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The Pacific Media Exchange system, exchanging goods and services instead of money, has been a way of doing business since ancient times and is still commonly practiced today. Many of the top global businesses in the world utilize media exchange in their business dealings. In fact, 65% of corporations listed on the New York Stock Exchange and nearly one-third of small businesses use media exchange.
In today’s media exchange environment, Pacific Media Exchange is called corporate trade. Corporate trade firms like Active International and Carat Trade offer corporate trade as a finance option. Companies are increasingly using it to fund business services and products from hotel, clubs, electronics and travel to office supplies. Media Exchange is the business expense most widely financed in corporate trade.
Reciprocal trade, media exchange, trade-out, barter-trade, swap, exchange are all synonymous with media exchange, the exchange of goods and services. While a large portion of media exchange utilizes "Buiness to Business/B2B" Retail trade exchanges, significant dollars are exchanged for advertising ... radio & tv spots, magazine and newspaper ads, billboards and more recently on-line internet web-page advertising.
Over the years, the media exchange of goods and services for advertising has been an increasingly significant part of the advertising industry with only a handfull of successful players in this nitch. The Media Exchange Baron, The Sultan of Swap and the Tarzan of Trade were cartoon-like characters who dominated media exchange advertising with the likes of:
To name the important players.These were the titans of trade from the '60s until today.
How Does Pacific Media Exchange 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, media exchange, corporate trade firms and the client reach an agreement to exchange their services or surplus product inventory for ad placements. Upon approval by all parties the deal is made. Inversely, media agencies looking to rid themselves of unsold media inventory can also exchange those placements in exchange for goods and services.
That service offering or unwanted inventory is assessed and given a value, for which the “seller” receives a trade credit. Trade credits are typically valued at a dollar per credit and are traded for payment on media placements and ads equal to the cost to purchase the ad in cash. Most media segments accept trade credits as a supplemental or total payment on ad space. The corporate trade firms can afford to provide this credit because in most cases, they will then flip that inventory for a profit.
Pacific Media Exchange Benefits and Examples:
Adding media barter as a funding option can offer a couple of financial benefits. It allows you to build in more media placements to your current ad budget. This can be quite advantageous if leveraged strategically with your current budget situation.
For example, if your budget has decreased, supplementing your budget with trade credits or barters can allow you to maintain or increase your current advertising frequency level at previous year’s ad spend. As a brand, liquidating unused product inventory can offset any possible loss from it not being sold.
Who’s Using Pacific Media Exchange?
with an average daily rate of $160 would generate $58,400 in advertising.
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