ISA Media Charter: Will it bring transparency and integrity in Indian advertising?

The introduction of the ISA Media Charter by the Indian Society of Advertisers (ISA), the representative body of advertisers across the country, has ignited multiple discussions about fairness, transparency, and other related topics within the ever-evolving advertising industry. This charter aims to protect the interests of brands, while addressing multiple concerns.

Sunil Kataria, Chairman of ISA and CEO-Lifestyle Business at Raymond Ltd, emphasised his organisation’s dedication to advocating for advertisers’ needs.

The ISA Media Charter’s six key pillars include:

ISA Model Media Agency Agreement: A milestone in harmonizing relationships between advertisers and media agencies, this initiative provides a meticulously designed template for agreements.
Zero Tolerance to Ad-Fraud: Addressing a pressing concern, the charter unequivocally condemns ad fraud, aiming to create an atmosphere of vigilance within the advertising community.
Brand Safety: Ensuring brands are showcased in secure environments, insulated from content that could tarnish their reputation, is a pivotal focus of the charter.
Viewability: Adapting to the digital era, this initiative addresses the challenges brought about by rapid technological advancements. It ensures that advertisements are genuinely viewable by their intended audience, optimizing engagement and impact.
Common Minimum Standard for First-Party Data: Upholding consumer privacy and protection, this pillar sets forth guidelines for responsible data collection and usage.
Cross-Screen Measurement: Reflecting the evolving media landscape, this initiative aims to harmonize measurement standards for both TV and digital platforms.

Tejas Apte, ISA Media Forum Head and General Manager - Media, South Asia, Unilever, hailed the charter as a convergence of priorities that resonate across the advertising spectrum. “The charter embodies the aspirations of advertisers, agencies, and publishers to establish a transparent ecosystem while safeguarding consumer interests,” Apte stressed. In a fast-evolving digital domain, the charter’s commitment to brand safety and viewability is paramount, and it is expected to set a precedent for responsible data practices.

Central to the ISA Media Charter is an emphasis on a transparent and consumer-centric media ecosystem. Sunil Kataria has underlined the significance of this focus. The question that emerges is how this emphasis on consumer-centric practices will wield influence. For brands, the prospect of a more transparent and consumer-oriented approach offers the potential to cultivate trust and engagement, leading to stronger brand-consumer relationships. Consumers, on the other hand, stand to benefit from an advertising environment that respects their preferences and privacy, potentially enhancing their overall experience.

Brand safety and transparency

Two of the charter’s driving forces are brand safety and transparency. The charter’s emphasis on brand safety underscores the importance of aligning advertisements with platforms that resonate with the brand’s target audience.

And as far as media agencies are concerned, there exists a sense of discontentment that is difficult to ignore. The ISA Media Charter is underlined by its ambitious goal: to revolutionise the industry by establishing a set of guiding principles and standards that promise to promote transparency, fairness, and a consumer-centric approach.

Intriguingly, the media agencies’ discontent is not solely a matter of structure. There is a sense of skepticism over the notion of standardised guidelines, though they are seemingly promising. They say that each advertiser operates with distinct briefs and goals, while each agency brings its own key performance indicators (KPIs) to the table.

Media agency executives say that the charter’s push for uniformity thus could inadvertently undermine the unique intricacies of every campaign.

As the ISA Media Charter takes its initial steps, questions abound. Can it strike a delicate balance between inclusive collaboration and potential dominance? Will it manage to harmonise divergent interests under the banner of standardised guidelines? How will its focus on transparency and consumer-centric practices shape the industry’s future? These queries remain unanswered, painting the charter as both an enigma and a potential harbinger of change within India’s advertising landscape.

There is no problem in clients asking for transparency and accountability, states Ashish Bhasin, Founder, The Bhasin Consulting Group. He adds that most professional agencies today would be happy to provide that.

“It is not just in India; it is a global trend to ask for accountability. Equally, it cannot be a one-sided ask. For example, for this to be sustainable, a fair set of rules on agency remuneration, timely payment by clients, etc., have to be worked out, which are fair to both the sides. There is no doubt that there can’t be a compromise on issues like transparency, brand safety, etc. The era of opacity is over. And that is not just in India; it is a global trend. Most of the agencies have already adapted to it. I don’t find anything wrong in that ask. You can’t have that as an ask and clients not fulfilling their part of the ask. For example, they are talking about cross-channel measurement. But clients are unwilling to pay for research. All the research is either paid for by the agency or the broadcaster. If they want to develop cross-media measurement, they have to be willing to pay for it. When you want to develop new things, you have to be ready to pay for it,” stressed Ashish Bhasin.

Anita Nayyar, COO - Media & Communications, Patanjali Ayurved Limited, believes that transparency is undoubtedly essential. However, she adds, when discussing consumer-centricity from a media charter standpoint, the connection can appear somewhat intricate. According to her, media agencies must prioritise transparency and brand-centricity initially. Following this, she points out, the obligation shifts to brands to adopt a consumer-centric approach. The demands of business should be evenly distributed between brands and media agencies, fostering a path towards a consumer-centric approach, she points out.

Brand safety and ad frauds are top priority for brands, says Anita Nayyar. “This also calls for transparency, which will lead to higher efficiencies and benefit everyone concerned. Hence, platforms which guarantee both brand safety and zero ad frauds will have an edge. Today, there are many tools through which both brand safety and ad frauds can be reported,” she adds.

“We heard about brand safety. Every brand has its TG. Communication will be within that echo system. What is consumer safety? They should focus more in that realm,” says the media agency top executive.

Another major aspect addressed in the charter is viewability. It is important to ensure that ads are genuinely viewed by the target audience. Ensuring reliable viewability holds paramount importance for both brands and consumers. To foster trust and value, platforms must guarantee full views and establish transparent methodologies to uphold this assurance.

The pain points

There are certain key pain points here as far media agencies are concerned.

The media industry suffers from the syndrome of wafer-thin margins, points out Anita Nayyar. “Extremely low commissions is the biggest pain point for media agencies. The industry is resource-intensive, and hence, large teams are needed by the media agencies to service brands/ clients. While advertisers safeguard their interest by laying down various qualifiers, it is critical that a base standard remuneration be agreed to be paid to media agencies so they can make their ends meet, hire good talent, and provide services to brands. There is no standardisation of fee/ commissions, and hence, media agencies are forced to negotiate AVDs,” says Nayyar.

Ashish Bhasin does not think media agencies will have problem either with clauses like brand safety or transparency. He feels that this is a great opportunity for media agencies to strongly raise with clients the need for paying for media research.

“They must pay for it; after all it is useful for their brands. This is also a great opportunity for media agencies to sit with the clients and raise the issue of a fair of working, including remuneration. It has to be a win-win for both sides. If it is one-sided it will never work. Just because one body has issued a proposed charter does not mean that it is accepted as a norm, and I am pretty sure that most media agencies will pretty much feel that way,” Bhasin adds.

Titans Vs small players?

At its core, the ISA Media Charter seeks to establish a common ground for all stakeholders in the advertising ecosystem, from the titans of the industry to the smaller players. However, beneath this noble intent lies a complex conundrum. There are concerns that the dominant influence of a few titans might eclipse the interests of medium and smaller agencies. The tug-of-war between inclusivity and domination, thus comes to the forefront.

“Any association with a common interest and standard with guidelines is very important as long as they include all stakeholders. However, few biggies control it and the medium and small players lose. That should not happen,: said a media agency top executive on condition of anonymity. “Standard guidelines like common agreement, etc., may not work. Also, every advertiser has his own brief and every agency its own KPI,” he adds.

Anita Nayyar also stresses on the importance of ensuring viewability. She adds, “As of today, there are a number of platforms which promise and may deliver view-ability. However, one is not 100% sure of the same. It is important in the interest of brands and hence consumers for platforms to ensure 100% views and also provide transparent ways to ensure the same.”

This challenge will always remain, points out the executive. “It is still a challenge with TV, print, radio and cinema,” he says, stressing on the need for a measurable mechanism from campaign to commerce.