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B'casters to pull out ads based on gross amount ROs from agencies

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B'casters to pull out ads based on gross amount ROs from agencies

In a late night development, IBF sent a diktat to all channels to not run any ads that are based on gross amount ROs received from agencies.

Except Sun TV and other regional channels, all channels are expected to follow suit starting today.

exchange4media had reported last week that IBF and agencies are headed for a flash point on the net vs. gross billings issue.

Also read:

Broadcasters shift to net billings, creating a flash point with agencies

On the flip side, consumers will get lot more content to watch as advertising volumes will significantly drop.

Though this might lead to massive revenue loss for channels for downtime, IBF would have calculated the damages on account of income tax notices and taken this step accordingly.

Our typical marketing budget is usually 10 per cent of the topline spend

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