What is trade spend?

Trade spend, also known as trade promotion spend or trade marketing spend, refers to the money spent by a manufacturer or supplier on various promotional activities to encourage sales and increase the distribution of their products through various trade channels such as retailers, wholesalers, and distributors.

Trade spend activities may include discounts, allowances, price promotions, rebates, or any other incentives offered to retailers, distributors, or wholesalers to encourage them to promote and sell a manufacturer's products.

The goal of trade spend is to create awareness among the trade channels, improve sales, and increase brand visibility. However, it comes with several challenges, including effective allocation of funds, tracking of performance, and effectiveness.

Overall, trade spend is an essential part of a manufacturer's marketing strategy to gain retail and channel partners' loyalty and increase the distribution of their products.