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^SPONSOR
AUGUST 1937
ARE CLIENTS DUCKING
ON TV PACKAGE SHOWS? A growing minorit) of clients
aren't paying show commissions, enrrent ANA snrve\ nveals. Here's how clients, agencymen evaluate inroads into the commission system
^J\<\ a dozen national advertisers don't pa) an\ commission to theii agencies lor package tv -hows.
This has been revealed in a justcompleted \N \ survej of it> members, SPONSOR learned. The sur\e\ resultwere being distributed to the \\\ membership at presstime.
The big question the survej raise* but doe not answer:
Is this the big chink in the 1 .V , commission system*s armor and a tipoff on the direction in which advertiser-agency compensation is now mo\ ing .'
Part of the answer will come out of another \\ \ report — the one on agencv compensation which Prof. Albert Fre\ of Dartmouth will unwrap
at the 28 October \\\ Convention. Bui the answer will reallj depend on what advertisers do in practice.
This is the real significance of the
present \\\ stud] 'conducted b) itradio-tv committee). It shows what advertisers are doing now.
The ANA committee polled and received answers from 7!! national advertisers. Of these. 37 had networkproduced -how-. 31 had independently produced packages and In had agencyproduced shows.
Thirteen of the 7!! respondents reported that the\ don't pa) show commissions to their agen< ies. I bese I I had network <>r independent pack
Vside from these 1 ! \N \ men who don't pa) -how commissions
man) other t\ advertise] enc)
service gratis for which the agenc) might Dormall) charge fees. In return I'M talent commissions, the) "rder special research projects, receive marketing aid. merchandising and frequentl) public it\ "t publit relations service. Whether the "free" service equals the amounl of the commission or tall fai short varii
\ a prominent membei of the \N \ radio-t\ committee says, "It silently
underst I. The exact amount of v-r\
ice for commission i individually negotiable and depend on the bargaining power of each client. Thi i true ■ t such giants as IW<.. Campbell and Chrysler as w-dl as -mallei clients."
SPONSOR
31 UClsi 1 '>.">,
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