Re: ONLINE-ADS>> Where's the money?

Steven Heath (Steven_Heath_at_grey.net)
Fri, 10 Oct 1997 22:00:32 -0700

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> Sure, there may be 15% media commission to the agency, but the overall
> media spend would probably be so low, that the agency would make very,
> very little. An absolute fraction of an above the line campaign.(Unless
> you're handling an online mega-brand, and how many agencies are lucky
> enough to have that kind of business?)

My gawd, where to begin...

First of all, any agency that plans to survive and expect to get the
"standard" 15% media commission in the future are dreaming, I mean 256
colour rainbows
with little pixies in them type of dreams.

Most times I do a online media plan I either rebate the fee or use it to
offset the other costs of the project. I make FAR more money of the
creative development of the project then any 15% commission. The volume
you would have to do for 15% is huge...

Also, any company that has a contract to provide any/all creative for a
flat fee monthy basis is one I would like to know about. I have lots of
work I would _love_ to contract to them for a nice monthly fee :-)

GreyInteractive is owned by Grey (one of the largest Ad companies in the
world). In my part of Canada I have a higher income (income not billables)
per employee than my Advertising counterpart. In fact GreyInteractive in
Canada is one of the fastest growing companies in the entire Grey family
world wide. I can tell you it's not from geting 15% commission from banner
ads :-)

This occured because Grey set up GreyInteractive as a seperate company and
did not just use the most computer knowledgable Account Exec in the
office. In fact having Ad exp. is not even a large asset to me for hiring
staff. I have more people than I can care to shake a stick at in my sister
company.

Also, very little of my income is "stolen" from Grey Advertising. Sure,
some of it has been redirected from Grey to GreyInteractive. But in the
overall mix it is not that high and the upside far out weighs the
downside.

Hope it helps

Steven Heath
General Manager - Western Division
GreyInteractive Canada

Phone: (604) 687-1001 Email: Steven_Heath_at_grey.net
Web: http://www.grey.net

Canada's only complete Interactive Marketing Agency

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