Corporate trade. Corporate trade, sometimes called barter, creates measurable, incremental economic value. It’s generally used by Fortune 1000 companies who employed their assets to reduce the purchasing costs of media and other services that would have been purchased for 100% cash. Based on a company's needs, it can address short-term challenges or be integrated into a company’s supply chain as a longer term solution. No fees or commissions are charged.
Benchmark price. The price that a client pays to an agency or vendor to acquire goods and services on a 100% cash basis.
Cash/trade ratio. The percentages of cash and trade credits used to pay invoices by a client in a corporate trade arrangement.
Full service agency. An advertising agency that handles all aspects of the advertising process, including creative, strategy, planning, design, production, traffic and placement. “Full service” generally suggests that the agency also handles other aspects of marketing communication, such as public relations, sales promotion and direct marketing.
Media buying service. An advertising agency that specializes in placement and sometimes planning.
Corporate trade company. A corporate trade company offers a wide range of services by creating trading relationships with service providers. These relationships are based on investments and trades that create a cost advantage. They are not based on negotiating for better rates but rather, using trade to lower the cost of services.
Secondary market. Buyers and resellers of unused inventory. These include discount retailers and e-tailers as well as other channels such as employee sales, global distribution channels and many more.
Spread. The difference between the client's established benchmark price and the percentage of cash the client will need to spend to fund a purchase. That difference is typically where trade credits are applied.
Trade credit. Non-cash payment from a corporate trade company to its client for corporate assets. Clients use trade credits in combination with cash to obtain goods and services at benchmark prices. One trade credit is equal in value to one dollar.