How Media Barter Work
Corporate trade firms work alongside media buying agencies to negotiate placements from a media plan with vendors that can be purchased without a total cash commitment. This can come in the form of payment supplemented with credit or it can be products or service provided in exchange for discounted media.
Together media buyers, corporate trade firms and the client reach an agreement to exchange their services or surplus product inventory for ad placements. It can be in form of various media platforms like Newspapers, Television advertisements, Outdoor Hoardings Or Bus Shelters promotion or it can be promotion on digital media platforms like Zee5, Spotify, Hotstar etc. Upon approval by all parties the deal is made.
That service offering or inventory is assessed and given a value, for which the “seller” receives a credit. The barter trade agreement is signed on stamp paper between Seller and the Barter Company which mentions details of each and every aspect of deal right from stock or services offered by Seller to the media details offered by Barter Company along with any miscellaneous charges or conditions. Post signing the agreement either of party sells media or inventory to each other after raising valid deal letters. After supplying inventory to barter company warehousing of same will be taken by barter company till the time it is sold.