolled in this program. This co-op program offers you partial reimbursement for eligible advertising campaigns and strategies to permit you to enhance the frequency, reach and effectiveness of your new-vehicle advertising. Information on requesting and receiving co-op reimbursement is on pages The program guidelines were developed with input, guidance and decisions from the Ford and Lincoln Mercury Dealer Councils. For assurance that your advertising will comply with the advertising guidelines, a requirement for reimbursement, we encourage you to take advantage of the FLM Dealer Advertising Consulting Center. Details on how the consulting service operates and the procedures for submitting your advertising for pre-approval by the center s staff of experts are on pages To facilitate dealers ability to track and leverage co-op funds, a co-op program Web site will be available (see page 1.10). All dealers will have convenient access to this Web site via links on the Ford Toolbox and Lincoln Mercury Toolbox Web sites. Please visit these sites for more information on the upcoming launch of the co-op program Web site. Co-op Advertising Funds All dealer retail Ford, Lincoln and Mercury units (including A, X, Z and D Plan units but exclusive of units ordered for or sold to fleets/rental companies) will generate an amount equal to approximately.5% of MSRP that will accrue in your co-op funds account and be available to offset your eligible advertising expenses during a three-month spending period (see page 1.3). Advertising that meets all co-op program eligibility requirements qualifies for 50% reimbursement. The per-vehicle amount is established at the beginning of each model year and is based on a fixed amount (based on average MSRP) and rounded to the nearest dollar. If pricing adjustments occur during the model year, established contribution amounts are not changed. Eligibility for Co-op Reimbursement In addition to complying with the FLM Dealer Advertising Co-op Guidelines, your advertising must promote FLM new vehicles and must adhere to the restrictions on eligible advertising forms to be eligible for reimbursement under the FLM Dealer Advertising Co-op Program. 1

2 Co-op reimbursement is provided for the following forms of advertising only: Newspapers Magazines Direct mail/circulars Outdoor and transit Alliances/sponsorships/events* Radio Television Cable Internet advertising** Screen cams and banner ads Search engine marketing (key words, optimization and related services) *Including, but not limited to, auto and trade shows, fairs, festivals, local sports/racing team sponsorships, Hole-In-One, tour unit displays and marketing in conjunction with malls, concerts, zoos and other high-traffic venues. **Please call the FLM Advertising Consulting Center to confirm eligibility before running Internet advertising. The following advertising costs and activities are not eligible for co-op reimbursement: Agency fees Production costs Mailing list acquisition fees Barter and trade credits Yellow Pages Cinema Dealer Web sites and lead generators FD Toolbox/LM Toolbox materials Please note the following additional requirements: For all eligible media advertising, only the new-vehicle section is reimbursable. Advance pre-approval is required for alliances, sponsorships and events, as noted below. Reimbursement Rules for Alliances, Sponsorships and Events Examples of alliances, sponsorships and events include, but are not limited to, auto and trade shows, in-dealership new-vehicle launch events, fairs, festivals, local sports/racing team sponsorships, Hole-In-One, tour unit displays and marketing in conjunction with malls, concerts, zoos and other high-traffic venues. To ensure that alliances, sponsorships and events reflect positively on the corporate brand and are consistent with other marketing and advertising activities, a pre-approval form outlining the activity, along with creative concepts, must be submitted to the FLM Dealer Advertising Consulting Center at least 30 days before the activity date. Required information on the form includes the names of other entities whose involvement will be solicited. Pre-approval forms are available on the FD Toolbox and LM Toolbox Web sites under the co-op navigation tab. The center will respond to your request for pre-approval within three business days. Claims submitted without an accompanying pre-approval notification from the center will be denied. The claim for reimbursement for an alliance, sponsorship or event must include: a copy of the signed pre-approval form, the vendor contract or agreement, all invoices and photographs of the alliance/sponsorship/event as proof of performance and FLM exclusivity. The rules for alliances, sponsorships and events follow all FLM Dealer Advertising Co-op Guidelines except, unlike print advertising, activities that include competitive makes, models and/or mentions are not eligible for reimbursement. 2 Ford and Lincoln Mercury Dealer Advertising Co-op Program FLM COOP April 2, 2008

3 Using Your Co-op Funds Co-op funds become available for your use during a three-month spending period that begins the first day of the month following the vehicle s release from the plant. The table and chart below provide important details on how you earn co-op funds and the spending and filing deadlines that you must follow carefully. Example of How Co-op Funds are Earned, Spent and Claimed Earn Month Retail (non-fleet) units gate-released from plant in April earn April funds. Retail (non-fleet) units gate-released from plant in May earn May funds. Retail (non-fleet) units gate-released from plant in June earn June funds. Spending Period April funds can be spent on eligible advertising from May 1 through July 31. May funds can be spent on eligible advertising from June 1 through August 31. June funds can be spent on eligible advertising from July 1 through September 30. Claim Deadline April funds must be claimed by September 30 or they expire and default to the local FDAF or LMDA. May funds must be claimed by October 31 or they expire and default to the local FDAF or LMDA. June funds must be claimed by November 30 or they expire and default to the local FDAF or LMDA. Q1 Q2 Q3 Q4 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC April Funds Accrue April Funds Expire Sept. 30* May Funds Accrue May Funds Expire Oct. 31* June Funds Accrue June Funds Expire Nov. 30* *Unclaimed funds in a dealer s account expire two months after the last day of a spending period and default to the dealer's FDAF or LMDA. In the event no claims are made, all funds are forfeited to the local FDAF/LMDA. 3

4 Requesting Reimbursement To receive co-op reimbursement for your eligible advertising expenses, simply follow the instructions below. Instructions for Submitting a Claim for Reimbursement Step 1: Complete a claim form. You can complete an online claim form and submit it electronically at the co-op page of the Ford Toolbox or the Lincoln Mercury Toolbox Web site ( and by clicking the co-op navigation tab. To submit a claim by standard mail or fax transmission, download a form from the Web site or contact FLM Dealer Advertising Co-op Program Headquarters. Note: Each invoice will be given a unique Ad ID. For example, if the same ad runs in two publications (or in two different advertising forms), each medium is considered an individual Ad ID. Multiple Ad IDs can be submitted on the same claim form. Step 2: Step 3: Step 4: Review and agree to the rules for co-op reimbursement. Regardless of the submission mode, you will be asked to agree to the rules for co-op reimbursement. Assemble all required documentation. Every claim must be accompanied by the correct supporting documentation for the particular advertising form (see page 1.5). A pre-approval notice is required for Internet advertising and for sponsorships/alliances/events. Submit the completed claim form and documentation. Your claim and documentation must be postmarked or received electronically by FLM Dealer Advertising Co-op Program Headquarters no later than two months after the last day of the month in which the advertisement was aired or published, the alliance/sponsorship/event was held or the outdoor/transit advertising was installed. Claims received after the deadline will not be eligible for payment. See the chart on page 1.3. Note: You will receive notification via or telephone if additional documentation is needed to process your claim. For the claim to be eligible for payment, all requested additional documentation must be postmarked or received electronically no later than 30 days after the date of the notification. Send your claims and documentation to: FLM Dealer Advertising Co-op Program Headquarters 2300 Locust Street St. Louis, MO Phone: Fax: flmcoop@nsi1919.com All claims for reimbursement are subject to verification by FLM or its auditing service, whose determination of the value or acceptability of any claim shall be final. FLM is not responsible for legal clearance of promotional program or advertising content. Consultation does not constitute legal approval. FMC reserves the right to revoke or amend this program at any time without prior written notice. In the eventof a Buy/Sell the dealer's co-op funds are negotiated between the buying and selling dealers. For Terminations or Resignations, terms and conditions related to co-op funds are under review and forthcoming. 4 Ford and Lincoln Mercury Dealer Advertising Co-op Program FLM COOP April 2, 2008

5 Documentation Required to Process Claims for Co-op Funds In addition to a claim form or an electronic claim submission confirmation page, you must submit documentation specific to the advertising form, as indicated below. Newspapers and Magazines: An original electronic or hardcopy tearsheet (not a photo copy) of the newspaper or magazine advertisement bearing the publication name and ad date, plus an original publisher s invoice reflecting the ad size, cost and publication dates. Direct Mail and Circulars: Except for Consumer Trac pieces, a sample of the original mail piece, along with an original printer s invoice reflecting quantity and cost as well as postal receipts reflecting the quantity mailed and mailing cost. Invoices must itemize all related charges. For Consumer Trac pieces, the Dealer Communications section of the Parts Statement is required. Outdoor and Transit (including reader boards and floorboards): A photograph of the installed billboard and/or a shot of each screen for the reader board/floorboard, plus an original invoice reflecting the location, number of billboards, posting dates and costs. Alliances/Sponsorships/Events: Copies of the signed pre-approval form,* the vendor contract or agreement, and the invoice reflecting the dates, payment terms and costs; and a shot of the alliance, sponsorship or event. *Advance pre-approval is required. Please submit the pre-approval form (available on the co-op Web site) to the FLM Dealer Advertising Consulting Center for signature 30 days prior to the date of the alliance/sponsorship/event and include the signed form with your claim submission. Digital Banners and Display Ads: An Internet Notification Form* listing the URL, a printout of the Internet creative and an original invoice. *An Internet Notification Form (available on the co-op Web site) must be submitted to the FLM Dealer Advertising Consulting Center at least 24 hours prior to the run date along with your creative concepts. Search Engine Marketing: An invoice from the search engine company reflecting the costs incurred, a list of the key words purchased on the search engine and a screen shot of the search engine site showing a successful search using one of the key words. Radio and Television: A copy of the script (radio) or storyboard (television) imprinted with the ANA/RAB (radio), ANA/TVB (television) or ANA/CAB (cable) signed by a station official and notarized, plus an original station invoice reflecting dates, times, cost of each spot, agency name and any earned discounts or agency commission. Determining Co-op Reimbursement The FLM Dealer Advertising Consulting Center will verify what qualifies as eligible advertising expenditures. The following guidelines will be strictly adhered to in determining and processing all claims for reimbursement: Billing. Co-op reimbursement is based on net billing, exclusive of agency fees and volume discounts. All billing must call out both gross and net prices and reflect cash payments to the media. Earned Funds. Reimbursement cannot exceed earned funds at any time. Partial reimbursement will be made if the full amount due exceeds a dealer s co-op funds account balance. Fund Maximization. Inasmuch as there are deadlines for using and claiming co-op funds, the oldest available co-op funds are always used to reimburse claims in order to maximize the co-op funds available. 5

6 Receiving Reimbursement FLM Dealer Advertising Co-op Program Headquarters processes claims within five business days of receipt of all required documentation. FMC will reimburse you for your approved claims via a credit to your Dealer Payment Statement on or about the 22 nd of the month. To increase the likelihood of a credit posting on the same month as the claim submission, claims should be sent to program headquarters by the 4 th of the month. Tips for Speeding Co-op Reimbursement Here are some things you can do to help speed processing of your claims: Read and understand all the program rules. A properly executed marketing program is your best guarantee of timely reimbursement. Submit all your advertising activities to the FLM Dealer Advertising Consulting Center for review. (See pages ) Call on the service if you have questions about the application of a guideline to an activity. Work closely with your agency partners and media reps to ensure they understand the program, the required documentation and your needs. Ask them to include all documentation when they send their invoices, so you can quickly submit your reimbursement claim. Remember: Your claim must be postmarked or received electronically by FLM Dealer Advertising Co-op Program Headquarters no later than two months after the last day of the month in which the advertisement was aired or published, the alliance/sponsorship/event was held or the outdoor/transit advertising was installed. Refer to the documentation requirements on page 1.5 as necessary to ensure that your requests will not be delayed for lack of the required documentation. Appealing for a Denied Claim In the event that a claim is denied for reimbursement, the Dealer Principal or General Manager (only) may choose to take the following actions to appeal the denial. Instructions for Appealing a Denied Claim Step 1: Step 2: Step 3: Complete an appeal form. Download the appeal form from the Ford or Lincoln Mercury Toolbox Web site ( or by clicking the co-op navigation tab. Assemble all required documentation. The declined letter to the Dealer Principal or the General Manager from FLM Dealer Advertising Co-op Program Headquarters must accompany every appeal form. Submit the completed appeal form and documentation. Your appeal form and documentation must be postmarked or faxed no later than 30 days after you receive a declined notification letter. Appeals received after 30 days will not be eligible for consideration. You will receive notification of the decision. Please allow up to 30 days for review of your appeal. If your appeal is declined, no further recourse is provided. If your appeal is approved, your claim will be reversed and processed according to the exception granted. 6 Ford and Lincoln Mercury Dealer Advertising Co-op Program FLM COOP April 2, 2008

7 Send appeals and documentation to: FLM Dealer Advertising Co-op Program Headquarters 2300 Locust Street St. Louis, MO Phone: Fax: Co-op Advertising Consulting Service FLM appreciates your commitment to maintaining consistent Ford and Lincoln Mercury brand images in your local advertising and is dedicated to helping to ensure that your advertising qualifies for partial reimbursement under this program. We therefore strongly encourage you to take advantage of the no-cost advertising review services of the FLM Dealer Advertising Consulting Center. By consistently using the FLM Dealer Advertising Consulting Center, you will be assured that your local advertising is consistent with the FLM Dealer Advertising Co-op Guidelines. By sending all your advertising content for review by the center before publication or airing, you ll have confidence that it will be compliant with the FLM Dealer Advertising Co-op Guidelines and qualify for reimbursement under this program. Here is how the pre-approval process works: Step 1: Step 2: Step 3: Submit your in-progress advertisements and marketing materials by , fax or regular/ overnight mail. For Internet advertising, an Internet Notification Form must be submitted at least 24 hours prior to the run date. For alliances/sponsorships/events, a pre-approval form must be submitted 30 days prior to the date of the alliance/sponsorship/event. Both forms are available on the Toolbox sites. Ford and Lincoln Mercury Dealer Advertising Consulting Center 2300 Locust Street St. Louis, MO Support Line: Fax: flmcoop@nsi1919.com Business Hours: Monday-Friday, 8:30 a.m.-5:30 p.m. CT The center s consultants will review your ad submission against the FLM Dealer Advertising Co-op Guidelines within 24 hours of receipt (excluding weekends and holidays). If your in-progress ad or activity conforms to the guidelines in all respects, you will receive an with a link to a letter informing you that the advertisement or activity has been approved (see Example A on page 1.8). Print this letter and include it with your reimbursement claim. If your advertising does not conform, you will receive a letter detailing the infractions and their locations in the ad (see Example B on page 1.9) and an annotated ad (see Example C on page 1.9) referencing the relevant guidelines by number. Together, the letter and annotated ad will provide the information you need to bring your advertising into conformance with the FLM Dealer Advertising Co-op Guidelines. Step 4: If your submission is not approved, you may resubmit the item as many times as is needed for final approval. Pre-approval does not signify legal approval. Dealers are responsible for ensuring that their local advertising conforms to all applicable local, state and federal laws. 7

8 Example A Your Ad Is Compliant Letter Ford and Lincoln Mercury Dealer Advertising Consulting Center 2300 Locust Street St. Louis, MO June 1, 2008 ABC Ford Lincoln Mercury Main Street Anytown, Anystate Dear Advertising Representative: Congratulations! This letter serves as approval of the Newspaper materials submitted on May 31. We appreciate your commitment to maintaining consistent Ford and Lincoln Mercury images throughout your local advertising. If you have any questions concerning this communication, please feel free to contact us Monday-Friday from 8:30 a.m.-5:30 p.m. CT at: Ford and Lincoln Mercury Dealer Advertising Consulting Center Phone: Fax: flmcoop@nsi1919.com Please continue to take advantage of our free advertising review services to ensure that your dealership s local advertising complies with the Ford and Lincoln Mercury Dealer Advertising Co-op Guidelines and is eligible for co-op reimbursement. Sincerely, Name Title Approved Ad 8 Ford and Lincoln Mercury Dealer Advertising Co-op Program FLM COOP April 2, 2008

9 Example B Your Ad Is Not Compliant Letter Ford and Lincoln Mercury Dealer Advertising Consulting Center 2300 Locust Street St. Louis, MO June 1, 2008 ABC Ford Lincoln Mercury Main Street Anytown, Anystate Dear Advertising Representative: Your submission on 6/1/2008 does not comply with the Ford and Lincoln Mercury Dealer Advertising Co-op Guidelines and therefore was not approved based on the following infraction(s): 2cc XXXXXXX 2j XXXXXXX 2x XXXXXXX We encourage you to revisit the submitted advertising and to make the required changes to bring it into compliance with the above-stated guideline(s). Then, feel free to resubmit the advertising for additional review. 2x If you have any questions concerning this communication, please contact us Monday-Friday from 8:30 a.m.-5:30 p.m. CT at: Please continue to take advantage of our free advertising review services to ensure that your dealership s local advertising complies with the Ford and Lincoln Mercury Dealer Advertising Co-op Guidelines and is eligible for co-op reimbursement. 2cc Sincerely, Ford and Lincoln Mercury Dealer Advertising Consulting Center Phone: Fax: flmcoop@nsi1919.com 2j Name Title Example C Annotated Ad 9

10 Co-op Web Site As discussed briefly on page 1.1, a co-op program Web site will be launched to help dealers manage their co-op funds and access all co-op program information and resources. Individuals with WSLx access to the Ford and Lincoln Mercury Toolbox sites will have access to co-op accruals, balances and claim activity via a co-op navigation tab on each Toolbox site. Toolbox users with restricted access to the two Toolbox sites (i.e., WWW access) such as agency partners will not be able to access co-op account information. However, these users will have access to the co-op advertising guidelines, program overview and other support materials via the co-op program navigation tab on the two Toolbox home pages. These users also will be able to submit advertising to the FLM Dealer Advertising Consulting Center for pre-approval and download co-op claim forms. Please watch the home pages of the Ford Toolbox and Lincoln Mercury Toolbox sites for updates on the launch of the co-op Web site. Accessing Approved Logos, Ad Templates and Photography All dealers and their advertising agencies may retrieve approved logos, ad templates and photography at Ford and Lincoln Mercury s Online Marketing Centers: FD Toolbox and LM Toolbox. If you have questions about accessing the art, please call the FD Toolbox Support Center ( ) or the LM Toolbox Support Center ( ). Accessing the FD Toolbox and LM Toolbox Sites Option 1 (Dealership Personnel Only): Access the site through the FMC dealer connection ( Enter your WSLx username and password. (Contact your dealership s WSLx administrator for a username and password.) Go to the Marketing and Advertising section under the Sales tab. Select FD Toolbox or LM Toolbox. Option 2: Access the site directly at or Dealership personnel: Enter your WSLx username and password. (Contact your dealership s WSLx administrator for a username and password.) Agencies: Enter at and 10 Ford and Lincoln Mercury Dealer Advertising Co-op Program FLM COOP April 2, 2008

11 Select Creative Library on the FD Toolbox or the LM Toolbox home page to view these selections: FD Toolbox Line Art Logos Photography Newspaper Ads Broadcast Media Custom POS Non-Custom POS Outdoor Brochures Vehicle Information LM Toolbox Line Art Logos Photography Newspaper Ad Builder National Print Ads Custom POS Non-Custom POS Outdoor Broadcast Media Catalogs After submitting your selections, you will be able to view a variety of art, logos and ad samples. Select the art that you are interested in and download it to your Mac or PC. You can also download TV and radio scripts for dealer tagging. Please contact your local JWT representative or your Y&R Team Detroit representative. 11