| On September
21, 1945, 60 years ago, Advertising Agencies
Association of India (AAAI) was registered
as a society in Calcutta. 4 agencies from
Calcutta – D J Keymer, General Advertising
Agency, J Walter Thomson Co. and Press Syndicate
– and 3 agencies from Bombay –
Adarts, Lintas and National Advertising Service
– were the signatories in the registrar’s
office doing the honours. Initially the registered
office of the Association was located at 37,
Chowringhee, Calcutta. Calcutta, under the
British Raj, was a vibrant commercial city.
In 1961, the AAAI office was shifted to Bombay.
What was the size of the ad industry then?
The Government’s own Press Commission
in 1953 noted that the value of print advertising
was Rs. 35 million. Other media spends were
estimated at another Rs. 15 million.
In such an era, these were some real bold
men, who felt the need to create a platform
to promote advertising, as a professional
activity!
We must also understand the background
under which AAAI grew in stature. After
India became a Republic in 1950, our successive
Governments promoted the policy of self-reliance
and import substitution. For three decades
– from 1951 to 1980 – advertising
in India had limited purpose to play.
Till the 80’s, while the Government
did not encourage competition, the Government
did grudgingly acknowledge the importance
of communication in social aspects like
in family planning programmes, nutrition,
education, the modernization of agriculture
and ushering in the green revolution. AAAI
Members were called upon to provide support
in the Government efforts in some of these
critical areas.
The Government also had a healthy respect
for AAAI and always consulted it in matters
of consequence. For example, it was at AAAI
instance that the Government permitted foreign
equity holding in ad agencies in the late
80’s.
Whenever required, AAAI has stepped in
to protect its business interests to regulate
orderliness in the industry. It has been
intrumental in restoring the 15% commission/trade
discount for Government business in Government
owned media, or in lobbying for removal
of tax on advertising way back in 1965 and
subsequently in 1978 and 1983, or during
the most recent Fringe Benefit Tax where
advertising and promotion was included as
Fringe Benefit!
AAAI’s contribution in regulating
the industry is no less significant. In
1987 when TV sponsored programmes became
a reality, it determined how the income
should be shared between the placing agency
and the creative agency. In 1988 and again
in 1990, AAAI was actively involved in determining
the procedures and policies of the electronic
media i.e Doordarshan.
In 1983, AAAI was involved in a serious
dialogue with Indian Newspaper Society (INS)
when the credit period was proposed to be
reduced from 75 to 45 days. Finally we agreed
on 60 days, with the rider that "no
changes would be made in the Accreditation
Rules without mutual consultation and consent"
of INS and AAAI. In 1991, when the proposal
came to reduce this 60 days to 45 days,
it was persuasively defended. Since then
INS and AAAI meet regularly with respect
to matters that concern both bodies.
AAAI has been behind the National Readership
Survey as a joint industry initiative in
collaboration with INS and ABC. Having felt
the need for a self-regulating body in Advertising,
AAAI was highly supportive to the formation
of Advertising Standards Council of India
(ASCI).
Similarly, AAAI encouraged the formation
of Indian Broadcasting Foundation so that
it could address the needs of TV channels.
About 4 years back, AAAI signed a unique
Agreement with IBF, which codified the working
relationship between the members of IBF
and AAAI in the matter of placing and paying
for the ads. This initiative has been a
resounding success for both sides.
AAAI enjoys a healthy relationship with
Indian Society of Advertisers (ISA). Time
and again, AAAI has been called upon by
its members to resolve disputes with advertisers
for which formal Arbitration proceedings
have been conducted. AAAI also assists our
members to collect payment from defaulting
advertisers.
In summary, AAAI, over the last six decades,
has stood by its members and have protected
their business interests, be it in dialogue
with Government, media bodies or advertisers;
AAAI has regulated its members in the orderly
conduct of their business affairs, whenever
the need arose; And last, but not the least,
AAAI provided a platform for training of
advertising professionals, recognition of
creative work through its coveted Triple-A
Awards and honouring outstanding advertising
men through its AAAI-Premnarayen Award.
AAAI has thus come a long way from its
humble beginnings 60 years ago. But as they
say, the future is always more exciting
than the past.
AAAI is alive to the changes that the future
holds out and the next decade would be a
stimulating period, ushering the advertising
industry in newer challenges and opportunities.
|