10/4/2015 EBSCOhost

http://web.b.ebscohost.com/ehost/delivery?sid=e291da2c­8fae­4345­b85b­fbb17d57d93b%40sessionmgr114&vid=1&hid=110&ReturnUrl=http%3a%2f%2f… 1/3

Database:

Section:

Record: 1

Barter gets big in ad space. By: Frook, John Evan. B to B.06/19/2000, Vol. 85 Issue 8, p14. 1/2p. 1 Color Photograph.Abstract: Reports on the business­to­business barter serviceoffered by online trading exchange BigVine.com. Increase inthe number of executives using BigVine.com to sell advertising,public relations, and marketing services; BigVine.com's productcategories; Company's partnership with American Express tohelp create liquidity in the online barter market. INSET: Howstart­up BigVine.com is marketing itself.. (AN: 3267310)

Business Source Complete

Advertising

BARTER GETS BIG IN AD SPACE

BIGVINE.COM WORKS WITH AMEX TO CREATE LIQUIDITYMARK BROWN KNOWS A deal when he sees one.

When the furniture executive read on the Net that a start­up was willing to pay big bucks in barter for abillboard in Portland, Ore., he answered opportunity's knock. Brown secured prime outdoor space,posted an interest in trading the billboard on BigVine.com and closed a deal worth $250,000.

Brown is part of a growing legion of business executives using BigVine.com to sell advertising, publicrelations, direct marketing, Internet advertising, market research, telemarketing services and TV airtime.

Since BigVine.com's January launch, advertising has grown to be the site's No. 2 vertical industrycategory, second only to the $9.3 million in computers, Internet services and software posted on thesite. About $7.6 million of advertising, marketing and media offerings have been posted in thecompany's first five months, said Bippy Siegel, BigVine CEO.

"The demand has been huge," Siegel said. "When you're running a marketplace, you have to let themarket dictate what their needs are. We're ramping up our focus on the media space."

What is BigVine.com? It is a b­to­b barter club, not unlike the roughly 60 organizations in operationaround the U.S. The difference is that BigVine.com uses the Internet, which gives its traders globalreach.

In addition to computers and advertising, product categories include office supplies, business services,real estate and travel. Businesses trade the goods and services with other businesses in exchange fortrade dollars instead of U.S. currency. When a business makes a sale, the trade dollars are held onaccount until spent on another product.

For example, World Exports, a site listing availability of space for banner advertising for $750 tradedollars per month, could use funds from that sale to purchase nine 20­pound boxes of letter­size copypaper offered by American Office Supply Inc. for $80 a box.

A 6% commission, split between buyer and seller, is paid to BigVine.com in real dollars. At the end of

10/4/2015 EBSCOhost

http://web.b.ebscohost.com/ehost/delivery?sid=e291da2c­8fae­4345­b85b­fbb17d57d93b%40sessionmgr114&vid=1&hid=110&ReturnUrl=http%3a%2f%2f… 2/3

the year, BigVine sends traders an IRS Form 1099B for tax purposes.

BigVine.com is one of a handful of trading exchanges to offer b­to­b barter, including BarterTrust.com,San Francisco, and uBarter.com, Seattle. Advertising fits the Internet barter model to a "T" because itis almost always sold through a series of negotiations, rather than at a set sale price, said LaraAbrams, senior analyst at the Aberdeen Group Inc.

"For small buyers, who don't have the wherewithal to negotiate like their bigger brethren, barter holdsattractive possibilities," Abrams said. "On the sales side, media and advertising service companies arefar more likely to negotiate because they've always had customized offerings. They're willing tonegotiate to get work that will bring revenue ­­ and loyalty ­­ over time."

However, Jim Nail, analyst at Forrester Research Inc., said it is unlikely that a general barter site willamount to big business in the advertising trade.

Sites that offer everything from office furniture to pest­control services are too general for thespecialized needs of a major marketer, he said. Media exchanges that trade in real dollars, such asOneMediaPlace, Media Market Makers and AdExchange.com, will wind up more attractive for most,Nail said.

"B­to­b barter of advertising for goods and services is an odd little corner, but it is doubtful whether itwill be a significant way of managing the media buy," he said.

Among the bugaboos of a barter system are getting buyers aboard. After all, a barter site means youdon't trade dollars but goods and services. In theory, a buyer couldn't lock up a print advertisement orother purchase before he had sold something online. Yet BigVine.com has been working withAmerican Express to help create liquidity in the market.

First­time registrants get 100 free trading dollars at the outset, and can pay for additional dollarsthrough American Express without selling anything. In addition, the two partners are expected toannounce by August a plan to extend American Express business credit lines to businesses looking toborrow to pay for BigVine.com services.

PHOTO (COLOR): BIPPY SIEGEL, CEO, BigVine.com

~~~~~~~~By John Evan Frook

HOW START­UP BIGVINE.COM IS MARKETING ITSELF BigVine.com is taking a divide­and­conquer approach to launching a b­to­b Internet site. The bartersite is spending marketing dollars on a market­by­market basis, hoping to gain regional traction as itgoes along.

BigVine.com typically targets a single city for a print, radio and direct mail blitz. The company choseDenver and Portland, Ore., as the first two targets because they have a large number of smallbusinesses that are tech­savvy. The latest market, Chicago, will give the company a Midwestbeachhead.

Karla Walsh, VP­marketing for BigVine.com, said a national campaign will follow. She declined to

10/4/2015 EBSCOhost

http://web.b.ebscohost.com/ehost/delivery?sid=e291da2c­8fae­4345­b85b­fbb17d57d93b%40sessionmgr114&vid=1&hid=110&ReturnUrl=http%3a%2f%2f… 3/3

comment on what percentage media buying will take of the $50 million BigVine.com has raised inventure capital. Sweepstakes and premium promotions ­­ in the form of free trading dollars for signingup ­­ have figured in BigVine's mix.

So far, the company has seen some interesting trends emerge. A direct mail campaign included withcorporate American Express bills has been among the most successful tub­thumping for the service,Walsh said. In addition, preferred placement on Yahoo!'s b­to­b area consistently drives traffic, shesaid.

"Our most successful efforts have been with well­known partners, and we will continue to rely onthem," Walsh said.

Copyright of B to B is the property of Crain Communications Inc. (MI) and its content may not becopied or emailed to multiple sites or posted to a listserv without the copyright holder's express writtenpermission. However, users may print, download, or email articles for individual use.