Top Story

Home >> Media-TV >> Article

Still running 'cancelled spots' could lead to payment disputes

19-July-2013
Font Size   16
Still running 'cancelled spots' could lead to payment disputes

Whilst there has been a debate on why advertisements are still running despite leading brands having pulled out starting from last Friday July 12, from seven broadcasters who opted for monthly ratings, pulling out of channels was doubtlessly an extreme action taken by advertisers at not being a party to the ratings decision. These broadcasters included NDTV, STAR India, Viacom18, ZEE Network, MSM and more recently, Fox.

Starting July 12, emails were sent out from four leading media agencies asking respective channels to cancel their client activity.

Nikhil Sharma, Marketing Director, Perfetti Van Melle said, “The cancellation clause shouldn’t hopefully lead to payment disputes and the impasse should be resolved soon.” The brand has pulled out of all channels, and like other advertisers, given a 72-hour notice period. Sharma remains optimistic that a resolution will be out in the next couple of days in view of developments that have taken place during the week.

Ad revenue loss to broadcasters is expected to be roughly 14 – 15 per cent, when calculated on a weekly basis. Since the ratings will be calculated on the CPT format, the per day average amounts to around 2.73 per cent.

Broadcasters, including a prominent India-based channel as well as an internationally headquartered niche channel, are combating this problem by using the 14-day cancellation clause to prevent spot cancellation by brands. They continue to run advertisements as usual.

Broadcasters are also hoping that the issue will be resolved by the time the 14-day clause (which entails the advertiser giving a 14-day notice to the channel) is completed, acting as a buffer and preventing loss of revenue.

Advertisers and media agencies, on the other hand, are adamant and stand by their cancellations.

As channels continue to run advertisements of HUL, P&G, Colgate, Dabur, Perfetti, Godrej, Parle and other leading brands who have pulled out to make their stand in favour of weekly ratings clear, advertisers and agencies remain adamant that they will not be paying for ads that are running post cancellation. Whether this will result in a payment dispute between both the parties remains to be seen.
 

Tags NDTV Viacom18 Zee Network MSM HUL P&G Colgate Dabur Perfetti

Varun Raina, Marketing Manager, Airbnb India speaks to exchange4media about the successful #LiveThere campaign and how Bollywood helps them connect with its young consumer

Tim Castree is all praises for his team in India and trusts it to be a result of “an excellent execution of agency’s global strategy” headed by Kartik Sharma

Siddharth Dabhade says Criteo’s technology allows brands to engage with shoppers, create relevant experience on retail apps, thereby driving sales and profits

Shantanu Gangane says OTT platform Viu plans around 20+ originals and is all set to enter the Tamil market with a mix of syndicated and original content

right
left
OFF THE CUFF HAS JOURNALIST ARUN SHOURIE IN CONVERSATION WITH SHEKHAR GUPTA IN MUMBAI IAA HOSTS FIRST INDIAA REGIONAL AWARDS (TELUGU) IN HYDERABAD BREAK THE CEILING TOUCH THE SKY 2018 SEES OVERWHELMING INDUSTRY PARTICIPATION 10TH EDITION OF ABC EUREKA AWARDS IN MUMBAI CELEBRATES WORK OF PARTNER AGENCIES EMINENT JURY PICKS LOUDEST’S 100 MOST POWERFUL INDIAN MUSIC BUSINESS LEADERS MODE LOFT BY SABGROUP LAUNCHES SIGNATURE MENSWEAR POWER DRESSING CLOTHING LINE TOP MARKETERS DISCUSS ART AND SCIENCE OF EFFECTIVE LISTENING @PITCH CMO SUMMIT 2018, DELHI THIRD SEASON OF ‘INDIA’S TOP DIGITAL PLANNERS’ RECOGNIZES EXCELLENCE IN THE DIGITAL INDUSTRY WOMEN ECONOMIC FORUM 2018 SEES DISTINGUISHED GLOBAL PERSONALITIES IN ATTENDANCE PEPPER CREATIVE AWARDS 2018 RECOGNIZE THE BEST IN ADVERTISING IN SOUTH INDIA RADIO CITY’S POWER OF RADIO MEET HOSTS TOP ADVERTISING INDUSTRY LEADERS TOP INDUSTRY PERSONALITIES ATTEND ZOOM-MYNTRA EVENING TO CELEBRATE THEIR PARTNERSHIP LEADING MARKETERS, EXPERTS SHARE INSIGHTS ON DIGITAL TRANSFORMATION @ADOBE SYMPOSIUM IN MUMBAI NICKELODEON TRADE PARTY SEES MARKETING INDUSTRY LEADERS AND THEIR FAMILIES IN ATTENDANCE GOLDEN MIKES RADIO ADVERTISING AWARDS 2018 RECOGNIZE INDUSTRY’S MOST DESERVING ACHIEVERS AIMA MANAGING INDIA AWARDS HONOUR THE BEST IN THE INDUSTRY BW BUSINESSWORLD’S GREAT INDIA DEBATE BRINGS TOGETHER INTELLECTUALS ACROSS INDUSTRY SECTORS BW BUSINESSWORLD SMART CITIES CONCLAVE PATNA 2018 SEES EMINENT INDUSTRY LEADERS IN ATTENDANCE EMINENT JURY PICKS WINNERS OF GOLDEN MIKES RADIO ADVERTISING AWARDS MADDYS 2018 SEE TOP ADVERTISING AND MARKETING INDUSTRY LEADERS IN ATTENDANCE

Gaurav Dua, Executive Director, Relaxo Footwears talks to exchange4media about the brand's re-branding, marketing strategy, future plans and much more

The brand through its campaign is helping Indian professionals imbibe the new work-culture while making an effortless style statement at their workplace

In this campaign, the brand MRF tyres intends to communicate their proposition of 'comfort made more comfortable'