What is barter

Barter is nothing more than the classic bartering.

In practice, it involves the exchange of goods and services without the use of money.

As for advertising, it is the payment that is established in whole or in part for the purchase of an advertising space on media outlets.

The goal of barter is to transmit the advertising message from a television broadcaster either for free or at a reduced cost.

Therefore, it consists of a series of activities that provide television or cinema with already financed and produced programs in exchange for broadcasting them at minimal expense.

Advantages of Barter

Barter is a technique widely exploited in the advertising field because it brings several advantages:

• It allows companies to save on the purchase of advertising spaces;
• It finances campaigns using goods and services produced by the company itself;
• Allows television broadcasters to have access to already funded entertainment programs;
• Television broadcasters can add the programs to their own schedule.

The programs are structured like a simple and regular TV broadcast, but they are perceived by the consumer differently from the classic TV commercial.

In fact, they manage to capture attention more effectively compared to the classic spot.

Moreover, it allows the viewer to perceive greater awareness of the brand.

How advertising barter works

When a company decides to use barter, it usually provides goods from its own production to another company.

This is called a barter company or advertisement store.

The barter company, acts as an intermediary between the company and the publisher.

Therefore, it purchases advertising spaces from media owners and resells them to the company in exchange for the agreed goods or services.

Finally, it repositions the goods on the market based on the terms, the conditions, and the prices agreed with the manufacturing company during negotiations.