While Lebanon is experiencing what is believed to be its worst financial and economic crisis, which has led to unprecedented capital controls by lenders and affected imports amid a shortage of U.S. dollars, an interesting meeting gathering the major advertising agencies and media representatives under the auspices of the Advertising Association (AA) met early December to discuss the aggravating situation that has evidently hit the ad industry.
The main points that were focused on during the meeting revolved mainly around the invoicing and payments. It was agreed that Media rate cards be kept in US dollars and all payments to be settled not later than 30 days of invoice issuing in USD or its LBP counter value as per official bank exchange rate of the payment date. The above decisions have been agreed upon unanimously since all stakeholders believe that those are essential to safeguard the industry.
Moreover, it was agreed that Radio and Print media studies be put on hold in order to avoid unnecessary expenses during this crisis. These studies will be resumed as soon as the situation goes back to normal. On the other front, TV and OOH media studies, which have already been engaged, will not be frozen.
Last but not least, with the economic environment, and the political instability of recent months having clouded over all businesses, causing ripple effects across the advertising industry, it was agreed that media ratecard structure get revised. A committee has been formed including George Jabbour, Hana Khatib, Joyce Hallak and Rachid Khazen, who will meet again in order to suggest new rate card standard based on CPP to the Media Owners and Media Representatives. The objective is to agree on minimum CPP and strictly abide by it.
