AE commission
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The term AE commission (also known as agency commission ) is a remuneration that publishers pay to advertising agencies for mediated orders, i.e. the allocation of advertisements to their advertising media or the length of the advertising sent.
It has its origins in the early days of advertising, when one of the main tasks of the hired agencies was to mediate between advertising companies and advertising media. At this point in time, the agency acted as a pure link between client and contractor. If, for example, an agency succeeded in getting an ad space that a publisher would like to occupy to a company, it could look forward to part of the total order volume as compensation. This part of the volume was then referred to as the AE commission.
In addition to the brokerage, the delivery of complete printing documents is expected - the publisher / advertising medium pays in such a way that it incurs neither prepress costs nor time spent on production. This is still common today for newspapers, but also for radio, television, posters, cinema and the Internet. The commission usually amounts to ten to 15 percent of the order volume, but can also be reduced to less than one percent for pure media agencies.
The abbreviation AE stands for Annoncen-Expedition , a previously common name for agencies that serve as advertising brokers.
In recent years, the AE has increasingly been canceled by smaller newspapers and magazines for reasons of cost, which leads to violent disputes with advertising and media agencies. The AE serves the full-time advertising agencies as the main source of income - advertising and media agencies also bear the risk of default in advertising costs if the advertising customer becomes insolvent at short notice and ensure that payment terms are met . A current trend is to add the AE to the advertising costs and to charge the agencies higher.
Individual evidence
- ↑ AE commission definition. Retrieved March 10, 2019 .