Increasing revenues in a public company environment
In a public company environment reporting a steady flow of revenue increases can be a significant portion of the sales strategy being considered.
In these situations the use of a barter based sales strategy has several significant advantages while operating that sales strategy through Barter Media Brokers (BMB) can maximize those advantages.
In a structured media based barter deal revenues are booked at the contract value of the campaign while COGS figures are booked at the cash cost of fulfilling on the media plan utilizing the highly
discounted acquisition costs available through the BMB model.
For example, a current contract opportunity with a major hotel group calls for a $400,000 TV campaign over a 6 month ad flight. This would be booked as $400,000 in sales. The fulfillment cost of the
campaign is contracted at $180,000 resulting in an initial gross margin of 55%. This however is only half of the equation. A result of the corporate barter model is that the $400,000 in sales is paid by
the hotel group, not in cash, but in room nights. This provides for an additional revenue through the conversion of the room nights into cash conservatively at $200,000. This provides for a total of
$600,000 of revenues for a total COGS of $180,000 with a net positive cash flow.
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Does your publicly traded company need to implement an advertising campaign without a massive burden on cash flow
Media Funding Group offers opportunities to utilize your restricted company stock to pay a major portion of your advertising campaign expenditures and do so while benefiting from the inherent rise in
stock price throughout the life of the campaign.
A six to 12 month media plan is outlined based on meeting the company advertising and marketing objectives.
30% to 50% of the hard cash costs are paid over time tied to the execution of individual insertion orders that make up the overall media plan. They are not paid up-front.
The company benefits from the inherent rise in stock price throughout the life of the campaign yet is protected from any downside risk.
Advertisers benefit from access to top tier media placement inventories identified to fuel first class branding or cost effective direct response campaigns to build market share and increase sales.
Powered by a full service direct response agency Media Funding Group provides you with the advertising expertise needed and a complete suite of media planning tools, response analytics and
campaign development services to create an industry leading advertising campaign.
Increasing your balance sheet asset value.
For those companies wishing to add asset value to their balance sheet the integrated companies of NWBB Inc. offer several program structures to raise asset value, increase sales figures and strengthen
the book value of your financial position.
Through our corporate trade entity, Barter Media Brokers, we offer the ability to exchange your excess capacity or underutilized inventory for expense reduction and increases in advertising expenditures
without an impact on your cash flow.
Increase your sales figures while lowering your expenses.
Liquidate an under-performing or below book value asset at full value
Boost profit margins and ROI while expanding brand awareness.
Through our funding entity, Media Funding Group, we offer the ability to provide you with the funding required to increase advertising placements and stimulate sales figures without incurring
traditional debt based liabilities.
Increase sales at a cost structure based on revenues generated from new sales.
Utilize our non debt based funding commitment to expand distribution and strategic partnerships.
Minority interest equity based financing is also available to increase asset positions and strengthen balance sheets
Increasing sales and brand loyalty utilizing a co-op program
The following is an outline on how your business can benefit from co-op advertising programs implemented through a Discount Ad Brokers program scenario.
Co-Op advertising programs are frequently made available through manufacturers to create an incentive for local retailers who advertise the manufactures brand in local markets.
Typically the co-op campaign will pay 30% to 60% of the cost of cable TV, radio, internet or print advertising that meets the guidelines established.
The campaign is implemented to increase sales and provide a benefit to both entities participating in the campaign. The operator of the Co-op campaign provides a significant cost savings to the participant
while also benefiting from expanded brand awareness.
A Discount Ad Brokers client has an added incentive to provide a co-op program to their local retailers since, in effect, they can use this to generate a secondary cash flow while also benefiting from the
added exposure and awareness levels created by the advertising campaign.
Let's use an example of a product manufacturer whose co-op program offers to pay 40% of the cost of advertising campaigns implemented through the program by retailers.
The retailer chooses what media they wish to place from the broad selection of opportunities made available through the program. In this example they choose $10,000 in internet banner advertising
targeted into their coverage area.
The retailer then pays the manufacturer 60% of this cost or $6000 with the other 40% being provided by the manufacturer as added value for distributing their product.
Based on the Discount Ad Brokers program the manufacturer pays the 50% cost structure on the $10,000 ad campaign totaling $5000. Providing a net cash flow of $1000 to the manufacturer.
The retailer now has the benefit of a $10,000 advertising program to increase sales and has received $4000 in valuable support from the manufacturer.
The manufacturer just got paid $1000 to provide the support to their retailer and benefits from the increased sales and brand loyalty of the retailer.
The benefits increase if the manufacturer coordinates this program on a national level.
Increased sales, brand recognition and retailer loyalty plus positive cash flow
Co-op Advertising Works!