The Internet and Mobile Association of India, [IAMAI], has introduced a credit policy and accreditation process for all agencies dealing with online advertisements. The policy reportedly has received support from all leading online publishers in India including Rediff.com, Yahoo! India, Indiatimes.com and Sify.com.
The official communiqué reported that the policy consists of three aspects -- a common credit policy for all accredited agencies; an accreditation process and a process of recovery of over due payments from agencies.
In the fast growing online industry, credit policy to agencies and timely recovery of online advertisement payment is an issue of concern with the online publishers. IAMAI felt that it was necessary to have some common guidelines governing extension of credit and accreditation of agencies.
The policy comes into force from March 28, 2007, before which the agencies have to get accredited with the association. There will be no fee imposed for this. Moreover, under the policy, a 60-day credit would be extended by affiliated publishers to all accredited agencies with a 30-day window for negotiation, reconciliation and settlement.
In addition to this, a confidential list of advertisers who default regularly will be prepared and shared with all the accredited agencies and online publishers.
Further, in the event of a notice of stop service, the agencies will be responsible for payment related to ongoing campaigns on a pro-rata basis. However, relationship between online publishers and direct advertisers will be outside the purview of the IAMAI process, the communiqué maintained.
Commenting on the initiative, Subho Ray, President, IAMAI, was hopeful that the new policy will bring in some norms and standards to the relationship between online publishers and agencies which is currently bilateral and haphazard.
The communiqué also stated that if the policy works out successfully in the first stage, IAMAI would consider taking the next step of setting up certain norms supporting the agencies’ recovery from advertisers.