Concerned about anything you've heard in recent days about RTÉ media trading? See our FAQs.

FAQ

What is Barter?

Using Barter companies is a relatively common practice in many industries, where companies trade unsold inventory at a reduced price in return for barter credits.

What are Barter Credits?

Barter Credits are earned in return for goods and services and can be used to ‘buy’ other goods and services, from other companies who trade with the barter company.

Why might there be invoice payments to or from Barter companies?

You could also “cash out” your credits, if you do not wish to use them against goods or services.

What is media commission?

Media commission was historically the standard 15% that media owners paid to media agencies for booking.

Over time the practice of media agencies rebating all or part of that 15% to their advertiser clients has become common. Instead of this commission the agency may then be paid by a retainer / fixed fee or another mechanism.

What is this about rebates, “kickbacks”, credit notes to media agencies?

Almost all media owners pay some form of volume rebate to media agencies based on their total (all clients) spend.

These are sometimes known as LTAs or AVBs.

This payment is typically between 1% to 10% of spend. The average is c 2.5%.

The payments can be made from media owners to media agencies in the form of cash (invoices), credit notes or media inventory.

All contracts negotiated by Pt78 on your behalf will have clauses that require full disclosure of these arrangements.

What are my fee arrangements and are media agencies taking this money for my advertising spend?

Depending on your agreed commercial terms you may have chosen to have this volume incentive rebated to you or allowed the agency to retain it as part of your agreed fee structure.

If your fee arrangements were negotiated by Pt78, we will have shown you all the separate fees, margins, mark-ups, charges etc. and the terms around them,  in a summary page.

If you haven’t used Pt78 and wish us to review your terms and conditions, we would be happy to do that.

Are these payments ‘secret’?

These practices are widespread and well-known.

Agencies and media owners will provide detail, on request. If you haven’t had the conversation already, ask your agency the question.

Should I be monitoring these payments?

Don’t worry, if you are using Pt78 to audit your agency fees, this information will have been disclosed in your audit reports.

If you do not conduct regular reviews or media audits, we’d be happy to advise you on what questions to ask.

Pt78 are experts in media trading and commercial arrangements, we’re here to help.

If you have any questions, please do get in touch with any of our team or contact us at hello@pt78.ie.

+353 1 556 3678