Ad agencies under IBF embargo

Mumbai: Non-payment of dues to television channels has forced the Indian Broadcasting Foundation (IBF) in association with the Advertising Agencies Association of India (AAAI) to place an embargo on three advertising agencies - Hindustan Thompson Associates, Fulcrum and McCann-Erickson.

The total outstanding payment has been estimated at around Rs 600 crore. After the embargo, none of the advertisements issued by these three agencies will be broadcast by member channels such as Sony, Star, Zee, Aaj Tak, Eenadu and Doordarshan. Some of the big spenders who are likely to get adversely affected by the move are Reckitt Benkiser, Nestle India, Madura Garments, Hindustan Lever and Pepsi Foods.

The joint working committee of the two bodies had asked the three agencies to settle their dues by 15 September 2001. Channels like Aaj Tak have already implemented the decision and others are in the process of doing so.

Presently, the advertising agencies are entitled to a credit period of two and a half months from IBF members.

Earlier this year, IBF and AAAI had agreed to work together. Under the arrangement worked out, AAAI members were to get preferential treatment from IBF members in terms of spot advertisement rates and credit period if they guaranteed payments within that period.