Clients’ products PLUS BarterAds-Provided Products are bartered to media outlets (i.e. radio and television stations, cable systems, networks, print publications, internet companies, etc.) in exchange for advertising that would otherwise be purchased with cash.
BarterAds-Provided Products include general merchandise, hotels/resorts, advertising specialities, concert/sporting events, and restaurant food/beverage to mention a few.
Here’s an example of Multi-Source Barter.
- ABC Airlines has a $1,000,000 cash budget planned for its radio advertising campaign.
- BarterAds agrees to accept $200,000 of the $1,000,000 budget in airline credits and to provide ABC Airlines with an equal amount of radio advertising.
- BarterAds barters $200,000 of ABC Airline credits to radio stations; however, some do not have any use for the airline credits.
- By substituting BarterAds-Provided Products for airline credits, BarterAds is still to provide ABC Airlines with $200,000 advertising.
- ABC Airlines pays the balance of its radio advertising campaign, $800,000, in cash.
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RESULT:
- ABC Airlines receives $1,000,000 in advertising AND
- SAVES $200,000 in cash advertising expense
- Because BarterAds has the ability to substitute BarterAd-provided products, ABC Airlines is assured that the correct selection of radio stations will be purchased to reach its customers.
- BarterAds retains ABC Airlines credits not bartered for radio advertising. These credits will be bartered with media companies at a future time or marketed through mutually agreed distribution channels that do not interfere with ABC Airlines’ sales strategy and relationships.
