Campaign Reform

Page 1 today of the WA Post shows the need for reform of how Democratic candidates run their media campaigns, because On Nov. 2, GOP Got More Bang For Its Billion, Analysis Shows:
The Kerry campaign hired mainly consultants entrenched in the Democratic establishment, led by Robert Shrum, a speechwriter, media adviser and strategist on eight losing presidential campaigns dating to Edmund S. Muskie in 1972. The Kerry campaign and the Democratic National Committee also used a consortium, called Riverfront Media, which was paid $150 million for TV advertising. The first receiving the Democratic work were:

* Shrum, Tad Devine and Michael Donilon's firm, which was paid about $5 million.

* James Margolis's firm, Greer Margolis Mitchell Burns and Associates, and Bill Knapp's firm, Squier Knapp Dunn Communications, which divvied up $5 million.

* Democratic media consultants David Axelrod and Steve Murphy, who split about $1 million in fees for DNC independent expenditure ads.

$5 million for Shrum? And so, where/whom did the other $139 million that went to Riverfront go to? It's a racket by the K St and DC Consultant Class. The media consultants get paid fees, up to 15%, based upon the amount of TV ads they are able to place. This encourages them to buy the most expensive time slots, and spend as much as possible on TV ads. We saw it with the Dean campaign, it happened with Kerry's too, and it's going to continue to happen until we demand our own campaign reform in return for our financial funding of the Democratic candidate campaigns.

On the Republican side, Bush had the advantage over the Kerry, because they took the racketeer equation out of the mix, by having their media team working on TV placement fees:

Maverick consultants McKinnon, Alex Castellanos (National Media Inc.), Stuart Stevens (the Stevens and Schriefer Group) and Madison Avenue executives Bruce Van Dussen and Harold Kaplan agreed to be paid fees instead of a percentage of their ad buys.
Kerry and his Democratic supporters matched President Bush and the Republicans in fundraising, being outspent by just $60 million, $1.14 billion to $1.08 billion, and that's not even counting the $100M+ spent in the primaries by the Democrats. We spent more money than the Republicans, and still lost.
Overall, Kerry, the DNC and the Democratic 527s spent $344 million on ads, while Bush and the GOP counterparts spent about $289 million, much of which was disbursed in the final three months. Arguably, Republicans got more bang for their bucks.
Indeed, and they paid less for it as well. As for Bob Shrum? I hear he's moving on to run Corzine's race in New Jersey, as well as Bill Nelson's in Florida, and probably many other high profile races as well. Shrum, and all the rest of the DC Consultant class should be paid fees instead of a percentage of their ad buys. It's not only a corrupt system to pay them a percentage of the ad buy, it gives the advantage to the Republicans, regardless if there's finanical parity.



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I agree in full (none / 0)

I spoke about this before, in reference to the Betty Castor Senate race.  Many of her top fundraisers cried about this problem, and urged her to hire an ad consultant at a flat rate salary (or at least a per month fee).  

The top media consultants who did placement were paid upwards of 15% per advertisement.  As you know, this kills the treasury.

There definitely needs to be severe reform to this entrenched activity. How should we go about urging this practice to end?

by kitsae on Thu Dec 30, 2004 at 11:03:58 AM EST

Re: I agree in full (none / 0)

I don't know why you keep grinding that axe as if Castor was alone. I'll tell you what, name to my the Senate candidates that didn't buy ads in this corrupt fashion. I'm calling it a racket for a reason, and it's on K st., and delivers the % back in financial connections for campaign revenue, in exchange...
by Jerome Armstrong on Thu Dec 30, 2004 at 11:10:46 AM EST
[ Parent ]

Re: I agree in full (none / 0)

I'm simply raising the Castor case as a specific example that I experienced.  This should not to be mistaken with singling Castor our.

I will be more than happy to give you an example of a politician who strayed from this practice.

Former Senator and Governor Lawton Chiles never participated in this practice, both as a Senator and Governor.

In his most recent race in 1994, he limited campaign contributions to $100 per person, and had his permanent staff (in many cases, his own son) do the media buys.  There were no exorbitantly paid media consultants making the ad buys.

Although this race was not for the senate, it was still a statewide race.  I remember the Jeb Bush television ads outnumbered his 5-1 (due to the fiscal disparity in war chests) in the final weeks.  Yet, he still won.

This is my point Jerome, and I will bang it home again:

**Just because most candidate engage in this practice, and it is indeed common practice in the Democratic party, is no excuse for Castor, or any candidate, to participate in it as well**

by kitsae on Thu Dec 30, 2004 at 11:43:09 AM EST
[ Parent ]

Re: I agree in full (none / 0)

He would have been paying the exact same amount for his son to make the ad buys that he would have paid for a consultant to make them. The 15% commission is from the TV station.
by upstatenydem on Thu Dec 30, 2004 at 11:59:11 AM EST
[ Parent ]

Re: I agree in full (none / 0)

His son owned a communications consulting firm and got the discount already.

I am sure he did not charge his own father.

by kitsae on Thu Dec 30, 2004 at 12:15:59 PM EST
[ Parent ]

backstratch-hand-in-the-pot (none / 0)

Right, at the State level, you'll find it being done correctly, but at the Senate level?  What I'd think you'll find, at least from my own cursory observation I've found, is that the reliance of this type of consultant in question, corresponds with the candidate being able to raise many millions more out of the K St. operation. A sort of
by Jerome Armstrong on Thu Dec 30, 2004 at 01:19:00 PM EST
[ Parent ]

Re: backstratch-hand-in-the-pot (none / 0)

Jerome.  Your message got cut off, but you may be right.  From my experience with the past two Florida Senate races, both candidates raised the plurality (and I am sure in this last race, a majority) of their funds from out of state.

However, this money came with a high-price.  I can still remember the Emily's list political consultant who weighed in on every single decision.  In many cases, the campaign felt compelled to go with the prevailing opinion of this consultant rather than what they wanted - even if both were at complete odds.

However, I think the possible solution I raise below may be able to squeeze out these "leeches", and keep the operation completely internal to the campaign machinery.

by kitsae on Thu Dec 30, 2004 at 01:23:06 PM EST
[ Parent ]

who is in charge? (none / 0)

Small donor fundraising presents a huge opportunity to politicians to cast off the consultants.

First question that candidates should ask is who is in charge? Is it a consultant or the campaign manager? If it is a consultant does that consultant have a conflict of interest due to the fee structure?

TV is no longer king. Campaign management needs to adapt.

But, I don't think casting of the leeches means campaigns need to internalize things. I think campaigns need to do the exact opposite and externalize the campaign machinery.

by Bob Brigham on Thu Dec 30, 2004 at 01:50:20 PM EST
[ Parent ]

Re: who is in charge? (none / 0)

I agree with what you are saying.  Let me clarify my position - I believe they should internalize decision-making, because they are best equipped to make such decisions, but should certainly be open to suggestions from outside entities (such as what we are doing here.)
by kitsae on Thu Dec 30, 2004 at 01:53:51 PM EST
[ Parent ]

Schrum (none / 0)

The guy has been on 8 losing presidential campaigns.  I'm sorry, but why are they using him.  If he worked for me, I would have fired him a long while ago.  The things you talked about are ludcrious (not the article or you point which i agree with, the things that happened)...This needs to change.  
by yitbos96bb on Thu Dec 30, 2004 at 11:08:30 AM EST

I was wondering when anybody would bring the up. (none / 0)

I had extreme doubts about Shrum after 2000 yet Kerry "hired" him and his cohorts after they managed to botch the previous election.

Hell, if Kerry and the rest of the top Dem candidates are so absurdly stupid maybe we're better off without them.

Go ahead and flame away. I'm just feeling particularly PO'ed about what a brain dead campaign Kerry, Shrumm et al ran.

How did we lose when over half of Americans thought that invading Iraq was a bad idea? Simple. By selecting a candidate who wouldn't run against the war and a corrupt batch of loser consultants who see no downside in losing--- only money signs in spending foolishly our hard earned money.

by Southern Patriot on Sat Jan 01, 2005 at 08:07:51 PM EST
[ Parent ]

I think theres a misunderstanding (none / 0)

The reason why there is a 15% commission (or 17.5% however you figure it) is because the consultants are sold the spots at a discounted race. Any accredited ad agency receives a 15% commission from the station for delivering the business. If a campaign was to buy ad time on their own, it would cost them the same per ad as the pay with the consultant, but there would be no one consulting on them.
by upstatenydem on Thu Dec 30, 2004 at 11:30:36 AM EST

Re: I think theres a misunderstanding (none / 0)

I think this is all the more reason to hire a consultant and pay them a salary (or, at least, a monthly rate).

Sure, you would (and should)ask, why would they agree to make less money?

Reason:  Because we have to smart-up and not hire consultants with such a exorbitant commission arrangement.  

We should foster loyalty among a segment of media consultants, who would be willing to work for salary based on their loyalty to the party.

This is what the Republicans do, and it saves them $$$$$$$.

It will be tough at first, but if we bite the bullet, we are sure to create loyalists who would be working for our cause because it is their cause, not because they will be making a substantial $$$$....

by kitsae on Thu Dec 30, 2004 at 11:47:03 AM EST
[ Parent ]

Re: I think theres a misunderstanding (none / 0)

First, I think its a huge mistake to think that consultants goals are different than ours. They are Democratic consultants for a reason.

Second, theres nothing saying that you won't pay less with a comissioned based consultant than you would with a retainer based consultant.

by upstatenydem on Thu Dec 30, 2004 at 12:01:08 PM EST
[ Parent ]

conflict of interest (none / 0)

We can not be sure that consultants' goals are the when they have been compromised. It is a conflict of interest when you're paying for TV on percentage. Conflict of interest.

It isn't about the money, go ahead and spend $5 million on Shrum if he's worth it. But pay him for what he brings to the campaign not how he spends the campiagn money.

If you are going to link a consultant's pay to an issue, link it to success not to media buys. I think that would result in far different campaign tactics.

by Bob Brigham on Thu Dec 30, 2004 at 12:14:59 PM EST
[ Parent ]

Re: conflict of interest (none / 0)

I think you are on to something that is clearly much better than the current arrangement system.

You could surely use targeted polling, etc... to measure success of certain ad buys, I'm sure.

by kitsae on Thu Dec 30, 2004 at 12:21:02 PM EST
[ Parent ]

Re: conflict of interest (3.00 / 1)

No, I'm talking winning bonuses. All I care about is whether we win or lose.

The current conflict of interest creates bad advice. Look at the Swift Boat ads, look at the Daisy ad, the earned media result was larger than the paid media. However, there is currently a disincentive for using the tactics with the most value.

Look at the result of the GOP investment in databases, you don't make investments like that when the incentive is to buy more TV. Look at the crappy use of the internet. Look at the fact that 75% of state parties don't even have a blog. Look at the fact that on many races the campaign staff makes less than minimum wage an hour.

Yet our TV budgets keep skyrocketing because that is where the incentive lies.

by Bob Brigham on Thu Dec 30, 2004 at 12:33:36 PM EST
[ Parent ]

Re: conflict of interest (none / 0)

I don't know.  Incentives for winning hurt darkhorse candidates.  All the top notch media consultants would then go work for the "front-runners" who prove the best chance for victory, and who are polling best at the moment.

That really kills the darkhorses.

by kitsae on Thu Dec 30, 2004 at 12:43:48 PM EST
[ Parent ]

Win Bonuses are a Better Way (none / 0)

The dark horses lose out on this anyway under the current system. They tend to raise less money (Dean started as a dark horse, and leveraged online - but that was pretty much a first), so they tend to buy less tv. Less TV = lower commissions for media consultants.

A win bonus system wouldn't change that dynamic, but it would create a financial incentive to maximize votes, not TV expenditures.

One point being missed in all of this is the primacy of the media (read: TV) consultants on campaigns. Direct Mail and internet often wind up in a subservient position because of the budget that goes into TV. So the most powerful consultants are also in a position to influence their own fees by advocating for more expenditure on TV and less on media with more granular targeting opportunities (i.e. the Mehlman formula).

If the consultants were all on a win bonus incentive structure, the media consultants might be more open to optimizing expenditures based on targeting opportunitities rather than on the blunderbuss of television. That would open up the playing field for Democratic campaigns and improve the likelihood that they (we!) could employ some of the strategies so effective for Republicans in 2004.

by redsoxkangaroo on Thu Dec 30, 2004 at 12:57:24 PM EST
[ Parent ]

Re: Win Bonuses are a Better Way (none / 0)

I still believe the win-bonus system would hurt dark horses more than the current system.

However, assuming a win-bonus doesn't change the dynamic, what is the argument then for sustaining this dynamic in the first place?

I saw we find a solution that changes, not maintains, dynamics which hurt dark horses.

by kitsae on Thu Dec 30, 2004 at 01:13:02 PM EST
[ Parent ]

Re: I think theres a misunderstanding (none / 0)

"theres nothing saying that you won't pay less with a comissioned based consultant than you would with a retainer based consultant."

Of course there is - the candidate is the one who is doing the hiring and hence dictates the terms of the arrangement.  Hence, it is intuitive to accept that they would be saving money going on a retainer based fee.

Second, I wouldn't go so far to assume that Democrats always hire democratic consultants.  Many take it on a case by case basis (and there are independent media consultants).  

But the issue remains, many of these "democratic consultants" are in it for the big bucks.  Some of them surely call themselves "democratic consultants" to create brand loyalty.  It's a sad state of affairs, and more importantly it isn't necessary.

by kitsae on Thu Dec 30, 2004 at 12:19:57 PM EST
[ Parent ]

agree, but (none / 0)

I agree, but....

Shrum is good at state races.  He just doesn't get the meta-message necessary for Prez races.  

Activists should get out there and become operatives themselves.   They'll find out that you don't make diddly squat your first 5-10 years in the business.    

Political consulting is like showbiz - a very small number of people make it big, not necessarily fairly - while competent (and incompetent) lesser ones get by.   Or drop out of the game.

by Andmoreagain on Thu Dec 30, 2004 at 11:38:46 AM EST

Re: agree, but (none / 0)

We should all remember Karl Rove's background: direct mail.  Direct mail is a medium where it is far easier to do Return on Investment (ROI) analyses.  Why do you think we get flooded with credit card offers?  I know they make money because it's easy to measure the costs versus revenues.  In politics, the Republicans I think put a greater value on analytics and value.

TV advertising is a brutal medium to find an ROI...you just can't get a good control group, and the current fee structure for the Democrats is outdated.  

For example, talk to any personal investment advisor.  They will tell you to take a FEE ONLY financial advisor.  Right now, we've got guys who have no incentive to spend the money as wisely as possible.  Their incentive is to sell a lot of advertsing, the more expensive the better--this is an outdated commission system.

In 2008, someone will take the flat fee money, and they'll have the right incentives in place as well.  Shrum is running Teddy Kennedy's 1970s race 25 years later--boring populist issues we've all heard ad nauseum!  We can do better than him...a good, liberal product brand manager at any consumer packaged goods company could do better than him.  Package the product, pound the new message, and watch the sales come in!

by Curly Dan on Thu Dec 30, 2004 at 02:00:56 PM EST
[ Parent ]

Re: agree, but (none / 0)

Amen.  Right on track with what I believe.
by kitsae on Thu Dec 30, 2004 at 02:18:46 PM EST
[ Parent ]

The central problem: (3.00 / 0)

I think the overriding reason why we need to sever our reliance on these media consultants is precisely what Jerome mentioned:  

It is not so much that they make a 15% commission, but rather it is because they push and push and push the purchase of so much airtime that they make their money on the sheer volume of advertisements the campaign runs.

Campaigns should take a more central role in crafting their advertisement messages.  They hire a communications director to determine message, so hire one that is savvy in advertisement design.  Yeah, you may not save your money on individual ad buys.  But, you can determine from "the inside" when best to air advertisements, and where.  In essence, you are "cutting back" on unneccesary ads that media consultants have an incentive to run (because their pockets are lined.)

In this model, the DC-insider media consultant becomes obselete.

by kitsae on Thu Dec 30, 2004 at 12:32:41 PM EST

Consultants are experts (none / 0)

The talent pool just isn't there for communication directors to make the ads. Very, very few communication directors have TV production experience. Combine that with the mental jujitsu of interpreting market research, etc...the Democratic Party needs consultants who spend their careers learning how to craft appealing messages for television as well as for other media. We may not have the right consultants, and that may be a result of the fee structure, but to disavow experts is foolhardy.
by redsoxkangaroo on Thu Dec 30, 2004 at 01:01:59 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

In the campaigns I have worked for, the media consultants and the ad production companies were two seperate entities.

You could simply use your communications director on staff to come up with ad concepts and align it with your message, then send it to the production company to make it happen.

This completely takes out the media consultants from the equation.

by kitsae on Thu Dec 30, 2004 at 01:11:20 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

Media Consultants are not the enemy. Some are lousy and many are overpaid, there is no question. Shrum's record in presidentials is abysmal, yes.

But reforming the fee structure and choosing more wisely is, I think, a more prudent way forward than branding media consultants as "bad" and seeking to eliminate them altogether.

You're right, the media consultants and the production companies are almost always separate entities - but the consultants act as producers and directors. And if it's my money paying for the ads, I want someone with some directorial experience running the show.

The role of directors and producers is far more complex than walking onto a set with a concept. You have to know what you're doing, and know something about the challenges that the production folks face in meeting your expectations and expressing your vision. When a professional TV crew with equipment costs $15k a day or more, you want someone with experience directing them.

Your approach might save money on consultants, but arguing against experience and expertise is just silly. Making ads is more difficult than brainstorming and then waving around a camcorder.

by redsoxkangaroo on Thu Dec 30, 2004 at 03:21:30 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

Its the job of the production companies and advertising agencies to make your concepts a reality.

I think it fundamentally weakens a campaign when your "message man", the communications director, is constantly grappling with a media consultant (who,in many cases, has incentive to throw up as many ads as possible.)

You get your message man to come up with the concept (which, not surprisingly, is the message), you get your advertiser to come up with the best way to convey the message, then you get the production company to produce the advertisement.

My overall idea is to marginalize the role of TV advertisements in general.  Sure, it is an integral part of any campaign, but you see from the article Jerome provides that micro-targeting voters really helped him rally the base to the polls.

I still see no overriding reason to keep paying out to these media consultants.

by kitsae on Thu Dec 30, 2004 at 03:26:52 PM EST
[ Parent ]

I think I see the source of our disagreement... (none / 0)

I don't think of communication directors as the "message men". In my experience, that's been more the province of the consultants, especially the pollsters. The communication directors have been press people and project managers - but much of the idea stuff of the campaigns have been the work of consultants.
by redsoxkangaroo on Thu Dec 30, 2004 at 04:18:26 PM EST
[ Parent ]

Re: (none / 0)

Communications directors are the message men.

They are distinct from campaign spokespersons and press secretaries.  They are the ones who deal with the press.

by kitsae on Thu Dec 30, 2004 at 04:23:40 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

I do believe that the consultants are to blame.  They are responsible for the central message and they did a horrible job.  I realize that there is a small pool of talent out there but do we have to keep hiring the same person.  In addition, Shrum helped the Republicans steal the CA Gov's race.  I read that he even left the Kerry campaign for a moment to help with Arnold's inaugaration speech. It's going to be really difficult to erase the damage they are trying to impose there.  The Govenator is trying to change the map so the Dem legislature may change.  Anything is better than our continual losing change.  We can't continue making the same mistakes and expect to gain a victory.
by mishiem on Fri Dec 31, 2004 at 09:09:43 AM EST
[ Parent ]

Re: Consultants are experts (none / 0)

That argument reminds me of what certain Democrats were saying about the potential CFR rules killing the Democratic Party after 2002. A small donor base just isn't there, they cried, we have to rely upon the corrupt system of corporate donations in order to survive. Of course, they were wrong.

The "career Democratic consultant" is exactly what we need to put less of a premium on going forward. The crafting of appealing messages for the production of TV ads by DC consultant is something that those in the real TV production circles scoff at as being a reason for the failure of Democrats winning.

I agree we have a thin bench, but it's not much of a starting lineup either. I'd encourage the reading of Bill Hillsman's "Run the Other Way". He's been banging at this door for a while now. Maybe Chris can do that one as a Book Club down the line.

by Jerome Armstrong on Thu Dec 30, 2004 at 01:14:50 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

I agree with you 100% Jerome.  Could you offer us a little insight as to whether Bill Hillsman offers any specific or general solutions to this problem we are discussing here?
by kitsae on Thu Dec 30, 2004 at 01:18:43 PM EST
[ Parent ]

Bill Hillsman (none / 0)

Read his book, Run the Other Way. It is excellent. Many of your questions will be answered.
Sweet is war to those who have not experienced it. (dulce bellum inexpertus) from Adagia by Desiderius Erasmus - 1515
by Herb La Tortue on Thu Dec 30, 2004 at 02:14:01 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

On top of everything else their ads are extremely poor. I tried to do a search over at the Nation.  I read an article during the campaign that interviewed an ad agency expert. It looks like it was Hillsman.

Article | Independent's Day (subscribers only)
by Micah L. Sifry | December 30, 2002 issue
... He didn't sell himself to the Ventura voter." Bill Hillsman, the ad whiz who has worked for Wellstone, Ventura and Ralph Nader, added ...

Hillsman had been trying to get in the door to provide better commercials for less cost for years. With Bob Shrumm in charge of the campaign there wasn't any point. In addition to locking out competition, Shrumm guarantees that too much money will be spent on poor ads rather than channeling it towards GOTV or other avenues that are more cost effective. The fact that Shrumm continues to run so many losing campaigns is either a testament to the raw power of the DLC or the idiocy of Democratic candidates.

In what other specialized niche could somebody with Shrumm's track record continue to get hired? It's like the Democratic party has an obsessive/compulsive dedication to losing.

by Gary Boatwright on Thu Dec 30, 2004 at 02:17:02 PM EST
[ Parent ]

Point Taken (none / 0)

You're right that "career Democratic consultants" aren't necessary to run effective campaigns...and that they probably hurt them. The world in general, and pop culture (where campaigns are run) is a dynamic place indeed. We need career broadcast communications people involved, though. Film and video are art forms, and communicating with them is a subtle and complex affair.

Anyone remember Donnie Deutsch? He was the Madison Ave. guru who helped Clinton in '92 - not a career Democratic consultant, but a career ad man. Sure, he had great material in Bill Clinton, but his work was excellent.

To dismiss real experts in TV as a medium in favor of communication directors is a mistake. I'm for new blood, absolutely - but I'm also against tossing out baby (TV experts) with the bathwater (Democratic establishment media consultants).

by redsoxkangaroo on Thu Dec 30, 2004 at 03:07:39 PM EST
[ Parent ]

Re: Point Taken (none / 0)

I agree in principle with what you are saying, but you are assuming that communications directors and tv experts are mutually exclusive.

Why not hire on your staff a communications director who is a TV expert (or advertising expert, in general)?  Certainly, if I were a candidate, I would certainly hope that my communications director would have at the very least adequate experience with the entire process of purchasing and producing advertisements (and advertising in general).

So you are still able to throw out the dirty bathwater (DC media consultants) and still keep the baby.

by kitsae on Thu Dec 30, 2004 at 03:21:34 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

You are totally wrong.  I have been in Advtg/media all my life. Award-winning creatives team up all the time with marketing savvy creatives, marketing/research, and  media buying teams that have created memorable and WINNING strategies and campaigns for either side.  Madison Ave knows how to do this.....and knows how to deliver successful performance for the buck.  Where do you get your information from??? Our current Democratic Tragedy is amateurish ignorance combined with entrenched greed;( firmly ensconsed at the DNC).   THINK!!!!!!!!!!!!!!!!!! Current bunch are lazy,overpaid losers who can't measure up to top professionals GOP uses.HELP!!!!
by morris1030 on Thu Dec 30, 2004 at 08:07:03 PM EST
[ Parent ]

Re: Consultants are experts (none / 0)

Looking at your post in this thread, you sound crazy man.  

Heh.  I think your posts speak for themselves...

by kitsae on Thu Dec 30, 2004 at 08:34:33 PM EST
[ Parent ]

I am a media buyer/consultant (none / 0)

so please allow me to clarify a few things:

  • the media buyer does not collect 15%; typically a media buyer will receive less than 5%; while the producers of commercials and image makers receive the lion's share.  as the $ go up, often the commission paid to the media buyer goes down

  • candidates can buy political advertising for exactly the same discounted price as agencies; this is atypical; most agency buys are afforded the 15% discount in typical commercial situations.  so candidates hire consultants because they seek expertise, assistance, etc.  

  • i tend to agree that the commission system is not the best arrangement.  i am willing to work for a flat fee or a retainer and often do so.

  • i think incentives for victories are positive but the team should be rewarded for those, not heavily penalized.  you can do good work and still  get beat, or have the election stolen.  plus the media buyer has far less influence over the result  than the campaign managers and commercial producers.  doing media buys for an election is nearly a 24/7 job during the heat of the campaign and there is heavy responsibility to get it right.  those who do it well should be well compensated.

  • i don't think the problem is nearly as much the commission structure as it is the effectiveness of the ads and the media buys.  i agree that Shrum has had enough chances and it's time for someone new

hope this helps!
by thirdeye on Thu Dec 30, 2004 at 02:18:28 PM EST

Re: I am a media buyer/consultant (none / 0)

The media consultant for the last campaign I participated in received 15%, so I am assuming these fees are negotiable.

I really like your fourth point.  You can do a great job and still lose.  I remember the lesson the last media consultant I worked with said,

"Buying ads isn't like any other commercial, where you can reserve the time and pay for it later.  You approach the networks up-front with the money, and jockey for position since airtime during elections get bought up lightning quick.  It's basically kill or be killed."

by kitsae on Thu Dec 30, 2004 at 02:22:10 PM EST
[ Parent ]

Spending more on ads can't sell a lousy product (none / 0)

"We spent more money than the Republicans, and still lost."

This ignores the fact that Kerry was imminently definable. He paid the price for his record, eastern elistist background and youthful passions. Bush did not because 9/11 allowed him to reinvent  and thus redefine himself courtesy of rove and Mehlman.

Next time less on marketing, more on quality product, eh?

by ringmaster on Thu Dec 30, 2004 at 02:35:25 PM EST

You miss the point (none / 0)

Was Shrum's payment problematic?  Probably...

Was it the reason we lost? No.

The DNC was abused during the 90's by Clinton (Wilhelm, fundraising scandals, etc.), so when it started in 2001, it was way behind the RNC in terms of capability.  They were doing targetting tests when we were still building a voter file.  We were behind.

Bitching about Shrum and passing it off as the main reason we lost is misplaced and misleading.

by audibledevil on Thu Dec 30, 2004 at 02:58:45 PM EST

New Year's Resolutions for Progressives (none / 0)

Carl Mayer has come up with 10
New Year's Resolutions that ought to be considered by progressives who are more interested in advocating for
issues--and winning elections!--than
in propping up the apparatchiks at the
almost moribund DNC:

http://www.dissidentvoice.org/Dec2004/
Mayer1228.htm

by Joe Hill on Thu Dec 30, 2004 at 03:24:13 PM EST

Just out of curiousity (none / 0)

and I'm not trying to be snarky here, but how does AZ charge its clients?

Is there a model other than flat fee/retainer or percentage of media buy?

How would you or anyone recommend a low-budget, local campaign address the same issue when dealing with its vendors (direct mail firms, canvassing firms, etc)?

by desmoulins on Thu Dec 30, 2004 at 04:44:36 PM EST

Shrum & K Street Fleecing of the Democrats (none / 0)

It amazes me that we as Democrats are so stupid that we don't know enough to pay fees rather than "advantaged tv time for 15%"???? Shrum,Devine & co, not only do lousy,losing jobs, but they are totally behind the moment. Know nothing about word framing, ads that are salient,sharp and memorable, or hip-with-it creative strategists and creative Mad Ave marketing/mavens. We are living with corrupt,inept,[and incompetent]  advisors and campaign directors.....all making a fortune for screwing up, doing lousy and [redundant] ads for the bucks. It has been no secret about this bunch.  The secret is: WHY ARE THE TOP LEADERSHIP TOLERATING THIS????   aSK fROM AND THE REST OF DEFUNCT AND DEFICIENT GROUP AT DNC TO LEAVE!! WE MUST EFFECT CHANGE IF WE ARE TO CONTINUE TO SUPPORT THIS PARTY FINANCIALLY, AND MAKE IT A RELEVANT, MODERN, PEOPLE'S PARTY AGAIN!
by morris1030 on Thu Dec 30, 2004 at 07:09:59 PM EST

Media Buying and Democratic Folly (none / 0)

We in the Media business know what a scam this is!  Ask anyone really savvy, professional, (and honest). Really, we know how to create memorable and passionate ads, know how to spread the media buys, and know in what markets and why these ads should run.  AND there are many super-professional Advtg/media talents wh know exactly how much this really costs! Selecting Shrum & Co reveals a lack of courage and imagination........and a lack of the smarts the Republicans have shown in running modern political marketing with an understanding of the realities,costs,and proper media selection.  HELP!!!!!!!!!!!!
by morris1030 on Thu Dec 30, 2004 at 07:41:42 PM EST

Let me repost my comment from Dailykos on this (none / 0)

http://msnbc.msn.com/id/6262620/site/newsweek/

"It's one of John Kerry's biggest achievements in the Senate: a groundbreaking investigation into money laundering, drug dealers, terrorists and secret nukes. Yet voters have rarely heard of the senator's dogged inquiries into the Bank of Credit and Commerce International (BCCI). Why? Because some of Kerry's leading campaign strategists believed it was too difficult for voters to digest. "You can't talk about that because people think you're talking about the BBC," Bob Shrum, Kerry's top adviser, told one senior staffer. "Why were you investigating British TV?""

This one paragraph wants me to hunt Bob Shrum down with a now legal assault weapon.

by Geotpf on Thu Dec 30, 2004 at 08:55:44 PM EST

Re: Campaign reform (none / 0)

I totally agree.  We must change our current system.  How do we do it?  I am not going to spend my hard earned money or encourage my friends to spend their money on another race where Shrum is hired as the primary consultant.  He's devisive and ineffective.  I heard he has better luck managing state-run races but if I were Corizine or Nelson, I wouldn't take a chance on him.  For the life of me, I can't understand the hold he has on others. I realize that their is a limited pool of folks out there with that kind of talent but we have to give others a shot.  If I remember the WaPost article correctly, some of their consultants are relative newcomers.  I was never a fan of Dean during the primaries ( I was a Kerry delegate), but I always gave him credit for reviving up our party.  His comments on the "consultant class" within our party was so accurate.  We can't afford to lose another race.  There is too much at stake.
by mishiem on Fri Dec 31, 2004 at 08:48:08 AM EST

Campaign Reform (none / 0)

I am very on board with this line of thinking.  It is absurd to continue to reward people who don't deliver.  And the worst part is that they don't seem to think it matters...From, Schrum and the others seem to take a "business as usual" attitude as they cash their fat checks.

The watershed event for me was one campaign analysis panel I saw on C-Span where one of the panelists said "Republicans won, Democrats lost, we all got paid."  No one took issue with his statement.  Later, as the program shifted to Q&A, the moderator told the audience something like this:  "We'll take questions, but please don't make long, opinion-laden statements which don't contain a question."  Even later, he chided one questioner who didn't get to the point quickly..."Is there a question in here someplace?"

This really told the story for me....they only want our money, not our opinions or even much participation...just write our checks and don't make a fuss.

While IMHO there are many reasons why Kerry lost this election, the overriding one for me is that the Republicans figured out how to make their base (and others) feel like the party leaders were speaking directly to them...like they were SO included in the KNOW, the inner circle. This didn't happen so much in Dem circles.  I emailed and volunteered for everything and didn't receive ONE SINGLE FOLLOWUP....just a never ending series of requests for money.

Though I am not opposed to donating money to the progressive casue, I am opposed to underwriting failure, and this time around, I will be much more selective.  I am interested in funding people who want to play to win, and I think total party reform is what it takes to win.

by BillieJohn on Fri Dec 31, 2004 at 11:11:08 AM EST

Better Late than Never (none / 0)

I know this is an old post, but I wanted to clear a few things up.
No media consultant on either side of the aisle gets 15% anymore.  Usually the buyer gets 2% or so, and the media consultant gets 4-10%.  Depends on the race, but the bigger the race the smaller the %.  And many Dem consultants have done races where they were paid a fee and not commission.  It's all negotiated by the campaign.  And many Republicans work for commission.
Most of the $150 million paid to Riverfront (assuming they were the "media buyer" mechanism, since only that explains that huge sum) goes straight to the tv stations (minus the commission).  If Shrum etc. got $5 million and Greer Margolis Mitchell Burns and Squier Knapp Dunn Communications got $5 million, it seems to me that's $10 million out of $150 million, or about 6%.

From what I can tell, Democratic media consultants and GOP consultants both believe in their side, but they are also in a business.  While it's hard to measure motivation, Dem consultants like Republicans make money by winning.  That has to be a motivation from a business standpoint.  TV is recommended not just to make them more money, but because tv is still the best (and most cost effective) way of reaching the most voters, and it reaches those swing voters who are lazy and only vote once every four years and only get their info from late night tv comedians and tv ads - they don't spend much time blogging.  This is changing as more people spend more time on line, but it is still true.  And while it may be very tempting for media consultants to recommend more TV to line their pockets, the campaign (manager, candidate, etc) has final say on expenditures. The real conflict was in the Dean campaign, where Trippi was the campaign manager AND the media consultant so there was no check or balance in the campaign.
Madison Avenue costs too much to work for most campiagns.  A cheap MadAve commerical will cost $60K while political consultants do it for $5-15K.

by dcdoug99 on Tue Feb 08, 2005 at 06:00:47 PM EST


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