New ad commission structure gains attention

While the Kansas Press Association’s decision to change its commission structure has not borne fruit yet, the change will still make our rates more competitive as more agencies and clients learn about it.

And it looks as if they are starting to notice the change.

In an attempt to reverse the trend of declining advertising placements in its member newspapers, the KPA Board of Directors voted at its July meeting to change the procedure for ads placed through the association.

For more than 20 years, the KPA has marked up local rates 25 percent to allow for the association’s commission.

Unfortunately, many sales were lost to this mark-up as clients realized that going directly to newspapers would result in a better rate

In addition, to land a sale, some newspapers were compelled to offer better rates to the client or advertising agencies than offered to KPA, which at times damaged the association’s reputation as a trusted advertising placement service.

In order to keep member services high, dues low and the KPA solvent, the board decided a commission change was necessary.

The KPA now quotes the newspaper’s local rate and the KPA retains a 10 percent commission from that net rate.

So how is it working so far?

“While we continue to promote our services to everyone, we are starting to get a lot of calls from agencies curious about what we can do for them,” said Amber Jackson, KPA  advertising director. “They are finally realizing that we are truly their one stop shop to helping their clients."

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