Bruttomedienkosten vs. Nettomedienkosten
The price of advertising materials can be expressed in either net costs or total costs. Both of these alternate calculation techniques are very bewildering even for long-time advertising vets. "Net " and "gross" US dollar are an ancient remnant of a no longer existing remuneration scheme, and the present distinction between the two does not serve any useful aim other than to generate a cause of bewilderment and inefficiency in the medium delivery channel.
Despite being technologically outdated, the traditions of GDP prices remain in conventional advertising mediums such as TV, radio, posters and prints. It is therefore important to comprehend and manage your understanding of your total costs of service and their relation to your total costs of service. Which are the net costs of services? The net costs of utilities are easy and uncomplicated.
The net costs of advertising are the amount you spend on advertising carriers for the provider. How much are the gross costs of utilities? At the time, when advertising companies received a 15% default set fee, the gross advertising costs were the amount you spent your company to place your ad on your name with the publisher.
They kept the 15% as their own remuneration and sent the other 85% (net costs ) to the provider. In spite of this discomfort of being illegal, conventional medias are still often quoted in terms of prices. In order to determine the actual costs of the advertising medium - the net costs of services - one has to calculate a little.
When your medias are calculated brutto, you can easy compute the net medias costs: The net costs of utilities are always the net costs of utilities less 15%. In addition to these net costs, you are paying your advertising agent for the work they do for you. A few agents still work at 15% of GDP, but this is scarce and becoming increasingly scarce.
There is no such thing as a perfectly balanced formulation, but remember that you will be spending your agent more than the net media costs. If you are visiting a dealership to buy a new vehicle, you will see price labels on the window of each one. Instead, do a little research to find out the dealership bill for the vehicle (the dealership bill equals the net media cost).
Wait to receive a little more than the dealer's bill to reimburse the seller (which is the agency's fee). Similarly, in the case of the press, you almost never foot the gross costs for the press. Some exceptions to the old approach still exist, but this is going out in the era of electronic music.
When your assets are included in the net costs of services, you can simply extrapolate the net costs of services: only in a few cases would you want to "extrapolate" your net costs of services, except perhaps to enforce the adaptation of newer forms of democratic services into an old system to assist conventional services.
It is a problem to always move back and forth between net and total calculation. Every mediaplanning system, which has its own mass, translates for you automatic between net and brut price. Giving your customer a digitial mediaplan with cost of service price you' ll be confusing everyone in the room.
When you placed an ad order with a website or portable publishers with prices in terms of total costs, you would look like a doll. Want to display your total service charge only in those circumstances where it is anticipated. Your Mediaplanning system should also do this for you here. When you have line item prices with prices in your schedule, display a line for the costs of materials and display the costs of materials on the rows that are valuated using prices.
Otherwise, if the prices are net service charges, do not display the colum. While gross costs of services are a relic from the past, they are still deeply rooted in conventional purchasing. However, it is important that your mediaplanning softwares can deal with it to prevent embarrassments. Using the mediaplanning softwares Bionic, you can schedule every cent of your mediaplan - whether traditionally or digitally - via a state-of-the-art, web-based userfont.
The book deals with net prices and prices as well as countless other questions related to multi-channel mediaplanning.