Ad Club-organised Media Review in Mumbai on August 6 saw five media stalwarts – Lynn de Souza, Vikram Sakuja, Shashi Sinha, Ravi Kiran and Sam Balsara – discussing a myriad of issues concerning the media and advertising industry in India today. Ad veteran and Chairman and Managing Director, Madison Communications, Balsara suggested proactive measure on issues like late payment, insufficient profits, and the need to get commercial processes digitised.
Balsara said, “Agencies should not shy away from asking for a fee, which they think is good enough to first cover all costs and keep sufficient margins for profitability.” He also stressed on the need to shift from an agency model to a consultancy model, wherein clients would look at the media industry for sheer expertise, not in terms of being agents but in providing complete business solutions.
On the amount of bad debts that are happening in the industry, Balsara suggested a solution. According to him, “There should be a way in which insurance companies could be asked to cover the bad debts and late payments that happen from the clients’ side.”
He further said that that all ROs and bills should released via the digital mode.
He concluded by saying that the AAAI should get involved in monitoring the client’s track record of payments.
Ad Club’s Media Review 2008 - Unstoppable or unsustainable, learn it from the experts