Since the last one week, the only topic on everyone’s mind in India seems to be the demonetisation move by PM Narendra Modi and how it will affect the socio-political and economic scenario. While there has been no shortage of the move’s ramifications on businesses, both big and small up to now, the advertising industry in the country too is experiencing the after effects of demonetisation.
The Indian Broadcasting Foundation has now issued a letter to advertisers/advertising agencies after it has been observed that several advertisers/agencies have started sending cancellations to IBF members on existing deals, which include both short term and long term deals following the demonetisation initiative of the Government. This despite the fact that only cash transactions have been impacted and no change has been made on electronic or cheque and draft payments.
The letter states, “All payment transactions between IBF members and Advertisers/Agencies are done electronically, or by way of cheque/draft payments through proper banking channels and hence there is no question of cancelling confirmed deals on the pretext of demonetization.”
The IBF Board has issued a general advisory to all IBF members to inform their respective agencies/clients to maintain the sanctity of their contracts/deals, already signed between the clients/ agencies/broadcasters including, long term and short term deals, as well as deals confirmed by issue of Release Orders, by performing their obligation under these contracts.