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IBF, AAAI sign historic agreement

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MUMBAI: The Indian media industry is finally coming of age and trying to adopt structures and procedures in line with international norms. For the first time, the two principal bodies representing TV Broadcasters and advertising agencies have inked an agreement that sets out the basis of the professional and commercial relationship between their respective member groups.

Ramesh Narayan, president Advertising Agencies Association Of India and Sony Entertainment Television CEO Kunal Dasgupta, treasurer Indian Broadcasting Foundation, exchanged the historic agreements they signed on Friday.

At a press conference in Mumbai to announce the deal, Narayan said: "The members of AAAI comprising nearly 80 per cent of the advertising agencies will get preferential treatment in terms of ad rates and credit payments. Besides there will be a committee set up for defaulting ad agencies." Dasgupta chipped in: "There has been no standardisation till now. The idea is to weed out those agencies which are into sharp short-term practices."

The agreement comes into effect from April 1. The arrangement is that both parties work under the principle of partnership, mutual interest and equity of law. All AAAI members and IBF members will get automatic benefits enshrined in the agreement. Within a certain credit period AAAI members will guarantee payments to channels. Advertisers who move business through AAAI members will get preferential treatment in terms of rate and credit.

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