Re: Getting the "big guys" to lower their prices

Casey Tichenor (caseyt_at_aracnet.com)
Wed, 17 Jul 1996 15:34:02 -0700

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Hello everyone,

>I've always read that the actual price advertisers are paying for
>placements on major sites (Yahoo, Infoseek, Excite, etc.) is less than
>the price these sites quote.

>Has anyone on the list been involved in negotiating such an ad buy? And
>what was the "magic phrase" that got these guys to come down in their
>price?

I would imagine that this would fall into the category of agency
commissions. Most print media awards 15% to recognized agencies.
Electronic media, radio and tv, are at the same rate. Outdoor
advertising can go to as much as 18%. I don't really know about the web
but it would stand to reason that they would follow form.

A recognized agency is usually a full service firm with a media buying
department. Part of qualifying for agency status may be demonstrating
that you have these capabilities, however sometimes not. It is possible
to form in-house agencies and get away with qualifying for commissions.
It's all up the media and thier level of sophistication (in-house
entities would never qualify from NBC or even a major market newspaper,
but who knows with new media?).

I used to be a principal partner in an advertising agency.

Hope this helps.

--
Casey Tichenor
   Marketing Communications for Industry & Technology
   Beaverton & Portland, Oregon, USA

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