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Ji Kim
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What does this mean for the ad circular, which retailers have been able to rely on for years to produce a steady revenue stream of co-op dollars from brands in exchange for prime product placements? Most estimates put retailers potential for co-op dollars between 2 percent and 5 percent of total revenue. To put this into perspective, a retailer with annual revenues of $50 million could make an additional $1 million to $2.5 million from co-op advertising programs alone. As many consumers stop reading newspapers, the profitability for brands in advertising in these circulars has naturally diminished.
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