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Market Insight - Media Barter Insight

Market Summary - Media Barter Insight

Media Update:

Media Barter Insight with Astus

Date:

QTR 3 2017

Sponsor:

Astus
Astus Media Barter logo

At a Glance

What is the key benefit of Media Barter?



Media Barter gives you a larger media budget!



The essence of Media Barter is that it makes media budgets bigger because, it enables clients to pay some of the cost in the product you make or the service you supply.



Media Barter companies have trading relationships with media owners that mean the media owners will accept a different form of payment, FROM the media barter company, for YOUR media.



The payment typically takes the form of “trade credits”. The media owners use their credits to pay for things they need from the media barter company, such as conferencing, travel, client entertainment, etc.



Because they accept this form of payment the barter company is able to create a margin on the media. This margin is shared with clients by enabling them to part pay for the media using a proportion their product or service, instead of 100% cash.



For example: Client X was going to pay £100,000 for a media campaign to promote their new product. Using a media barter company Client X was able to pay £80,000 in cash and £20,000 in the old version of the product. This represents a large cash saving to Client X. This saving can then be strategically reinvested in to further media or put directly back onto the bottom line.



The media barter company remarkets the product as per the client’s instructions, which will be confirmed via contractual agreement, to give piece of mind and a legal back up.



Astus have worked with a vast array of product types: from cars to airlines, from hotel rooms to insurance policies, from spectacle frames to frozen chicken, and everything in between


Case Study:

www.getmemedia.com/ideas/astus-uk-limited-advertising-ideas.html

Email Contact:

cgomez@astusuk.co.uk

Website:

http://www.astusuk.co.uk
Case Study
Email Contact
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Hot Topics

In the current economic climate Marketing budgets are either in danger of being cut or have already been significantly impacted. Media Barter can play a very important role in keeping your marketing on track.

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1) Budget restraints:



Marketing budgets are often the first cash cost to be impacted at the best of times.  budget restraints of corporate barterDuring times of austerity they are in even more danger of being diluted or even cut all together.



  • Media Barter offers clients the means to use their product or service to part pay for the media they need to buy.
  • This will significantly benefit the bottom line. The cash saving can either go directly back onto the bottom line or can provide further media spend.


  • The product can be strategically chosen by the client (eg, it can be last year’s model or the most current model)


“It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment”                                               



– Harvard Business School Report, 2008-

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2) Excess or unsold inventory



An all too familiar symptom of the current economic climate is that clients are sitting on unsold inventory. excess or unsold inventoryThis sits on the books as an unsold asset... rapidly decreasing in value and saleability.



  • Media Barter can put the value back in your inventory as the barter company will effectively buy the product from you and give you circa 3 x the realisable cash value of the product in media credit
  • The credit is used to part fund media campaigns in your chosen media


For example, a hotel will have unsold room capacity throughout the year.  Through barter they can use those rooms to pay for their media campaigns. Result: they save on their media campaigns and fill empty rooms.



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3) Surplus Media Capacity



This is very much part of the “why do media owners do it?” question.surpluss media capacity



  • Media barter companies will make investments into media owners whereby the media owner can pay for services using their media rather than cash.
  • At a time when they too have surplus, this is a cost effective way of working.
  • Working with barter companies also means they get incremental and new business


For example, our hotel company want to run a summer campaign in a National Newspaper, but only have enough budget for 1 month. The media owner has worked with a barter company to organise a sales conference using their media to pay for it. They will then accept a barter deal on the media and the hotel can run their full summer activity.

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Who Are Astus?



  • Astus are the UK’s market leading Media Barter Companywho are astus
  • We have over 100 Corporate clients
  • We deal with virtually all the media owners in the UK
  • Astus traded over £150 million of media in 2012
  • We have offices in Hong Kong, Singapore, India and Australia













How Does Media Barter Work?

Media Barter companies make forward investments into companies such as airlines and hotel groups and receive a multiple of their service in return. For example a £1m investment into a hotel chain could return £1.5m in hotel room nights.

These assets are then traded with media owners for media space and the margin created allows our clients to part pay in their own product or service.



how does corporate barter work

What happens to the Product?

A key question. Media barter companies will “remarket” the product used in the deal. barter productAll media barter companies have various trusted networks they can use to remarket the product efficiently and always in conjunction with the client’s requirements – this should be agreed via contractual agreement.

The cash that the media barter company gets for the product goes toward the overall profit of the barter deal.

Some possible remarketing routes:

  1. New sales routes. Astus have found new routes for several clients that have lead to those routes becoming primary sales routes.
  2. New markets. Astus have helped clients trial their product at a massively reduced risk in new markets
  3. Closed buying networks. Astus have the Friends and Family Club, which is a closed network of a few thousand people who are friends and family of the company. This ensures that destination of the product or service is controlled.

What are the Features and Benefits of Media Barter

Media barter is no longer a fringe media solution; it is a tried, tested and reliable way to fund media campaigns.

Media barter companies have experience in all vertical sectors and will create a bespoke solution for your company, whether you have unsold short dated product, luxury goods or insurance policies, and everything in between.

Things to remember:

•    Media barter will make your budgets bigger

•    Media barter will save cash on your bottom line

•    Media barter can help you find new routes to market for your product or service



If you are an ISBA member, you can download the white paper on Media Barter best practice that Astus helped to produce. Just follow this link:                    http://www.isba.org.uk/news/2011/11/25/isba-launches-advertiser-guide-to-barter

ISBA corporate barter



More Information into Media Barter

For more information, please contact:



Chris Gomez

cgomez@astusuk.co.uk

020 7630 4300





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