What is it called when a retailer and vendor share the expense of advertising?

The correct answer is the term "Cooperative Advertising." This concept refers specifically to a marketing strategy where a retailer partners with a vendor to share the costs of advertising and promotion. In cooperative advertising, both parties benefit: the retailer gains promotional support to attract customers, while the vendor receives increased exposure for their products. This collaboration can lead to more effective advertising campaigns, as the resources are pooled to create a stronger impact.

Within cooperative advertising agreements, the vendor typically contributes funds or marketing materials that the retailer uses to promote the vendor's products, making it a cost-effective way for both to enhance their marketing efforts. This model encourages a partnership approach that can strengthen relationships between retailers and vendors, aligning their interests toward mutual success in sales and brand visibility.