Before advertising agencies emerged early advertisers would purchase sections in newspapers and magazines and sell it to various merchants for a profit. These sellers were known as space brokers.

Question

03-01-2020
Business

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Before advertising agencies emerged early advertisers would purchase sections in newspapers and magazines and sell it to various merchants for a profit. These sellers were known as space brokers.

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jepessoa jepessoa · Answer 1 · 2020-01-03T14:35:22+01:00

Answer:

True

Explanation:

Space brokers can be considered a primitive type of advertising agent. Space brokers bought space in newspapers in bulk, and therefore received a discount. They assumed the risk of not being able to sell the spaces and lose money while the newspapers benefited from sure sales. When the space brokers sold the space to their clients, they could charge them the normal newspaper rate (without discount) and they would still make money. This is similar to modern day advertising agencies that collect fees from media companies for placing ads.