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April 5, 2005

Written by Bob Meyer, Editor of BarterNews

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Product Placement, Including Barter Arrangements, Reached All Time High Last Year

A recent survey by PQ Media of Stamford (CT) shows that paid product placements in movies and TV shows soared 44% to $1 billion last year. Spending on television placements skyrocketed 84%, outpacing film for the first time in 30 years.

The total value of the product placement market, including barter and gratis arrangements, grew 31% to an all-time high of $3.5 billion in 2004. It is expected to expand another 23% this year to hit $4.2 billion.

The growth in product placement is coming, according to the study, at the expense of the advertising markets. Advertising and marketing expenditures were up just 7% last year, despite increased spending on political ads in an election year.

The study found that paid placements constituted just 29% of the overall value of the market last year, with barter agreements and gratis placements accounting for the lion’s share of the market value.

More than half of the product placement spending is found in four of 10 marketing categories: transportation and parts, apparel and accessories, food and beverage, and travel and leisure.

Editor’s Note: According to Arbitron and Edison Media Research, 29% of people who record a TV show do so to skip or fast-forward through the commercials, and 52% record shows to watch them when it fits their schedule. The other 19% record shows for both the time-shifting and the skipping capabilities.

Another company, MediaCheck, is recruiting about 5,000 households in Omaha to use devices that will record when an ad is watched in full. (The machines, which pick up a coded signal embedded into the TV commercials of participating advertisers, will give marketers detailed information such as how many times their ads were skipped or time-shifted and how long viewers watched the commercials.)

For every ad they watch, viewers will earn points that can be used to redeem rewards via the Internet.

Running a trade exchange is a 24/7 effort. At every national convention trade exchange owners always talk and nod in agreement about the importance of educating their clients—making them aware of the many benefits of barter so they will be better traders.

Then they return home, and once again are inundated with simply not enough time in the day to get everything done...let along time to research and then write and layout an eye-appealing, interesting, educational and powerful marketing newsletter. One which points out and reinforces the benefits of your valuable services—each and every month...on a consistent and on-going basis.

As a trade exchange owner, you realize that having such a unique marketing tool to use for your existing members—as well as the hundreds of prospects in your marketplace—is really necessary in these competitive times. Yet who has the available time and ability to generate such a newsletter?

What’s the answer...? The highly effective Competitive Edge newsletter. For almost two decades now, unfailingly, each and every month CE has been published for your use only. It’s the professionally written and designed, yet inexpensive answer for a busy, growing exchange like yours.

Check it out...click here to see a sample copy

IMS Annual Report Reveals Revenue Growth

International Monetary Systems processed $37 million in barter transactions (up from $32 million in 2003), according to the company’s Annual Report for the year ending December 31, 2004. Revenue generated was $4,732,960, versus $3,972,386 of a year earlier.

Operating expenses for 2004 increased by $816,982 or 22% over 2003. All the additional operating expenses were a result of the acquisitions made during 2004 along with investor relations’ expenses for marketing stock.

Although IMS now has more employees, the personnel needed to operate the acquired offices has been reduced from that under previous management. Therefore, in 2004, Continental Trade Exchange operations had net income before taxes of $519,763. After expenses and taxes net income was $91,012.

Payroll expenses increased 23% from 2003. Occupancy expenses decreased 34% to $284,635. Selling and other expenses increased 52% to $203,011. General and administrative expenses increased 33% to $1,088,529 in 2004.

IMS had net income of $36,246 for the calendar year 2004, compared to a loss of $242,259 for the prior year.

Now available ...BarterNews issue #64, get your copy now! Orders will be shipped within two business days of publication. Click on Order Form.

(If you are not sure if your subscription has lapsed, e-mail your name, address, and zip code to bmeyer@barternews.com.)

Bentley Signs Exclusive Marketing Agreement With RFN For Spot Advertising Inventory

Bentley Commerce Corporation (OTCBB:BLYC) has signed an exclusive marketing agreement with Radio Forecast Network (RFN), that gives Bentley exclusive rights to market RFN’s radio spot inventory to affiliate exchanges and their members.

As part of the agreement, Bentley (www.bentleycommerce.com) can also market the radio spots to major companies such as hotel and restaurant chains. Bentley’s CEO Bruce Kamm said, “We anticipate eventually having about $1 million of media inventory available monthly to market to exchanges, their members, and travel and hospitality companies.”

RFN (www.radioforecastnetwork.com), through a national partnership with WeatherBug, provides mp3-quality customized weather reports to more than 60 radio stations nationwide, and anticipates increasing its distribution network to over 300 stations by year end.

WeatherBug, the owner of the world’s largest proprietary weather network, has over 8,000 tracking stations and more than 1,000 cameras strategically placed at schools and public safety facilities throughout the nation.

RFN trades its weather reports for spot advertising, thus providing radio stations with a professional full time weather staff without the cash expenditure.

Radio stations interested in custom branded weather reports, paid for with spot advertising inventory, should contact RFN or Bentley Commerce for further details.

Get New Money-Making Ideas And Valuable Contacts!

You can obtain useful, informative ideas and contacts in every available back-issue of BarterNews.

5th Global Travel & Tourism Summit Scheduled For New Delhi

The World Travel & Tourism Council is holding its 5th Global Summit April 8 - 10 in New Delhi. The convention brings together world leaders, senior executives and government officials, for the purpose of debating ways in which the travel and tourism potential can be expanded.

This year’s focus of “realizing the potential” will encompass looking at the world’s major challenges...one of the most important being the gap between the “haves” and the “have-nots.”

The travel and tourism industry is huge. Now representing some 10% of the world’s $40 trillion GDP (according to the International Monetary Fund), the belief is that there is still a vast potential for development waiting to be unlocked.

For more information, which includes the event program, a full list of speakers, and application to be a delegate go to www.GlobalTravelTourism.com.

Every barter company in the world is listed on our web site, click through to our Global List of Barter Companies.

Cristina Molina Thanks Mentors In Barter Industry

The following excerpts are from an e-mailed letter to BarterNews: After 10 years in the barter industry (first with BXI and now with ACX), I am officially retiring. I have secured an extraordinary position at a top-level mutual funds company, the Capital Group.

I began with BXI in 1995, and would like to acknowledge the following people for their help: Martin Nobler for getting me started in this business...Robin Lord for teaching me so much and being like a mom to me...John Cooper and Donald Hebard for teaching me that you must stand your ground, defending your convictions and high ethics, no matter what the consequences.

I wish all the best to the many contacts I have made over the last decade. May their business continue to grow and flourish, and may they not lose sight of their true goals.

Cristina M. Molina
E-mail: c_molina72@yahoo.com

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Here & There...

  • China, the world’s largest textile manufacturer and exporter, is looking to tap consumers’ growing interest in eco-friendly textiles. It’s part of a wider trend in the U.S. and other Western countries to embrace naturally derived products, from foods and cosmetics. Thousands of urban Chinese are now sporting soft, silky underwear spun out of a soybean fiber. And, this spring, U.S. catalog-giant Spiegel plans to feature soybean-fiber halter-top dresses in mocha and pink.

    The Chinese government is now funding research on fabrics made from by-products of major crops like peanut and rapeseed. This eco-friendly focus could help improve their nation’s environmental record, rated one of the poorest by environmentalists.

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We welcome your comments, questions, and observations.
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