Glossary A–ZLetter A
Agency commission
Agency commission is the remuneration a media agency receives for planning advertising for its clients and buying it from media owners.
Traditionally, the seller of the advertising space grants it as a deduction from the price. In Germany it is also commonly known as “AE-Provision”.
Network operators encounter it in rate cards and quotations. A price can be stated gross, meaning before discounts and commission, or net. When an agency books, it deducts the commission from the price or invoices it separately; when an advertiser books directly, it often does not apply. There are also models in which the agency receives a fixed fee from its client.
Operators should state clearly in every rate card whether prices are gross or net and whether a commission is already included. Misunderstandings arise mainly when the agency and the network use different terms for the same price level. The level of commission is a matter for negotiation and not a fixed figure, which is why this glossary gives no rates.