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Corporate Trade
What Is Corporate Trade
Corporate Trade or Media Barter is traditionally a trade transaction involving exchanging excess or underutilised inventory, products or services of a company for advertising or media placements instead of paying for them with cash.
In a Corporate Trade arrangement, a company can trade its products or services for advertising space or other media opportunities. This allows the company to gain exposure and promote its brand while avoiding the need to spend cash on advertising.
Media owner companies, on the other hand, benefit from Corporate Trade by acquiring goods and services that they can use to reduce their operating costs. This type of transaction can be especially beneficial for media companies with unsold advertising inventory or looking for efficiencies.
We are Corporate Trade specialists; we work with the advertiser, the advertiser’s media agency and the media owners to create mutually beneficial trade transactions.
What are the benefits of Corporate Trade for an advertiser?
Using Corporate Trade (media barter) can offer several benefits to an advertiser, including:
Reduced Advertising Costs: By trading goods or services for advertising space, advertisers can significantly reduce their cash outlay for advertising.
Asset Optimisation: Corporate Trade can help advertisers optimise their excess inventory, underutilised capacity or assets, which can free up resources and reduce waste.
Enhanced Marketing Opportunities: Corporate Trade can help advertisers access a broader range of media opportunities, including sponsorships, promotions, and other non-traditional forms of advertising.
Improved ROI: By trading goods and services for advertising space, advertisers can potentially increase their return on investment (ROI) compared to traditional cash purchases.
Improved Cash Flow: Using Corporate Trade can help improve a company’s cash flow by reducing the need for cash payments for advertising, which can be especially helpful for companies with limited cash resources.
Overall, Corporate Trade can be an effective tool for advertisers to optimise their assets and reduce advertising costs while still reaching their target audience and achieving their marketing objectives. We primarily use three model solutions that can be tailored to our client’s unique requirements, which are Value Restoration, Guaranteed ROI and the Marketing & Product Solution, outlined below.
Are you stuck with slow-selling inventory that’s taking up space and losing value? Do you spend on various advertising channels like TV, digital, or outdoor ads?
Do you want to:
• Convert unsold inventory into funds for other business needs?
• Avoid devaluing this inventory on your financial records?
• Clear storage space for more profitable items?
Our Solution – The Value Restoration Model:
1. We buy your slow-moving stock in exchange for Trade Credits at its book value.
2. We resell this stock following your guidelines.
3. Collaborating with your marketing and procurement teams, we use Trade Credits to offset your advertising and business expenses.
4. You get your usual rates and quality, but part of the payment is covered by Trade Credits.
5. Essentially, you’re turning the value of unsold stock into extra budget for business costs.
Are you struggling to stand out against bigger-spending rivals, holding onto products you’d like to monetize, or facing business costs that might cut into your marketing budget?
Do you want to:
• Boost your marketing to get more attention and impact?
• Turn your existing stock into cash to free up space for new, more profitable products?
• Keep your marketing budget stable by paying for some costs with your products?
Our Solution – Boost Marketing Budgets with Product Model:
1. We’ll team up with your media agency to pinpoint parts of your marketing that can be partly funded with your products.
2. We’ll calculate how much of your marketing can be covered by your products.
3. Your media agency will continue to secure your marketing at the usual price and quality, unaffected by our involvement.
4. You pay for your marketing plan, partly in cash and partly with your products, either directly to us or through your agency.
5. We sell the products used for payment, respecting any selling conditions you set.
Are you seeking new markets or customers but not seeing clear sales results from your marketing? Do you operate in sectors like Cars, Utilities, Travel, Hotels, Telecoms, Retail, Electronics, or Luxury Goods?
Do you want to:
• Attract new customers and business?
• Increase sales of high-value products?
• Get measurable returns on your marketing investments?
Our Guaranteed ROI Model can help:
1. Collaborate with your media agency to identify and leverage media trading opportunities in your marketing strategy.
2. Enhance the outcomes of your marketing plan by generating additional new business.
3. Execute the plan to high standards and trade the resultant new business, boosting overall value for your company.
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If you’d like to work with us or find out more information about Active, get in touch with us by email or phone 020 7520 6666
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The concept that business strategies should be judged by the economic value they create is commonly accepted in the business community
