• by Wayne Friedman , May 5, 2008

Advertising trade groups want to address the $125 million spent on integration fees that are tacked on to TV media buys each year. But they are getting little help from broadcast networks. Only one has agreed to meet directly with them.

These fees were started by the network decades ago, when advertisers shot commercials on film and they needed to be physically inserted into program footage.

On the eve of the Association of National Advertisers' Financial Management Conference, in Naples, Florida, the group--alongside the American Association of Advertising Agencies--formally invited TV networks to join a task force to meet no later than May 1. The agenda: discuss network integration fees.

But the ad groups say there is little activity, with only one network agreeing to meet to discuss the issue. The ANA says another network is not prepared to join a task force, but is willing to discuss the issue with individual advertisers from respective agencies. Still another network, it says, has been non-responsive after three requests.

An ABC spokeswoman said the network will not join the committee, also believing the best way to handle integration fees is by individual discussions with advertisers.

A CBS spokeswoman declined to comment.

An NBC spokeswoman said: "We prefer to have these conversations directly with our clients."

Bill Duggan, executive vice president of committees for the ANA, said: "We just got NBC's response. They were the ones that weren't responsive." But an NBC spokeswoman disagreed, saying the ANA has known its position for some time.

Fox has never had integration fees.

The subject of eliminating integration fees has come up periodically through the years.

In the wake of the network responses, the ANA says it is encouraging its members to evaluate their television buys over the coming months and years, and to have discussions with ABC, CBS and NBC.

The ad group says network integration fees will be debated in a session entitled "10 Media Issues in 50 Minutes" on Monday at the ANA's Florida conference.