Adboard cracks the whip

The Adboard and its nine-member associations are dead serious about cracking the whip on non-members who violate the 18-minute per hour commercial load limit.

Hidden Agenda has just learned that each member (particularly PANA or the Philippine Association of National Advertisers) is now trying to convince its top 10 or 12 advertisers to sign a conforme agreeing to the new rule, contained in a resolution earlier signed by the Adboard and its member associations. Another member, the Association of Accredited Advertising Agencies (4As), will also convince its top member advertising agencies to sign a separate resolution.

The resolution is particularly aimed at curbing alleged violations of GMA Broadcasting Corp. which earlier pulled out its membership from the Kapisanan ng mga Brodkaster ng Pilipinas (KBP) after the former refused to abide by the 18-minute load limit. A GMA executive, in an interview with an entertainment columnist, said that the company does not benefit from its membership in KBP (but what about the tax credits for equipment purchases which GMA 7 was able to avail of because of its KBP membership?).

Imagine if the likes of Procter and Gamble, PLDT, Smart Telecommunications, Globe Telecom, Nestle, Unilever, Unilab, San Miguel Corp. which includes Purefoods and Coca-Cola, Jollibee, General Milling, and Universal Robina Corp. which are among the top advertisers in the country and which account for bulk of advertising revenues of media entities sign?

Sources said the Adboard is still hoping that GMA 7 will realize that this is a serious matter and should not be taken lightly. GMA 7 is faced with two options: tow the line and rejoin KBP or take the matter to court, which seems to always be an option to its top executives.

In the month of May this year alone, industry documents revealed that GMA 7’s overloaded by 452.55 minutes, or 32 percent more than what is allowed under KBP rules. GMA’s programs also overloaded 229 times during the month. Ironically, GMA executive have been harping that May was the highest in terms of advertising revenues for the company.

Sometime in October last year, the KBP found GMA 7 violating the 18-minute per hour commercial load limit. Instead of paying the fine under KBP rules, GMA opted instead to pull out its membership. Other non-members of the Ad Board are PTV 4 and Bombo Radyo, to name a few.

The Adboard’s member associations include the PANA, Association of Accredited Advertising Agencies – Philippines (4As), Kapisanan ng mga Brodkaster ng Pilipinas (KBP), Advertising Suppliers Association of the Philippines (ASAP), Cinema Advertising Association of the Philippines (CAP), Independent Blocktimers Association of the Philippines (IBA), Marketing & Opinion Research Society of the Philippines (MORES), Outdoor Advertising Association of the Philippines (OAP), and the United Print Media Group (UPMG).

The group has recently decided to penalize broadcast media suppliers who violate the 18 minutes per hour maximum commercial load limit (inclusive of breakspots) through the imposition of a fine equivalent to "the amount of the advertising fee for the program where the violation was committed multiplied by the number of excess advertising minutes for the program plus 20 percent thereof, and further multiplied by the ratio of the total time of the advertiser’s placements in relation to the total time of all advertisements aired during the said program," to be paid to the advertiser.

The rules on commercial loading are contained in the Television Code and Radio Code of the KBP which provides that "commercial load for television in Metro Manila shall not exceed 18 minutes per hour in foreign or local programs, inclusive of breakspots. The commercial load for provincial TV stations shall not exceed 20 minutes per program hour, whether foreign or local."

"Commercial load for radio in Metro Manila shall not exceed 15 minutes for a one-hour program. Commercial load for radio shall not exceed 17 minutes for a one-hour program outside Metro Manila."

The fine will be automatic, because the advertiser will simply offset it from its outstanding obligations to the broadcast media supplier concerned. More serious sanctions against the violating party will be considered for continuing violation, the Adboard said.

In addition, the Adboard has decided to "refrain from dealing with persons and/or entities that do not observe professional ethics and the trade and business practices that it embraces.

Knowing When To Give Up

Some people don’t know when to stop.

Philippine Ports Authority assistant general manager for operations Benjamin Cecilio is reportedly approaching key officers of a big time port operator to get their boss to endorse his reappointment. This was after Cecilio failed in his nth bid to secure the top PPA post, which recently went to former MARINA administrator Oscar Sevilla.

Sources said Cecilio reportedly promised heaven and earth to this port operator and even vowed to do anything they want him to do.

When President Estrada was ousted, Cecilio actively lobbied to be appointed as GM of PPA. As fate would have it though, Alfonso Cusi, a businessman with interests in the transport business and a long time waterfront private sector figure, assumed the post.

The May 2004 elections once again renewed Cecilio’s craving for the PPA top post especially with fellow Bicolano presidentiable Raul Roco enjoying a significant following in his quest for the presidency. Cecilio banked on the possibility that with a Roco win, the post of PPA GM would be his for the taking. Moreover, he was spreading the word that he would definitely be the next GM and even started promising several key people in the PPA that they would be appointed assistant GM.

Nothing wrong actually in aspiring for the top PPA post, but when one purposely feeds his boss with misleading information and worse, recommends certain actions on major issues in the hope that he makes a major blunder, that is foul. PPA insiders claim that this is what Cecilio has been doing to several GMs in the past.

With the recent appointment of Cusi to head the Manila International Airport Authority, Cecilio once again went a-frothing for the post. Then wham! Cusi got the much-coveted post.

Isn’t it about time that Cecilio turn in the towel?

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