GVP arranged a unique transaction for a $4 billion regional department store chain. The retailer had a monthly advertising media spending level in excess of $2 million for local T.V. and radio. GVP introduced the retailer to a media barter organization who displaced the ad agency and provided the monthly media schedule at a 10% savings, in addition to eliminating the agency’s 15% commission structure. The 10% media savings represented the barter company accepting this proportion of the retailer’s payment in barter credits. GVP obtained the credits for the retailer from a global printing organization at a fraction of their face value.
Outcome resulted in excess of a 20% overall savings for the retailer on its monthly media expenditures. In addition, the printing company successfully converted a portion of its unutilized barter credits/non-performing asset into cash; and the media barter company recognized a profit on the media placement on behalf of the retailer.
