recognition agreement

Definition:
'Recognition' is awarded to British advertising agencies by the trade associations collectively representing the MEDIA OWNERS: the ASSOCIATION OF INDEPENDENT RADIO CONTRACTORS, the INDEPENDENT TELEVISION COMPANIES ASSOCIATION, the NEWSPAPER PUBLISHERS ASSOCIATION, the PERIODICAL PUBLISHERS ASSOCIATION and the NEWSPAPER SOCIETY. The important thing about recognition is that it confers the exclusive right to receive media COMMISSION. Two main criteria must be met. First, agencies must demonstrate their competence; the trade associations want to be sure that the image of the media will not be jeopardized by slapdash and unprofessional advertising. They cannot control all advertising by this means, since some advertisers will place their offers direct or via non-recognised agencies, but the intent of the criterion is quite understandable. Second, agencies must demonstrate their creditworthiness. This is a precaution against the media owners being left with bad debts if advertisers should bankrupt themselves, for the so-called 'agency' is in fact the principal in financial transactions with the media. Several other less vital criteria must also be met.

Cross-References:
[Newspaper Society] [Periodical Publishers' Association] [Newspaper Publishers' Association (NPA)] [media owners] [Independent Television Companies Association (ITCA)] [Association of Independent Radio Contractors (AIRC)] [commission]

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