Question

Topic: Advertising/PR

Payment Terms For Certain Promotional Expenses

Posted by telemoxie on 2/10/2005 at 9:41 AM ET 250 Points
When I was a product marketing manager 15 years ago, you had to pay in advance for:

- radio advertising
- mailing list rental
- magazine or newspaper display advertising
- trade show booth space
- television advertising

I guess the theory was that the media company could only support a limited number of advertisers, and once the promotion was done, the buyer had no incentive to pay the bill.

Today, have competitive pressures changed the situation? What are the industry standards these days for payment for these items? Thanks in advance.
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RESPONSES

  • Posted by Mushfique Manzoor on 2/10/2005 at 2:24 PM Accepted
    hi telemoxie

    in my part of the world, just like the same you have mentioned, companies/advertisers/advertising agencies on their clients behalf pay at least some money advance to the media company for all sorts of media placement.

    if you have ad agency to do all the media placement and booking, they make the advance payment to the media company (max 50%, but depends on the relationship and negotiation between the parties) and pays the rest amount on completion of the work. the Ad agency later claims the entire amount from the client company. The Credit facility also depends on the relationship and negotiations between the advertiser and media company.

    cheers!!
  • Posted by telemoxie on 2/11/2005 at 6:50 AM Author
    Thanks.

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