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.
1) Budget restraints:
Marketing budgets are often the first cash cost to be impacted at the best of times.
During 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-
2) Excess or unsold inventory
An all too familiar symptom of the current economic climate is that clients are sitting on unsold inventory.
This 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.
3) Surplus Media Capacity
This is very much part of the “why do media owners do it?” question.
- 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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