Media agencies fear losing clients as ad blackout takes hold

The gross billings versus net billings issue has come to a head with the Indian Broadcasting Foundation (IBF) sending out a diktat to broadcasters, with a notice dated April 30, 2013, asking them not to run any ads that are based on gross amount ROs received from agencies.

Resultantly, major broadcasters, including STAR India, ZEE, MSM, NDTV and others have stopped airing commercials that are associated with gross billings. Some of the major brands impacted by this ad blackout include Samsung, LG Electronics, Sony, etc.

Star Plus and its sister channels have been running a ticker that states: “Advertisements are not running on this channel because advertising agencies have refused to accept revisions in billing methods which are seen as flawed by tax authorities. We regret any inconvenience, but the STAR Group is committed to doing business with the highest standards of compliance, which reflects the true commercial arrangement between advertisers and broadcasters.”

Speaking on the ad blackout, Vikram Chandra, Group CEO, NDTV said, “We are following whatever directives that we have received from the IBF.”

Source: http://cablequest.org/news/national-news/item/2417-media-agencies-fear-losing-clients-as-ad-blackout-takes-hold.htmlSource: http://cablequest.org/news/national-news/item/2417-media-agencies-fear-losing-clients-as-ad-blackout-takes-hold.html