Promote local marketing and support the partners with an advertising subsidy

Promote local marketing and support the partners with an advertising subsidy

Advertising and the right marketing of your own products and services is the be-all and end-all of a good sales strategy. However, those who rely on indirect sales and cooperation with sales or sales partners often give up this important function and have to trust that the partners do enough advertising. However, the marketing materials required for this are usually associated with a lot of time, costs and work. Anyone who then expects the partners to operate as diverse, exciting and cross-media marketing as possible can quickly overwhelm them financially and with know-how. Advertising subsidies can help to support the partners financially and to promote local marketing by the manufacturer or the head office.

What is an advertising grant?

An advertising subsidy, also called WKZ for short, is a financial contribution that is granted by the head office or the manufacturer of the products to the sales partners or dealers in order to support their local marketing and advertising activities. This service is usually not understood in terms of a payment, but can be done in different ways. For example, manufacturers can assume the cost of producing advertising material or part of the price, distribute discounts for their own products or provide free advertising materials or equipment for marketing and the point of sale. As a rule, these benefits are linked to a service in return, which is intended to bring the manufacturer and his products or services to the fore and to increase their sales in a targeted manner.

Types of advertising grants:

  • Discounts on our own products and services (also for partners' customers)
  • Financial support for the production of advertising measures and materials
  • Advertising that the manufacturer carries out for partners and dealers

When is an advertising subsidy worthwhile?

Advertising cost subsidies can in principle be granted to all sales or sales partners (e.g. dealers). Since the cooperation with these partners varies depending on the industry and company, the award is mostly an individual decision. Basically, however, the partners and dealers should be given the best possible support in order to advance local marketing and promote sales of their own products. This is particularly important if your own partners not only represent the products and services of a brand, but may also have competing products in their range. Advertising subsidies guarantee that your own company will be in the foreground and thus indirectly strengthen the trade.

Implement the advertising subsidy correctly

When using WKZ, transparent handling and the regulations in an advertising subsidy agreement, so to speak a contract that clarifies the conditions, are important. The main thing is to determine which evidence, requirements and actions the WKZ is bound to. On the one hand, this can be regulated indirectly via measurement parameters such as sales, sales figures or the number of new customers. As a reward for particularly successful sales and trading, advertising subsidies can be distributed. In addition, their effectiveness can be measured using these metrics. In addition to this indirect evidence, direct evidence can also be requested. If, for example, the WKZ is granted for a certain advertising medium, the partners can be obliged to place the company in a particularly prominent position in this advertising medium and to provide this advertising medium as evidence. General specifications for advertising material as well as a joint campaign and marketing plan of the company and the partners help here. In order to make these regulations and the allocation as simple and transparent as possible, software (such as a marketing portal) can be used. Here the advertising subsidies can be distributed specifically to individual partners and billed directly via the system.

Advantages of advertising subsidies

The use of a WKZ is worthwhile, as it relieves the local partners and gives them the opportunity to develop better and more varied local marketing. The advertising subsidies indirectly offer you a higher marketing budget, which leads to a larger marketing volume and can therefore generate more customers and more sales for the manufacturer or the company. In addition, it offers a good opportunity to work on the relationship with the sales or sales partners and to motivate them and bring them to even better performance. In general, the support and cooperation with local partners can not only lead to a better local strategy, but also increase general brand awareness and contribute to a positive brand image.


Nisa Wielvers
Nisa Wielvers

Marketing Managerin

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