Cooperative Advertising Agreements

Cooperative Advertising Agreements (X12 290) is a transaction set used to establish and communicate the terms of cooperative advertising programs between trading partners. Typically, manufacturers or brand owners send this document to retailers, distributors, or advertising partners to define the conditions under which cooperative advertising funds will be provided and used. The transaction set is structured around the CMA (Cooperative Market Agreement) segment, which establishes the core agreement terms, and uses the N1 Loop to identify all parties involved, such as the fund provider, the participant, and the advertising agency. Supporting segments like DOS (Definition of Share) clarify how funds or costs are allocated among participants.

For example, a national apparel manufacturer might send a Cooperative Advertising Agreements document to a regional retail chain outlining the terms of their co-op program. The CMA segment would establish the agreement parameters, the N1 Loop would identify the manufacturer as the fund provider and the retail chain as the participant, along with their contact information via PER segments. The optional MI Loop could specify media channels eligible for reimbursement—such as print advertisements in local newspapers—with PAI (Print Advertisement Information) segments detailing placement requirements. Summary sections using QTY and AMT segments would specify the total cooperative funds available and any settlement conditions, ensuring both parties have a clear, machine-readable record of their advertising partnership terms.