Commissions

There are potentially a large number of parties involved inevery advertising campaign and therefore many different contracts and feearrangements between those parties. Each campaign is different and may involve,amongst others, some or all of the following parties: an advertiser, advertisingagency, poster specialist and/or outdoor advertising company. Governing therelationships between these parties will involve a number of contracts andarrangements, which can give rise to the possibility of confusion oncommissions, discounts, rebates, fee arrangements and payments.

It is not unusual for outdoor advertising companies to offercommission rates of the total advertising spend to advertising agencies andposter specialists. In practice, these commissions are likely to vary amongoutdoor advertising companies and result from negotiations with advertisingagencies and poster specialists. As a matter of industry practice, suchcommissions are granted as a discount from the total advertising spend.

In addition to these commission rates, outdoor advertisingcompanies including Bauer Media Outdoor will, in certain circumstances, beasked by a poster specialist or media buying agency to grant volume rebatesthat reflect, principally, the volume of business placed by the posterspecialist over a contract period (typically a calendar year). Thesearrangements are likely to vary among outdoor advertising companies, andbetween poster specialists and media buying agencies. The arrangements thatBauer Media Outdoor has in place with the poster specialists and media buyingagencies including progressive rebate rates. For certain specialists and mediabuying agencies they may represent a material percentage of the overall annualvalue of any business placed with Bauer Media Outdoor by those customers.

We are committed to ensuring that the outdoor advertisingindustry has transparency of commissions, discounts, rebates, fee arrangementsand payments. As such, we recommend that you contact your advertising agency,poster specialist and/or media buying agency to obtain information about anysuch arrangements that might be relevant to you.

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