Interview with Media Reach Research vice president Kapil Anand
 

"Media planners must consider distribution reach first and then viewership"

Posted on 6 August 2003
 

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:

 

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of B&W sets may not be growing but Indians do have a penchant for conducting repairs and prolonging the use of such outdated sets.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.

 

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.

 

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.

 
"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. "
 

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

-
B&W TV sets
Colour TV
Colour TV
Total
-
-
Non cable ready
Cable ready
-
No of channels
11
16
100 plus
-
Top 8
25
20
55
100
Other metros
30
21
49
100
5-10 lakhs (1 million)
37
23
40
100
1-5 lakhs
42
24
34
100
< 1 lakh
51
26
23
100

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.

 

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.

 

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.

 
"Most of the constituents - ministry officials, ad agencies, advertisers - seem to forget that the Indian consumer has always been living in a CAS situation"
 

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.

 

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.

 
"The cost per rating point concept goes for a toss when the universe opens up or falls down"
 

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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