Wednesday, April 8, 2009

Is your media rep seeing your clients behind your back?

I called a client the other day about some updates on his website and he casually mentioned that he just signed an annual deal to advertise on a local television station.

"Really?" I say, thinking it was only a couple months ago that I proposed TV advertising to this very client only to be shot down by the budget torpedo.

"Yeah," he says happily. "The station gave me a really good deal. There's even free production."

"Why didn't you ask me about it?" I inquired, trying hard to keep the petulance out of my voice.

He pauses, then reluctantly says,"They told me it would cost more if I went through an agency."

I don't recall exactly how the rest of the conversation went although I did successfully convey the fact that a) free production is normally part of an annual deal, b) the fact that the station says it is "#1" doesn't mean it is "#1" among the people you want to reach, and c) a prime rotator usually means your spot will rotate into a show that gets fewer rating points than daytime soaps.

I must confess that I feel a bit a jilted. I just had lunch with my rep from this station and over arugula and penne pasta she told me how much she loved working with my agency. How could she? I thought our relationship meant something.

In the past, I have tried to cut media reps some slack. After all, I was one of them for five years so I know the importance sales managers place on direct business. But, lately I've begun to question the cost this "sell direct" mentality has on agency relationships with the media.

No doubt the media would rather keep their 15% instead of doling it out to agencies, but they more than make up for it by cutting their reps' commissions on agency business. No harm, no foul (unless you're the media rep with the puny paycheck).

I just can't figure the rationale for this system. Let's see... the media pays their reps bigger commissions on direct business. This encourages them to sell more direct business. By and large, direct business represents substantially fewer dollars than the business that comes through agencies. So, by focusing on direct business rather than agency business, media reps can actually make more money by selling less.

Hmmmm.....

Economics was never my strong subject, but you don't have to be Warren Buffet to figure out that this is probably not the best plan. It's the only plan they've got though and darned it they're not going to keep using it.

As for my adulterous media rep, I'm completely over her now. Next time, I'll know better. I'll order dessert with my penne pasta. She can pay for it with all those direct commissions she's earned.

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