Broadcasters - TAM ROW: Ad agencies to stop ads to big broadcasters

The immediate fallout of TAM Media Research’s decision to provide monthly ratings data to the big broadcasters is that the advertising agencies and large ad spenders are unhappy. It had been expected already that the advertising agencies associations, The Advertising Agencies Association of India (AAAI) and the Indian Society of Advertisers (ISA) will object to the monthly rating system and find the same as a unilateral decision.

In a recent meeting held in the capital and Mumbai between the two associations and about top 25  advertisers in the country, this was hotly discussed after which some of the advertisers walked out of the meeting saying they will take a decision and convey the same to their respective agencies.

It may be recalled that the big broadcasters had grouse that weekly rating data apart from being unrepresentative of the universe were much too erratic. This had led to big broadcasters unsubscribing TAM data, the group included Times Television, Viacom18, Network18, STAR , MSM, NDTV, Prism (Eenadu), BAG Networks and Zee. Subsequently as per a settlement, TAM decided to release monthly ratings from August 1 for these big broadcasters, for the rest 102 channels it will release weekly data.

Although the exact outcome of the meeting between the agencies associations and the top advertisers is not quite known, sources tell us that eventually they will stop advertising with the big broadcasters who wanted monthly data.

Speaking to Adgully, Sam Balsara, Chairman & Managing Director, Madison World confirmed this, “Our large clients are very upset and have asked us to send cancellations to those TV channels who have asked TAM to change system.”

It is believed that the top advertisers include the likes of HUL, Procter & Gamble, Dabur, ITC, Godrej, Marico and others. Some of the big advertisers who sought opinion have been advised by CVL Srinivas, South Asia CEO of Group M and a member of AAAI's executive committee  to redeploy their resources in areas where there is measurability. In a response to Adgully, he said, “given the current situation prevailing it is only fair to invest the client's budget in mediums which are measurable and gives them the comfort that their ad budgets have been invested with broadcasters who are able to give them data on a weekly basis as it helps the team in planning and giving the right direction to the advertisers.” He also said that it is the natural reaction on the part of advertisers to ask their partners to invest their money in the right platform.

Apparently the big broadcasters have been given 72 hours to revert to weekly reporting after which the release orders (RO)s will be stopped/cancelled. Advertisers are quite sure that they will not advertise on channels for which there is no weekly data. This is likely to begin from Monday or Tuesday onwards. Meanwhile a senior official from a large network confided that they had received the notification on Friday and have to react in 72 hours.

Adgully tried speaking to the broadcasters but their comments could not be obtained due to the weekend. A few top advertisers though on conditions of anonymity said that they have instructed their advertising agencies to stop ROs. Industry observers say that by the end of the week broadcasters stand will be clear.

Now it remains to be seen how the big broadcasters will respond, will they relent or not. Advertising revenues are a major chunk of the overall component for them, and even if they are adamant on monthly ratings for now, it is believed that business & revenues considerations will take precedence in the coming days. A workable solution is expected as neither parties can afford to stick to their stands. Releasing ad generates commission for the agencies. For the advertisers however important other medium may be it cannot be denied that television as an advertising medium is hard to ignore. The big broadcasters garner about 80 per cent of TV ad budget; the balance gets distributed amongst the rest 102 channels. Keep watching this space for more developments.