A Minimum Advertised Price (MAP) policy is a pricing policy established by a manufacturer or brand that stipulates the lowest price at which a retailer is permitted to advertise the brand’s products. It is important to note that MAP governs the advertised price, not the actual selling price. A retailer can still sell the product for any price they choose; they just cannot publicly promote a price below the MAP floor. The primary purpose of a MAP policy is to protect the brand’s image and perceived value. By preventing a “race to the bottom” on price, it helps ensure that retailers compete on factors other than just price, such as customer service, product selection, and shopping experience. This protects the profit margins for both the brand and its retail partners, ensuring they have the resources to provide adequate support and service. MAP policies are typically enforced through monitoring and, if violations are found, penalties such as withholding cooperative advertising funds or ultimately terminating the retailer’s authorization to sell the brand’s products. A well-managed MAP policy is a key tool for brand protection in a multi-channel retail environment.
Return on Ad Spend (ROAS)
A metric that measures the revenue earned for every dollar spent on advertising. (Revenue from Ad Campaign / Cost of Ad Campaign).
