Radio and Media Trade-Outs

During a recession, radio should take a hard look at trading out some of its unsold airtime in exchange for products and services. This will help stations save some of their cash flow. A media trade should never be entered into unless it benefits the gross income and brings savings in expenses for your radio station.

From printing needs to T-shirts for promotions, utilizing media trade is very cost-efficient. Media trade with hotels and resorts can be very useful for business travel, contests and client incentives.

Always know who you are trading with. If you are not familiar with the company or individual who is a potential trading partner, always request your product or service up front before their radio schedule begins. If they have a proven track record, other arrangements can be made. Check references first. Effective trade-outs are based on trust and relationships.

Why do most radio groups treat the media trade budget like cash and expense it that way? A media trade is not a fair-market value for radio stations or the media trade suppliers. There are generally restrictions on both sides, unlike a cash purchase or sale. Examples would be black-out dates on hotel trade, and radio commercials being pre-empted for cash clients. The media trade rates of hotel rooms are higher than a cash customer and the price of radio spots are also generally higher.

Radio stations do not have to count a media trade at full price on their contracts. Considering that a percentage of the trade would be used in promotions, they can classify the trade as a promotion, and realize savings in their marketing budget.

The real interpretation of media trade is "supply and demand," especially during a recession. Remember, trade is not equal to cash, but it sure comes in handy when you are low on the green stuff.