Trinity P3 and Mark Ritson analysis: Digital commissions more profitable for media agencies
March 5 2018, 8:34 am | | 3 Comments
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.
3 Comments
So when media sits in your meeting, and insists with a straight face that your big product launch should be entirely Facebook, YouTube and Instagram based, they’re doing so out of self interest?!!
Who would have thunk it!
Fuck, I hate media buyers.
Brilliant eh? And once you rake it it on one job, it happens on every other job we copy and paste the spreadsheet into. Seriously, you could get a room full of blind and deaf monkeys to do our job. Never worked anywhere where such a disregard for clients money pays back so well. Happy days!
Hanlon’s Razor