Ratings must, for judicious advertising says Advertisers

In any part of the world, TV ratings provide the currency based on which thousands of crores worth of advertising time are bought by advertisers with confidence. Ratings also provide the basis on which media agencies do sophisticated analysis and arrive at sharply targeted plans for a brand's target audience to minimize wasteful advertising and improve advertising effectiveness. It is equally true that most broadcasters all over the world have some issue with media measurement systems but that does not mean that the system must be abandoned. Instead it must be improved and identified gaps must be plugged.

Even as the battle between the broadcasters and TAM Media Research intensifies with more channels contemplating boycott of the latter’s ratings, the Advertising Agencies Association of India (AAAI) has expressed shock at the decision. AAAI President Arvind Sharma has indicated that the body will hold broadcasters responsible for deliveries as per signed agreements based on the TV Ratings System. He said, “The move by Broadcasters to discontinue with Ratings is ill-advised and not in the interest of Advertisers, Advertising Agencies or Broadcasters. It will lead to overpaying and underpaying of advertising time, both of which will lead to a collapse of TV as an advertising medium. The ratings from Broadcast Audience Research Council (BARC) are yet some time away and until they are released it is critical to continue with the current system."

Talking in the same perspective, Hemant Bakshi, Chairman, Managing Committee, The ISA and Executive Director, Home and Personal Care – Hindustan Unilever, said, “This is a matter of immense importance as the measurement system is integral to the health of the industry. The rating system needs to continue for the smooth functioning of the industry as it’s the very foundation of the commercial process, media planning and pricing.” The ISA believes that any measurement system should appropriately reflect the viewership pattern and should not be judged on a short term basis.

Giving a client’s perspective, Viral Oza, Director Marketing Nokia said, “I echo what Hemant has said.” He quoted Bakshi’s statement that the best course of action is to engage in a constructive dialogue and pursue continuous improvement. While some broadcasters have stopped using the current rating system for measurement, as advertisers we support it and will continue using it till another credible measurement system is made available. Any action taken which is detrimental to the measurement system would be detrimental to the industry at large. 

In a response to Adgully, Sam Balsara, Chairman and Managing Director, Madison World said, “According to me it is not in advertisers, agencies and broadcasters favour if there are no ratings. The industry advertising money will get diverted to other media. In today’s world where there is accountability for every single penny spent from an agency’s point of view we will continue with the current rating system.” He further added that if the broadcasters have an issue with the current rating system then they should sit with the ratings provider and resolve the issue. They should look for some mechanism where there is a rating system.

On the issue, Ajit Varghese, MD, Maxus says, “To me a mature industry sits across to sort out any issue. Going back into darkness is not a solution when a light is seemingly dim.. Measurement has helped TV industry than any other medium in the last decade or two. So am sure the industry will quickly find a reasonable solution for the same. Without ratings media planners would be shooting in the dark.”

Said Anwesh Bose, Senior Vice President, DDB Mudramax, “The channels are well within their rights to be aggrieved. What is not right though is waiting for eternity to lodge their protest. TAM was, is & will be (if it continues to exist) flawed.  It’s an open secret but was never a part of any serious debate. TAM's monopoly and the cartel behind it were never taken to task by the industry leaders, which is something that is baffling.

On asked what will happen if most of the channels express a similar desire, he replied, that there are two things that can happen if a time like this comes – either TAM will shape up or it will be shipped out.

Avers Balakrishna P.M, Chief Operating Officer at Allied Media, Percept Group, “The current development is not a good sign for the industry as it is important for all stakeholders to come together and resolve the issues facing .TAM ratings are currently the only currency to measure channel performance and with BARC still in umbilical stage there will be no basis for evaluating performance of channels in the absence of ratings leaving both advertiser and media agencies in the lurch and groping in the dark.”

On the possible solution he felt that it would be a good idea to form an industry committee to steer discussions and get all stakeholders involved. “There is a lot happening already with the TV industry, with digitisation on one front coupled with the recent ruling of capping of inventory by TRAI, net billing etc. Also the life for media agencies is complicated enough not to need this crisis on the cusp of festive season.” As IBF is the key stakeholder for TAM from a commercial and participation perspective this issue is something that needs to be addressed with clarity, with the channels concerned, jointly as partners and a solution worked out at the earliest to avoid things getting more complicated, he added.

So as everyone concerned jumps into the fray to voice their word, more interesting things are likely in near future. Do watch out this space for more.