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Flush Times for Barter Spurring Industry Innovation
Economic downturn driving more businesses to use barter in new ways, especially to purchase media-related services
Seattle, WA - April 30, 2009 - Since the onset of the economic downturn, the barter industry has bucked the downward market trend. Most barter exchange companies are currently growing by between 15 and 60 percent, and many are seeing an evolution in how their services are being used. Media-related services in particular are being purchased more frequently using barter.
BizXchange, a barter exchange that operates in the United States and internationally with offices in Seattle, San Francisco and Dubai, has observed that an increasing number of clients are using barter to design and purchase advertising in almost all mediums- including print, broadcast, online and outdoor.
"I think one of the reasons more and more companies are using barter to purchase advertising is because it usually requires an intensive cash outlay; using barter allows a business to preserve its cash resources," said Bob Bagga, CEO of BizX. "It's also one of the most efficient ways to use barter, because it leverages the trade investment to gain cash paying customers."
During a recession, it is common for businesses to save cash by decreasing or eliminating marketing budgets. Having the ability to maintain or increase advertising purchases without affecting cash flow can strengthen a company's market share.
Following are examples of BizXchange clients that have purchased advertising with barter.
King's Mattress
King's Mattress is a Puget Sound area mattress retailer with five locations providing top brand name mattresses and custom sizing. In the last six months, King's Mattress has used BizX to design and place advertising in newspapers, magazines, on the radio, in direct mail and on bus boards. The company has also used BizX to design and produce in-store merchandising. The total cost of King's Mattress media purchases with barter through BizXchange in the last six months has been over $89,000.
Stevenswood Spa and Resort
Located just two minutes south of Mendocino, CA, this AAA four-diamond spa resort is surrounded on three sides by the towering redwoods and golden meadows of the 2400-acre Van Damme State Park. In the last year, Stevenswood has purchased over $70,000 in print and online advertising through BizX-in glossy magazines, newspapers, trade publications and travel websites.
Arab Media Group
Arab Media Group (AMG) is one of the largest media conglomerates in the Middle East. Its businesses include top-rated radio stations (ARN), three newspapers (Awraq Publishing), and interests in online media, logistics and distribution, printing, events management and outdoor advertising. AMG is also home to the Arabian Television Network (ATN), the official Middle Eastern broadcaster for international channels such as MTV Arabia and Nickelodeon Arabia, as well as AMG's most recent television venture, Noor Dubai. In the past six months, the group has promoted its new television programming by purchasing over $250,000 in outdoor advertising using BizX.
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Note: Media contacts with the above companies are available upon request.
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