IOAA and AAAI will together implement a standard procedure for the OOH sector
They are hoping to bring stability to cashflows by empowering agencies, who can then put pressure on clients to pay on time, while making both agencies and advertisers more disciplined
Indian Outdoor Advertising Association (IOAA,) the industry body for outdoor advertising in India, has started working with the Advertising Agencies Association of India (AAAI) to streamline the industry. The two associations had first signed the agreement back in 2015 to set up a standard operating procedure (SOP) for the outdoor advertising. According to Noomi Mehta, President of IOAA and Chairman of Selvel One Group, the idea behind the SOP was to bring stability to cashflows by empowering agencies, who can then put pressure on clients to pay on time, while making both agencies and advertisers more disciplined.
“Though the original agreement was signed in 2015, it had not been put into action till now. We have now sorted all the problems and have begun implementing the SOP. We expect to start by September 1 and have approached the relevant government ministries. We have also sent a set of proposals to the various state ministries,” he told us.
Apart from this, both the IOAA and AAAI will ensure proper codification and verification of all OOH sites to remove elements of corruption and wrongful reporting.
“The more the two associations talk, the easier it is to solve the issues in the industry. The IBF (Indian Broadcasting Federation) used to face similar issues like us, with payments remaining outstanding for more than 100 days. By working together they have brought it down to 70 days. We are hoping for a similar improvement,” said Mehta.
When asked what the current situation was, he said that at times advertisers do not pay for more than a year. “We can now put more pressure on defaulting advertisers in the joint meetings of the associations. No advertiser or agency wants to be taken to task in front of their peers,” he added.
Meanwhile, Mehta also told us that the new measurement system, which the OOH sector is hoping to implement, has also been discussed with AAAI. He said, “We are looking at setting up physical and GPS verification besides apps. Once digital comes on the roads it will become much easier. The focus is to get media agencies to commit to using the system.”
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