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APPENDIX XIV.WIRELESS BROADCASTING.—AGENTS’ FEES ON ADVERTISEMENTS.When the question of extending commercial broadcasting from Radio Athlone was taken up in 1938, it was visualised at the outset that, in order to make the scheme a success, it would be necessary to pay a commission to advertising agents in accordance with normal business practice. The booking fees for air time were accordingly fixed having regard to the deduction of commission and the net fees were regarded as affording a reasonable profit to the Broadcasting Service. It was provided, however, that advertisements could be accepted direct from advertisers but it was considered that any advertisers who would be likely to avail of the scheme would ordinarily employ advertising agencies and would prefer to do business through these agencies and in practice matters have worked out in this way. There is no objection to dealing with advertisers direct and actually this was done in the case of the Hospitals’ Trust—no commission being paid to their advertising agents. The circumstances in this case were, however, exceptional and special terms were accorded to the Trust. In connection with the extension of advertising broadcasting, however, it was a reasonable assumption that advertisers would expect the Department to adopt the usual business procedure and even if certain of them were willing to do business direct, the advertising agencies would almost certainly represent to them that the Department was not conforming to established business custom and was endeavouring to save money at their expense. There is no written agreement either with advertisers or advertising agents in regard to the payment of commission. Following the introduction of the scheme, interested parties were informed that agents through whom business was procured would be paid a commission on the total booking fees received and a formal contract in the matter was not considered necessary. The commission payable is at the rate of 15 per cent. in all cases. (Signed) P. S. O’HEGARTY, Accounting Officer. Department of Posts and Telegraphs, 14th June, 1941. |
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