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Stock Revaluation

YourThe advertiser's stock finances part of your media campaign (barter)

Archos campaign

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objective

To use a TEC solution to revalue youran advertiser's stock through the purchases of your media campaigns.

benefits

This model immediately revalues your stock and restores youran advertiser's purchasing power.

The financial flows remain in cash, whether in whole or in part.

The contract will be adapted to match the volume of your stock and yourthe advertiser's media plans.

principle & model

TEC provides products and services to the media by way of barter and makes margins on those sales.

These margins enable the advertiser's stock to be revalued.

The space provided by TEC, in agreement with the media, is included in the plan drawn up by the agency and approved by the advertiser.

In general, the amount which can be handled by TEC represents between 10% and 20% of the media budget.

Depending on the theoretical media plan and by comparison with year N - 1, TEC may provide a revaluation within 24/48 hours.

In accordance with the agency's media plan, TEC provides part of the advertising space.

You can use your media credits (barter) to pay the amount of advertising space which is handled by TEC or receive a cash payment for your stock as to 40% of that same amount.

The advertiser uses its media credits (barter) or the 100% cash option on the amount which is handled by TEC.

TEC pays up to 40% of this amount for the stock, in cash.

execution & process

1

Stock

The advertiser uses TEC to revalue its stock.

The agency identifies stock held by its advertiser which can be revalued and suggests that the advertiser use TEC to revalue its stock.

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2

Assessment

The media agency and TEC examine the media plan in order to assess the possibilities and propose a revaluation of the stock.

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3

Simulation

TEC and theThe media agency will present the advertiser with a simulation.

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4

Resale

Once approval has been obtained, TEC purchases the stock, then the media agency and TEC purchase the plans using a maximum number of bartersand maximise the possibilities of barter with the media. TEC resells the stock, in accordance with the constraints imposed by the advertiser.

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5

Campaign

The orders for inserts are sent to the advertiser, in accordance with the choices and its trade-offs. The campaign is launched and billed.

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6

Billing

The advertiser pays the media agency, which pays TEC for that part which is handled by TEC whether in whole or in part.

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7

Payment

In accordance with the ratios which are contractually agreed, either the media credits (barter) are deducted from this amount or TEC pays for the stock in cash, as and when the media purchases are made.

TEC pays back the contractually agreed amount for payment of the stock or uses the media credits (barter).

example

A client wishes to value stock worth €500K. TEC and the media agency isolate €500K of media space purchases (TV, radio, press, internet, posters, cinema) which can be handled by TEC in year N and subsequent years.

TEC and the media agency negotiate with the advertising networks, which accept the €500K by way of barter in year N and subsequent years.

The advertising networks provide the advertising space and then bill.

The advertiser pays its agency media either by deducting the agreed media credits (barter) or by payment in full (100% cash option), depending on the agreement.

The advertiser pays all or part of the media plan to its agency, including TEC's share.

The media agency pays TEC for €500K by deducting the media credits (barter) or by payment in full, depending on the contractual choice made by the advertiser.

The agency pays TEC for all or part.

If the advertiser has chosen the 100% cash option, then, after the funds have been received, TEC pays the advertiser for the stock in cash, as and when it buys the media.

TEC makes an initial down payment of up to €200K in cash for the stock or debits the media credits (barter).

This contract shall continue for a period of between 2 and 3 years.

in short

TEC purchases and values your stock the stock from the advertiser.

TEC provides youthe advertiser with the media space.

You pay your agency after the distribution or publication.

The advertiser pays its agency in whole or in part.

The media credits (barter) are used to pay for part of the media purchases or, if the 100% cash option is chosen, your stock will be paid for in cash.

TEC pays the advertiser for the stock as and when the media plans are purchased or the media credits (barter) are used.