IAA Romania: Romanian audiovisual law modification – to blow off advertising market

IAA Romania presented, at CNA, its general conclusions following an impact analysis over the Government proposed modification for the Audiovisual Law. IAA made its analysis following consultations with TVs, agencies, clients, distributors and media sales houses, demanding a negative vote from CNA on the Emergency Ordinance project.

Two years ago, a record number of agencies, clients and TVs meet at IAA headquarters to discuss about Government’s intention to modify the Audiovisual Law. The general conclusion of the impact analysis is that limiting commercial freedom of the agencies by eliminating them from advertising transactions will have a disastrous impact over the industry. The losses of the TV advertising market are estimated to 20%, meaning Euro 40M, in a market that decreased seriously during last couple years.

“It is a mistake to believe that any of market’s segments: clients, agencies or TVs will profit of this ordinance. Everyone will suffer massive losses, because State’s interference in functional commercial mechanisms will determine massive distortions on the advertising market”, IAA says, in a press release.

The same document mentions that advertising agencies aren’t just simple intermediaries in advertising transactions or the “smart guys” of advertising to be eliminated, but they bring added value to the market, insuring predictability for TVs and clients, a balance in offer and demand, optimum strategic planning and redistribution of advertising withdrawn by clients.

During Monday’s meeting at IAA, representatives from tens of companies in all advertising market segments asked a question: who profits on blowing off the advertising market? (…) If there are some that have plans to get earnings from this, those plans are a mistake. Because eliminating advertising agencies doesn’t profit TVs, as many would thing, or clients – most of them huge multinational companies, agencies or even to the State, that would loose from the budget consistent amounts

Victor Dobre

Executive Director IAA Romania

IAA will sent a detailed study on the negative impact of Audiovisual Law modification to all interested parties: from Government to political parties, to former or future representatives in the Parliament, europarlamentars in European Commission, Competition Council, Ancom, national and European business organizations, local and national press.

“IAA demands Government to act responsibly and in line with public interest and withdraw the Emergency Ordinance for Audiovisual Law modification. In the 13th hour, IAA demands Government to start a real economic,  social and budgetary impact analysis with a large scale consultation process with all involved parties and with respect for the principles of a good governance and decision-making transparency”, IAA adds.

IAA Romania was founded in 1993, with the purpose to represent the Romanian advertising industry, and reunites the interest of over 120 companies. IAA is a professional association, an unique strategic partnership that reunites and defends the interest of companies activating in marketing and advertising industry. IAA members are companies that benefit of advertising and advertising and media agencies that distribute it.