Pakistan Advertising Association is going through crisis during these times of Covid-19. The advertising sector has been targeted by people and are blamed that payments to the media are not being cleared, the PAA has requested government to help ensure the safety of PAA by giving them some relief.
In a recent press statement the Pakistan Advertising Association has cleared all the misconceptions, the statement reads out “ An Advertising Agency develops the idea, designs Advertisement Campaign for Print, Electronic (TV & Radio), OOH and Social Media etc. etc. for the promotion of the product/services and acquires the services of best creative team on its pay roll to carry out the job, from concept writing, executing till its finalization for which a lot of human resource is involved and also arranges proper placement of advertisement in the media, which is an art and only professional agency can do this job.”
The statement further read on “Most of the time advertising agencies source they payments themselves to pay the media as clients do not mostly pay according to APNS and PBA schedule wise, according to practice worldwide Advertising agencies get 15% commission from the media for its services however due to media buying houses the earnings of agencies have been affected, so no agency is getting complete 15% commission, whereas the agencies have to pay government taxes and also provide their clients with discounts which eventually turns down extra earning besides expense in running the office.”
The PAA has also made it clear that Advertising business is no longer a lucrative business anymore however it should be as it provides services to both private and government sector and it should be given a status of Advertising industry.