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How to Reduce Media Agency Commissions by 10% - Television Advertising Best Practices

Tracy Woodworth, Media Analyst at Convertro (http://www.convertro.com/) discusses removing excess media and ways in which to reduce media agency commissions. In this video she details how to achieve more by spending less.

  1. Remove Excess Media Immediately
  2. Re-allocate to Highest Performing Channels
  3. Achieve More by Spending Less

Most agencies actually work on a flat free basis or they work on a commission basis and if they work on a commission basis, the first thing that you can do to reduce some of the commissions that you’re paying out is get rid of the excess media immediately.

A lot of agencies like to hide behind testing or they like to hide behind new widgets or new gadgets. Different channels that haven’t been tried or just different areas that technically the agencies are going to be getting agency learned based on spending your dollars for media.

So if you get rid of the excess media immediately, you’ll at least won’t be paying the commission on that.

To get a better performance from your agency, just make sure that you are actually seeing a reporting of where they’re taking the money that they’re saving from the inefficient media and they’re re-allocating back into the performing channels. You should always be testing media but make sure that it actually makes sense that you’re testing in the appropriate revenue streams.

So if you stay on top of your agency and you ensure the quality control and the performance of the different media strategies and the buys based on the ROI you should be pretty good.