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The advertising agency then massages and moves the campaign to ensure the business the greatest return of interest possible. The station is monitored closely to ensure that they are doing their job and not under-delivering. And because the stations are so dependent on these agencies for their success, they bend over backwards to ensure the agency is happy. In addition to getting a better rate, agencies also have media knowledge that allows them to schedule your creative at the right time, know which seasons aren’t as worthwhile, what times to broadcast for a particular demographic, what weeks to stay away from, when stations are low on inventory, etc. These rates are so much lower, in fact, that even with a 15% commission added the business still pays the same or less (and receives much better treatment from the networks). Much like the concept of buying a product whole-sale, the agency gets a lower rate for buying in bulk. No, you don’t save money by going without one.Īgencies spend more money than any independent business owner could ever possibly spend on any particular channel because they represent various different clients at once.

Yes, agencies charge commission (whether or not it’s 15% differs from each client and agency). This, however, couldn’t be farther from the truth. Business owners think that by cutting out the middle man they save money. What is this 15%? Well, it’s the supposed “standard” of what advertising agencies take as a commission from the media contracts they create with businesses and the broadcaster.

Saving 15% on advertising costs sounds great however, these businesses are ill-informed of how the media-buying world truly works. Wanting to save the infamous “15%”, some opt to advertise on their own, and deal with the stations directly. Obviously, this is why businesses turn to various media outlets to get the word out. The success of a business is shaped greatly by the power of its advertising.

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