Several media operators (including RTL, Talpa TV and BrandDeli) abolished agency commissions last week, following the example of the STER early this year. Other media operators are expected to follow suit. What will change and what are the consequences?
Consequence of abolition
As BrandDeli, among others, points out, commercial policy is shared with agencies later. This also applies to Talpa and RTL. Incidentally, there are already digital media companies, such as Adfactor, that will also work with net prices and do away with the 15% agency discount.
No impact on advertisers of Stroom
In our partnership, Stroom retained part of the 15% agency commission as a fee to cover our (mostly administrative/executive) work. The remaining portion of the 15% agency commission was returned, in the form of the return commission.
Stroom previously foresaw an elimination of this 15% agency commission provided by media operators and have therefore already accommodated this in our contracts. Now that the abolition of the agency commission has been embraced by several media operators, this requires a more structural and unambiguous revision. This is a purely arithmetical and administrative change, which does not affect/damage our cooperation. First and foremost, this change does not make the advertiser more expensive for fees for our work. Nor does the abolition of the agency commission affect our services.
Should you want to know more about this or how this works specifically for your brand? Then get in touch with us!