Performance-based advertising cost subsidies

Success booster during the Christmas season

The Christmas season and the turn of the year are the strongest sales weeks of the year for many companies. Now is the time for many retailers to increase sales and strengthen customer loyalty. Manufacturers also want to ensure that their products are advertised in the best possible way during this crucial time. And this is where performance-based advertising cost subsidies (WKZ) come into play.

Investing in marketing activities together and benefiting from them is the principle behind the system of advertising cost subsidies in retail marketing. The win-win situation looks like this: an umbrella brand offers financial support for advertising measures at local retail locations, but its subsidies are linked to certain conditions that vary depending on the strategy.

Efficient use of advertising materials

If brands primarily want to ensure that their funds are used efficiently, they tie them directly to the success of the marketing measures. This means to sales figures or increased brand awareness in the retail region. These so-called performance-based advertising cost subsidies (WKZ) offer manufacturers the opportunity to react to the market at short notice and create incentives for retailers to advertise and sell more of their products, for example through special Christmas campaigns, online advertising or prominent placement in shops.

Prove the success of the measures

On the one hand, retailers benefit from the cash injection for their local campaigns and on the other, of course, from the boost in sales from successful advertising measures. What they have to do: they have to prove that their campaigns were actually successful. Depending on the target agreement, they therefore prove

• the increase in sales within a certain period of time,
• the sale of a certain quantity of products,
• reaching a certain number of new or existing customers,
• the success of digital KPIs (key performance indicators).

The retail locations obtain the values on the first three points from their sales reports. But how do they obtain marketing performance data? Socoto customers track the insights into their advertising measures in real time in the MMS. And with the integrated WKZ module, they can transmit directly to the manufacturer how many clicks their online adverts have achieved or what the traffic on the campaign landing page looks like. Then nothing stands in the way of a quick payment of advertising subsidies.

Achieving performance targets can take quite challenging dimensions in retail marketing. However, if the targets are defined fairly, the results are well documented and the digital processing of advertising subsidies is guaranteed, then performance-based advertising cost subsidies can prove to be a real success booster and not only at Christmas time.

Would you like to know more about our WKZ module? Then simply get in touch with us!