The media world is abuzz with uncertainty, a constant hum amongst pundits, clients, and practitioners alike. It all began in the golden age of print, when newspapers and magazines reigned supreme, boasting impressive figures like IRS, NRS, and ABC. Television, then a fledgling medium, was taking its first tentative steps.
Fast forward to the early nineties, and India’s national broadcaster was captivating the nation with iconic shows like Nukkad, Karamchand, Ramayan, Mahabharat, and Chitrahar. However, the arrival of the Zee Network (1992), Sun Network (1993), and ETV Network (1995) marked a turning point, ushering in a new era of television consumption.
With a population nearing 1 billion in 1995, India pulsated with confidence and enthusiasm. Cable and satellite penetration, at a mere 13 million then, has exploded, now boasting over 900 channels across numerous languages, reaching millions more households.
In 2022, television leaned across 226 million Indian homes, and this number is predicted to reach 248 million by 2026. Regional channels, particularly in the south, deserve special recognition. The limited reach of Hindi in these regions has fueled the growth of regional advertising and entertainment, creating a dynamic market.
This brings us to the question on everyone’s mind: what does all this have to do with rates and ratings? The answer lies in understanding the science of television ratings.
Navigating the Ratings Landscape:
The fragmented television landscape of the mid-nineties saw the birth of INTAM (Indian National Television Audience Measurement) by ORG-MARG, aiming to measure audience reach. In 1997, a joint industry body appointed TAM (backed by Nielsen Corporation) as the official arbiter of audience metrics.
While INTAM and TAM initially provided diverse figures, ultimately merging into TAM, a rival emerged in 2004: Audience Measurement Analytics Limited (AMAP). Backed by American investors, AMAP shook up the market with its faster turnaround time, offering daily ratings compared to TAM’s weekly reports.
The year 2010 saw the rise of BARC India, analyzing the viewing habits of over 210 million television households, making it the world’s largest television audience measurement service.
While these ratings dictate the fate of our vast selection of channels, over-reliance on them by clients leads to problems. Clients, guided by the need for “efficient media spending,” pressure media agencies to focus solely on these numbers, often leading to flawed strategies.
Beyond the Numbers:
The issue lies in the fact that ratings, extrapolated from sample sizes, often fail to capture the nuances of audience quality and context. We’ve all seen how extrapolations function during elections, raising questions about their applicability to media planning.
Back in the late nineties, client interactions with agencies were more probing, seeking qualitative insights before sharing them with their sales and marketing teams without bias. Effective media planning emerged from a blend of local market expertise and quantitative data.
Today, however, media agencies often lack the opportunity to challenge client-approved media strategies, particularly when long-standing relationships exist.
It’s curious to hear clients lament their inability to connect with every single channel in the market. Shouldn’t the marketing team’s duty involve engaging with media partners and understanding the intricacies of the trade?
The True Cost of Cheap Media:
In today’s market, a TV channel representative seeking an audience with an agency or a client should be welcomed, not dismissed.
The media sector is in constant flux. Budgets are shrinking in many categories, and clients are endlessly engaging in media pitches, often driven by the allure of cheaper rates rather than seeking better value. Monthly budget dives into excel sheets have become the norm.
As representatives of leading regional news channels in Southern India, our sales team is regularly confronted with bizarre requests from clients, most driven by agencies succumbing to client pressure.
Many clients, influenced by their financial motives, pressure TV Channels for unrealistic rates and unheard-of “innovations.”
News channels, especially regional ones where the genre enjoys less than 5% market share, face immense pressure. A negative news piece, flashed for genuine journalistic reasons, can trigger a cascade of calls from the (junior to senior) staff demanding its removal, ending with veiled threats of withdrawal of business if not adhered to.
These clients often display a blatant double standard, criticizing news channels for taking sides with political parties (when no such obligatory relationship exists).
A Call for Strategic Evolution:
India’s future looks bright, with a burgeoning young population.
To truly capitalize on this potential, clients and brands need to prioritize qualitative considerations over mere rating points.
Frustration abounds when clients demonstrate a limited understanding of the south, their focus often restricted to cinema and a handful of regional or organized brands. This myopic view is justified by the response: “It’s impossible to grasp the nuances of all 28 states in India.”
Prioritizing Quality over Quantifiable Ratings:
High ratings don’t automatically translate into favorable rates. While cheap rates might seem appealing in the short term, they won’t necessarily unlock access to a broadcaster’s media plan.
Clients need to cultivate strong, transparent relationships with both media agencies and broadcasters to ensure strategically sound media plans. Otherwise, the media ecosystem risks collapsing under the weight of this rate versus rating war.
Many clients knowingly or unknowingly purchase inventory solely because it appears cheaper on a cost-per-rating (CPR) basis. This strategy, however, rarely leads to actual sales growth.
Kudos to regional and retail advertisers who prioritize market feedback over ratings, achieving steady year-on-year growth.
It’s high time clients recognized the value of a dedicated qualitative team focused on understanding how media operates in the south. Without this crucial insight, we will be trapped in a futile and damaging price war.
Client demands are often simplistic. When a salesperson enthusiastically details a car’s features, the client invariably inquires about its mileage.
Similarly, when broadcasters present passionate pitches, clients respond with, “What rate will you give?” Hopefully, this mindset will evolve, placing greater emphasis on quality and empowering media agencies to champion their expertise.
Only time will tell if this paradigm shift is on the horizon.
Interview Between Time.news Editor and Media Expert
Editor: Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Aditi Mehra, a leading expert in media studies and audience measurement in India. Dr. Mehra, it’s great to have you with us.
Dr. Mehra: Thank you for having me! I’m excited to dive into the dynamics of the Indian media landscape.
Editor: Let’s start with a historical perspective. The article mentions the golden age of print and the evolution of television in India. How have you seen the transformation from that period to today?
Dr. Mehra: It’s truly remarkable! The golden age of print set a standard in terms of audience engagement and advertising reach. With television entering the scene, particularly during the ’90s with shows like Ramayan and Mahabharat, it became a familial medium, and the explosion of cable and satellite networks has fundamentally shifted viewing habits. We’ve gone from a few channels controlled by national broadcasters to over 900 channels catering to diverse languages and regional audiences.
Editor: The rise of regional channels is fascinating, especially in southern India. How do you see their impact on the advertising market?
Dr. Mehra: Regional channels are not only providing a voice to local cultures but also changing the dynamics of advertising. With the limited reach of Hindi in these areas, advertisers are increasingly recognizing the potential of regional advertising. It’s this appetite for localized content that fuels the growth of a more nuanced advertising landscape, allowing brands to better connect with their audiences.
Editor: Speaking of ratings, the article discusses how ratings systems evolved over time, leading to the establishment of TAM and later BARC. Can you elaborate on the importance of these systems, and do you think they’ve become too influential?
Dr. Mehra: Absolutely, the ratings systems like BARC are crucial in determining the success and reach of television content. However, there’s a double-edged sword here. While these ratings provide valuable insights into viewership trends, an over-reliance on them can lead to flawed media strategies. Many agencies and clients lean heavily on these numbers, often at the expense of qualitative insights—leaving a big gap in understanding the audience’s context and preferences.
Editor: You pointed out the importance of qualitative insights. Can you explain how the media planning process has changed in this regard?
Dr. Mehra: Media planning today is often very formulaic, focusing narrowly on what produces immediate results based on ratings. In the late ’90s, there was more of an exploration of the audience—agencies sought qualitative insights and understood local contexts. Now, with brands often pressuring for quick, data-driven results to justify media spends, the depth of understanding has unfortunately diminished.
Editor: And with budget constraints becoming more common, what challenges do local news channels face in this new landscape?
Dr. Mehra: Local news channels, especially regional ones, are under enormous pressure to deliver content at unrealistic rates while also maintaining journalistic integrity. They’re often pressured by clients to follow trends rather than creating meaningful, relevant content. This push for cheaper media compromises the quality of news, often leading to unethical practices where channels face threats of business withdrawal for merely reporting facts.
Editor: It seems the pressure comes not only from the clients but also from a lack of understanding about the local market. How crucial is it for clients to engage meaningfully with media partners?
Dr. Mehra: It’s essential! The disconnect between clients and regional media is troubling. When clients request content without understanding local dynamics or audience nuances, they miss out on opportunities to connect authentically. Engaging with media partners can lead to more effective strategies that resonate well with target audiences, particularly in a diverse market like India.
Editor: You mentioned the future looking bright with India’s burgeoning young population. What should clients and brands prioritize to harness this potential fully?
Dr. Mehra: They need to shift their focus from just chasing rating points to fostering deeper relationships with their audiences. Prioritizing qualitative insights and understanding local habits and behaviors will pave the way for more authentic engagement and stronger brand loyalty. In this rapidly evolving landscape, adaptability and a willingness to learn will be crucial for any brand aiming to thrive.
Editor: Thank you, Dr. Mehra, for sharing your insights on the complexities of the Indian media landscape. It’s indeed a fascinating time for media professionals and consumers alike!
Dr. Mehra: Thank you! It was a pleasure discussing these pivotal issues with you.