How CMOs Leverage Media Barter To Drive Results

Smart CMOs who have survived the recession have come to understand the value of certain proven tools (e.g., analytics, media mix models) that stretch their marketing dollars and deliver true ROI. And while the economy has improved, the knowledge gained (and the strategic use of these tools to complement their agency's media plans) are here to stay. Barter is one such tool, and here are three examples of how CMOs are leveraging it to their advantage.

1.    Crossing borders with trade credits. Clients are tapping into the global scale of barter to seamlessly transfer trade credits across borders and generate cash-flow savings in new markets. In just one example, a large global marketer moved trade credits across three continents, fueling cash flow savings in three markets via a barter deal originating in just one. This happens more and more as clients realize that the benefits of media barter can be global and seamless.



2.     Increasing share of voice (SOV) without increasing budget.  In this scenario, let’s say a client is looking to increase their share of voice in TV but cannot increase their budgets.  Sure -- they can use more :15 units or apply a more efficient daypart mix -- but that’s not an apples-to-apples mix translation. Some smart CMOs are allowing their media barter shop to handle the buy and simply reinvesting the resulting savings back into their media budget. Result -- 20% more SOV -- for 0% more spend.

3.     Adding agency firepower at no incremental cost.  We are also seeing many smart marketers taking the media savings they are gaining via working with their media barter agency and using that money to invest in additional agency services -- or even additional agencies. Think about this -- the $800,000 analytics project that no one seems to be able to afford can now be funded via barter savings. Or the extra agency staffer that the client would simply love to add to the team, but cannot afford, can now be funded via savings generated by their media barter agency. 

It’s no secret that media barter has been growing at a more rapid pace than much of our industry. There are two reasons for that: it has a very clear, measurable ROI, which is something every client is looking for; and it saves money, which can allow clients to bolster their business in many other ways. So to all the CMOs out there, ask yourself: Are you using media barter to your best advantage? If not, let your media barter agency work hand in hand with your lead media agency to identify areas of the media plan where they can deliver the most value. Because every dollar counts.


1 comment about "How CMOs Leverage Media Barter To Drive Results".
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  1. Kathy Kladopoulos from the Midas exchange, August 15, 2013 at 10:38 a.m.

    the Midas exchange, a WPP trade company powered by GroupM, agrees with the sentiments in this article. Accountability, measurable ROI, and seamless integration within our client's marketing and media plans translate into success for our clients. But please let's not forget that through corporate media trade, CMO's also have the opportunity also create new distribution channels for their product, and unique marketing opportunities to increase their brand's awareness. Certainly with the advent of media management holding companies now offering trade solutions, corporate media trade now offers CFO's, Procurement as well as CMO's an accountable way to build their business. Since launching in early 2010- Midas now services over 70 high profile global clients.
    Kathy Kladopoulos, President Midas Exchange

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