Question

Topic: Other

Question Regarding Billing On Printed Advertising

Posted by Anonymous on 125 Points
Question:

Is it common practice to have an agreement with an advertiser to pay for overages on printed advertising (magazine ads and the like)?

We are considering developing a print publication with a specific print run (250k) - and have an ad schedule based on that amount of printed copies. It is possible that we may sell-out and have another print run of the same amount.

We want to know if it is common practice to have an ad contract that says if we do another print run, the advertiser pays "X" amount more per copy. (this would be a discount of course to the original rate). How is this usually handled?

Tks.
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RESPONSES

  • Posted on Accepted
    There are various approaches, but I've been the buyer in cases where I agree in advance (i.e., when I sign the contract/purchase order) to pay a premium for a possible over-run. There is, of course, a cap on how much I would pay, and the CPM/rate is somewhat lower than the base rate.

    Same is true, BTW, when printing books. If I order 5,000 printed books, I pay a variable rate (say 60% of the base rate) for up to a 5% over-run.
  • Posted on Author
    Thank you for the responses

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