XLS connects partners and enables companies to pay for traditional advertising campaigns and media services with products or services. Given that media budgets are generally always too small and many companies are hampered by stock overhangs that tie up their capital or unutilised production capacities, it makes sense in many cases to capitalise on them by opening up new distribution channels and converting them into additional advertising power.
XLS guides its clients safely through this process, also acting as a partner for media agencies and media marketing companies. All the parties involved should feel comfortable and safe in media bartering.
XLS specialises in media bartering and is a market leader in Germany. We see ourselves as an all-rounder for solving different tasks. The two managing directors Klaus A. Westrick and Kai Hesselbach have years of expertise in the industry and have operated on the German market for many years. Since the company was founded in 2000 XLS has developed a distribution system for selling on different products that is flexible and tailored to clients’ individual needs.
Klaus Westrick, who founded the company in 2000, was born in 1966 in Frankfurt am Main, grew up in the Taunus and passed his Abitur exams (A levels) at St. Blasian College in the Black Forest. This was followed by long stints in Madrid, Paris and New York, where Klaus Westrick then completed his broker training.
Until 1995 he worked for well-known banking houses in the securities trading sector before getting into the media industry. From 1996 to 1999 he was the managing director of a bartering company operating according to an American model. By founding XLS, Klaus Westrick decided to adapt this model to suit German market conditions and therefore make it attractive for German firms. Klaus Westrick has three daughters and his interests are motor sport, martial arts, golf and the outdoors.
Kai Hesselbach was born in 1972 and grew up in the Ruhr region. He did his Abitur in 1992 and then studied business administration in Mannheim, majoring in retail management. Since then he has worked for various companies in different sales and marketing roles. His speciality was the automotive and B2B sector.
Kai Hesselbach summarised his expertise in sales and marketing in his book “Gewerbliche Kunden im Blick – Souverän beraten, mehr verkaufen” (“Commercial clients at a glance – expert advice to sell more”), published by Springer Verlag: http://www.springer-automotive-shop.de/shop/buch/verkauf/gewerbliche-kunden-im-blick.html
He is married with two daughters.
Founded in 2000 in Wiesbaden, and now a market leader
Turnover to date approx. 580 million euros,
around 12,000 motor vehicles, 1.7 million hp,
55,000 TV spots, 15 billion TV contacts,
46,000 radio spots
In line with its goal to further diversify the media group, XLS mainly invests in companies that are strategically a good fit for the Group.
The prime group consists of the following companies:
Prime Leasing GmbH
Prime Trading GmbH
Prime Medical GmbH
These three companies are wholly owned by the Klaus Westrick Group. They serve the XLS Media Group as industry-specific service providers.
Prime Leasing GmbH is used for handling and marketing the vehicles processed each year by the XLS Media Group on a bartering basis. The scope of action ranges from individual leasing contracts through traditional fleets and key account business as well as foreign marketing to the well-established business with major car hire firms. Individual and needs based solutions are the specialty of Prime Leasing GmbH.
Apart from traditional bartering, XLS’s business has also developed in the direction of trading in advertising space. Prime Trading also frequently acts as a secondary marketer of traditional media space.
Prime Medical has a licence from the governmental authority in Darmstadt for exporting and trading in prescription drugs. XLS uses this as a tool to market the products of predominantly OTC pharmaceutical clients abroad. Another business purpose is traditional trading activities, for which Prime Medical Trading buys medical products cheaply in Germany and sells them at a profit in other countries.
XLS is a minority shareholder in the companies Tre Torri Verlag, Permitto GmbH and TVSmiles.
All these companies continually provide a strategic springboard for synergy-rich cooperations.
Tre Torri Verlag probably has the most expertise in the luxury goods, food and wine segment of all the publishing houses. It has a broad range of content in this field and a highly sought-after image database. As publisher of the highest-quality wine magazine in Europe “FINE”, which can also be seen as a TV show on NTV, it serves an exciting target group at XLS too.
Besides a large number of successful cookbooks such as “Grillen”, “Beef”, “Enie backt”, “Amador”, “Die Kochprofis etc.”, the range includes other blockbusters such as “Maggi” and “Alfred Biolek”. In all, the content segment offers a wealth of exciting bartering opportunities for XLS.
Market research: Permitto knows what makes people tick and can carry out research into subconscious behaviour patterns using what is known as the repertory grid technique. Using completely new approaches, amazing findings can be obtained that would not be possible through conventional polls, even when the group of respondents is very small.
Apart from the ADAC, which uses this tool for its structural and cultural transformation, media agencies employ this tool to acquire new clients by presenting new findings that also have an impact on their overall media strategy – often with high savings potential!
TVSmiles is the first bonus programme that rewards viewers for watching TV. Via the audio signal, the TVSmiles app automatically recognises advertising spots. The app provides its users with exciting opportunities, games and quizzes that match the advertising spots and are about TV and brands. For each interaction users are awarded “Smiles”, the virtual currency of TVSmiles. They can either be redeemed for vouchers from well-known brand shops or exchanged for attractive prizes.
Advertisers who are clients of XLS use TVSmiles to extend their campaigns from TV to mobile, with the result that potential consumers or customers focus more intensively on the brand and the product. Hence, motor vehicle clients of XLS are, for example, able to generate a larger number of test drives.
The XLS Media Group has a very solid base in every respect and is extremely grateful that it has been able to operate successfully for so many years. XLS wants to share this good fortune and therefore tries to selectively help people who have not been so lucky.
For 60 years now World Vision has been specifically working to support children in crisis regions the world over. The core concept is “Helping People to Help Themselves”. To achieve lasting improvements, World Vision is involved in regional development cooperation and sponsorships, disaster relief and lobbying for the poor. In acute crisis situations the XLS Media Group provides swift and spontaneous financial support for World Vision.
The children’s cancer charity “Deutsche KinderKrebshilfe” was founded in 1996. It not only works to combat childhood cancers, but also advises and supports those who are affected. Deutsche KinderKrebshilfe raises cash for its activities solely from donations.
It is sad when children’s hopes and prospects of a healthy and long life are destroyed. That is why the XLS Media Group works continually on various projects in this field.
The XLS Media Group is happy to support charitable activities both at home and abroad. Please contact us if you have urgent projects for relieving suffering, hardship and misery.
Bartering deals are countertrade transactions. Bartering is the oldest form of trade and, although very few are aware of it, is still practised today between countries and industrial partners on a multi-billion scale.
XLS has developed bartering, which started in the USA and enjoyed tremendous success in Germany and Europe, into an innovative and flourishing business model. XLS has turned media bartering into a business in which advertisers, media agencies and media can participate easily and safely. Thanks to XLS, all the parties involved benefit equally from the advantages of media bartering.
As media bartering is a new concept for many of the parties concerned, it is important to the XLS Media Group that the process is presented simply, transparently and safely and then implemented in that way. For us, the key is that all the parties involved sit down together round a table and support the transaction.
The following 10 steps pave the way for successfully closing a lucrative media bargaining deal.
Joint analysis of requirements with the client: carefully analyse the client’s needs and check whether the potential client, product or desired media service is a sensible and profitable proposition for a barter.
Jointly determine which products, services or unutilised production capacities are to be used, what quantities are up for discussion and what price will be set. This is normally between the cost price and the wholesale price, depending on the quality of the goods. Together, new and alternative distribution channels are identified to prevent the cannibalisation of traditional distribution channels when marketing the goods.
Together with the media agency and the client the fitting selection of media is defined.
The XLS Media Group always tries to match the client’s usual media discount, including, of course, 15 % agency commission. The performance period of the campaign is then laid down together.
The contract outlines the deal transparently, precisely and reliably, yet in a simple way.
The transaction should be uncomplicated and easy to understand – and that also goes for the contract.
Once the contract has been signed the clients or the subsequent buyers are often grateful when the goods are delivered quickly. Once delivery has taken place the outgoing invoice is sent to XLS. XLS generally secures the goods with a bank guarantee prior to delivery.
The campaign is booked and optimised by the client's media agency under the XLS quotas allocated to the media. It is standard practice that the client pays the media agency.
The services are verified through sender protocols and booking confirmations.
XLS invoices the media gross less the agreed discount and the agency commission to the contracting party.
Please note: XLS does not work with virtual currencies such as credits or trade credits.
The net media value is offset against the net value of the client’s goods. The accounts are balanced and the deal is completed successfully.
Goods and services are used to create additional advertising power:
Last, but not least, XLS brings partners together, who generate additional business that, without XLS, would otherwise not have taken place.
All the parties – advertisers, agencies, marketing companies, retailers and the media – benefit from the results of media bartering.
Using the XLS business model, marketing companies and media owners have the chance to utilise their unused capacities more effectively and generate extra business plus acquire new customers.
The current situation is characterised by stagnating net budgets, with gross advertising space increasing at a huge rate almost daily, especially in the areas of online, mobile, speciality content on demand channels. Brands turn into media.
The surplus media space does not always lead to changed usage, but also to a massive fall in prices.
Using the media bartering tool the XLS Media Group succeeds in procuring additional business, new customers and a higher capacity utilisation for its media partners.
XLS increases the media volumes of its clients by capitalising on goods or other tradeable products and turning them into media volumes. The cooperating media owners receive cash that was not originally envisaged in the media planning and benefit from a higher volume and an improved capacity utilisation. Media companies who implement campaigns jointly with XLS are more productive and increase their turnover through media bartering.
Using the XLS barter tool, agencies have an additional service in their portfolio, with which they can help their customers to convert goods that tie up capital into additional advertising power.
XLS has been working successfully with virtually all the leading media agencies in Germany for years. What agencies find particularly appealing about the cooperation is the opportunity to offer their clients media bartering as a specialised service and the certainty, with XLS, of having a partner for whom long-term business relationships and the benefits for clients are more important than maximising short-term successes, as the goods become an additional currency and payment tool.
The XLS Media Group places great importance on ensuring that its clients feel at ease. Therefore, XLS pays attention to transparency and security, especially as XLS is very interested in a long-term client relationship. In view of the above, it is important for us to get the client’s media agency on board from the outset.
The XLS Media Group generally secures all transactions with bank guarantees. Goods are distributed based on fixed written conditions. The marketing restrictions are contractually fixed.
XLS also has a large number of references from clients, media owners and agencies. XLS guarantees media results, quality and optimum conditions and does not work with notional interim currencies such as credits or trade credits.
The XLS Media Group acquired 1,000 TV sets from Grundig and paid for them with TV advertising space on ProSieben/Sat1. Thus, Grundig sold 1,000 TV sets and had the opportunity to advertise more on TV. Chevrolet in turn purchased the TV sets from the XLS Media Group and paid for them partly in cash and party with motor vehicles. This meant that Chevrolet was able to sell more motor vehicles and acquired the necessary TV sets for its own advertising campaign. Chevrolet communicated this campaign with radio spots and poster advertising - the latter purchased via the XLS Media Group and paid for with additional vehicles. Via Chevrolet’s advertising measures Grundig also achieved additional advertising exposure.
An absolute win-win situation for all concerned.
One category can be more highly discounted (if necessary) through the combined costing of the transaction as a whole (goods and media).
No, the planned or desired sales options are agreed in advance and contractually fixed.
Essentially XLS can supply all media. Availability or pricing options may temporarily restrict the choice.
Most types of media do not have any restrictions or limits in terms of XLS quotas. Some may be subject to limited bookings or a right of postponement.
The invoices for the merchandise are issued by the contracting party to XLS and conversely the invoices for media services rendered are issued by XLS to the contracting party. Transmission confirmations are also provided by media owners. The merchandise and media invoices are offset.
There is no risk for the contracting party, as the media agency is involved beforehand. Goods are only called off once the media service has been supplied or secured beforehand by bank guarantee (no interim currencies). There are a large number of references who can be consulted.
If the advertising spend is too high, it might not be possible to replicate all the discounts or the media requirements are too specialised or fragmented. Some products are less suitable or the sales possibilities are too greatly restricted.
One to four weeks, depending on the complexity.
XLS Media Group GmbH
Schöne Aussicht 29
Tel.: +49 (0)611 9 00 57-3
Fax: +49 (0)611 9 00 57-55
Managing Director with power of representation:
Klaus A. Westrick, Kai Hesselbach
Registry court: HRB Wiesbaden
Register No.: 12652
VAT ID No. pursuant to Section 27a of the German VAT Law (UStG): DE 220 310 573
Concept & design: Stern GmbH, Wiesbaden.
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Concept & Design: Stern GmbH, Wiesbaden.