When an advertising agency purchased several hours of television time for its customers' commercials from a television station,the agency received 15 percent of the gross amount charged by the station.The 15 percent:
A) is a form of payment called a spiff.
B) is an amount paid to the advertiser as a negotiated fee.
C) is an incentive.
D) is called a slotting allowance.
E) is called a media commission.

Question

Quizplus · Accepted Answer

Because the agency is saving the media much of the expense of sales and collections, the media allows the agency to retain a 15 percent media commission on the space or time they purchased on behalf of their clients.

When an Advertising Agency Purchased Several Hours of Television Time