When an advertising agency purchases several hours of television time for its customers' commercials from a television station,the agency receives 15 percent of the gross amount charged by the station.The 15 percent is known as:
A) a spiff.
B) a cooperative allowance.
C) an advertiser incentive.
D) a slotting allowance.
E) 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 Purchases Several Hours of Television Time