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.
As a result of the initial February outreach to networks:
- One network has agreed to meet to discuss their network integration fees
- One network is not prepared to join a task force, but is willing to discuss the issue with individual advertisers or their respective agencies.
- One network has been non-responsive after three requests
The ANA is prepared to engage in the following practices moving forward:
- Hold continuous ongoing dialogue with our members as they evaluate their television buys over the coming months and years.
- Encourage all marketers to understand the cost of network integration fees for their own company.
- Encourage marketers and their agencies to discuss the reason for these fees with ABC, CBS and NBC at every opportunity.
- Highlight network integration fees at appropriate member gatherings, including committee meetings and conferences. Network integration fees will be debated in a session entitled “10 Media Issues in 50 Minutes” on May 5 at ANA’s Advertising Financial Management Conference, to be held at the Ritz-Carlton in Naples, Florida.