Advertising agencies operating in the field of television and radio have signed an Agreement of Understanding

14 advertising agencies operating in the field of television and radio in Azerbaijan have signed an Agreement of Understanding for joint activities aimed at developing of the advertising market in the audiovisual media. The Agreement of Understanding signed by the heads of agencies defines a general list of problems existing in this area and directions for their solution.

According to the document, National Television and Radio Council, which is the regulatory body for broadcasting sphere, is invited to develop the necessary legal framework, measurement mechanisms and standards for their application in order to develop the advertising market. The original of the signed document was presented to the Council for storage.

The agreement reached by advertising agencies was valued by chairman of the National Television and Radio Council. Chairman noted that after consultations with broadcasters, operators, relevant government agencies and experts in this field, work for creation and development of the legislative and regulatory framework, application mechanisms for the development of the advertising market in the audiovisual media in Azerbaijan will start.

Agreement of Understanding

To carry out activities aimed at developing of

Television and Radio advertising market in Azerbaijan in 2020 - 2021

By this Agreement of Understanding, the parties determine the main problems in the field of television and radio advertising in Azerbaijan:

1. The presence of a weak advertising market, that does not correspond to the general level of the development of the country;  

2. The inability of the existing audience measurement company in the field of television and radio to provide quality services to the participants of the advertising market;

3. There is imbalance, as a result of different pricing policies for advertising at different levels, and in particular, dissatisfaction among local advertisers in the advertising market;
4. Narrowing of the advertising market as a result of dumping policies pursued in recent years by television and radio advertising market participants;
5. Losses incurred in general by all participants in the television and radio advertising market (television and radio channels, advertising agencies, advertisers, etc.) as a result of the numerous non-professional “one-day companies”.

Having expressed their readiness to solve the above-mentioned problems in a coordinated manner, the parties hereby confirm the main direction of activity in the near future with this Agreement of Understanding:

1. There is a serious need to invite a modern audience measurement company, adopted by international advertisers, or to improve the activities of the existing company. Considering that the company should not depend on any market participants operating in this area (television and radio channels, advertising agencies, advertisers), it is advisable to carry out this work with full or partial support from the state.
2. National Council for Television and Radio (NTRC), which is the state body regulating the broadcasting sector is asked to organize this work and to develop legislative acts regulating this area with the aim of improving the audience measurement system.
3. When new audience measurement company begins to work, and after applying the new regulatory standards, the functioning of the advertising market on the basis of the universal currency must be ensured, in order to achieve the development and stability of the television and radio advertising market.   To ask the NTRC to ensure that the concept of universal media currency will be reflected in the legislation.
4. To propose the creation of «Media Commercial Houses», with status received from the NTRC, in order to ensure transparency and professionalism of the television and radio advertising market, as well as eliminate unhealthy competition and dumping policies. “Media Commercial House”, is not advertising agency, it is a link occupying a special position among the participants of the advertising market and playing a coordinating role between advertising agencies and television and radio channels. To propose the NTRC to develop the basic principles and directions, the rights and obligations of “Media Commercial Houses”, as well as the mechanisms for their regulation.

The parties ask the NTRC to keep and publish the original of this Agreement of Understanding.

Signatories:

• On behalf of the “AA & M” Mammad Shakhmammadov
• On behalf of the “Banner Group” Mehraj Mahmudov
• On behalf of the “McCann Azerbaijan” Geray Yusifov
• On behalf of the “Havas” Zaur Ismayilov
• On behalf of the “Marketing Communications Azerbaijan” Yashar Mammadov
• On behalf of the “Azerbaijan Media Exchange” Ziya Yusifov
• On behalf of the “Publicis Media” Seymur Abdullayev
• On behalf of the “Times Consulting” Elgar Baghirov
• On behalf of the “Adcity” Rolan Mammadov
• On behalf of the “Bulud Media” Emil Jafarov
• On behalf of the “Admedia” Sabit Mammadov
• On behalf of the “BHB Strategic Media Agency” Shaban Asadli
• On behalf of the “İnstinct” Vugar Sanani
• On behalf of the “OMM / Carat Azerbaijan” Elnur Yahyayev