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| Interview with Media
Reach Research vice president Kapil Anand |
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"Media
planners must consider distribution reach first and then viewership"
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| Posted
on 6 August 2003 |
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In
his 25-year career span, Mumbai based Media Reach Research vice
president Kapil Anand has worked with leading research agencies
such as Pathfinders, MBA (Gallop), AC Nielsen, amongst others.
Since
nearly one and half years, the firm has been providing Indian ad
agencies with its OTS Update data - which Media Reach has pitched
as a true picture of the number of C&S homes (in urban and rural
India) receiving a particular channel. The company recently launched
the Peri Urban study that it says offers agencies a peep into the
behaviour of cable homes located in and around larger towns and
cities.
Media
Reach Research operates through five regional offices and a network
of representatives for collecting data from hundreds of towns and
villages. Anand has plans to extend his network to smaller towns
and villages in order to cover the entire country.
Anand
spoke to indiantelevision.com's
Ashwin Kotian.
Excerpts:
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How important is availability of a channel in any household?
All the C&S broadcasters talk of connectivity in 40 million
homes but the ground reality seems to be something very different.
Normally, one views what one prefers but only if it is available.
But, preferences are not about TRPs. Therefore, media planners and
buyers must consider reach first and then viewership - something
similar to what they do in the case of print media.
In
fact, amongst the 40 million C&S homes, 13 million homes are
in rural areas and a sizeable number of the urban C&S households
are in towns with less than 1 lakh (100,000) population.
The
fact of the matter is that all C&S homes cannot receive all
the channels. Channel availability depends on two factors - the
frequency band on which it is made available and the type of TV
set that receives them.
Hence,
it becomes inevitable to know on which frequency a particular channel
has been placed in order to determine the reach of that channel.
Moreover, India has a huge penetration of B&W TV sets. The number
of B&W sets may not be growing but Indians do have a penchant
for conducting repairs and prolonging the use of such outdated sets.
Also, as tastes evolve, the older models filter down to lower socio
economic classes (SECs).
However,
it is left to the media planner or buyer to understand the economics
of distribution. Merely picking up a programme with maximum TRPs
or viewership doesn't help. Many a times, the channel isn't received
by all the TV sets in the targeted area. The efforts in getting
the product and brand in place; choosing the programme or channel
are wasted if an important variable - namely the reach of the channel
- isn't taken into account.
Clearly,
there is a gap and more effort has to be made to understand cable
infrastructure.
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Do
you mean to say that the television industry needs something like
an Audit Bureau of Circulation to supplement the viewership data?
A simple analogy is the fact that studies such as NRS (National
Readership Survey) and IRS (Indian Readership Survey) take audited
circulation (ABC) into consideration and these studies try to arrive
at some kind of a co-relation.
In
the case of the television industry, there is no such measure or
tool that determines reach (or circulation). Several media planners
refer to NRS or IRS and combine it with TAM data. However, one must
remember that NRS and IRS studies are conducted over a six month
period and released after eight or nine months from the research
launch date - but in the case of television, the loyalties shift
on a weekly basis. Therefore, there is a need to get accurate data
quickly.
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Are
you saying OTS can plug the gap?
OTS Update is the best way to ensure that the choice of channel
selection can be maximised. It gives a true picture of C&S households
receiving a particular channel. It also takes into account "channel
receivability" effected by the various types of TV sets and
the location of a channel on various frequencies.
Using
the same format as that of the industrial research models, we have
made an effort to go to the grass-root level (retail point of contact),
which in this case is the cable control room.
OTS
Update works on the premise that all C&S homes cannot receive
all channels. Channel availability depends on the type of TV set
and the frequency band on which the channel is delivered by the
cable operator. Channels can be located on five different frequency
bands.
For
the last one-and-a-half years, Media Reach Research has been conducting
channel availability studies in 300 (population of 100,000 plus)
towns constituting 75 per cent of the urban C&S household. The
result is a comprehensive report generated every month that gives
the true picture of a channel's availability. Only OTS Update covers
each and every control room. Thus, no area in the town is left uncovered.
The study gives a definite picture of the channel's reach not only
in the state but also in a particular city or town.
The
OTS Update study started off by covering 300 towns. This has been
increased to 735 towns (over 2,500 control rooms); and the data
is available on an easy to browse format. The data is purely observational
and available on a virtual census basis. We can also go beyond the
1 lakh plus towns just as NRS or IRS does.
Initially,
over a three month period, we did an extensive listing exercise
and covered each and every control room in the universe defined
by us. Now, we update our database on a regular basis and add new
names. We didn't undertake sampling because it would become an exercise
similar to TAM.
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| "In
January 2002, Star Plus was placed in Mumbai as follows: 43
per cent on Prime Band; 18 per cent on Tunable band; 37 per
cent on Mid/Hyper/UHF; 2 per cent not available. This resulted
in an OTS of 75 per cent. " |
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Give
us some data on the findings?
As far as the C&S household scenario is concerned, there are
27 million C&S households in urban India.
Distribution of these households by town class is as follows:
Top 8 - 34 per cent; other cities - 11 per cent; 500,000-1 million
towns - 9 per cent; 100,000-500,000 towns - 21 per cent; less than
100,000 towns - 25 per cent.
Type
of TV sets in C&S households
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B&W
TV sets
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Colour
TV
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Colour
TV
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Total
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-
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-
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Non
cable ready
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Cable
ready
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-
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No
of channels
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11
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16
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100
plus
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-
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Top
8
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25
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20
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55
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100
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Other
metros
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30
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21
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49
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100
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5-10
lakhs (1 million)
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37
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23
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40
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100
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1-5
lakhs
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42
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24
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34
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100
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<
1 lakh
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51
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26
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23
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100
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A case
study we conducted threw up a startling fact. In January 2002, Star
Plus was placed in Mumbai as follows: 43 per cent on Prime Band;
18 per cent on Tunable band; 37 per cent on Mid/Hyper/UHF; 2 per
cent not available. This resulted in an OTS (opportunity to see)
of 75 per cent.
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What
about cable consumption in the smaller towns and rural areas?
As I said earlier - in each of the towns, channel availability data
was collected from all the control rooms. Data was also collected
from the villages that were being services by these control rooms
in larger towns. Our representatives identified and visited the
villages to estimate C&S household penetration. Estimates were
arrived at after discussions with the local cable operator and the
village heads. Media Reach Research did dipstick studies in towns
with a population of 50,000 to 1 lakh (100,000). These dipsticks
threw up some interesting findings.
Each
of these town-based cable control rooms started catering to surrounding
villages where cable operators had stopped operations. Most of these
cable operators in rural areas stopped operations when channels
became digital and they couldn't invest monies as the returns weren't
commensurate with the investments.
The
reasons why this phenomenon occured were also quite interesting.
In the mid 1990s, a large number of cable TV control rooms mushroomed
all over India as most of the channels were free to air and analog.
But as more and more channels became pay and digital, small control
rooms catering to villages shut down. These control rooms had no
other option as their customer base was very small and their subscription
rates were Rs 50-60 per month.
Each
of these cable control rooms in these towns cater (at present) to
a minimum of 25 villages going up to as high as 45. These villages
could have a population of 10,000 people, 2000 households and even
at 20 per cent penetration would result in merely 200-300 cable
homes. Broadcasters and multi system operators (MSOs) are not bothered
about these seemingly insignificant number of connections as they
are looking at larger numbers. Therefore, when the smaller cable
operators shut down their operations, it wasn't a cause of concern
for the broadcasters.
But,
media planners and buyers have a right to know.
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Is
this what led to Peri-Urban study? Tell us about the Peri Urban
study?
In May 2003, Media Reach Research launched a study in all the 50,000
- 1 lakh towns numbering 435. The Peri Urban study gives advertising
agencies and marketers a peep into rural India. Peri-Urban is defined
as the peripheral areas surrounding an urban town. In the Indian
context, it means either the outskirts of a large town or villages
surrounding the urban township.
The
435 towns covered have thrown up interesting findings. The total
number of C&S homes in 435 towns is 3.4 million. The C&S
of 16,000 villages catered to by these towns is 2.7 million. The
study will be conducted on a monthly basis.
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| "Most
of the constituents - ministry officials, ad agencies, advertisers
- seem to forget that the Indian consumer has always been living
in a CAS situation" |
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What
will happen post CAS (conditional access system)?
Most of the constituents - ministry officials, ad agencies, advertisers
- seem to forget that the Indian consumer has always been living
in a CAS situation. The broadcaster and MSOs haven't done anything
to change this perception amongst the other people in the industry.
Since the very beginning , they could only watch what was made available
to them by the cable operator or the MSO - and subject to the TV
set they owned.
Why
should merely 15 per cent of the 40 million homes create so much
anxiety and concern amongst broadcasters who have been talking about
40 million homes connectivity? The point is that most of the broadcasters
(or even ad agencies) don't know about ground realities because
they don't have access to accurate data. OTS Update and Peri-Urban
studies will seek to plug this gap and empower them.
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What
are your offerings priced at?
Peri Urban is available to broadcasters at Rs 1 million; to agencies
at Rs 500,000. It is cost effective and comparable to the other
available studies such as TAM.
More
importantly, this is an indigenously created software for use amongst
the Indian ad fraternity.
Just
as we don't compromise on data, we try and stick to our rate card.
We expect ad agencies, advertisers and broadcasters to respect our
limits and support us wholeheartedly.
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| "The
cost per rating point concept goes for a toss when the universe
opens up or falls down" |
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How
will studies such as OTS Update and Peri Urban benefit media planners
and buyers?
Studies such as OTS Update and Peri Urban provide timely accurate
facets of the cable environment even in this era of cable blackouts.
There have been several instances of TRPs remaining static whereas
reach or connectivity has fallen down temporarily due to external
factors. Earlier, people were clueless as they depended solely on
TRPs - now they have an option.
Also,
planners and buyers must consider cost per household in addition
to cost per rating point. Consider for instance, if one channel
reaches 300 houses and the cost per spot is 100; the cost per household
will be 100/300 = Rs 0.33. If some other channel reaches 100 homes
and also has a cost per spot of 100, then the cost per household
is Re 1 for getting the viewers. A third channel could deliver half
the earlier TRP; but could reach out to 200 homes, and the cost
per household would be Rs 0.50p. Various permutations and combinations
could be possible if the reach variable is added. The cost per rating
point concept goes for a toss when the universe opens up or falls
down.
OTS
Update is not an alternative to TAM ratings but it helps media planners
and buyers to create the universe accurately. There has to be a
third party independent agency that provides another viewpoint and
we (at Media Reach Research) are striving to plug this gap.
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