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Finances at Saatchi & Saatchi Advertising

Eric Korte
Eric Korte is an Advertising Agency Representative for Saatchi and Saatchi, one of the world’s foremost advertising and brand management firms. Korte deals with the placement of music in ad campaigns.
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Eric Corte, a representative from Saatchi & Saatchi, a prominent Advertising Agency, talks to Loyola University New Orleans students about music in advertising. In this segment he discusses the income generated by advertising agencies; how ad agencies make their money and how they spend it. Corte gives a rough estimate of what it costs to buy music for ads and the importance of media buyers.



Shoot Date:
2004
Related Materials

Keywords:
Advertising | Finance

This Video Clip Appears on:
Advertising | Marketing
Company or School:
Loyola University New Orleans | Loyola University New Orleans Forum | Saatchi and Saatchi

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[Finances at Saatchi & Saatchi Advertising]

Jerry Goolsby
Just to give you an idea in billings, that’s public information, right?

Eric Corte
Yes.

Jerry Goolsby
Tell them your billings at Saatchi & Saatchi.

Eric Corte
Oh gosh, it changes some what. But I’m going to guess around…

Jerry Goolsby
The first word starts with a b….

Eric Corte
Well, I know one of biggest clients alone is about $500 million dollars, so yeah it’s got to be over a billion dollars.

I know those numbers sound ridiculous, the big money in advertising it’s not creating the commercials it’s buying the airtime. The ad-agencies make most of their money by what they call media buyers, I’m sure you probably have a department of media buying, whatever, but it’s the media buyers that really place the ads, they buy bulk time. How much does it cost to run an ad at the super bowl? That’s the worst case example. That’s why the billings are so much, and an ad agency makes a lot of their money by marking that up. Average cost for production of a thirty-second television commercial for a big agency like Saatchi I believe, this is also public knowledge, is about $300,000 and as I mentioned to you before thirty-second music track we pay around $20,000. Sometimes I feel like we get the short end of the stick considering how important music can be in an ad. That just gives you some rough idea in numbers, I don’t know if that answers your questions or not.


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Eric Corte Finances at Saatchi & Saatchi.doc

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