Commission Method of Compensation (Advertising)Feedback.png


Definition

In advertising, the commission method of compensation is the traditional compensation method whereby advertising agencies have been paid on the basis of a percentage of the cost of media time and/or space they purchased for a client. The usual commission has been 15 percent of the total cost of the media space and time purchased. Recently, clients have been moving toward the negotiation of specific fees for the services rendered by advertising agencies.[1]

References

  1. ^ American Marketing Association. AMA Dictionary.

NewComment.png
We welcome comments that will help us improve the precision and clarity of our definitions. To submit a suggestion, please click on the Add Discussion bar below.
Notes:
  • Comments are limited to registered users of this site. Click “Join” at the top right hand side of this page to apply.
  • If you would like to suggest a new marketing definition or have a general comment, please visit our home page.