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Guru Search Results: 12 matches were found

Thursday, October 19, 2000 #3898
I need help. We have a client that wants to do a campaign around sports programming and corporate sponsorships. We are looking at 12 markets - most in the top 20 DMA's. Here is my problem: We've been asked to make a recommendation on whether it is better to run on local TV, radio and in-stadium signage as packages in each of these 12 markets or, if it is more effective to run on FOX Sports Net regionally in 12 markets. 42,000 sales people later - I am getting the idea that no one can give me accurate audience numbers for radio live broadcast of home game coverage. Do you know I can get this? Also, do you have any opinion on the effectiveness of Corporate Sports sponsorship packages. These are major teams that I am talking to - Stars, Lakers, Mets etc.

The Media Guru Answers(Sunday, October 22, 2000 ):
There are no syndicated measures of individual sports events on radio. Stations may have commissioned incidental studies, ask them.

In the Guru's opinion, corporate sports sponsorships do more for corporate management egos than they do for marketing. If your target is very committed to the sport in question, or the product is closely related, like motor oil to auto racing, then it can be an effective measure.

Friday, August 11, 2000 #3697
Dear Media Guru: Typically, how is the money I spend on broadcast (e.g. TV) advertising sliced? ie. Which player gets approximately how much of the pie? I dont need exact figures - since that would vary by actual agency, objectives etc. but just good ball-parks. How much does the agency keep as commision? How much is spent on the creative portion? How much on the media itself? Are there other charges? Are there any other stake-holders? If the agency is not full-service, what commision/fee is given to the media-buyer? If you must need more specifics: Lets consider 2 scenarios: - Lets say my company is General Motors and my annual budget is $100 Million. - Lets say I am a .com. My budget is $2 Million. Thank you much!

The Media Guru Answers(Sunday, August 13, 2000 ):
Of course, there are many deals that vary from the traditional commission structure, and the bigger the budget the more likley there is a deal below the tradtional standard. But traditionally: On a broadcast media bill to an advertiser, the agency gets 15% commission against the gross media cost. If a sales representative not an employee of the media owner has made the deal, the rep gets about 15% of the remaining net media cost. The rest belongs to the medium.

Out of the agency's 15%, it is being compensated for it's creative and marketing thinking. Actuall creation of the advertising materials, i.e. production of commercials is typically charged at out-of-pocket costs plus a mark-up of 17.65% (which is equal to 15% of the out of pocket + commission total).

If an agency uses an outside media buyer, the fee is usually 5% or less of the gross media costs, but there is a greater variation in these deals.

Thursday, August 10, 2000 #3694
Dear Guru, Have you heard of online ad agencies charging a bad debt provision to owners of inventory to share the risk that media buyers don't settle their accounts?

The Media Guru Answers(Friday, August 11, 2000 ):
It's possible. The Guru assumes that by "online ad agencies" you are referring to ad sales representatives, since media buyers are typically employees of advertising agencies (companies that create and buy space for ads).

At the enormously high commission rates ad sales reps often charge (40%+), the Guru would expect them to absorb this risk. At ordinary commission rates, such as 15-20%, the inventory owners might share the risk on non-payment, but certainly not reimburse the representatives.

Tuesday, August 08, 2000 #3683
When making buys across different mediums, I have found that the agressiveness of salespersons vary drastically between mediums. What type of commission structure do TV, Radio, Newspaper, and Internet ad sales persons make....generally speaking?

The Media Guru Answers(Tuesday, August 08, 2000 ):
The Guru can't generalize on this. Different organization in the same medium have different structures. Different sales people may have different deals in the same organization, relating to commission structure and draw.

Aggression may be more a matter of the competitive situation.

Friday, April 14, 2000 #3398
1.Is there a resource that lists magazine publishing reps around North America? 2.Is there a resource that describes average fees and commissions? 3.Is there a resource for finding out average wage and commission structure for in-house ad sales reps. Thanks.

The Media Guru Answers(Friday, April 14, 2000 ):
Standard Rate and Data Service (SRDS) Consumer Magazine Source lists reps.

The other data can probably be found through various trade publications, such as Editor & Publisher

Thursday, November 18, 1999 #2985
Guru, thanks for your answer, a good on-line sales rep sounds the way forward, any hints as to where they hang out? and what do I ask them to make myself sound knowlegeable about what they do? Have you any rough idea of what they charge and how they will generate income. I am a beginner at this . Andrew

The Media Guru Answers(Monday, November 22, 1999 ):
There are several large and small reps, like DoubleClick, AdSmart and 24/7 Media. If none of these suite, ask them for guidance or consult The Internet Advertising Bureau.

The Guru believes it is smarter to admit what you don't know rather than "trying to sound knowledgeable" and missing out on gaining information.

You need to know what the rep's commission structure is (15-20% for a sizeable site is reasonable). They should tell you how they will present your site. Reps who will only sell your site in a package of commodity impressions at a high (more than 50%) commission are to be avoided. Unless your site can offer over 1,000,000 impressions per month, your options will be limited.

Wednesday, March 10, 1999 #2381
We are getting requests from Account Management to find out what the international consumer reaction has been to a new product we just launched. I am only handling US media. How can we find out this information? Thanks Guru.

The Media Guru Answers(Wednesday, March 10, 1999 ):
This question goes outside media. But, what do you mean by "consumer reaction to a new product?" sales? Intent to purchase? Brand Image?

How do you determine these answers in the U.S.? Presumably by commissioning custom research. Perhaps an omnibus supplier in Europe can do an inexpensive topline report.

Try contacting ESOMAR , the European Survey, Opinion and Market Research Organization or AEMRI, the Association of European Market Research Institutes for potential suppliers.

Wednesday, January 20, 1999 #2281
Dear Mr. Guru: We publish monthly magazines that contain advertisements. The average length of all advertising contract is 8 months. Each month, commissions are paid to the sales rep who closed the deal. I am designing an employment contract for the hiring of sales staff. I need to know: what is the standard industry practice when a salesperson's employment is terminated, but the contracts that they brought in will run on for months? Do commission payments cease on the last day of employment or continue for any period of time? Thanks for your time, Ray Mallett

The Media Guru Answers(Wednesday, January 20, 1999 ):
It varies. Payment can be keyed to collections as of termination, bills rendered as of termination, or deals signed during employment, and paid as collected.

Tuesday, December 01, 1998 #2189
Dear Guru. I've got several questions. 1. What is the difference between the following three types of compensation for the ad agency services: commission, fee and percentage? Are there any other compensation systems used by the ad agencies? 2. What is the right way to evaluate the efficiency of the advertising campaign: a) held in several cities at the same time (each city has its' own media vehicles and their ratings are measured for the target audiences based in those cities); b)using several medium at once (i. e. TV and print). 3. How can we measure the effectiveness of the outdoor ad campaign? Thank you in advance.

The Media Guru Answers(Tuesday, December 01, 1998 ):
  1. commission is based on a percentage of the agency's spending on the advertiser's behalf. The spending will primarily be media purchase and (in the U.S.) traditional commission, usually included in media rate cards, is 15% of the gross spending. Other expenditures, such as production, are marked up 17.65% of the net spending; this is exactly equivalent to 15% of the gross.

    Fees are flat amounts of compensation for performing agency tasks. On very small accounts, 15% commission may not cover the work required to create and place advertising. On very large accounts, 15% far exceeds what would compensate the effort.

    By Percentage the Guru imagines you mean an agreed commission other than the 15 / 17.65% structure.

  2. Efficiency is typically expressed in one of two ways: CPP - Cost Per gross rating Point or CPM - Cost Per thousand audience impressions (Roman numeral "M")

    In comparing markets, CPP is problematic because the universe number for calculating the Points - or percentage of universe - changes. However, CPM just uses impressions, which can be added and compared across markets. Other issues, about units and print versus broadcast can merit separate consideration, but these would be beyond efficiency.

  3. Effectiveness measures depend on a definition of the effect desired; is it awareness or sales or share? To best measure outdoor specifically, you need to set up your standard of effect and measure it with and without outdoor.

Wednesday, September 16, 1998 #2046
Do you know of a company that brokers remanant radio time? We currently buy print advertising through two different remnant brokers, but have not found the same for radio. We need very competitive, DR rates. I'm concerned that just letting reps know of our interest will not generate enough inventory. Thanks.

The Media Guru Answers(Tuesday, September 22, 1998 ):
The Guru is not aware of any such brokers. In radio, the standard rep contract gives the rep a commission on any sales through any other rep, so this sort of brokering would not be financially feasible. The regular reps, however, may be a source for you.

The nature of broadcast "mechandise" which is perishable makes the situation quite different than print where last minute cancellations or less-than-national buys create space that will carry a cost unless sold. Often, broadcasters will give away unsold time as bonuses to paying advertisers.

There has been a history of buyers who are open to remnant time making themselves known to radio networks as ready to buy any remnants. The same technique might work with spot if you can identify enough stations that you are willing to buy on this basis.

Monday, October 13, 1997 #1429
Dear Guru, I need your input for a white paper I am helping develop for a client. The topic is what are some of the advantages of upfront/year long planning versus developing several mini-plans throughout the year. I guess I always took planning for granted until this particular client changed ownership and campaigns began to develop on a case by case basis. Trouble is, not much changed from year to year so it would be fairly easy to forecast the client's objectives into an upcoming year. I already came up with: time savings by planning once a year and then there is only a slight bit of execution/maintenance to worry about, the chance to lock down positioning for print, and more leverage in negotiating broadcast. Any other top line suggestions would be appreciated. Thanks in advance.

The Media Guru Answers(Monday, October 13, 1997 ):
If you are on a commission basis, savings based on amount of work would be yours more than the client's.

The Guru believes that most benefits of long term planning are the ones you already have, leverage and opportunity (positioning).

But, if you separate long term planning from buying campaign by campaign, there are opportunities in short term buying, as well. If you always have uncommitted money to spend, you will always be able to take advantage of last minute opportunities, TV specials, special events, "fire sales" on unsold inventory or cancelled space, etc. The media sellers, knowing there is money waiting for opportunities, will seek you out when they occur.

From your experience with this client, you should be able to identify the particular media and vehicles that offer best opportunities in long term commitments versus those where short term buys give the greatest advantage.

Friday, October 04, 1996 #1130
Dear Media Guru, First, thank you for this service. We run a national niche trade publication which also enjoys a good newsstand presence. I am wondering where we could go to find out if the terms that our prospective advertising representative has suggested? 25% commission, a 1000+ retainer per month, plus traveling fees. He has references confirming that he currently does 20K in ad revenue for two of his other clients who are similiar to our publication.He is very professional and comes highly recommended, but we are unsure of his costs and whether the costs will be offset by enough revenue quickly enough to avoid a financial problem. Any suggestions?

The Media Guru Answers(Thursday, October 10, 1996 ):
The Guru believes this calls for comparison shopping. You will find a list of independent print sales representatives in the front of Standard Rate and Data Service (SRDS) Consumer Publication and Business Publication Advertising Resources