Trinity P3 and Mark Ritson analysis: Digital commissions more profitable for media agencies


Mark RItson (1).jpg

The Australian’s Darren Davidson reports that a digital media ad buy is up to three times more profitable for an agency’s bottom line than alternatives offered by traditional media groups, analysis has revealed.

The commission-based fees, incentives, free ad space and ­bonuses media agencies can earn as a percentage of an advertiser’s ad spend range from about 7 per cent to 10 per cent with Google and Facebook on average, whereas television, radio, newspapers and outdoor media pay about 3 per cent.

That’s the key finding from an analysis of regional and global agency deals by global marketing management consultancy Trinity P3 and Mark Ritson (left), an adjunct professor at Melbourne Business School.