Media buying a complex practice, CCI should consider all aspects before acting against agencies, say industry experts

While the investigation into alleged price-fixing in India's advertising industry has created significant tension, voices within the industry have also come out in support of the media agencies involved. Many fellow industry 'veterans' argue that the complexities of the media buying landscape and the rapidly changing nature of the market often make pricing practices more complicated than they initially seem.

Some argue that the advertising and media buying industries operate in a highly specialized and competitive environment, where pricing is often influenced by factors such as audience reach, platform popularity, and market conditions. The concept of price-fixing might not always apply, as the ad rates in question can be driven by larger industry trends and strategic business decisions rather than collusion.

One industry source, speaking on the condition of the anonymity, said that in the context of media buying, large agencies typically negotiate on behalf of multiple clients. "This requires collaboration between agencies and media platforms," the source added. The source pointed out that this kind of collaboration doesn’t always equate to price-fixing. "Agencies may share information on market rates and strategies to negotiate better deals for their clients, but this sharing doesn’t necessarily imply any form of illegal collusion."

These practices are often part of the industry's effort to streamline the buying process and offer better value to advertisers.

An industry insider noted that large advertisers themselves can play a significant role in shaping ad rates, often pushing for discounts. Many of these large advertisers work directly with media agencies to negotiate customized rates. "From this perspective, the pressure for agencies to deliver competitive rates and offer discounts could be seen more as a business strategy rather than an illegal act of collusion."

Some industry players have also cautioned that a heavy-handed approach to regulation could stifle innovation and hurt the industry in the long term. However, they emphasized that transparency in pricing should be a priority.

Moreover, some argue that the focus should shift from accusations of price-fixing to improving transparency and standardizing pricing practices across the industry. This approach would ensure fairer competition without unnecessary punitive measures.