Question

Topic: Advertising/PR

Do Ad Agencies Contract Out Media Buying Services?

Posted by Anonymous on 250 Points
A small advertising agency with local media buying experience has opportunity to land large client with large regional, multi-state media budget.

In order to provide the best ROI for the client, as well as have the media buy commission make money for the agency, do agencies ever hire or contract out media buying to a service/agency?

If so, what percentage of the commission can the ad agency expect to keep from 15% standard agency commission with an outside media buying service/agency?

Thanks.
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RESPONSES

  • Posted on Accepted
    They do subcontract out. I have a client (small Hispanic agency) that has done media buying subcontracted out for a larger company. I don't know, however, what the commission/pay rate was.

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