A Memorandum of Understanding (MoU) was signed between the Advertising Agencies Association of India (AAAI) and the Association of Radio Operators for India (AROI) by the Presidents of the respective associations, Nakul Chopra for AAAI and Anurradha Prasad Shukla for AROI.
AAAI and IBF already have a joint credit control mechanism for television. With the signing of the MoU a similar mechanism for radio advertising is being developed and the necessary groundwork for setting up joint committee, developing SOPs etc is already under process.
Tarun Katial, CEO, Big FM and a member of AROI, said, âLandmark moment - AAAI and AROI sign the MOU on credit relationship for the benefit of all stakeholders. Thanks a lot Ashish Bhasin, Sam Balsara, Shashi Sinha, Abe Thomas, Anurradha Prasad for all your support - look forward to a much better working relationship.â
The MoU envisages a close working relationship between the radio and AAAI through joint committees and standard procedures for the following purposes:
To make joint efforts for promoting advertising business on radio .
To develop and implement a credit control and collection mechanism with standard operating procedures to ensure best credit terms and timely collections.
It may be noted that commercial radio currently entirely operates through over 310 FM radio stations in the country with about 70 more under operationalisation. Another 700 more stations are expected to be auctioned by the Government of India over the next one year. Also, being the last entrant in the Indian media space, the strong ground presence and the vitality, efficacy and viability of radio (the only media that can be consumed while doing other activities) is only now being strongly realised by various advertisers and consumers.