Improved Cash Flows - Reduced Bad Debts
For the Indian Media and Entertainment Sector, advertisements have been by far, the primary source of revenue. With the principal objective of streamlining the collections from advertisers and advertising agencies for the Television Channels, a Credit Collections Committee was set up by the Foundation in 2001 which scrutinizes, regulates and evaluates the credit-worthiness of the advertisers active through advertising agencies on IBDF member channels. Over the past two decades, the Committee has played a pivotal role in effectively managing the Credit & Collections, dispute resolution between channels and agencies vis-a-vis advertisers. The Committee consists of varied representations from genres, news and non-news and also finds representation from regional channels to give the Committee a more participatory and inclusive look. Such steps have gone a long mile to instil fiscal discipline amongst the agencies/advertisers as far as making payment to the members of the Foundation is concerned.
Other than dealing with the regular credit issues or any other issues allied with the same subject, the Committee has established various protocols to be followed by channels, advertising agencies and advertisers viz. Billing and Payment Process, Procedure for shifting of media account of a client from one agency to another agency etc.
The efforts of the Committee also find reflection in improved collections and diminished outstanding/bad debts for members.
In view of the success of the Committee and on the request of members, the IBDF Board has also constituted regional chapters of the Committee for Kerala and Southern states to streamline the outstanding of the regional channels from Non-AAAI agencies and clients.