TORONTO – A number of Canada’s commercial television broadcasters are banding together to end a practice known as gross-net invoicing by the end of next year.
Instead, they will implement net billing in an effort to improve TV trading, says an announcement by marketing and research association thinktv.
thinktv president and CEO Catherine MacLeod said that its member companies, which include Bell Media, CBC/Radio-Canada, IndieNet, Corus Entertainment, Quebecor Media Group, and Rogers Media, were fully aligned on the initiative, adding that “thinktv works to help advertisers and agencies get the best out of television on all its platforms – and an important part of that work is to improve the processes by which television is purchased”.
Over the next 15 months, thinktv pledged to work with member companies, agencies and advertisers to ensure a smooth transition to net billing. From rate cards and agreements to software and invoices, each element of the process will be updated to reflect net rates.
“Working with thinktv, the broadcasters are combining their efforts to make things easier for our customers”, added Alan Dark, chair of the thinktv board of directors and Rogers Media SVP of sales. “Simply put, gross-net billing no longer aligns with the commercial arrangements of most agencies and advertisers in our market. Eliminating this unnecessary complication increases work flow efficiency and improves transparency for everyone involved. This is a great first step with more to come.”
