"Twenty-five years ago it was a pretty simple system: Around 80 percent of all advertising and promotional dollars went to media advertising (television, radio newspapers, magazines, and outdoor). The advertising was created, produced, and placed by full-service advertising agencies- most everything was done under one roof. The agency purchased the media at a 15 percent discount, and that’s how ad agencies made their money"
Were the customers aware of this? Did some smaller agencies (without everything under one roof) actually have to pay that 15 percent to the media? And if so how did they make money? Throughout the four seasons of Mad Men one would get the impression that Lee Garner Jr. isn't the type of man to pay for what he thought was media but is actually Roger's salary.
"Network television advertising over the past 37 years has gotten about 10 times more expensive, even though its total audience has gone up only twofold and its rating (41 percent of US households) has not changed at all? Television advertising has become very expensive. This trend is not confined to the Super Bowl. It is true of TV advertising generally, particularly for truly mega-audience events like the Olympics"
To quote Betty Draper, What is going on?! They shot him!
Well no one really got shot, but considering the concept of television hasn’t changed much over the past 50 years(if you don't take TiVo into consideration), a 10x mark-up on the same space seems a bit excessive. Doesn't it?
A special thank you to one of my favorite professors K.Wayne for assigning homework that made me want to do extra work!
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