Is Corporate Trade right for me?
How can Corporate Trade help brands and retailers?
Corporate Trade allows brands and retailers to receive a greater value for underperforming stock by being paid in Trade Credits rather than cash.
It can also be used to increase marketing budgets by using surplus stock to pay for more advertising. This increase in media budget can drive cash sales.
How do I know if we are a good fit with Corporate Trade?
- Do you spend in the areas where Active has relationships?
- Do you have stock, reduced marketing budgets or a desire to drive cash sales?
If the answer is ‘yes’ to either of these questions, then it is probably worth exploring.
Do I have to have excess or unwanted stock to enter a Corporate Trade deal?
No. You can fund your Corporate Trade deal with first line stock too. What's more, if you have no inventory now, Active can fund and Trade your media and you can provide the inventory at a later date.
What industries does Corporate Trade works?
The industry sectors we work with include but are not limited to:
- Media owners
- Banking or Insurance
How does Corporate Trade work with my Media Agency?
How does a Corporate Trade company differ from an agency?
Corporate Trade companies don’t buy better than agencies – based on an investment and Trading model, they acquire media on a non-agency basis. Corporate Trade companies typically take long positions in the media by making investments, providing needed services or some combination of both. In return, the Corporate Trade company receives a media inventory which is cost advantaged relative to the marketplace. As a result, Corporate Trade companies Trade a media plan as specified by the advertiser or agency and deliver the value that is expected.
What are the respective roles of the media agency and the Corporate Trade company?
The role of the media agency doesn’t change. It remains to negotiate both the price and quality of a media campaign on behalf of its client. The only role of the Corporate Trade company is to negotiate the campaign with the media owners in order to advise how much of the campaign is paid for in cash and how much is paid for in Trade Credits.
Does a Corporate Trade company replace the agency's role and plan or buy media?
No. Our role is complementary and we work alongside your existing agency to enable you to spend your Trade Credits. Our role is not dissimilar to that of the poster specialists who work alongside media agencies.
Does Corporate Trade affect the quality and price of what I get?
No. Any media that is Traded by the Corporate Trade company will be at the price and quality that has been developed as part of the plan presented to the client. The quality and price is delivered by the media owner in line with the cash market as per your deals.
At what point is the Corporate Trade company involved with the implementation of a media campaign?
The two main points where a Corporate Trade company is involved with a media campaign's implementation are: upfront when planning, negotiating and approving the budget, and then after the media has run as part of the invoicing process.
Who does the Corporate Trade company invoice?
The Corporate Trade company can invoice for the media either directly to the client or via the agency. We are totally flexible and it is usually decided after a discussion between the client and the agency to decide on the most beneficial route.
What are Trade Credits?
Trade Credits are a form of payment that a Corporate Trade company uses to purchase (usually underperforming) assets from their clients. The amount of Trade Credits that a Corporate Trade company usually pays for an asset is three times its fair market value in the open market. Clients then spend the Trade Credits in part-payment for media and other services via the Corporate Trade company.
What can I spend Trade Credits on?
Trade Credits can be spent to part-pay for a wide variety of goods and services. The most popular include:
- Travel and events
- Business services
Will I pay more if I spend Trade Credits?
No. For every $1 you have in your Trade Credit account, you can purchase $1 in value of media, printing or whatever goods and services you choose to spend it on. The total amount you pay is the same as if you were paying 100% in cash.
Can I spend my Trade Credits outside the Australia?
With Active, yes you can. You can spend your Trade Credits in any country where Active has an office. There are currently 14 countries in the Active network.
Could I get stuck with lots of unused Trade Credits?
When we issue Trade Credits upfront we work very carefully with you to make sure they can be spent prior to signing any deal.
How can I track how my Trade Credits are used?
Unlike other Corporate Trade businesses, Active allows clients to track their spending daily. Your Trade Credit statement can be accessed via our website and is updated on a daily basis much like a bank statement.
Spending Trade Credits in Media
Where can I spend Trade Credits in media with Active?
- Spot television and multi-channel
- Broadcast sponsorship
- National press
- Spot radio AM and FM
- Radio sponsorship and promotion
- Outdoor across all formats
- Cinema across all destinations
- Product placement
- Sports sponsorship
Will I pay more if I spend Trade Credits?
No. Your media buying agency will determine the pricing as normal.
Will I get low quality or unwanted media if I spend Trade Credits?
No. Your media agency will determine the quality as per usual.
So there are no changes to the price and quality if I use Trade Credits with Active?
That’s right. In fact, the only role Active plays is to negotiate how much of the advertising is paid for in cash and how much is paid in Trade Credits. Your agency does everything else as normal.
Does using Active hold up my buying process?
No. We are able to work to last minute turnarounds and accommodate pressing deadlines to ensure you can spend your Trade Credits.
Do you affect what I pay my agency?
No. We only work on the net amount of any media we trade so you pay your agency as normal.
Can I pay you through my agency?
Yes. We can invoice via you agency or directly. We are entirely flexible to suit your needs.
Does working with you affect my audit?
No. Your agency will be audited as normal.
Is it any extra work for me?
The only extra work required is the time put into setting up a deal. After that it is all down to your buying agency and Active to take care of everything else. We'll also keep you informed at every step.
Is it any extra work for my agency?
Yes, but it should be minimal. For the most part it simply involves communicating effectively with Active to make sure we make the most of every opportunity for you to spend your Trade Credits.
Spending Trade Credits in Events, Travel and Business Services
What kinds of things can I spend Trade Credits on in Events and Travel?
- Day meetings
- Corporate hospitality
- Staff incentive trips and prizes
What kinds of Business Services can I spend Trade Credits on?
- Mobile telecoms
- LED screens & lighting
- Gifts & incentives
- Office supplies
- Contract cleaning
- Point of Sale (POS)
- Freight & logistics
How does Active make its money?
We leverage our well-established relationships. What this means is that we take long positions in media space, whether by investing with a media owner or funding a business expense such as an annual conference.
They pay Active in media space at a cost-advantaged rate. We also generate cash by taking on stock in return for Trade Credits. Our clients are companies that might have excess stock to sell and who come to us because we offer them a greater value in Trade Credits than they would make in cash (typically three times as much). When clients spend their Trade Credits through us – usually on media space – we make a profit on that transaction. So, we make money when our clients spend their Trade Credits.