If a brand's gross budget is $100,000 and includes a 15% commission, what is the net media budget?

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To determine the net media budget when a brand's gross budget includes a 15% commission, you need to consider how the commission is calculated in relation to the gross budget.

The gross budget of $100,000 consists of the net media budget plus the commission paid to the media agency. A 15% commission means that the commission is calculated as 15% of the net media budget.

Let the net media budget be represented as "X." The commission would then be calculated as 0.15 * X. The equation can be set up where the gross budget equals the net media budget plus the commission:

X + 0.15X = $100,000

This simplifies to:

1.15X = $100,000

Next, divide both sides by 1.15 to find the net media budget:

X = $100,000 / 1.15

X ≈ $86,956.52

Therefore, the net media budget rounds to approximately $85,000, making this the correct answer. This amount represents what is actually allocated for media buying after the agency commission is taken into account.

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