AAAI sets up committee to examine issues concerning agency remuneration
In a significant move, the Advertising Agencies Association of India (AAAI) has set up a ‘steering committee’ to examine the issues concerning the agency remuneration system in the Indian advertising industry. The committee’s members have
In a significant move, the Advertising Agencies Association of India (AAAI) has set up a ‘steering committee’ to examine the issues concerning the agency remuneration system in the Indian advertising industry. The committee’s members have been selected from its 16-member executive committee.
According to AAAI president Sam Balsara, extensive inquiries (based on both number and volume) have revealed that the vast majority of business conducted by AAAI members is on a 15 per cent commission basis (creative plus media agency commission). ‘‘Of the 3,000-4,000 advertisers, there may be a handful who for a variety of reasons may be operating on a commission or fee that is lower than 15 per cent, but a few exceptions do not make the rule,’’ he says.
The AAAI step comes in the wake of the Indian Newspapers Society (INS) warning agencies that it will ‘‘carefully scrutinize the operations of accredited agencies as and when required and disaccredit those who violate INS rules and regulations.’’
While admitting that INS had been receiving a number of complaints that several accredited agencies were offering clients discounts in violation of the rules, says INS secretary-general PK Lahiri, ‘‘We have heard of such cases, but I think they are still an exception rather than the rule.’’
Nevertheless, as recently as September 2002, INS had sent a letter to AAAI, requesting agencies to ‘‘strictly adhere to the rules in the interests of all concerned constituents’’ or face disaccreditation. Subsequently circulars were sent by AAAI to its members pointing out the need to ‘strictly adhere’ to the INS stipulations.
According to sources, accreditation rules have so far stood the test of time and served the long-term interests of all the three constituents of the advertising industry. The principle of agency commission has been thoughtfully developed and maintained by the INS in order to ensure the development of professionalism among accredited agencies and also ensure that financial discipline and controls are in place for the benefit of INS members and their advertisers.’
Even though many large and multinational advertisers are reported to be operating on less than 15 per cent commission, an AAAI release says it’s not because of the meltdown of the commission system but because of the nature of global arrangement between multinational advertisers and their club agencies.
As the advertising market grows and evolves, so do advertiser requirements and there could be certain situations where the agency commission is not 15 per cent. Media buying or media planning plus buying are separately paid for. The entire gamut of services in the area of Creative (consumer research/insight, strategy, creative) is not availed of.
The fee system, however, does not always reduce agency commission. In fact, in cases where it is related to the volume of advertising, it may actually be higher than 15 per cent. While in the global marketplace, it is the fee system that is followed, this may not be suitable in India for the majority of small and medium advertisers as arriving at the amount is usually an elaborate and time consuming process.
According to a Mumbai-based analyst, the entire hullabaloo on agency commissions misses a point because agency commissions are paid to agencies by media, not by the client. Clients who wish to prune agency commissions also need to understand that they are trespassing into domains that are not theirs, in the first place.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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