The Producer, Distributor, Advertiser Relationship

The world runs on a system of marketing that boils down to a relationship between those who produce, those who distribute products to gain an audience and those who seek to capitalize on those audiences.

While it might seem exclusive to consumer industries, the relationship extends to just about every conventional business one can think of. Some business to business models combine advertiser and distributor processes as advertising involves distribution.

Creating original products typically leaves two options: handle distribution or find a distributor. Being a distributor is almost entirely logistics and not much creative work.

Advertisers depend on distribution to get brand awareness through existing channels. Since distribution can only exist if there is a demand for a product, producers are vital as well as distributors and advertisers to one another.

Producers do not always need to advertise. Many have one or a handful of contracts. Distributors advertise if the products are consumer based. Advertisers place client ads strategically according to data, targets or groups.

An example:

  • We produce content.
  • WordPress handles distribution.
  • Advertisers pay blogs for shared target audiences.

“We” might be both producers and advertisers if we want to see growth happen a little more rapidly, but even a blog can grow too quickly.

Consider whether an organization falls under the producer, distributor or advertiser category. Understanding the relationship between them is often the first step towards systematic progress.

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