The National Association of Black Owned Broadcasters (NABOB) commends dentsu’s August 12th announcement that it has adopted a new policy in which it will pay all Black owned and other minority owned media within 30-days. This is a game-changing commitment!
Dentsu explained that the idea came together after dentsu launched an economic empowerment group in May, which has been speaking with minority-owned businesses in the market to create more investment opportunities.
Doug Rozen, CEO, dentsu Media – Americas said, “To make a real impact towards economic empowerment, real change has to be made. We’ve been on a journey to champion more meaningful media. By introducing 30-day payment terms for minority-owned media partners, we will break barriers and provide inclusion and sustainability. Our hope is this will enable more opportunities and propel a cycle of real growth for the industry.”
Jacki Kelley, CEO of dentsu Americas, stated, “From the start of our journey to create equity, we said we will not mistake activity for progress, and this initiative shows the conviction of our commitment to achieve meaningful progress.” She added, “General Motors was our inspiration after it pioneered this concept earlier this spring. Updating our payment terms for minority-owned business partners will enable them to more easily access capital, create more content, offer more programming opportunities and propel the cycle of growth. Lifting the burden of having to carry production costs is a key enabler to create equity in media.”
Praise for the dentsu announcement was expressed by many NABOB members. Don Jackson, Chairman & CEO, Central City Productions, Inc. Founder & Chairman, Steller TV Network said: “Payment terms of 30-days is a major changemaker for Black-owned media and production companies like Central City Productions and our 51 years in business. This initiative will certainly make a difference in the launch of our new Stellar TV Network and help lift the burden of our having to carry the total production cost of new shows for 4 to 5 months before we receive income from participating advertisers in our shows. This major trendsetting initiative by dentsu will also serve as an example, hopefully for other advertising agencies to follow in making a major difference in support of Black-owned media companies. It further addresses a major problem of “access to capital” where banks are reluctant to extend Black-owned media companies’ lines of credit needed to produce new content prior to the airing of the shows, which cannot be invoiced until the programs air. The 30-day payment terms will possibly encourage banks to reconsider and change their lending practices.”
Chesley Maddox Dorsey, CEO of A Wonder Media/AURN said, “Requiring our companies to underwrite receivables for 120 days-plus for multi-billion-dollar companies puts a financial strain on our companies, and it limits our ability to grow.” She added, “This frees up our capital so that we can expand and grow.”
Jim Winston, President of NABOB added, “This announcement by Dentsu is huge. If we can get other agencies and advertisers on board, it will be a major game-changer for minority owned broadcasters across the country.”
Read more about this news in Inside Radio and Campaign US.