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May 15, 2001
Advertisers Continue To Embrace Incentive Compensation
A new study by the Association of National Advertisers shows the direction toward cost-based and incentive-based programs continues to be the trend in advertising agency compensation.
Traditionally, agencies have been paid a commission of as much as 15% on every ad dollar spent by a company on TV time or space in magazines and newspapers. That rule of thumb has been challenged over the years, particularly as advertisers experiment with new media such as the Internet.
Leading the charge to the cost-based and incentive compensation are the packaged goods companies, such as Procter & Gamble along with Colgate-Palmolive.
Prime Locations Traded For Desired Products
Two large department store companies, Sears and J.C. Penney, are working closely together with Avon Products in an unusual arrangement. The cosmetics and skin-care company is sharing the cost for installing "Avon Centers," special counters and lounge areas designed to convey a luxurious image.
The department stores are going beyond customary treatment of vendors, giving Avon prime locations to sell their products. The stores will also pay the salaries of salespeople, whom Avon Products will train.
Singing of National Anthem at Lakers Game Exchanged For Tickets
Sitting in the first row of a Los Angeles Laker game costs $1,350 during the regular season, and $1,450 for the playoffs. (If purchased from someone on the street, such as a broker, tickets can cost up to $3,500).
Vince Neil of Motley Crue, who sang the national anthem
prior to the second game of the Lakers-Kings (Sacramento
Kings) game, received two free tickets to the game along
Here And There. . .
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