There are potentially a large number of parties involved for every advertising campaign and therefore a number of different contracts and fee arrangements between those parties. Each advertising campaign is different and may involve, amongst others, some or all of an advertiser, advertising agency, poster specialist and outdoor advertising company. Governing the relationships between these parties will be a number of contracts and arrangements which can give rise to the possibility of confusion on commissions, discounts, rebates, fee arrangements and payments.
It is usual for outdoor advertising companies including Adshel to offer commission rates based on the total advertising spend to advertising agencies and poster specialists. In practice, these commissions are likely to vary between outdoor advertising companies and generally result from negotiations with advertising agencies and poster specialists. As a matter of industry practice, such commissions are granted as a discount on the advertising agency’s or poster specialist’s total advertising spend with the outdoor advertising company.
In addition to these commissions, outdoor advertising companies, including Adshel, may, in certain circumstances, be asked by a poster specialist or media buying agency to grant volume rebates that reflect principally the volume of business placed by the poster specialist or media buying agency over a contract period (typically a calendar year). These arrangements are likely to vary among outdoor advertising companies and between poster specialists and media buying agencies. The arrangements that Adshel has in place with the poster specialists and media buying agencies, including progressive rebate rates, may for certain specialists and media buying agencies represent a material percentage of the overall annual value of any business placed with Adshel by those parties.
Adshel wishes to ensure that in its dealings it has transparency of commissions, discounts, rebates, fee arrangements and payments. Accordingly Adshel advises the Client that it should make appropriate enquiries with its advertising agency, poster specialist and/or media buying agency to obtain information about any such arrangements that might be relevant to this Agreement or any Order.