MAM

Industry reacts to move to net billing

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/09/28/AAI-1.jpg?itok=pdATuYUb

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Venkatramani adds that the industry was "just hanging to the system which is completely outdated and nobody was gaining.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

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/23/fantasy_sports.jpg?itok=fSoWo8fb
Online fantasy sports platforms & their IPL romance

NEW DELHI: Ten years ago, if someone told you that you could create your own virtual sports team and win money, you would have laughed off the idea. However, a handful of techies believed in the possibility. They have not only turned it into a business but have developed an entire new category...

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/bharatpe.jpg?itok=73dOVmOK
BharatPe ropes in 11 cricketers as brand ambassadors

NEW DELHI: As the country gets ready to kickstart the festive season through cricket, BharatPe, India’s leading merchant payment network, is all set to invigorate the market with its own team of 11 cricket superstars as it's brand ambassadors. The BharatPe XI team includes India’s top international...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cri.jpg?itok=CHWmfg0L
Festival season will be the golden quarter for ecommerce players: Criteo Report

New Delhi: Criteo has released its Holiday Report 2020 highlighting key trends in the online e-commerce industry in the much-awaited festive season including Rakshabandhan, Big Billion days and Diwali. The report highlights the top trends observed for the highly thriving e-commerce market in India...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cl.jpg?itok=iixls6x9
Pocket Aces unveils talent management division Clout

KOLKATA: Pocket Aces, India’s leading digital entertainment company, unveiled new branding for its talent management division, labeling it “Clout”.Clout, which means the ability to influence, will focus on exclusively representing the digital industry’s finest and most popular faces.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/sunil.jpg?itok=ZEB9WL1C
Indian Society of Advertisers elects Sunil Kataria as chairman for fifth term

The newly elected executive council of the Indian Society of Advertisers (ISA) met on September 21, 2020. Sunil Kataria, CEO, India and SAARC, Godrej Consumer Products, was elected chairman of the ISA. Sunil has led the society over the past four years to newer heights drawing support from his...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/mix.jpg?itok=5akV4_Nu
Ashish Bhasin hands over charge of AAAI to Anupriya Acharya

Ashish Bhasin, president of Advertising Agencies Association of India( AAAI)  has handed over charge of  AAAI to Publicis Groupe’s CEO south Asia, Anupriya Acharya, who was elected as the president of Advertising Agencies Association of India (AAAI) for the year 2020-21 at its Annual General Body...

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/sig.jpg?itok=9aZC58Je
Charanjeett Singh Arora quits Kinetic India

NEW DELHI: GroupM-owned outdoor agency, Kinetic India co-chief executive officer (CEO) Charanjeet Singh Arora has resigned from his position. He is currently serving his notice period and has confirmed the exit to Indiantelevision.com. He was responsible for driving team transformations spanning...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/pulsar.jpg?itok=Z0mjM6sG
Bajaj Pulsar redefines the rules of motorcycle riding in the new normal

NEW DELHI: Bajaj Pulsar has been a trailblazer in changing the face of the Indian motorcycle industry singlehandedly, with its unique communication and product line-up. And it is all set to blaze new trails in this new campaign that highlights the performance and technology of its range of...

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/22/cardekho-rahul_dravid.jpg?itok=Ib-1Uw4o
CarDekho focuses on personal mobility in its new spot

NEW DELHI – CarDekho has launched its newest TV campaigns ‘The everyday hero’ championing the cause of personal mobility.

MAM Marketing Brands

Sign up for our Newsletter

subscribe for latest stories

* indicates required