What’s in it for the Media Owners
(the magazines, cable networks,
radio/TV stations, internet, etc?)
As businesses go, the media industry fits perfectly with corporate trade – always has. They have just enough surplus inventory/capacity of their own and they need to sell it to the right partner – one who will make sure it won’t compete with or undermine their traditional cash sales.
From a financial standpoint, the marginal cost to run an unsold page in a magazine or a TV spot is quite low. All that matters is that their rate structure is protected. Any recovery is gravy since it becomes worthless if it isn’t sold!
“Nondisclosure” allows a barter firm to sell the spare or unsold TV spot, radio spot or magazine page without disclosing the internal, lower cost to the barter firm via trade. While the rate stays the same, the media seller is willing to accept trade, maybe 65% cash and 35% gift cards or hotel properties, in order to win the business and move spare capacity. For that kind of benefit, the media providers are willing to make sure the quality of the buy remains the same.
Media owners sell time and Sherwood buys it through combinations of cash and trade credits …as long as it equals the client’s normal rate. Alternate forms of payment, like bill payers, cash cross purchases, in-kind payments or reciprocal trades, are used to solve their media inventory problems or to facilitate a need for media barter.