Using Company Shares to Settle Advertising Fees

Using Company Shares to Settle Advertising Fees

We all know for a fact that paying immediately for all ads that we have produced would need payment in the worst way. All companies including the advertising agencies need to financially resolve their current standing and while some of them may not be as liquid as many would hope large companies would be, the alternative mode of payment today has been in the form of offering company shares.

If you think about it, what will you do with shares in these times where it seems that everyone is in need of cash? Further, it may be risky to take shares in lieu of cash for advertising services and if concerned parties tasked in business and advertising projects are concerned are not careful, they may end up in the losing end.

ONE of India’s leading newspapers launched an unusual advertising drive last month. “Money cannot buy our integrity” read a front-page slogan in Daily News & Analysis (DNA), a Mumbai daily. “Make the headlines tomorrow.

By paying for it,” it added, in reference to some other papers’ supposed tendency to give favourable coverage to firms that place advertisements. That charge is hard to prove.

But an increasingly popular practice is exposing Indian newspapers to growing conflicts of interest: accepting payments for ads in the form of shares in the advertiser’s firm.


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