Distortion by commission

Alan Smith

Argues that the agency commission system has been disastrous for magazine publishers because it has made it more profitable for agencies to use television.

Distortion by commission

Alan Smith highlights the disservice that the commission system does to magazine publishers and advertisers

Alan Smith

As a pricing strategy the commission system has been a disaster for magazine publishers, and has had significant negative side effects for advertisers. In contrast, television and agencies have benefited. Let me try to justify these comments.

Until the emergence of commercial TV it could be argued that the commission system served publishers well. But even then it was sowing the seeds of a major, negative side effect: the total absence of ‘R&D’ into the effectiveness of magazine campaigns.

THE...

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