New Delhi: The MoU between AAAI and AROI envisages a close working relationship between the Radio and Advertising Agencies Associations 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.
The Memorandum of Understanding was signed at AAAI office at Mumbai on 16th March 2018 between Advertising Agencies Association of India (AAAI) and Association of Radio Operators for India (AROI) by the Presidents of the respective associations, Mr Nakul Chopra for AAAI and Ms Anurradha PrasadShukla for AROI.
It may be noted that commercial radio currently entirely operates through over 310 FM radio stations in the country with about 70 more under operationalization. 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 realized by various advertisers and consumers.
Expressing his excitement over the MoU, Tarun Katial, CEO, BIG FM said, “Landmark moment – AAAI and AROI sign the MOU on credit relationship for the benefit of all stakeholders. Thanks a lot Ashish Bhasin, Sam Balsara, ShashiSinha, Abe Thomas, Anurradha Prasad for all your support – look forward to a much better working relationship.”
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.