OAC 2013: IOAA in process to sign MoU with AAAI
By VJ Media Bureau - July 05, 2013
To develop an understanding and accept OOH as a medium of value, Indian Outdoor Advertising Association (IOAA) shares details on the proposed MoU with AAAI which is on the lines of IBF or INS.
According to Noomi Mehta, the IOAA has taken upon itself to work on three aspects of the industry. This includes safeguard and strengthening the business vis-a-vis agencies and clients, implement and strengthen media deliverables and business practices to create a sustainable, future-ready business and finally share knowledge with government regulators about social benefits that the OOH industry is capable of delivering.
The features of the MoU include:
-Dealings only between members of AAAI and IOAA.
-Transactions to have specific guidelines for issue of Release Orders, Payment Credit Terms, Media deliverables, Billing and Redressal for defaulters.
-The SOP developed earlier by IOAA will be part of this.
-The billing process will change to the model prevailing 10 years ago i.e. on gross and net basis with 15% agency discount
-Media Companies will publish a Rate Card - which will be starting point for any negotiations on rates
-Credit periods will be defined, where proposed is 90 days for non-concessioned media like usual hoardings and other media on rented locations and 60 days for concessioned media like transit, mobile, BQS, etc where concession contract specifies strict payment terms by the concessionaire.
According to IOAA, this will not only bring about a great degree of transparency to OOH business dealings, it will also introduce a great amount of legitimacy to the medium. This, together with introduction of officially recognized census and individual codes to each display, will finally resolve issues that prevent allocation of larger budgets for OOH at Clients' end.