Cooperative advertising is one kind of channel coordination mechanism in marketing domain. Manufacturer and retailer with a supply chain must share common responsibility on national and local advertising for sales promotion activities. In the literature of cooperative advertising, the focus is almost on a relationship in which the manufacturer is the leader and the retailer is the follower. Several reviews on market structure show that a shift of retailing power from manufacturer to retailers has occurred recently. Based on this new market shift we intend to explore the role of vertical cooperative efficiency with respect to transactions between a manufacturer and a retailer through national advertising, local advertising expenditures, and sharing rules of advertising expenses. In a game-theoretic setting, we show that different gaming structures in a supply chain might influence the manufacturer's cooperative advertising subsidization proportion policy. We borrow the concept from Stackelberg and Nash equilibrium to analyze several cooperative advertising games. After solving the non-cooperative equilibriums, we show that the strategies on both sides will depend not only on the gaming structure, but also on the marginal profit. Economic insight along with a lot of interesting propositions are subsequently provided to help decision makers develop more effective strategies. Our effort calls for the game theory to be an essential tool in the analysis of cooperative advertising in a supply chain where multiple agents pursue separate and conflicting objectives.