http://www.imresearch.com/advertising/how-does-an-advertising-agency-get-paid Mon, 19 Jul 2010 14:42:59 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.imresearch.com/advertising/how-does-an-advertising-agency-get-paid/comment-page-1#comment-1597 Tom E Mon, 08 Feb 2010 16:22:59 +0000 http://www.imresearch.com/advertising/how-does-an-advertising-agency-get-paid#comment-1597 I paid ad agencies two ways: either on a project basis ( the cost to complete a project) or a retainer of an agreed upon monthly amount with an agreed upon number of hours worked per month.Most companies in my industry placed their own ads to save the commission of the agency placing the ads ( easy to do since there were only a few magazines that covered the B-T-B market we were in and it was primarily print we used to advertise to the trade).<br><b>References : </b><br>I was Director of Corporate Marketing for 300 Million Dollar company I paid ad agencies two ways: either on a project basis ( the cost to complete a project) or a retainer of an agreed upon monthly amount with an agreed upon number of hours worked per month.Most companies in my industry placed their own ads to save the commission of the agency placing the ads ( easy to do since there were only a few magazines that covered the B-T-B market we were in and it was primarily print we used to advertise to the trade).
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I was Director of Corporate Marketing for 300 Million Dollar company

]]> http://www.imresearch.com/advertising/how-does-an-advertising-agency-get-paid/comment-page-1#comment-1596 smallbizperson Mon, 08 Feb 2010 15:55:59 +0000 http://www.imresearch.com/advertising/how-does-an-advertising-agency-get-paid#comment-1596 They charge a fee for creative work, and make a 15% commission on media. This means if they place media buys, such as television or radio air time, or print media space, such as newspapers, magazines, or billboards, they add the standard 15% commission on the costs of the media. If they produce print work, they add a commission on to that as well. Or they may charge a flat monthly rate for creative work and sign a long term contract with a client guaranteeing X amount of work for X amount of money. (A one to three year contract is normal.) There may be fees for additional work requested by the client such as producing original market research--polling potential clients with taste tests of a product for instance. (And you may be able to tie in bonuses for proof of pre-determined levels of effectiveness. Say the client is opening a new store location, and you get 500 people to show up and get a spot on the local evening news.) Go to the business section of your local library. The librarian will be able to help you find shelves of books that explain this all in detail.<br><b>References : </b><br> They charge a fee for creative work, and make a 15% commission on media. This means if they place media buys, such as television or radio air time, or print media space, such as newspapers, magazines, or billboards, they add the standard 15% commission on the costs of the media.
If they produce print work, they add a commission on to that as well.
Or they may charge a flat monthly rate for creative work and sign a long term contract with a client guaranteeing X amount of work for X amount of money. (A one to three year contract is normal.)
There may be fees for additional work requested by the client such as producing original market research–polling potential clients with taste tests of a product for instance.
(And you may be able to tie in bonuses for proof of pre-determined levels of effectiveness. Say the client is opening a new store location, and you get 500 people to show up and get a spot on the local evening news.)
Go to the business section of your local library. The librarian will be able to help you find shelves of books that explain this all in detail.
References :

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