Advertising space (Break)

The advertising space/break is the framework in which booking elements (see below) can be booked. The break becomes calculable using units such as seconds, frames, or pieces.

Booking element

The term booking element designates the individually bookable advertising element, e.g. the spot within an advertising frame (break). The booking element uses the capacity of the break, i.e. the capacity of the break is influenced by the sum of the booking elements.

Potential

The potential is the sum of the values of all created breaks.

 

Potential = Σ (p_w *  e_w)

w: break
p_w: price of the advertising space
e_w: number of advertising spaces

 

Example

Potential advertising frame
= planned length of the advertising space [sec.] / 30 [sec.] * 30 second price [EUR]  
= 360 / 30 *  2100  = 25200 [EUR]

Potential sponsorship
= price indicative + price abdicative + price reminder = 3600 [EUR]

All revenue key figures are defined at the order level.

MG3

The MediaGross 3 is the price according to the price list without surcharges or discounts.

 

MG3 = list price

 

Example

MG3 = list price = 2700€

 

MG2

The MG2 is the MG3 including potential surcharges or discounts. This price also reflects a possible disproportionate price.

 

MG2 = MG1 +/- surcharges or discounts

MG2 = Σ (p_bb *  e_bb)

b: booking element
p_bb: price of the used booking element
e_bb: number of used booking elements

 

Example

A spot is 20 seconds long. The sales house has a disproportionality factor of 20 percent surcharge.

MG3 = 20 * 100€ = 2000€
MG2 = 2000€ * 1,20 = 2400€

 

Compensation

Compensation is an unpaid booking element.  Definition is done by the mediagross-flag = false in the order type. The FOC is only greater than 0 € in MG2 and MG3.

 

Free = MG1 * FOC rate (always 100%)

 

MG1

MG1 is the value of all paid booking elements. Definition is done by the mediagross-flag = true in the order type.

 

MG1 = Σ (p_vb * e_vb)

b: booking element
p_vb: price of the paid booking element
e_vb: number of the booking elements paid

 

Order / price list discount

An order / price list discount is a monetary discount on the MG1 granted to the customer. This is granted as a percentage.

There are two types of order / price list discounts: standard discounts and suborder cash discounts.

The standard cash discount is calculated on the basis of a client's gross sales across all discount-creating orders. There is also the option of storing a special discount in the system. This is also shown in the price list discount.

The suborder cash discount applies to individual suborders. The suborder discount is deducted before the order / price list discount.

 

Order / price list discount = Σ standard discount + Σ special discount

Special discount (order discount) = MG1 (order-related) * discount rate of the order

Standard discount = (MG1  special discount) * price list discount

 

MN1

MN1 is the amount that is actually billed to the customer.

 

MN1 = MG1 - order / price list discount

 

Agency commission

The agency commission is the percentage of MN1 that the media agency keeps as remuneration.

 

Agency commission = MN1 * agency commission rate

 

MN2

MN2 is the MN1 reduced by the agency commission rate.

 

MN2 = MN1 - agency commission

 

Early payment discount / Allowance

Percentage discount on the MN2, which is granted when paid within a certain period.

 

Cash discount = MN2 * cash discount rate

 

Value added tax (VAT)

VAT = MN2 * VAT rate

 

MN3

MN3 is the actual cash inflow from the client to the broadcaster.

 

MN3 = MN2 - Cash discount

 

Sales house commission

The sales house commission is the remuneration that the sales house receives from the broadcaster.

 

Sales house commission = (MN1 - cash discount amount) * commission rate

Cash discount amount see point 4.9.2

 

MN4 Broadcaster net

The MN4 broadcaster net is the remuneration that remains with the broadcaster after deducting the sales house commission.

 

MN4 broadcaster net = MN3 - sales house commission

 

Presentation of the correct revenue key figures system

 

Time utilization

The time utilization is the relation of the occupied units of a break to the originally planned units.

There are two utilization types: booked utilization and paid utilization. The booked utilization includes all booked booking elements. The paid utilization, on the contrary, only takes into account the paid elements and therefore no compensation.

 

Booked utilization = e_b / e_p

Paid utilization = e_v / e_p

e_p: Number of planned advertising spaces
e_b: Number of booked advertising spaces
e_v: Number of paid advertising spaces

 

Monetary utilization  

The monetary utilization is the relation of the value of the occupied units of a break to the value of the planned units.

There are two utilization types: booked utilization and paid utilization. The booked utilization includes all booked booking elements. The paid utilization, on the contrary, only takes into account the elements actually paid and therefore no compensation.

Surcharges and discounts are not taken into account in the calculation of monetary utilization.

 

Booked utilization = e_b * p_b/ e_p * p_p

Paid utilization = e_v * p_v / e_p* p_p

p_p: Price of the planned advertising spaces
p_b: Price of the booked advertising spaces
p_v: Price of the paid advertising spaces