MAM

Industry reacts to move to net billing

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/09/28/AAI-1.jpg?itok=T_A3VzLm

MUMBAI: After nearly three weeks of speculation, debate and discussions, the advertising agencies, represented by the Advertisng Agencies‘ Association of India (AAAI), and the broadcasters, represented by the Indian Broadcasting Foundation (IBF), the bodies have come to a consensus about shifting to net billing.

The decision came as a relief to both agencies and broadcasters as the latter had stopped airing ads on their respective networks. Clients were yelling blue murder at the agencies for not being able to promote their products to TV viewers. Indiantelevision.com spoke to some of the network officials to get their views on what they thought about the settlement between the two:

Says MCCS CEO Ashok Venkatramani, "I welcome it completely. It‘s the right thing and I am very glad that the issue is resolved and I think we have done the right thing moving to net billing. It should have happened earlier, but it‘s better late than never."

AXN Networks India business head Sunil Punjabi feels that the new net billing system is not going to affect broadcasters. "It doesn‘t make a difference from a channel‘s perspective. It is just that things will be more transparent. From a tax perspective things will be clearer." He however adds that from an agency's perspective there could be an impact pertaining to commission. "Earlier on a bill of Rs 100 we were paid Rs 85. The rest was the agency‘s commission. Now we will charge Rs 85 and get paid that."

Venkatramani adds that the industry was "just hanging to the system which is completely outdated and nobody was gaining. It was just a paper number, paper figure or you can say paper transaction and it doesn‘t make much difference to their (agencies‘) life. They just need to sit with their clients and renegotiate their actual fees."

Taking a slightly milder tone, Colors CEO Raj Nayak said, "I am glad that both the IBF & the AAAI have been able to come to a mutually agreeable solution on the net v/s gross billing issue. This is an industry issue and we have to address it together keeping the interests of all stakeholders in mind."

NDTV group CEO Narayan Rao is in complete agreement and adds, "We were part of that decision and we fully supported it. I am glad that the IBF leadership and also some of the CEOs of our broadcasting channels have been able to achieve this conclusion."

Helios Media CEO Divya Radhakrishnan feels that the standoff between the two stakeholders of the industry served little more than proving a point one way or another. She said, "Broadcasters and agencies are working in the same space of providing communication solutions for brands. Hence there can be no reason for working at cross purposes. An amicable solution works for all concerned. Such stand offs serve no purpose other than wanting to prove a point. Lastly, if a stance has to be taken then it cannot be selective."

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/22/football_0.jpg?itok=qmOBAtSK
Mumbai City FC joins hands with Infinix Mobile

MUMBAI: Infinix Mobile from Transsion Holdings has announced a partnership with Mumbai City FC, the Hero ISL team owned by Bollywood actor Ranbir Kapoor. The partnership comes close on the heels of the global launch of Infinix’s flagship dual camera smartphone, the Zero5.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/22/Prasanth_Kumar.jpg?itok=6lXqVbZm
Talent retention is key, says Mindshare’s Prasanth Kumar

MUMBAI: Mindshare, a global media and marketing services company that is a part of GroupM, has completed 20 years this November globally and 15 years in India. The company was created by the merger of the media operations of JWT and Ogilvy & Mather, then the two big full-service advertising...

MAM Media and Advertising AD Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/22/Digital_ad.jpg?itok=wNAQx7RC
Digital ad spend pegged at Rs 13000 crore in 2018

MUMBAI: With the growing demand for smartphones and falling data prices, digital advertising are likely to increase in India from the current level of Rs 9800 crore to Rs 13000 crore by December 2018 growing at a compound annual growth rate (CAGR) of 35 per cent.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/Mullen-Lintas_0.jpg?itok=GzUA2t-i
Fossil assigns creative mandate to Mullen Lintas

Fossil India has appointed Mullen Lintas as its advertising agency partner after a competitive multi-agency pitch.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/ROB.jpg?itok=JAlomE5a
Rob Norman quits GroupM

MUMBAI: GroupM’s global chief digital officer Rob Norman has decided to retire from his full-time role effective January 2018. Hewill remain an advisor to GroupM and its clients, with a reduced workload that allows him more time to pursue personal interests.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/Pidilite_Fevikwik.jpg?itok=UAziQ8rm
Pidilite celebrates 'Khushiyon ke chand pal' in new TVCs

MUMBAI: Fevikwik, the instant adhesive brand from Pidilite Industries, has launched a new television ad campaign titled ‘Khushiyon ke chand pal,' which depicts a woman being unexpectedly appreciated by her loved ones for repairing different things in the house.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/Saregama.jpg?itok=1SR7fwYS
Saregama makes digital audio players cool again

MUMBAI: There is nothing that moves India like music and when it comes to music, who would disagree that songs from the 50s, 60s, 70s, and even the 80s have touched India like few other things have. Several generations have grown up on singers like Rafi, Lata, Mukesh, Kishore, Sahir, Majrooh, RD,...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/bat.jpg?itok=vbyPYfgk
Milestone Dentsu charges up new Panasonic TVC

MUMBAI: After a long hiatus from TV screens, Panasonic has returned with a commercial for alkaline batteries. Developed by Dentsu Aegis Network’s Milestone Dentsu, the creative partner of Panasonic India, it highlights Panasonic batteries’ superior power over normal zinc ones. It stars Olympic...

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/21/commerce.jpg?itok=e57FM29_
Emerald Media leads $65 mn funding round in aCommerce

MUMBAI: Southeast Asia’s leading e-commerce brand aCommerce Co has announced that it has closed a $65 million Series B funding round. It is an enabler and e-distributor in four markets for over 260 brand clients such as Samsung, Unilever, Nestlé, L’Oréal, Philips and Mars.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories