Promote local marketing and support partners with an advertising subsidy

Advertising and the correct marketing of your own products and services is the be-all and end-all of a good sales strategy. However, anyone who relies on indirect sales and cooperation with sales or sales partners often relinquishes this important function and must trust that the partners are engaged in sufficient advertising. However, the marketing materials required for this usually involve a lot of time, costs and work. Anyone who then expects partners to conduct marketing that is as diverse, exciting and cross-media as possible can quickly overwhelm them financially and with know-how. Advertising subsidies can help to financially support partners and to promote and advance local marketing from the manufacturer or headquarters.

What is an advertising subsidy?

An advertising subsidy, also known as WKZ for short, is a financial contribution that is granted by the head office or the manufacturer of the products to the distribution partners or retailers in order to support their local marketing and advertising activities. This service is usually not understood as a payment, but can be provided in various ways. For example, manufacturers can cover the costs 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 consideration, which is intended to place particular emphasis on the manufacturer and his products or services and is intended to increase sales of them in a targeted manner.

Types of advertising grants:

• Discounts on your own products and services (also for partners' customers)
• Financial support for the production of advertising measures & media
• Advertising that the manufacturer carries out for partners and retailers

When is an advertising subsidy worthwhile?

In principle, advertising subsidies can be granted to all sales or sales partners (e.g. retailers). Since cooperation with these partners varies from sector to sector and company, awarding is usually an individual decision. In principle, however, it is important to provide partners and retailers with the best possible support in order to promote local marketing and to promote the sale of their own products. This is particularly important when your own partners not only represent a brand's products and services, but may also have competing products in their range. Advertising subsidies guarantee that your own company comes to the fore and thus also indirectly strengthen 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. In particular, it is important to determine which proof, requirements and actions the WKZ is bound to. On the one hand, this can be regulated indirectly through metrics such as sales, sales figures or the number of new customers. Advertising subsidies can be distributed as a reward for particularly successful sales and trade. In addition, their effectiveness can be measured using these measures. In addition to this indirect proof, direct supporting documents may also be required. For example, if the WKZ is issued for a specific advertising medium, the partners may be required to place the company particularly prominent in this advertising medium and to provide these advertising materials as proof. General requirements for advertising materials and a joint campaign and marketing plan between the company and the partners help here. Software (such as a marketing portal) can be used to make these regulations and allocation as simple and transparent as possible. Here, advertising subsidies can be distributed specifically to individual partners and billed directly via the system.

Benefits of advertising subsidies

The use of a WKZ is worthwhile, as it relieves local partners and gives them the opportunity to expand better and more diverse local marketing. The advertising subsidies indirectly offer them a higher marketing budget, which leads to larger marketing volumes and can therefore generate more customers and more turnover for the manufacturer or the company. It also offers a good opportunity to work on the relationship with sales or sales partners and to further motivate them and make them perform even better. In general, support and collaboration with local partners can not only lead to a better local strategy, but also increase overall brand recognition and contribute to a positive brand image.