What is Media Barter?
The media barter system is exchanging media against goods and services instead of money. It allows corporates and advertisers to trade with having to pay 100% in cash for what they want to buy. Many of the top global businesses utilize media barter for its benefits.
How does media barter work?
The barter company provides the discounted media to the advertiser as per their media campaign. The barter company in lieu takes goods and services from advertiser instead of cash. The barer company then distributes the advertiser’s goods and services to media houses and corporates within their barter network. Media owners meanwhile exchange their inventory for goods and services that they need for their day-to-day business operations and promotions.
Here is an example: A barter agency might agree to buy an advertiser's surplus product, such as an airline’s unsold flight tickets at full price, which it would give to employees for business travel. In return, the airline agrees to invest in a certain amount of media from the agency – often media that the agency acquired at a discount.
So here, the airline needs to sell those seats, so it opts for the barter deal with this barter agency and gets discounted media in exchange for a useless product.
How barter adds value to your business?
Media barter can add value beyond delivering cost efficiencies on media spend.
Guarantee of 100% Sales or Footfall
The media barter process can help remove the risk of advertiser with ad channels they hadn’t used previously for how much sales/footfall they would be getting. The barter agency takes inventory from the advertiser against 100% value of media they deliver.
Save Cash and pay through your own goods & services
Cash saved is cash earned!! Barter helps you save cash by enabling you pay for your media campaign with your own goods & services. The barter company picks up inventory from advertiser on MRP against media on discounted rate.
Sell extra inventory on MRP
Instead of giving up on unwanted products and writing them off as a loss, advertisers promote them through barter.Rather than heavily discounting, running last minute deals or writing off surplus stock, advertisers keep its value by selling it through barter aganecy network at the normal selling price.
Boost media purchasing power
Advertisers transfer their margins on their goods and services to the media they are buying, it costs them less to buy media than if they were paying for it all in cash. In effect, this means that they are likely to be able to spend more overall on advertising.