IBF lifts embargo as agencies pay up

Sibabrata Das in Mumbai

The Indian Broadcasting Foundation (IBF) has lifted the embargo on Hindustan Thompson Associates (HTA), Fulcrum and McCann Erickson after receiving payments due to them from the three leading agencies. In certain cases of non-payment, the IBF has been assured of the clearance of outstandings within a specified period.

The decision was taken by the joint committee of the IBF and the Advertising Agencies Association of India (AAAI) and information was provided to the member broadcasters on Wednesday evening.

The Financial Express was the first to report that the IBF had imposed an embargo on the three defaulting agencies—Hindustan Thompson Associates, Fulcrum, and McCann Erickson - with effect from September 16.

Interestingly, some of the big broadcasters had not yet pulled out the ads from their channels. Sources said Star would have blacked out the commercials obtained from the three agencies on its network channels only from Friday.

“It takes us 4-5 days to pull out the ad spots from our scheduling. We had started the process and informed our Hong Kong office on Monday. The ads would have been off our network on Friday. Now with the embargo lifted, we are rescheduling the spots,” said the source.

IBF executive director Bhuvan Lall admitted that some broadcasters had not been able to implement the embargo due to technical reasons.

“While some of the big broadcasters were in the final process of pulling off the ads, the smaller networks could do it more speedily. We got written statements from all our members, saying that they had authorised their departments to pull out the spots,” he said.
Sources said the IBF had, a few days back, informed its members that the three agencies had not cleared the dues “despite the 15 days extension given to them by the IBF board of directors.” The IBF added, “Please instruct your advertising sales, marketing, operations and finance staff to do the needful.” The IBF board, at the August 31 meeting, had decided to enforce the embargo on the defaulting agencies with effect from September 16.

A note informing the IBF members of the lifting of the embargo is available with The Financial Express.

The note said: “As per the instructions from Rajeev Aggarwal chairman, IBF-AAAI joint committee, and I Venkat, IBF and member IBF-AAAI joint committee, I would like to inform you that the embargo on McCann Erickson, HTA-Fulcrum and HTA is to be lifted effective 6.30 p.m., September 19, 2001.”

It further added that the “IBF members have satisfied the IBF-AAAI joint committee and informed the IBF secretariat that they have received the payments due to them or have been promised the payment within a specific time frame.”

The hard stance taken by the IBF has been applauded by the member channels. The body stood behind the embargo, despite some big broadcasters being paid off their dues earlier than the smaller networks to break the unity, a senior official of a channel said on request of anonymity.