View Single Post
Old 02-19-2002, 05:14 PM   #10
Registered User
Lil_Red's Avatar
Join Date: Dec 2000
Posts: 1,579

One thing which will probably change going forward is the reduction in the percentages ad networks keep. Currently, ad networks keep 40% or more of the revenue. The internet is the only ad medium where the ad network keeps the lion's share of the money. If ad network commissions decrease to fall in line with other media, publishers should see a corresponding increase in their revenue.

Old media precedents aren't encouraging. Historically, national advertising representatives for newspapers retain only 15% of ad sales money as a commission, says newspaper industry consultant John Morton. Average rep commissions of 15% are a distant memory in broadcast advertising, says Gordon Hastings, former president of ad rep powerhouses Katz Television and Katz Radio; TV averages fell to 10% in the 1970s, and radio fell to 11% in the 1990s. TV commissions have since fallen farther -- according to anecdotal evidence, they are now close to 5%.
Lil_Red is offline