Corporate Asset Barter

Clients receive media advertising in exchange for excess, under-performing, or perishable assets.

Unlike Single Source and Multi-Source Barter, the clients’ product cannot be bartered to media outlets (i.e. radio and television stations, cable systems, networks, magazine publishers, Internet companies, etc.).

BarterAds-Provided Products are substituted. These can include general merchandise, hotels/resorts, advertising specialty items, concert/sporting events, and restaurant food/beverage to mention a few.

Here’s an example of Corporate Asset Barter.

• ABC Shirt Company finds itself with an excess inventory of 10,000 shirts from last season.
• The retail value of the shirts is $500,000. The wholesale value is $200,000.
• ABC Shirt Company’s agency has developed a media plan to advertise the new line of shirts. The budget is $1,000,000.
• BarterAds and ABC Shirt Company agree:
  • BarterAds will purchase the excess shirts for $200,000 in planned media advertising.
  • BarterAds will deduct the $200,000 from the $1,000,000 budget.
  • ABC Shirt Company will spend the balance, $800,000, in cash.
  • The shirts will be marketed through channels acceptable to ABC Shirt Company.
• RESULT:
  • ABC Shirt Company receives Receives $1,000,000 in advertising,
  • SAVES $200,000 cash advertising expense, AND
  • ELIMINATES 10,000 excess shirts