Guide to commission models in the media industry. See typical commission structures for ad sales, media consultants and digital sales.
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The media industry is undergoing a significant transformation with the shift from traditional to digital media. The industry generates over $4.5 billion annually, and commission remains a significant part of compensation for those selling ad space, sponsorships, and media solutions.
Commission models in the media industry vary significantly between traditional media (newspapers, TV, radio) and digital platforms, as well as between B2B and B2C sales.
| Media Type | Commission Structure | Typical Rate |
|---|---|---|
| Digital advertising | Of booking value | 8-15% |
| Print advertising | Of rate card price | 10-20% |
| TV/Radio spots | Of campaign value | 5-12% |
| Sponsorships | Of sponsorship value | 8-15% |
On-Target Earnings in the media industry varies by medium and segment:
There are significant differences in commission between digital and traditional media:
The media industry has several unique commission aspects:
Many media companies use tiered commission to promote sales of premium placements.
Most companies calculate commission on net price after discounts. Some have minimum thresholds to avoid overly aggressive discounting.
It varies. Programmatic ad sales typically have lower or no commission, while directly sold inventory provides full commission.
Clawback is common on cancellations before campaign start. After start, commission is reduced proportionally to the delivered portion.