Commissions
There are potentially a large number of parties involved for every advertising campaign and therefore a number of different contracts and fee arrangements between those parties. Each campaign is different and may involve, amongst others, some or all of an advertiser, advertising agency, poster specialist and outdoor advertising company. Governing the relationships between these parties will be a number of contracts and arrangements which can give rise to the possibility of confusion on commissions, discounts, rebates, fee arrangements and payments.
Customarily outdoor advertising companies to offer commission rates of 15% of the total advertising spend to advertising agencies and a further 5% to poster specialists. In practice, these commissions are likely to vary, in the future, among outdoor advertising companies and result from negotiations with advertising agencies and poster specialists. As a matter of industry practice, such commissions are granted as a discount off the total advertising spend. Clear Channel UK Limited will typically grant these types of discounts to advertising agencies and poster specialists.
In addition to these commission rates, outdoor advertising companies, including Clear Channel UK Limited, will, in certain circumstances, be asked by a poster specialist to grant volume rebates that reflect principally the volume of business placed by the poster specialist over a contract period (typically a calendar year). These arrangements are likely to vary, in the future, among outdoor advertising companies and between poster specialists. The arrangements that Clear Channel UK Limited has in place with the poster specialists, including progressive rebate rates, may for certain specialists represent a material percentage of the overall annual value of any business placed with Clear Channel UK Limited by those poster specialists.
We are committed to ensuring that the outdoor advertising industry has transparency of commissions, discounts, rebates, fee arrangements and payments. As such, we recommend that you contact your advertising agency and/or your poster specialist to obtain information about any such arrangements that might be relevant to you.
In addition to the above, we have in place policies and procedures that are designed to ensure compliance with the Bribery Act 2010 and we conduct our business fully in-line with industry best practice.
You may also wish to consult the ISBA (the Incorporated Society of British Advertisers), the IPA Outdoor (the Institute of Practitioners in Advertising Outdoor) and OAA websites for general information on industry practices in relation to the purchasing of outdoor advertising and best practices for remuneration and commission levels.
You can also read Clear Channel UK Limited’s standard terms and conditions.
Relevant Links
Outdoor Advertising Association of Great Britain: www.oaa.org.uk/
Incorporated Society of British Advertisers: www.isba.org.uk/isba
IPA Outdoor: www.ipa.co.uk/outdoor
Download Clear Channels Commissions document.
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Wed, 16 May 2012 08:55:02 +0000