Support your partners with advertising subsidies and ensure more effective local marketing.
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What is an advertising subsidy?
For whom are advertising subsidies relevant?
Sectors for which a plant subsidy may be relevant:
How can advertising subsidies be awarded?
What is the effect of an advertising subsidy?
Challenges in awarding advertising subsidies
What is an advertising subsidy?
Advertising allowance, or WKZ for short, is financial support for your own marketing partners. On the basis of this subsidy, they can either Get discounts and quotas for local marketing measures or take advantage of free promotional items. This allows your local partners to carry out cost-effective marketing measures and reach their own customers even better and more often.
For whom are advertising subsidies relevant?
Advertising subsidies are particularly relevant in companies with a large partner network. In this form of indirect distribution, the individual partners are heavily responsible for the success and sales of the brand or manufacturer. The company or manufacturer therefore has a great interest in to equip sales and sales partners with marketing measures and also to financially support them in carrying out local marketing. In addition, corporate structures with a large branch network or franchise companies also benefit from the awarding of advertising subsidies.
- Companies with partner networks
- Indirect sales structures
- Manufacturers with independent sales and distribution partners
- Companies with branch networks
Decentralized marketing is relevant for all companies that are organized decentrally but still receive guidelines for their local marketing from headquarters. industries, where this is mostly the case:
Advertising subsidies can be approved in very different ways and awarded to your own partners.
Allocation of budgets
When awarding a WKZ budget The partners are issued a type of voucher for a specific amount. You can use this amount to order and book advertising measures. This also makes it possible to decide whether the budget can only be redeemed for specific measures or the entire range of products.
Discounts/vouchers
The use of discounts when awarding advertising subsidies means that the Partners may pay for a specific item (or the entire range of products) themselves, but can redeem a discount on the invoice. This is like a discount code when shopping online, which allows you to reduce the price by X percent or reduce the price by a fixed amount.
Quotas for advertising measures
When allocating quotas, you must the Provide partners with a certain number of advertising measures free of charge or at a discounted price. In this way, you enable your partners to carry out a minimum of local marketing, even at no additional cost.
Free advertising measures
In addition to granting discounts and benefits, you can give your partners also offer certain advertising measures, for example for individual products, free of charge. This is particularly useful if you want to get your partners to test new forms of advertising or want to motivate a particular partner in particular.
Manual request & assignment
The manual allocation of an advertising subsidy is usually a request from a partner who would like to receive financial support for a specific form of advertising. You can therefore still approve this subsidy even after payment for the measure and award it manually.
What is the effect of an advertising subsidy?
Supporting your own partners with an advertising subsidy can have many effects and benefits. In particular, it helps to motivate partners to take more marketing measures and cross-media marketing. As a result, the brand is not only becoming generally better known, but also reaches a very heterogeneous target group through the many different channels. Above all When introducing new marketing measures such as video advertising or social media ads, it helps to motivate partners even more by assuming (part of) the costs. As a result, new forms of advertising are tested more quickly and established more quickly by partners. In addition Can an advertising subsidy be used as an incentive or reward for particularly successful partners. This gives them additional motivation, for example, to generate more sales. This further strengthens the bond between the company or the manufacturer and the partner.
Anyone who works with independent retailers who may have different brands on offer can also result in their own products being advertised significantly more than those of the competition by assuming marketing costs.
- Motivation of (independent) partners
- More activity in marketing
- Focus on specific marketing measures and campaigns
- Strengthen connections with partners
Challenges in awarding advertising subsidies
In addition to all the positive effects that advertising subsidies can have on marketing, partners and the company, challenges can still arise. In order to master these in the best possible way, it is important to know the sticking points and to counteract them right from the start.
When awarding an advertising subsidy, there can be a lot of manual effort, especially without the use of shop systems and software solutions. This burdens the company headquarters (or the manufacturer) and the central marketing department and means that less time can be spent planning and designing marketing. With such manual processes, it is also difficult to keep track of things and to provide all partners with subsidies consistently and fairly.
In addition to actually implementing and awarding discounts and grants, a number of strategic decisions must be made. The company must be aware of which measures should be particularly emphasized and to what extent costs can be covered.
Once all these details have been clarified and a simple process for awarding and approving advertising subsidies has been found, nothing stands in the way of deployment.