Wednesday, December 26, 2007

Aligning incentives of media consultants with goals of candidates

From NY Times:
The old approach allowed the fees to shoot up with increases in advertising in hotly contested races. Critics say it also provided a built-in incentive for the consultants to run more ads — a concern that has led to infighting in many races.

In interviews, aides said Ms. Clinton, of New York, and Mr. Edwards, of North Carolina, had negotiated flat fees with their top consultants. And Mr. Obama, of Illinois, has capped what his consultants can earn, which will convert their more traditional percentage deal into a flat fee once his ad spending passes a certain threshold, his aides say.

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