What is trade advertising? Top 7 Facts about trade advertising

Trade advertising is a type of marketing that focuses on the end consumer as opposed to businesses.

This form of marketing can be used by anyone, but it’s especially effective for small and medium-sized businesses who don’t have the funds or time to invest in other forms of advertisement.

If you’re looking for ways to reach your target audience without spending a fortune on traditional ad campaigns, trade advertising may be an ideal solution for you. Learn more about what is trade advertising here!

By reading this article, you’ll learn all about what trade advertising is and how it can help grow your business!

What is trade advertising?
What is trade advertising?

What is trade advertising?

What’s the definition of trade advertising? Trade advertising is what retailers use to promote their stores or brands. This form of marketing can be used in a variety of ways, including flyer distribution, direct mail campaigns and social media campaigns.

Business-to-business advertising is a strategy that has been used to promote products for years, and it’s becoming more popular because of its effectiveness.

The key difference between this form of marketing versus consumer facing advertisements like TV commercials or print ads pieces you can see on billboards around your town are threefold: firms advertise directly at retailers; they work with wholesalers rather than just end consumers (they’re also called distributors); unlike B2B marketers who depend heavily upon wordofmouth recommendations from happy customers about how good their product was during use/ ownership .

Why do companies use trade advertising?

There are a number of reasons companies use trade advertising to market their product. First, it’s much harder for the average consumer to compare what products are offered from different companies and what each can do. Trade ads allow consumers to see what they offer that is unique or what makes them better or more accessible than their competitors’ products or brands. In addition, trade ads take up less space in a newspaper supplement compared to a B2C ad unit.

How does it work?

Trade advertising works by placing ads in publications and on the Internet through what is known as a trade show. The purpose of these shows is to reach retailers, wholesalers and distributors, who will then share what they learned with their customers and clients. Usually, marketers schedule meetings with these parties so that they can further discuss what they saw or what was shared in what they read.

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The benefits of trade advertising

Advantages of trade advertising include what is known as the long-tail effect, where you get multiple sales from a single marketing piece. This increases the return on investment in what you spent in creating and distributing your advertisement in an industry publication or online in a niche venue. It is also beneficial because you’re reaching people who know what they’re talking about when it comes to their business and what will work best for them. These individuals can speak to what they learned and recommend it to their customers with confidence.

Trade advertising examples

There are a number of different places where a company can choose to advertise what they offer. Trade magazines and newsletters, online publications and on TV or radio via what is known as teleshopping ads.

Trade advertising is a great way for businesses to reach out and connect with potential new customers. Trade magazines, such as Progressive Grocer magazine have been used by Coca-Cola in order promote their product through food store managers who might not otherwise see ads about them

Trade Advertising can be done both directly on behalf of the company (opening up outlets) or indirectly via promotion among existing ones – increasing volume at those stores around town!

Trade Shows

Trade shows, trade fairs, and trade exhibitions are considered as the right place to demonstrate trade marketing activities. Manufacturers can display their products in these trade shows, draw attention and further tie-up with key supply chain partners.

Trade shows also provide networking opportunities and facilitate relationship-building that may be an advantage for business in the long-run. Different trade shows are regularly being organized all over the world. An example of such type of trade show is the “Indian Pharma Expo.”

Indian Pharma Expo

This is an event or Trade show that generally held annually in India in the month of August every year, and its main focus is on pharmaceutical industry-related suppliers, manufacturers, wholesalers, distributors, etc.

International Auto Expo

Similarly, the prestigious car brand “Honda” displays cars in International Auto show regularly to demonstrate its concept cars and latest production vehicles. For example, Honda displayed its cars in Indonesia at the Indonesia International Auto show held in August’18  at Gaikindo.

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Trade Promotions

Trade Promotion

Different manufacturers and wholesalers offer various incentives and other marketing activities to their business partners or clients like retailers or distributors to increase sales of their products and services among these channels and finally on to customers. This strategy is referred to as Trade promotions and mainly of four types:

  • Visible price-related promotions like discount coupons, rebates, buy-one-get-one offers, etc.
  • Off-shelf branding techniques like posters, premiums, displays, etc.
  • Seller contests like sales incentives.
  • Events that are on-site like samples, demonstrations.

Few common tools and real examples for trade promotion are as follows:


Manufacturers of packaged goods or retailers issue discount coupons to their customers that encourage them to purchase the product again at a reduced cost. Producers/retailers advertise these coupons either in newspapers or distribute them through the mail using weekly flyers. For example, retailers like Big Bazaar, Vishal Megamart, etc., distribute such coupons for selected products through the mail using weekly flyers or in newspapers.

Free Samples

A free sample is basically a small portion of the main product that is meant for free distribution. These are distributed for launching new products in retail stores or door-to-door. For example, when tooth sensitivity reliever toothpaste “Sensodyne” was launched in India, then its manufacturer distributed free samples among patients by collaborating with local dentists in Mumbai to create awareness of the product.


Sometimes consumers are offered a product at a less or discounted price than its regular price, which is referred to as a discounted price offer. Retailers or distributors use this strategy for attracting consumers for other brands or products. For example, different retail shops like BigBazaar, Vishal Megamart, etc., offer special discounts on clothes like some percentage off on clothes before any festive season.

Free Gifts

Different product manufacturers offer or distribute their products along with the free gift to attract customers for buying products. For example, some toothpaste manufacturers offer a free toothbrush for buying toothpaste like Sensodyne toothpaste rapid relief offers free toothbrush. Pears soap comes up with a free offer to buy three and get one free.

Free of cost service offers

Free of cost service

Different retailers may provide free of cost service to customers for a particular time generally after-sales. For example, different car retailers provide free service offers to their customers for a few months in case of any damage to car components.

Advantages of using trade advertising

Trade advertising is a low-cost and effective way for companies to reach their target audience.

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Trade journals are the best media choice when you’re looking to advertise your product, because they have high circulation rates in comparison with other types of journals–and this means that more people will potentially see our adverts!

By adopting trade promotion we also increase brand recognition as well as meeting new suppliers who may be interested on entering into business partnerships.

Trade advertising is a powerful tool that traders can use to create the impression in their minds that trading with this company will be beneficial.

Trade adverts are also seen as an opportunity for new investors, who may be apprehensive about entering without first getting acquainted through other channels such as word-ofmouth recommendations from peers or friends already working there.

Disadvantages of using trade advertising

There are no real disadvantages when it comes to trade advertising; however, companies should consider how effective it might be compared to other forms of marketing such as media campaigns which can be targeted at a more general audience.


What is the purpose of trade advertising?

Trade advertising is a marketing tactic used by B2B businesses to effectively reach their target audience. Helping establish brand awareness and relations with other traders by attending trade shows and advertising in trade journals can be a great way to win business and get the phones ringing for B2B businesses.

Is advertising a trade?

Advertising aimed at a business and designed to entice it to purchase a product to sell to its customers, or at least to recommends it to its customers. Trade advertising is directed at stockbrokers, wholesalers and others who are not intended to be the end user of a product.

What is the meaning of trade marketing?

Trade marketing is a strategy focused on wholesalers, retailers and distributors rather than consumers, with the goal of increasing demand with supply chain partners and getting products in front of consumers. Common trade marketing activities include going to trade shows and offering promotions to potential partners.


Trade advertising is a form of marketing that promotes your services, products or trade to other businesses. It’s important for small business owners to know the benefits and limitations before starting this type of campaign so they can have an idea what results are realistic.

We hope our blog has helped you understand more about how trade advertising works and why it could be valuable for your company. If you want help setting up a successful campaign, contact us today!

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