This exploratory qualitative research investigates branding innovation for online distance education in Australian regional universities. The purpose is to apply co-creation to specify the type of innovation and branding approach for online distance education. The research purpose was achieved by studying two regional universities in Australia. The data was collected through in-depth interviews. Convenient sampling was employed to finalize the total sample of 36 managers, administration officials, technical staff and academics in both universities. Data analysis was conducted by thematic analysis. Research findings emphasized the importance of continuous innovation based on co-creation and cooperative branding for online distance education. Findings of this qualitative study were constructed on direct interviews conducted with internal stakeholders indicating three emerging themes: need for flexible education, growing market opportunities and the role of technological support. The paper argues that continuous innovation with cooperative branding will enhance academic and competitive performance of regional universities. Branding could be strategized by point-of-parity and cooperation replacing point-of-difference approach in the education industry. Research outcomes cover a gap in literature on branding online distance education for innovation based on co-creation. This study could be replicated in other countries including Turkey to investigate factors affecting innovation for branding distance education.