ABSTRACT
The commission system is another tradition in the media that grew through practice. It actually refers to a discount on advertising space given by the media owner to a recognized agency or media-buying shop. It works like this. Media owners find it beneficial to deal with the ‘bulk buying’ centres represented by agencies and media shops. This means they are able to have smaller sales forces and a concentrated sales effort, rather than having to keep in touch with all potential advertisers direct. Media owners are therefore prepared to offer a discount to these bulk purchasers, the percentage of which will vary from medium to medium, but which is generally about 15 per cent.
