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Advertisers, Agencies Form Task Force on Network Integration Fees
Advertisers and agencies are asking the three oldest broadcast networks to join them in addressing the practice of charging network integration fees.
Currently, only CBS, NBC, and ABC charge network integration fees. No other TV network, channel, or syndication charges advertisers to physically place their schedules.
The ANA (Association of National Advertisers) and AAAA (American Association of Advertising Agencies) are giving themselves no later than May 1 to take action against the practice, writes MarketingVox.
The two organizations assert that integration fees are a dated practice, left over from when commercials were physically integrated into programming. Inroads made in digital TV means such fees are no longer necessary.
Integration fees added up to an annual bill of $125 million in 2007, according to TargetCast. Fees also have hidden costs for agencies and advertisers.
The initiative is a result of an analysis conducted by committees within the AAAA and ANA, which found that 87 percent of ANA members find the fees unfair.