OOH glossary · Pricing
Agency commission
Agency commission is the share of a media buy paid to the agency that placed it, classically 15%.
When an agency places a buy, it is often paid a commission. The classic rate is 15% of the gross price.
Trade books quoted by Billboard Insider in 2016 put it at 15% to 17.5% of gross. Big metros can run lower.
Who pays varies. OUTFRONT says commissions are paid either by the outdoor company or by the advertiser.
OAAA’s best practice differs. It recommends net billing and says OOH companies do not pay agency commissions. Always ask if a rate is gross or net.
Formula
Net = gross × 0.85 (at 15%). Gross = net ÷ 0.85.
Example
A $2,000 gross four-week rate on a bulletin nets Riverbend $1,700 after a 15% commission. To net $2,000, quote $2,000 ÷ 0.85, or about $2,353 gross.