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Advertising agencies have questioned TV broadcasters for tightening the pressure on TAM Media, the sole TV ratings agency. While steps are being taken for forming an alternative TV viewership ratings system under the joint sectoral body, the Broadcast Audience Research Council (BARC), the broadcasters are tightening the noose on TAM.
Last week, Multi Screen Media (Sony Entertainment group), NDTV and Times Television Network sent letters to TAM about their intent of discontinuing their subscription for its data. The Indian Broadcasting Foundation (IBF), the association, has told its members to decide in accordance with their best interest. TAM Media Research was formed in 1998 by a then joint industry body (broadcasters and advertisers). It was supposed to be funded by the JIB. However, after 2004, TAM has been funding itself. Time and again, it comes under the scanner for fluctuation in data and many broadcasters have raised questions on the credibility of the data.
The advertiser bodies, Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI), today came out in support of TAM. Both said the broadcasters’ step of discontinuing ratings was detrimental for the sector.
The advertisers body said the measurement system was integral to the health of the sector. The statement, by Hemant Bakshi, chairman, managing committee, and executive director, home and personal care, Hindustan Unilever, added the rating system needs to continue for the smooth functioning of the sector, since it is the very foundation of the commercial process, media planning and pricing. The advertisers said they would continue using TAM till another credible measurement system was made available.
Clarifying its stance that AAAI will hold broadcasters responsible for deliveries in line with signed agreements based on the TV ratings system, Arvind Sharma, president of AAAI, 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 BARC are yet some time away and until they are released, it is critical to continue with the current system.”
Sharma, also chairman, India subcontinent, Leo Burnett, said a system with a few faults is better than no system at all. However Shailesh Shah, secretary general of the broadcasters body, didn’t agree. He said TAM data was consistently wrong and erratic. “This system is eroding value.”
In an interview to Business Standard in August last year, Uday Shankar, chief executive of STAR India and then IBF president, had blamed advertising bodies for delaying the implementation of BARC. He had mentioned, “TAM covers just one-third of the TV-viewing universe. There are some people who are obvious beneficiaries of this.”
TAM view
L V Krishnan, chief executive, TAM Media Research, said it was unfortunate that questions were being raised on their method. “We would like somebody to put down the issues and we will come up with the solutions. First, broadcasters tell us that they don't want data reported from LC1 towns, which is pulling down their overall numbers. Even if it is a step back, we are open to take it, if the whole industry, including government, is on the same page.”
On fluctuation in ratings, he said when there are 600 channels, and the average daily time spent on TV watching was two hours, there is bound to be lot of “flirtatious viewing”. “We have studies to prove how small changes affect the ratings.” On the issue of transparency, Krishnan asked, “What is TAM's fault? Nobody gives us a credit for building a Rs 12,000-crore TV ad industry and we never get our share of voice.”
THE RATINGS BOSS
- Formed in 1998, TAM Media Research, a joint venture between AC Nielsen and Kantar Media, is the sole TV viewership ratings agency in India
- Ratings provide the currency based on which advertising time is bought by advertisers
- The total TV advertising pie is pegged at Rs 12,000 crore
- In 2007, BARC was conceptualised to launch alternative measurement system
- BARC is expected to start reporting ratings from the first quarter of next year
