CAREERS MEDIA: Parames takes helm at AAT aiming to set it up as self-regulating body

<p>The Advertising Association of Thailand (AAT) has elected Dentsu, </p><p>Young & Rubicam co-chairman Parames Rachjaibun as its new president for </p><p>the next two years. </p><p><BR><BR> </p><p>He said his first order of business was to establish a self-regulating </p><p>body that would set rates and industry standards. </p><p><BR><BR> </p><p>"Right now, we have serious issues regarding agency compensation," he </p><p>said. </p><p><BR><BR> </p><p>"Global media specialists have come in and introduced new payment </p><p>methods, so we need to update and prepare members for changes to </p><p>come." </p><p><BR><BR> </p><p>According to Mr Parames, the AAT needs to walk a fine line between </p><p>helping smaller member agencies survive in this new business </p><p>environment, while discouraging rampant under-cutting in Thailand. </p><p><BR><BR> </p><p>Local agencies need to learn more about financial management to regulate </p><p>costs and set reasonable fees that are fair both to agencies and </p><p>clients. </p><p><BR><BR> </p><p>"Members need to better understand their own costs. Most international </p><p>agencies prefer to go with fee-based rates, but local agencies still </p><p>prefer the pre-crisis commission rate of 17.65 per cent," he said. </p><p><BR><BR> </p><p>In reality, however, the figure is much lower, and smaller companies </p><p>were engaged in cut-throat pricing that could damage the industry. </p><p><BR><BR> </p><p>Mr Parames said given the current cost structure, agencies could not </p><p>reduce fees below 12 to 13 per cent; yet some agencies have cut rates </p><p>below the critical 10 per cent ceiling. </p><p><BR><BR> </p><p>The AAT intends to draft a code of conduct with guidelines on rates </p><p>before the end of the year. </p><p><BR><BR> </p><p>Mr Parames admitted that policing Thailand's advertising industry was </p><p>tricky work. </p><p><BR><BR> </p><p>"In the past, we have just been a paper tiger without real authority," </p><p>he said. </p><p><BR><BR> </p><p>"The best the AAT can do is reprimand an offender or complain to the </p><p>company in question. </p><p><BR><BR> </p><p>"Sometimes it worked and sometimes it didn't, but we have to be firm </p><p>with all members." </p><p><BR><BR> </p><p>The AAT currently has 100 active members, whose total billings </p><p>represents 75 per cent of industry turnover. </p><p><BR><BR> </p><p>A membership drive will also be launched to encourage agencies outside </p><p>the association to join. </p><p><BR><BR> </p><p>Mr Parames said the AAT had to act quickly before the Thai government </p><p>implements a new constitution with articles governing the broadcast and </p><p>media industries. </p><p><BR><BR> </p><p>"If we don't have an established code of conduct, the government will </p><p>step in and create one for us, and that would be a disaster," he </p><p>said. </p><p><BR><BR> </p><p>During his two-year tenure, Mr Parames intends to standardise training </p><p>programmes for future generations of advertising executives entering the </p><p>industry. </p><p><BR><BR> </p><p>Even with the current surge in business, there was no shortage of </p><p>manpower like in Hong Kong or Singapore because two to three thousand </p><p>graduates enter the Thai job market annually. </p><p><BR><BR> </p><p>The AAT will also encourage local agencies to work with clients to </p><p>create brand communication strategies and not just act as suppliers of </p><p>advertising campaigns. </p><p><BR><BR> </p><p>A sub-committee chaired by BBDO advisory chairman Vinij Surapongchai has </p><p>been established to research the issue. </p><p><BR><BR> </p>