ABSTRACTThis national study explores the use of co-op advertising in small outlying city/towns. It was found that all city/towns showed some degree of positive change in the economic factors tested, and agreed on the beneficial impact cooperative advertising has had in the area. BIG spenders did commit more money to several media types. Main effects of distance from the airport were identified for years involved, and perceived new business success, while simple effects were detected for the increase of new businesses, and local market concentration. Overall, benefits of cooperative advertising were universal despite size or location. Cooperative advertising can provide an economical alternative to traditional advertising strategies for small towns throughout the United States.