ABSTRACT

What does a media planner have to do with agency compensation? The answer is plenty. Media is a direct and indirect generator of agency income and ultimately profitability. Historically, advertising agencies were compensated on media commission. The business began as an agent for the print media and grew from there. Even if media isn’t the direct measure of compensation, it usually forms the basis for other forms of compensation. The advertising budget is a barometer of the agency’s compensation. And the media budget is typically the lion’s share of the advertising budget.