The Advertising Agencies Association of India (AAAI) is chalking out strategies to deal with the problem of non payment of dues to channels, newspapers and advertising agencies by the advertisers. AAAI plans to install a foolproof system whereby the agencies and media industry are fore warned about the defaulting advertisers.
AAAI plans to institute a system, whereby a client will first have to obtain a No Objection Certificate (NoC) from its earlier advertising agency before approaching another one for its communication business.
AAAI is also planning to take up the issue with the RBI, to allow banks to fund supplier credit. It is also examining the legal aspect. It expects the agencies to make contracts with the advertisers more watertight as delay in payments is the single biggest issue faced by advertising industry today.
The media industry on its part is not taking this lightly. The Indian Newspaper Society (INS) has tightened up its monitoring system. It keeps a watchful eye on the defaulters and is quick to issue embargo notices in problem cases.
Huge outstanding by advertising firm has forced TV channels to take action. A working committee jointly set up by the IBF and AAAI has issued notices on payment deadline to at least 40 ad agencies.
By and by, its going to be a tough time for the defaulting advertisers as they no longer can ignore the fact of being blacklisted by the entire media and advertising agencies.