NEWS: TSMS woos clients with formal volume discount incentive

TSMS has become the first ITV sales house formally to offer volume discount on ratecard, just two months after first pushing for the move.

TSMS has become the first ITV sales house formally to offer volume

discount on ratecard, just two months after first pushing for the move.



The sales house is now offering agencies different discount levels for

commitments of pounds 5 million and over.



The other two ITV sales houses, Carlton UK Sales and Laser Sales, have

decided not to formalise the concept by offering ratecard deals.

However, they are prepared to incorporate volume discounts into their

agency discussions.



TSMS initiated the move in a bid to keep advertisers loyal to the ITV

network in the face of the launch of Channel 5 and the seepage of

revenue to satellite and cable channels.



The drive comes amid pressure from certain agencies to change the way TV

is traded by incorporating volume discounts into deals. Jerry Buhlmann,

managing director of BBJ Media Services, has called for volume discounts

based on spend thresholds (see Opinion, p25).



However, most observers believe Laser and Carlton are more focused on

their share of ITV than TSMS and are unlikely to follow its lead.



Paul Parashar, broadcast director at New PHD, said: ‘We would applaud

TSMS’s move to resurrect volume discount but the mechanism will only

work if it offers further discount rather than being part of existing

discount.’



Bill Barker, broadcast director of J. Walter Thompson, added: ‘Share of

broadcast is more sensible for ITV. It’s easier for advertisers and

agencies to embrace share rather than volume.’



Separately, Jerry Hill, chief executive designate at TSMS, is looking

for a number two to take a lead role at the sales house. Hill moves up

from managing director on 1 January, when Tim Wootton becomes chairman.



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