The agency commission is a fee that is due to the advertising agency for the services it provides to its clients.
According to the agreement made by both parties, compensation can be made through a commission or a fee.
Difference between commission and fee
The agency commission is applied to advertising campaigns that purchase advertising on mass media and is calculated as a percentage of the value of the contracts that acquire advertising spaces.
For all other services that do not use mass media, the advertising agency is paid with a fixed salary through an agency fee.
The agency fee is the commission that belongs to the advertising agency through a contract and is calculated as a percentage, based on the
budget set by the agency.The term agency fee comes from English and means: agency rights.
How to manage production costs?
When an agency places a TV ad, the station pays a commission for the advertising expenses.
It is usually a fixed percentage of what a client spends to air their commercial.
The commission varies depending on the service, and is included in the bill that the client receives from the agency.
To produce a commercial, the presence of many people is required, such as:
- Actors;
- Voice-over artists;
- Cinematographers;
- Filmmakers;
- Narrators.
These are hired to carry out the project and complete the advertisement.
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