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Media Alert: ANA Offers Industry Update on Proposed Network Integration Fees Task Force

ANA Offers Industry Update on Proposed Network Integration Fees Task Force

New York, NY – April 30, 2008 – On February 19, 2008, the ANA (Association of National Advertisers) and the AAAA (American Association of Advertising Agencies) “formally invited television networks to join them on a task force to be convened no later than May 1 to address the practice of charging network integration fees.”  As the May 1 deadline approaches, the ANA offers the following update on the situation.

Network Integration Fees Background

Only ABC, CBS and NBC currently charge network integration fees, which add up to an annual bill to advertisers that totaled $125 million in 2007 (as estimated by TargetCast tcm).  In addition to the $125 million, network integration fees have other hidden costs to both agencies and advertisers -- they are a burden for agencies to administer and the extra manpower required to do so invariably costs advertisers more in labor fees.

A joint perspective from AAAA/ANA in February 2008 asked: Why do network integration fees still exist in today’s media environment?  Can network integration fees be rationalized?  We continue to welcome a response from the respective networks. 
 
Network Responses

As a result of the initial February outreach to networks:

ANA Responses

The ANA is prepared to engage in the following practices moving forward:

 

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