COMM 300: Media / Agency / Client relationship

From BluWiki

• If company (client) deals with agency:
• Client contacts agency
• Agency creates an advertising campaign for client
• Agency "places" ads in media
• Media bills agency
  • Example:
    • $2,000,000 - total cost for ad
    • $300,000 - 15% agency discount
    • $34,000 - Early payment discount (2/10/N/30)
    • $1,666,000 - total cost
• Agency then bills client
  • Example:
    • $2,000,000 - total cost
    • $34,000 - early payment discount

• If company deals directly with media:
• Media bills company
  • Example:
    • $2,000,000 - total cost
    • $$40,000 - cash discount
    • $1,960,000 - total cost