A casualty of the fued that continues between conventional networks and cable over fee-for-carriage, CAB announced that it is impossible to represent both sectors of the television broadcast industry in Canada. No word about it on their website – yet. One of CAB’s former requirements was that new agencies like BMC Inc., needed to post a $50,000. bond with the association in order to be officially recognized as an advertising agency and collect the 15% agency commission. Increasingly the requirement was not enforced by their membership.
For many years CAB worked hard to protect agencies by encouraging broadcasters to NOT extend the 15% commission when business was booked direct without an agency. The model, when it was working, meant an advertising agency could service a direct advertiser with no additional media fees required. A win for the advertiser who gains an expert for “free”, and a win for the agency who gains a client. With demand easing this past year, many stations are happy to extend 15% or more to advertisers directly. So right at that critical point on the cusp of success, an advertiser will have to pay 15% additional or more to gain the counsel and experience of a media expert. And in that regard, CAB will be missed.