Monday, July 17, 2006

"The greedy truth about media consultants"

Great article in Salon about the cut media consultants take:

Think you know where your campaign dollars go? Think again, sucker. Political image-makers skim off percentages that would make Exxon execs envious -- and the public never knows about it.

[...]

But have you scrutinized the financial arrangements and consultant contracts of this campaign the way you would skeptically analyze the balance sheet of your favorite charity? Would you feel ripped off if you discovered that about 15 percent of everything you donate goes right into the pockets of the media-consulting firm?

What we are talking about is one of the biggest secrets in politics, right up there with debate briefing books and sealed divorce decrees. In this fate-of-the-nation political year when more than $1 billion will be given to Senate and House candidates, there is just one certainty about the outcome -- the true winners in November will be the leading media consultants in both parties.

For more than a quarter-century, media consultants have been paid not in fixed dollar terms, but as a percentage of the campaign's television buy. The more often a candidate goes on television, the more the media consultant makes, even though the actual cookie-cutter commercials may have all the originality of a Harvard undergraduate's coming-of-age novel. Small wonder that in virtually every free-spending political race in both parties, the campaign manager (who is paid a salary, which is publicly disclosed) and the pollster (who is usually compensated by a flat rate per poll) start gazing enviously at the media consultant as they conclude, "We're in the wrong business." Remember, we're not dealing with chump change here like FedEx charges or gassing up the campaign van. We're talking about an off-the-top rake-off of campaign funds that might make Exxon executives envious. As Leslie Kerman, a Democratic campaign lawyer and a leading behind-the-scenes crusader against the inflated fees paid to media firms, puts it, "These same consultants love to run ads about out-of-control compensation for CEOs, but they don't think about their own compensation."



I never knew DNC demanded a flat rate. Good for them. I will be asking campaigns I contribute to that question from now on. If they want my $50 contribution they better have the right answer!

1 Comments:

Anonymous Anonymous said...

That's a great story. Waiting for more. » » »

2:30 PM  

Post a Comment

<< Home