http://www.nytimes.com/2004/04/09/politics/campaign/09ADS.html?th=&pagewanted=print&position=April 9, 2004
Two Central Figures on the Kerry Media Team Go Toe to Toe
By JIM RUTENBERG
ASHINGTON, April 8 — When Democratic strategists list the leading factors behind Senator John Kerry's primary-season victories, they put his campaign advertisements near the top, particularly those that featured former Vietnam crew mates vouching for his leadership.
So the campaign's announcement last week that Jim Margolis, a chief consultant behind those commercials, would significantly reduce his role because of a contract dispute puzzled party officials.
Details of the dispute offer a glimpse into the machinery and growing pains of a presidential campaign as it switches from a primary to a general-election footing. It is then that the risks and rewards grow exponentially, along with the potential financial return to consultants.
But the details also underscore the growing influence of Mr. Kerry's senior strategist Bob Shrum.
People close to the situation would speak only on condition that they not be identified, saying campaign decorum did not provide for publicly speaking about private contractual negotiations. But people on both sides agree that the lessening of Mr. Margolis's role was precipitated by a financial decision of Mr. Kerry's campaign manager, Mary Beth Cahill. She was determined to reduce the rate of commissions being paid to Mr. Margolis's firm, GMMB, and to Mr. Shrum's: Shrum, Devine & Donilon.
Media strategists customarily collect a percentage of the cost of advertising time that campaigns buy, a factor that helps make them among the best-paid people in politics. Yet people familiar with the arrangements at the Kerry campaign said commissions it had paid to its two main advertising firms were not only equal but also relatively modest, with rates in the low-to-mid single digits. These people said each of the two firms had earned a profit of less than $1 million in commissions so far.
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