Television Viewership Analysis

Date: 18th July 2008

TAM MEDIA RESEARCH PVT. LTD.

TAM Educate Project: E-curriculum

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Index Chapter 1: Mass Media in India

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Chapter 2: Need for Research –page 6 Chapter 3: Common Research Methodologies – page 8 Chapter 4: The Stakeholders of the Media Industry – page 14 Chapter 5: Different Research Databases available – page 30 Chapter 6: Research Terminology in Mass media – page 33 Chapter 7: Television Scenario in India – page 81 Chapter 8: Departments in a Broadcast Agency and their functions - page 85 Chapter 9: The current TV environment – page 90 Chapter 10: Broadcasters: Programming – page 98 Chapter 11: Broadcasters: Sales Division – page 105 Chapter 12: Broadcasters: Marketing Division – page108 Chapter 13: Broadcasters: Distribution Division – page 112 Chapter 14: Media Agency: Departments and Functions - page 119 Chapter 15: Media Planning: Detailed process – page 129 Chapter 16: Advertiser and Use of Media – page 136

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Chapter 1: Mass Media in India History of mass media in India:

• With progress in technology and the ever-growing literacy levels, mass media in India is gaining prime importance. Be it 24*7 news channels or the multiplicity of newspapers and magazines, media in India is catering to the giant population of around one billion. And it is not just the quantity but the quality of media as well that has grown in leaps and bounds. However, for some this is debatable.

• The main news agencies of Indian print media are the Press Trust of India and United News of India. Mass media in India has largely been the gift of British colonial rule started in about 1780. The continuity of the Gazette, by James Hicky, from Calcutta, the capital of British’s’ East India Company, also died a premature death.

• The blessings of the East India Company saw the nurturing of India Gazette. And it was soon followed by a mouthpiece of the company, the Calcutta Gazette. A private publishing, the Bengal journal came into being along with Page | 3

a monthly magazine, and Bengal was the birthplace of some of the first media publications in India.

• The first paper to start was the ‘Madras Courier’ in 1785. There were a few attempts by the British publishers of newspapers to bring some news to the public that would not have passed government censure. However, these did not live long. It was ‘The Hindu’ – the first Indian launch that highlighted the freedom struggle. However the introduction of ‘Kesari’ is seen as the paper of Indian sentiments seeing the light of the day in vernacular language. Media in contemporary India:

• After independence, print medium grew and dailies like The Indian Express, The Hindustan Times, The Statesman, and magazines like India Today, Outlook, and the Week, started to have a large following in the entire country.

• Television has brought about a great change in the way that Indians perceived news. The popularity of “seeing” news, first and “live” has seen a surge in the form of round the clock news broadcasts and updates.

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Current Scenario of media in India: • The mass media industry in India is going through some major changes.

• As the government has become more liberalized, there are more and more media outlets that are available in the current scenario.

• The Indian Entertainment and Media (E&M) industry is undergoing remarkable changes and today it is one of the fastest growing sectors in the country.

• The entertainment industry is a perfect blend of creativity and commerce and provides vast investment opportunities.

• According to a report by FICCI and PriceWaterHouse Coopers, the Indian Entertainment and Media Industry is poised to become INR one trillion (INR 100,000 crore) industry by 2011. Currently, the industry is estimated to be worth INR 43,700 crore.

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Indian Entertainment and Media Industry: 2005 (Ad spends)

Entertainment and Media Industry in India:2005 Television (42%)

Radio (1%)

Live entertainment (2%)

Out of Home (2.5%)

Filmed Entertainment (19%)

Music (2%)

Print Media (31%)

Internet Advertising (0.5%)

0.50% 42%

31%

2% 2.50%

2%

1%

19%

Source: Price Water House Cooper Report

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Chapter 2: Need for Research The Media Chaos:

• The media has outgrown an individual’s capacity of information consumption. The media has also started catering to entertainment needs of people. But the paradox is that any single vehicle/medium cannot cater to all the information needs. There is too much information to be carried by a single medium.

• Further each individual’s need for information is different from others. Thus everyone subscribes multiple media vehicles to pick and choose the information that he/she requires.

• The fragmentation of information consumption led to fragmentation of media as well, with each media vehicle catering to the needs of a specific set of people who have similar characteristics (called the target groups).

• Thus we have magazines that cater to international news like TIME etc…and those that cater to regional entertainment in a small state. There are Page | 7

infotainment channels, news channels, business channels and music channels and a plethora of genres.

• Within each genre of media, there are multiple operators competing with one another to grab the attention of the target group. Hence each medium/media vehicle has its own efficacy in reaching and delivering a message to a specific target group of individuals. Hence to analyze, comprehend and draw conclusions out of this complex medium of mass media, we need research.

Key Drivers of the media: • Economic growth of the country and rising disposable income levels in particular. • Gradually liberalizing attitude of the government. • Greater interface with international companies. • Privatization and growth of the radio industry. • Advancement in Technology. • Favorable regulatory initiatives. • Liberalized foreign investment regime.

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Chapter 3: Common Research Methodologies Ideally the perfect research database would contain media consumption characteristics of each and every individual in the target group. Such a database would provide exact information about the target group, but the cost of maintaining such a system would be astronomical. Researchers settle for an economical system of sampling where a sample set of individuals would represent the universe of target audience within acceptable limits of error.

Further the media consumption habits are not constant. They do change with changes in environment. Thus the research database needs to be updated periodically.

The Concept of Sampling: Consider a Hypothetical Scenario: • Population : 100 • Females in population :50 • Brand : XYZ – target audience being females • Hence the target universe size for this brand is 50 • Consider a Research panel setup with 10 individuals in the sample. Page | 9

• Since the sample has to be representative of the universe the researcher would ensure that the sample also contains 50% females. • Hence the number of females in the sample is 5 • Thus the researcher uses the viewing behavior of these 5 females to represent the behavior of 50 females in the universe. • Sample weighting: hence each individual female in the sample would represent 10 females in the universe. Thus the viewership quantum recorded on the sample females would have to be weighted by a factor of 10 to represent the universe.

50

50

10 Audience : 100 individuals Males : 50 Females : 50 Research Sample : 10 Sample Males: 5 Sample Females : 5

5

5

Brand XYZ – Target Group : Females Target Universe : 50 Sample representing Target Universe : 5

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Ad Hoc surveys: • These sample based surveys are conducted to estimate the media consumption behavior of a specific target group at that instance • They are also conducted to assess qualitative aspects of media consumption • These surveys wouldn’t be of much help to decipher trends in consumption behavior, since they are conducted periodically on a stable set of sample individuals. o Focused group discussions to ascertain content likeability by audiences o Testing launch of new media vehicles • They are also the only source of research in scenarios where panel based measurement would not be economical for the purpose of the research o Example : readership surveys • Methodology: Individuals are randomly selected and are administered a specifically designed questionnaire, to get the proper responses answering the research objectives

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Panel Based Surveys: • They are mainly used for continual measurement of consumption behavior • Perfect for ascertaining trend changes and environmental impact to media usage • Methodology: o Sample respondents are randomly selected to perfectly represent the proportions of Target Groups in the universe o The selected respondents are then trained to get used to media consumption recording equipment. o Respondents who are comfortable with the usage of the equipment are recruited into the panel of sample respondents who represent the universe o Their daily media consumption is recorded with the equipment and is collated periodically to update the database of recordings. • Example : Television / Radio audience measurement Panel homes • There are different recording equipment / methods in usage and their suitability varies from medium to medium. The following are some of the popular ones

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o Day after Recall methods: • This is more of a method than equipment • The respondents are asked to recite their media consumption activities of a particular day on the next day. • Generally the questioning is conducted over phone • Since it is not possible for every panel member to remember the events and when it occurred exactly, this type of research only yields a rough estimate of actual consumption • Further these surveys will be conducted only over a short period of time.

o Diary Methods • The dairy has considerable advantage over the Day –after – recall method • It can be used for long periods of times. • Methodology: • The selected panel homes are given a diary where the respondents can record their media consumption. • The recording can be broken up to levels of 15 minutes • The user is recommended to fill the diary on a daily basis Page | 13

• The diaries are collected regularly and filled ones are replaced. • The information from the diaries is updated in the database for continuous monitoring

o People meter methods: This is the most widely used in Television audience measurement • Methodology • Sample homes are randomly selected to represent the universe perfectly in composition • Meters are fixed on the TV which records minute – minute the channel frequency that is being viewed • The respondents in the home are given a remote to log in whenever they are watching television • This makes the meter record the age group / gender according to the login key • Hence this is the most effective currently • Technological advances : - watch meter which does away with the need to log in with a remote

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Chapter 4: The Stakeholders of the Media Industry Let us first understand the structure of the media industry – the stakeholders and their objectives.

Media Agencies

Advertiser

Audience

Media Media Research

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Media o TV Broadcasters • The television industry continues to dominate the E&M industry by acquiring a share of over 43 per cent. • The television industry is estimated to be INR 19,100 crore • The move towards CAS/DTH is considered to be the major driver for this growth with subscription revenues set to take the segment to the projected heights. • From a single public service sector broadcaster, television has grown into a thriving industry with over 300 channels being beamed across India.

Source: Price Water House report

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o Print Media

• The most significant development for the Indian print media in 2005 was the relaxation of foreign ownership norms.

• The foreign investment cap under non-news category has been enhanced from 74 percent to 100 percent in case of Indian entities publishing scientific/ technical /specialty magazines/ periodicals/journals.

• Owing to the promotional initiatives taken by the government, print media is expected to witness a growth of 13 per cent to reach INR 23,200 crore by 2011.

o Radio

• Radio has been the most cost effective source of entertainment in India for a long time. For a long time, the radio industry was dominated by the state broadcaster- All India Radio.

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• However, the radio sector has been gradually liberalized and has been opened for private and foreign investment. The government is going to award 338 licenses to private players through a bidding process.

• The liberalized government policy initiatives such as increasing the FDI limit to 20 per cent and migration to a revenue sharing regime has given a boost to the radio segment. Radio is all set to become an INR 1.7 crore industry by 2011.

o

Internet

• The number of internet connections is growing at a staggering rate. Globally, internet is emerging as the fastest growing segments of the entertainment and the media industry.

• 93% of the internet users are in between the age of 18 to 45 years. This young, techno savvy generation is accustomed to keeping in touch with the world instantaneously. Page | 18

o Other Media

Outdoor (OOH)

• The Indian out of home advertising industry is largely fragmented. Outdoor media sites in India are predominantly owned and operated by small, local player and are typically marketed by them to advertisers and advertising agencies.

• The sad part is that there is tremendous technological growth that has taken place in this industry but the small players cannot utilize this due to lack of knowledge and funds.

Film

• The Indian film industry has experienced advancements on all fronts including technology used, themes of the movies, finance, exhibition and marketing.

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• The movie making business has got strong impetus from the growth of multiplex culture.

• The Indian film industry is getting corporative and has started looking overseas for co -production. India has the world's biggest movie industry and produces around 1000 movies each year.

• Today, the Indian film industry stands at INR 85 billion.

Music

• The Indian music industry is has been showing very sluggish growth over the last few years. This is mainly because of the menace of piracy.

• Earlier, India music industry was dominated by film music. Producers used to earn as much as 15 % of their total revenues by selling the music rights to music companies.

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• Today, several new trends have emerged worldwide in the music industry- mobile music, licensed digital distribution services etc. In India, these trends are yet to be explored.

Gaming

• Gaming, especially mobile gaming is becoming an important industry today. The other segment of this industry is the online gaming.

• India offers tremendous scope for game developers. Game developers in India are presently catering to the demands of all the four global gaming segments i.e. PC gaming, console gaming, online gaming and mobile gaming.

Mobile Entertainment

• Media companies are using mobile phones to interact with viewers, listeners or readers and, maybe, generate a

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little money. They could be using it to entertain them or promote a myriad products or services.

• Eighty million people armed with handsets want to be entertained when they are traveling, waiting or simply living. And they are willing to pay for it.

• As these three main protagonists - media, mobile and aggregators -- get together, Rs. 2,300-crore (Rs 23 billion) market has been created says a Lehman Brothers report

Audience • It is finally the audience that is the consumer for all the entertainment that mediums of media provide.

• Indian consumers of media have changed to a great extent. Thanks to the growing literacy rates in the country – today more and more Indians are being heavy consumers of media.

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• However, media penetration is varied across different socioeconomic classes. As India has the largest youth population, new mediums of entertainment are gaining prime importance.

• An estimated 28 million Indians are currently hooked to the internet and this number are increasing with the day. Advertising Agencies o Media planners

• Media Planners help ad agencies choose the best outlet or medium to reach the customer they want.

• They plan; schedule, book and purchase space in the print media (newspapers, magazines) or outdoors (billboards, kiosks and bus panels) and time (TV & radio, internet).

• The media planning exercise may also involve conducting some targeted brand or need-specific research to assess recall and viewership/readership of a campaign. Page | 23

o Creative department

• The creative department’s task is to harness the right words, the most appropriate and arresting visuals — anything and everything that will grab the attention and prompt a sale. The creative team in an agency can be further divided into two sections: Copy and Creative.

Copy Department

• After the client service executive briefs the creative team, the copywriter gets down to the task of putting across the message in words — headline, followed by the body copy in the case of a press ad, a dialogue or jingle for a radio spot, or a detailed story board in the case of a TV commercial.

• A good copywriter must be able to think laterally and originally each time, to co-relate masses of data and research findings so as to present the conclusions in language that is lucid and convincing.

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The Art Department

• Takes care of the overall “look and feel” of the campaign starting with a “scribble” or rough sketch which accommodates the various components i.e. headline, visual, picture, text, logo, etc. in a balanced format within the given space. Selecting the size and type of the font (lettering), the photographic treatment and the overall treatment of the TV commercial is the purview of the visualizers and art directors.

• While a high level of originality and creative talent form the mainstay, a BFA or degree in applied art or graphic design with knowledge of computer graphics/multimedia is mandatory.

o Media Research agencies

• Market research agencies try to measure the effectiveness of any media.

• It is research that provides the media planner and creative department, a scientific and measurable basis to sharp-focus their strategy.

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• These professionals are from a variety of disciplines, but share a common comfort level with mathematical or statistical modeling, sampling techniques and psychographics.

• Media research uses various tools and methodologies to arrive at the reach and consumption of a media vehicle by different target groups over a period of time.

•

These numbers are used as trading tools by the stakeholders of media industry. They also help the media companies to judge the effectiveness of their content in garnering the attention of the Target Group.

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Interrelationships of different media entities:

1. Media

Advertisers Audience Media agencies Media research

Audience • Media – Audience uses media for information and entertainment. • Advertisers – Advertisers want to reach audiences to promote and sell their products and services. • Media agencies – These agencies act as a medium between the advertisers and the audience. Media agencies and advertising agencies typically produce and program ads for its clients that are the advertisers. • Media research – A media research agency, through audience media usage, understands media consumption patterns of target audiences

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2.

Audience

Advertisers Media Media agencies Media research

• Media o Audience – Media craves for patronage from audience to generate revenues for its channel or other medium. o Advertisers – It is through the advertisers that the media earns its major source of revenue. o Media agencies – Analyze the performance of media to plan/create and execute marketing campaigns. o Media research – utilizes the products of research agencies for performance appraisal and competitor analysis

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3. Media

Audience Advertisers Media agencies Media research

• Advertisers

o Media – Use media to deliver the product/brand messages to the target audience o Audience – advertisers sell products / services to the audience o Media Agencies – Utilize agencies to plan/create and execute media plans o Media Research – Use research data to analyze competitive activity.

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4.

Media

Audience Media Agencies Advertisers

Media research

• Media agencies o Media – plan according to each media vehicle’s performance to execute an activity. o Audience – need to understand media consumption behavior of target audiences. o Advertisers – receive payment for their services. o Media research – Use research to understand media consumption numbers of target audiences

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5. Audience

Audience Media Research Advertisers

Media

• Media research o Audience – studies the audience consumption of media o Media, media agencies and advertisers – cater to their respective research needs with respect to media.

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Chapter 5: Different Research Databases Available Each media has its own characteristic way of being utilized by the audiences. Hence measuring the consumption of a particular medium would be different from that of others. Different methodologies are used to measure the consumption of different media. Some of them are enlisted below with an Indian perspective.

1. Print • There are two print surveys are conducted on a large scale in India with a sample size of more than 2,00,000 house-tohouse interviews to track the media exposure and changing consumer trends in both urban and rural India - and of course the estimated readership of publications. The study approximately covers 522 publications (221 dailies and 301 magazines).

• The survey used a multi-stage stratified random sampling procedure. The socio-cultural regions (SCRs) constituted the primary stratum. SCRs are essentially geographic units Page | 32

comprising states and districts that display linguistic homogeneity, geographical contiguity, financial, economic and administrative homogeneity and regionalization of culture and lifestyles, making each one a unique socio-cultural entity.

2. TV

• TAM is the acronym for Television Audience Measurement.

• TAM Media Research is a TV Viewership analysis firm of India. TAM Media Research’s viewership cell runs is one of the largest People meter TV Panels in the world with approximately 30,000 sample individuals representing all the Class-I towns (towns with population more than 100,000 persons) polled every week for their viewership habits. This division measures television viewership of audiences for the 300-plus TV stations operating in India.

TAM People meter systems TAM measurement Science Presentation

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3. Radio b. RAM Radio Audience Measurement • Radio Audience Measurement is a TAM initiative which is a specialized measurement service for the Indian Radio Industry. It is conducted in three metros namely Mumbai, Delhi and Bangalore.

• RAM is the only continuous measurement study in India that tracks Radio Audience behavior 365 days x 24 hrs.

• It provides all day listening from the same respondent thereby providing insights on listenership trends over a period of time

• RAM measures FM radio that is consumed anywhere in the country- home, in vehicle, in college, school etc.

• The Universe for RAM is –all People, 12+ yrs owning an FM device

• Panel Respondents –All People, 12+ yrs owning an FM device Radio Sensitivity presentation (case studies) Page | 34

Chapter 6: Research Terminology in Mass media General Research terminology

Universe:

Total estimated population expressed in ‘000s or Millions for an Audience group or a sub group that is used for particular research conduction.

Audience:

It is also referred to as Target group, Target or Target audience or most commonly ‘TG’. It is nothing but a set of people defined demographically using variables like SEC (social class), Age, Gender, Channel Access - Terrestrial or Cable & Satellite, etc.

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Population:

The goal of scientific research is to describe the nature of a population which is nothing but a group or a class of subjects, variables, concepts or phenomenon.

Census The process of examining every member of a population is called census.

Sample A sample is a subset of a population that is representative of the entire population.

Sampling error It is the degree to which the measurements of the units or the subjects selected differ from those of the population as a whole.

Probability Samples: A probability sample is selected according to the mathematical guidelines whereby each unit’s chance for selection is known.

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Types of probability sampling: • The most basic type of probability sampling is the simple random sample where each subject or unit in the population has an equal chance of being selected. • Systematic random sampling is yet another type of probability sampling in which every nth subject or unit is selected from a population. • Proportionate stratified sampling includes strata with sizes based on their proportion in the population. • Cluster sampling is also a type of probability sampling where sample in groups or categories are selected. • Researchers use a form of cluster sampling called the multi stage sampling in which individual households or persons (not groups) are selected

Non-probability sample: It is a sample that does not follow the guidelines of mathematical probability and hence the sampling error present in a non probability sample research cannot be calculated.

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Types of non-probability sampling:

• An available sample also known as convenient sample is a collection of readily accessible subjects for study such as a group of students. • Subjects who constitute a volunteer sample also form a non probability sample since the individuals are not selected mathematically. • A purposive sample includes subjects or elements selected for specific characteristics or qualities and eliminates those who fail to meet the criteria. • Under quota sample, subjects are selected to meet a predetermined or known percentage.

CATEGORY It is nothing but the product group that is broadly defined (e.g. soft drinks)

SEGMENT It is the product group that is narrowly defined (e.g. diet soft drinks). A category is normally made up of a number of segments.

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SHARE OF MARKETS

A brand’s share of total consumer purchases in a category in a defined time period. It is calculated from either volume or rupees figures.

i.

Aggregate total category purchases (in volume or rupees) (A).

ii.

Aggregate the brand’s consumer purchases (in volume or rupees) (B).

iii.

Percentage B on A.

SHARE OF VOICE

A brand’s share of total measured media advertising in a category in a defined time period. - calculated from rupees figures or GRPs. PENETRATION

It is the proportion of households that buy the brand at least once in a defined time period.

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PURCHASE FREQUENCY It is the average number of times the households that buys the brand in that time period. DISTRIBUTION It is a measure of the retail coverage of a brand. It is calculated in two ways: unweighted or weighted.

UNWEIGHTED (OR NUMERICAL DISTRIBUTION)

i.

Aggregate the number of stores in your retail “universe”(A).

ii.

Aggregate the number of stores in the “universe” that carry your brand at a particular time (B).

iii.

Percentage B on A.

WEIGHTED OR DISTRIBUTION

i.

Aggregate the annual total sales value (sales of goods of all types) in your retail “universe”.

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ii.

Aggregate the annual total sales value (sales of goods of all types) in the stores carrying your brand at a particular time.

iii.

Percentage B on A.

Media planning terminology

Media: It carriers and delivers of advertisements

Medium: It is a broad general category of carriers

Vehicle: It is a specific carrier within a medium Example:

Medium

Vehicle

Television

Kkusum

Newspaper

Times of India

Magazines

India Today

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Radio Outdoor

Good Morning Mumbai Patel Bridge

Video

Cassette of a movie

Internet

Indiatimes.com

Target Audience It is the particular segment of the population that a particular campaign is trying to reach Urban • All places with a municipality, corporation, cantonment board or notified town area committee etc. • All other places with 1) a minimum population of 5000 2) At least 75% of male working population in non-agriculture pursuits and 3) a density of population of at least 400 persons per sq. km. Illiterate • A n illiterate person is a person who does not meet the criterion of literacy • Children in the age- group of 0-6 are considered illiterates.

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Literate • A literate person is a person who can with understanding, do both read and write in any language. For a person to be literate, it is not necessary that he should have received formal education in any school institution. Main Workers

• They are those workers who were engaged in any economically productive activity for a minimum of 183 days during the year preceding the date of enumeration. Marginal Workers

• They are those workers who worked for less than 183 days. Socio Cultural Regions

Socio- Cultural Regions are applied as a parameter for stratification in readership surveys as it groups districts are based on

• Linguistic homogeneity

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• Geographical homogeneity

• Financial, economic and administrative homogeneity

• Regionalisation of culture and lifestyle, which make them unique from other districts

• Caste and class considerations. India has been primarily divided into58 SCRS. However some of the larger SCRs ere divided into two regions to ensure that each SCR used for town \village selection is not so large as to make the number of towns selected from it to small and that no SCR is spread across two states. This resulted in a total of 90 distinct regions. NRS 200 uses these 90 regions as the stratum of sampling.

Household definitions

• Household: A household consists either of one person living alone or a group of persons commonly staying together and sharing food from same kitchen. A private household is defined as one comprising persons related to each other by blood, marriage or adoption. An INSTITUTIONAL household Page | 44

is defined as one comprising persons unrelated to one another, e.g. those residing in a boarding house, a mess, a hostel, etc.

• Chief Wage Earner (CWE): The person who make the highest contribution to the household income, either as his income, if he is staying with the family, or as a remittance, if he is staying away from the family.(He/she may or may not contribute to the household expenses).

• Householder: A person who is mainly responsible for managing the daily routine of the house and decides on purchase of day to day household products such as toothpastes, powders, soaps, detergents etc. This person has to be a person staying in the household and can be either a male or female.

• Decision-Maker: The person who mainly decides on the purchase of more expensive products for the house, such as TV set, scooter or cassette player, cars, etc. He/ She may or may not also be the CWE or Householder.

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Household descriptor variable

• Monthly Household Income: The average monthly income of a household is the sum of income of all members of the family and includes income received from all sources such as agricultural produce, pension, interest dividend, salaries etc.

• Socio Economic Class (SEC): The MRSI survey categorized eight socioeconomic groups based on both occupation and education of the CWE of the household. The eight socio economic classes have been labeled as A1, A2, B1, B2, D, E1 and E2.A1 denotes the uppermost socio-economic class, and E2 stands for the lowest socio-economic class. SEC A1 is an amorphous group thus a subset of SEC A1 has been defined which is referred to as A1+. SEC A1+ refers to the household, which belongs to SECA1, and its MHI is above Rs. 10000.SEC A1+ and A1 are subsets of SEC group A1\A2.

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Urban agglomeration

• A single urban agglomeration may comprise of several cities or town and their suburban fringes. As per the definitions used in the 1991 census, towns have been divided into six classes as given below: Town Classes

Population

I

1,00,000+

II

50000-99000

III

20000-49000

IV

10000-19999

V

5000-9999

VI

<5000

The Purchasing Power Parity:

It is defined as the number of units of a country‘s currency required to buy the same amount of goods and services in the domestic market as one dollar would buy in the USA. According the latest calculation of per capita GNP and the overall GNP of the world bank based on PPP, India’s per capita GNP in 1999 has been Page | 47

estimated at $2,149 (PPP) and it is the fourth largest country in terms of GNP with about$2.1 trillion (PPP), preceded by the USA ($ 8.3trn), China (almost $4.1trn), Japan ($3.0trn) in that order.

NOTES:

• All population figures are presented in thousands. These have been rounded off such that 500 or more reads the next thousand. Due to this rounding off, the sum of these rounded figures may vary by +_ 1000 • There had been no census in Assam in 1981. In cases where the 19811991 decadal growth data for Assam has been presented, this has been calculated on the basis of the population projected for Assam for 1981 by the census department, i.e. 18,041,248 persons. In all other cases, Assam growth has been presented for a two decade period, 1971-1991. • The 1991 census has not been held in J&K. The 1991 figures for J&K where provided are based on projections made by standing committee of experts on population projections. • For ease of reading, town classes have been referred to as 5-10 lakhs, 1-5 lakhs etc. The exact descriptors would be as follows:

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Term used

Population of

Over 10 lakhs

10,00,000 and above

5-10 lakhs

5,00,000-9,99,999

1-5 lakhs

1,00,000-4,99,999

0.5-1 lakhs

50,000-99,999

0.2-0.5 lakhs

20,000-49,999

Below 0.2 lakhs

19,999 and below

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Research in Television TV Basics I TV Basics II Universe:

Total estimated population expressed in ‘000s or Millions for an Audience group or a sub group that is used for particular research conduction.

Reach

It is the percentage o the audience group / sub - group who have watched the channel or a day part or a time slot or a programme for the pre-specified length of time at least once during the pre-specified period of time (e.g. day or week, month, etc) Most commonly used threshold: 1 minute or more An example E.g. Star Plus’s Cumulative Weekly Reach is 70% amongst C&S, 4+ years

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means 70 per cent of all individuals aged 4 years and above in C&S connected TV homes in Bombay watched Star Plus at least once during the week for 1 minute or more Frequency: The average number of times households or persons viewed a given program, station or advertisement during a specific time period, such as one month. This number is derived by dividing the Gross Rating Points (GRP) by the total nonduplicated audience (cume). For example, if a group of programs achieved 30 GRP's and a cume of 20, then the average frequency would be 1.5 exposures per person or household. Rating It is also known as TVR, TRP, ATRP and Time Weighted Rating.

Definition: It is the percentage of the audience who watched a programme or a day part or a time slot averaged over the duration of the programme or a day part or a time slot expressed as a percentage of the total estimated universe base

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Each viewer is accounted to the extent of the programme/ day part/ time slot watched For e.g. for a 30 minute programme if person X watches 15 minutes, he is accounted for 50% (15min/30 min)

Channel Share There are 2 types of Channel Shares: – Absolute Share – Relative Share

• Absolute Share = Channel Share with ALL channels as a Base

• Relative Share = Channel Share with all channels from the same Genre as a Base

Absolute Share = TVR of a Daypart or Programme Any Channel TVR within the same Daypart

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Relative Share = TVR of a Daypart or Programme Genre TVR within the same Daypart • TVR in ‘000 as well as GRPs can also be used for calculation of Channel share

• For a longer period, say a week or a month, the above two tend to be much more effective than TVR…

• GRPs tend to be more effective method of Channel Share Calculation incase of Niche Channels.

Calculation of channel Share is done as follows: (No. Of People Reached x Time spent) particular channel

X 100

_______________________________________

Σ(No. of people reached by XYZ channel x Total time spent on XYZ channel)

Denominator is a summation across all available channels

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Thus, the rating is computed considering two variables:

–

No. Of viewers amongst the total estimated universe

–

Time spent on viewing out of the total duration under consideration

An example (Channel Share)

Assume, no. Of people in the Universe (Bombay) = 5 Programme / time band duration = 30 min on Star Plus

Person

Channel & Amount of time watched

A

Star Plus for 15min

B

Star Plus for 5 min

C

Star Plus for 2 min

D

did not watch

E

did not watch

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(No. Of indvls. who have watched 1min.or more) x 100 Reach % = ________________________________________ Universe Hence,

3 x 100 Reach of Star Plus %

=

________

for the 30 mins.

= 60%

5

Σ (Individual x time spent) Rating % = ____________________________

x 100

Universe x duration of prog. /time slot

Hence, {(15/30) + (5/30) +(2/30)} Rating % for Star Plus =

_____________________

x 100 (for 30 mins)

5 = 14.67 % Page | 55

Cost per rating Point (CPRP)

It is the cost of buying one rating point. CPRP is obtained by dividing the cost by the Gross Rating Point of a particular show or channel.

Quiz

Print Media terminology: Circulation It is the number of copies sold or distributed.

Broadsheet: Term used to describe a full or standard size newspaper such as the the Times of India. Typically, a broadsheet newspaper is 6 columns wide by 20-22 inches high.

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Tabloid: Term used to describe a smaller than standard size newspaper such as Mumbai Mirror or Mid Day. Typically, a tabloid newspaper that is 5 columns wide by 14 inches high (approximately half the size of a broadsheet newspaper). Closing Date: It is the final date to commit to the purchase of advertising space. Materials Closing: It is the final date by which a publication must receive the advertising materials to be printed. Average issue readership It is the estimated no. of people who have read any issue of the publication within a specified time interval which is equal to the periodicity of the publication. Claimed readership No. of people who claim to have read a publication with a frequency greater than zero (ever)

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Sole readership It is the estimated no. of individuals who read only that particular publication and no other publications.

Research in Radio Radio presentation Reach:

It is the number of individuals from the universe who are exposed to the medium or a station.

Reach can be expressed in. – Absolutes – Number of People OR – Percentage - %age of the Universe •

Reach is always an unduplicated count of people

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Calculating Reach Person 1 Station A

Yes

Station B

Yes

Station C Station D

Person 3

Person 4

Yes Yes

Yes

Station E Any Station

Person 2

Yes Yes

Yes Yes

Station A= (1/4)*100 = 25%

Station B= (2/4)*100 = 50%

Station C= (1/4)*100 = 25%

Station D= (1/4)*100 = 25%

Station E= (1/4)*100 = 25%

Any Station = (3/4)*100 = 75% Page | 59

Cumulative Reach:

Principle: Audiences accumulate over time The number of individuals within the TG who are exposed to the medium/vehicle over a certain period of time Reach

Duplication

Cume Reach (%)

Week 1

25%

25%

Week 2

27%

(15%)

37%

Week 3

23%

(12%)

48%

Week 4

30%

(17%)

61%

Time Spent Listening (T.S.L)

It is the average amount of time spent by the listener of each station over the defined period of time. The value is expressed in Hrs. or mins. It is a very strong indicator of ‘program / content’ strength

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Example: Person1 0800:0814

Yes

0815:0829

Yes

0830:0844 0845:0859

Person 2

Person 3

Person 4

Yes Yes

Yes

0900:0914

Yes

T.S.L = (Total Time Spent by Listeners) = (15 x 6 = 90) = 0.3 (No. of Listeners)

(3)

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Average Audience:

It represents the audience listening to any quarter hour over the defined time period. It can also be computed as follows… – The audience for each individual quarter hour, added up and divided by the total number of quarter hours. •

Value represents people in 000’s

•

Is affected by a combination of both Reach & T.S.L

Person1 0800:0814

Yes

0815:0829

Yes

0830:0844 0845:0859

Person 2

Person 3

Person 4

Yes Yes

Yes

0900:0914

Yes

Average Audience = (1/4+2/4+1/4+1/4+1/4) = (6/4) = 1.25

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Target Audience Rating Point (TARP)

It represents the audience, as a percentage of the universe, listening to any quarter hour over the defined time period. It is essentially, average audience as a percentage of the universe. It is affected by a combination of both Reach & T.S.L

Person1 0800:0814

Yes

0815:0829

Yes

0830:0844 0845:0859

Person 2

Person 3

Person 4

Yes Yes

Yes

0900:0914

Yes

TARP% = Actual Time x 100 = (6x15) x 100 = 30% Total Time

(20x15)

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Shares

It represents the percentage of the total radio listening, in a given time period, that is tuned to a particular station. The value represents listening share in percentage. It is affected by a combination of both Reach & T.S.L

Exclusive Audience

It represents the percentage of a stations audience that does not listen to any other station, in the defined time period.The value can represent audience in 000’s & also as a percentage (of its listener base). It is a good indicator of ‘effective differentiation’

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Research in Internet: Internet presentation

To succeed online, a firm needs to understand the new medium of Internet.

The answers to basic questions that the firm needs are: z Who’s online? z Where are they going? z What do they do when they get there? z What are they purchasing? z What are their lifestyles and brand preferences? z Who’s advertising to them?

TAM allows companies to identify market trends and base business decisions on them: z Which countries have the highest household penetration of Internet access?

z Which regions are experiencing the highest rate of growth of Internet access? Page | 65

z Who is browsing for products online?

z Who is purchasing online?

z Which are the Top Internet Services Providers?

z What is the impact of education or age of head of household on Internet access at home? What should one measure? z Number of people with Internet Access z Household Internet Penetration z Demographics of Internet Households z Access location (home/work/other) z Recency of Internet usage z Device used to access Internet in the home z Penetration of PCs, fixed & mobile phones in the household z Penetration of online purchasing by individuals z Activities undertaken online (e-mail, chat, instant messaging, online radio, audio-visual) Page | 66

z Top Internet Service Providers by country z Unique visitors and page level views z Site and advertising demographics z Competitive analysis of advertising campaigns z Local market data z eCommerce buyer behavior z User bandwidth z Lifestyle and product brand preferences z Digital entertainment usage

There are three principle ways to measure internet usage. z A panel of users can be measured at their computers with installed software (user-centric)

z Marketers can monitor how visitors interact with a specific website (sitecentric).

z Data can be collected directly from ISP networks (network-centric).

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A measure of Internet usage: Frequency can be expressed either in average minute per user per month, or in average page views per month. Average minutes per user per month measures the average amount of time that the average visitor to the site spends on the site during the month. Average page views represent the average number of pages of pages on a Web site or properly viewed by the average visitor to the site during the month.

Click-through rate

Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and one person clicked on it (clicks recorded), then the resulting CTR would be 1 percent. Banner ad click-through rates have fallen over time, often measuring significantly less than 1 percent. By selecting an appropriate advertising site with high affinity Page | 68

(e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads. CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of latter definition. Cost Per Impression Cost per Impression is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific emarketing campaign. This technique is applied with web banners, text links, e-mail spam, and opt-in e-mail advertising, although opt-in e-mail advertising is more commonly charged on a Cost per Action (CPA) basis. The Cost per Impression is often abbreviated to CPI.

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This type of advertising arrangement closely resembles Television and Print Advertising Methods for speculating the cost of an Advertisement. Often, industry agreed approximates are used. For Online Advertising, the numbers of views can be a lot more precise. When a user requests a Web Page, the originating server creates a log entry. Also, a third party tracker can be placed in the web page to verify how many accesses that page had. There are other advertising pricing structures. CPC - Cost per Click Through, CPL - Cost per Lead (lead usually meaning a free registration), CPS - Cost Per Sale. These structures are collectively referred to as CPA - Cost per Action. CPI and/or Flat rate advertising deals are sometimes preferred by the Publisher/Webmaster because they will receive a more consistent fee proportional to the amount of traffic. Today, it is very common for large publishers to charge for most of their advertising inventory on a CPM or Cost per Time (CPT) basis. A related term, eCPM or effective Cost per Mille, is used to measure the effectiveness of advertising inventory sold (by the publisher) via a CPC, CPA, or CPT basis.

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Pay per click

Pay per click (PPC) is an advertising model used on search engines, advertising networks, and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they predict their target market will use as search terms when they are looking for a product or service. When a user types a keyword query matching the advertiser's keyword list, or views a page with relevant content, the advertiser's ad may be shown. These ads are called a "Sponsored link" or "sponsored ads" and appear next to or above the "natural" or organic results on search engine results pages, or anywhere a webmaster/blogger chooses on a content page.

Pay per click ads may also appear on content network websites. In this case, ad networks such as Google AdSense and Yahoo! Publisher Network attempt to provide ads that are relevant to the content of the page where they appear, and no search function is involved.

While many companies exist in this space, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest network operators as of 2007. Minimum prices per click, often referred to as Costs per Click (CPC), vary Page | 71

depending on the search engine, with some as low at $0.01. Very popular search terms can cost much more on popular engines. Arguably this advertising model may be open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against this.

Cost Per Visitor CPV (Cost per Visitor) or (Cost per View in the case of Pop Ups and Unders) is where advertisers pay for the delivery of a Targeted Visitor to the advertiser’s website.

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Research Terminology in Public Relations:

PR It is consistent management of the relationships of a company to all internal and external dialog groups of relevance, aimed at building trust and confidence. Public relations are always conducted at the strategic level of management, and at the operative marketing level. By means of public relations a relationship of mutual understanding is established, and a balance of interests between all stakeholders is achieved.

Types of PR research There are basically three types of public relations research:

Applied Research: It examines the specific practical issues, in many instances, it is conducted to solve a specific problem

Strategic Research: It is a branch of applied research which is used to develop public relations campaign and programs. In short, it is deciding where you want to be in the near future and how to get there. Page | 73

Evaluation Research: This kind of research is conducted to assess the effectiveness of a public relations program.

PR Measurement PR measurement is a critical requirement for demonstrating the impact of public relations on corporate objective and managing a company’s most important asset – its reputation.

Reach This will cover number of media, number of readers, key message delivery, placement and the tone.

Benchmarking This measures the equivalent of the traditional advertising ‘share of voice’ approach tracks the corporate media coverage vis-à-vis its competitors. It provides the advantage of knowing how much media coverage and of what type it obtained relative to its competitors.

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Share of Discussion PR can increase the amount of public (principally media driven) discussion about a topic, It can gain the majority share (or dominance) for its client or product, then it is likely that there will be a consequent increase in sales for that product/competitor after a period of time. Example: Share of Discussion based on story counts…

Handset

Vol. /

Sales vol. in

Vol. /

Sales vol. in

Brands

Articles

crores

Articles

crores

Nokia

184

4,600

110

2,301

Samsung

82

833

45

442

Motorola

38

680

37

435

Sony Ericsson

22

295

10

210

Here the articles have been collected for the period of 2004-05 for Ist table and 2003-04 for IInd table from Factiva for India region, which covers all financial, mainlines newspapers and top business & telecom magazines. Articles are more or less exclusive on brands and are not being analyzed for tonality.

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Correlation- During both the periods Sales to Share of Discussion (Volume of articles mentioning mobile handset brand names) were highly correlated. The table above illustrates the correlations between the client’s (Nokia) own media coverage / count and its competitor’s with regards to the sales figures. Of course, it may be argued that marketers have always intuitively known this anyway. However, what makes this different is that this is showing the potency of unpaid media exposure and that’s PR PR Insights Insights are the qualitative analysis of a particular company that is undertaken based on the PR measurement numbers.

Content Measurement Content measurement very much like the name suggests indicates identifying the content in a particular media and measuring the PR activity in the same.

ROI A measure of budget spent to achieve an objective, versus the income generated through the activity.

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Tone of Voice There are three types of tone of voice:

Beneficial/Positive A particular article or program that has featured in print, television or internet media and created positive, favorable and beneficial impact for a that brand/company

Factual/ Neutral It is an article or program that features in print, television or internet media but has no positive or negative impact on the brand/company.

Adverse/Negative A particular article or a program that has featured in print, television or internet media and has created negative or adverse impact on the brand/company

OTS Opportunity to See (Oth - Opportunity to Hear)-A calculation determining the number of times an individual is likely to see a marketing message. Advertising relies on a large number of messages to be seen, whereas a specific PR campaign Page | 77

may only have one opportunity per publication. However any number of PR messages within any number of publications can be calculated to produce an overall 'OTS' OVERLAP.

EAV EAV refers to Advertising Equivalent. This gives the value of a particular article.

Co-score It is a measurement of the overall type of impact of the PR activity.

Industry Story Participation It refers to the effective use of a PR opportunity to be quoted or mentioned about.

Key message This key message is what a particular company wants to put in the media

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Coverage by parameter There are four defined parameter such as the corporate presence, product and services, means to market and employees. Coverage by parameter indicates the exposure given considering the above factors.

Share of Voice Share of voice, or SOV, is a highly sought-after metric today in PR. It is the percentage one company has of the total amount of communication directed to a targeted group. Good SOV doesn't guarantee success in the marketplace, but it can certainly be a contributing factor.

Q&A What is a TV schedule? The list of spots transmitted on various television stations and channels for a particular campaign is the schedule. The term also is used to describe the way schedules are bought: the amount to be spent over the days or weeks of the campaign, or the ratings expected.

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How are ratings for a TV campaign or schedule determined? The definition for ratings above was for one spot. A TV campaign or schedule is made up of a series of spots. Ratings for each spot are added together to get the total ratings for the campaign.

What does “seeing” a commercial or program mean? There is a technical definition that varies with the research technique used by the TV measurement company. In some people meter countries, it means a person in the target is in the room with the TV set on and tuned to the right station when the commercial is on.

Some people meeting this definition may not be paying

attention to the screen. In other countries using people meters, it means a person in the target is in the room watching the TV tuned to the right station when the commercial is aired. This definition relies on a respondent’s own determination of what “watching TV” is.

Is this an “opportunity to see”? Indeed it is. This British term can be shortened to OTS.

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The person in the paragraph above had one OTS. These may be summed up over the period of the TV campaign, or over a shorter period like a week, to say that this person had so many OTS in that time frame.

Are ratings and OTS related? Yes, they are. But since once – rating – is a gross count of audiences across a schedule, and the other – OTS – is about individuals, the relationship is not a simple as it may appear. Only “on average” is this statement true: a schedule delivering 100 rating points from a series of spots means each person gets on average one OTS, since the percentage of the target who have seen a spot totals 100. In fact, the statement is never true in reality.

How do we talk about different OTS levels, then? The target is divided into groups, based on their levels of exposure: those who saw no spots in the schedule, those who saw just one, those who saw just two and so on. These groups are reported as a percentage of the total target.

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Is this a frequency distribution? Yes, it also can be called an OTS distribution.

How are parts of the frequency distribution labeled? The percentage of the target audience that saw no spots in a schedule is called the campaign’s non-cover; 100% minus the non-cover is the percentage that saw at lease one spot. This is the cover of the campaign, also known as reach, also as 1+.

Groups can be defined as 2+: the percentage that saw at lease two spots, and so on. Groups also can be defined in specific exposure intervals. For example, 2-4; the percent that saw 2 or 3 or 4 spots.

What affects TV advertising costs? This is too big a question to answer fully here. The list includes: spot length; the station(s) or networks used, hence the area covered; demand for TV time, which usually varies by month of the year; special buying requirements, such as the proportion of rating points in prime time or the weekly reach (cover) needed; negotiations between buyer and seller. Page | 82

What is “prime time”? Details of this and other rate card issues are not covered here, since they are so variable. Briefly, the time when ratings are highest is “prime time,” or “peak” or “A”. This means that TV spots cost more in this day part. In some countries, it may be that people pay more attention to the program (an OTS is more likely to be a real ad exposure). [This well-held myth needs to be verified with empirical research on a country and copy-specific basis.]

Why does this matter? Some people are heavy TV viewers and others are light viewers. It is easier to reach heavy viewers, since they are more likely to be watching at most times. However, when high cover (reach) is required from a schedule, programs that attract lighter viewers must be included as well.

By definition, light viewers are eclectic in their program selection. They can be reached by popular programs and also with special interest channels and programs. However, the cost to reach them may become prohibitively expensive.

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Are people in various parts of the OTS distribution different, then?

Indeed they are.

The example above introduces the idea of heavy and light

viewers. Heavy viewers then to be at the right hand end of the distribution, with many OTS. Light viewers tend not to be covered at all, or get only one or two OTS.

Can we sum up an entire OTS distribution in one or two numbers? An OTS distribution has been standardized: its total adds to 100%. Sometimes the distribution of a schedule is discussed in terms of the real total GRPs. That’s one summary.

Another is the percent of the distribution at or over a particular number of OTS. Thus, the distribution of a schedule can be summarized as “1+” or “1+ reach/cover”, or simply “reach/cover,” simply “reach/cover,” stating the percent of the target audience that had at least one OTS to see the schedule. For example: “the 1+ reach/cover of the four-week schedule was 65%”. Similarly, reach/cover can be reported at other OTS levels: “the 2+ reach of the one-week schedule was 27%, etc.”

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What is “effective reach and frequency”? The term has a variety of meanings. Usually, effective frequency is a management decision about the sort of OTS distribution one want. When the percent of the OTS distribution at or over a particular number (e.g., 1+, 3+, 2-6) is used to set a goal for the buyer, or to check whether a schedule’s goal has been met, this is called “effective reach” or “effective frequency.”

Stating these cover guides

discourages the buyer from putting all the money into cheap time with high repetition in order to get low costs.

In some circles, effective frequency is used to set communication goals for a campaign, inferring that a certain number of OTS in a set time period is required for the campaign’s message to be effective.

Are ratings the same, whatever the spot length? Most research services report the same audience, and hence the same “rating,” whatever spot length was used. In analysis, different definitions may be used.

While the quantitative audience values may be the same for commercials of different lengths, the spots may have different effects due to their durations. This

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may need to be considered when estimating the frequency levels required for different types of commercials.

What are “cost-equivalent ratings”? These are ratings for varying spot lengths equivalized to 30-second costs. The method in some countries: ratings for 30-seconds spots are unaltered, but if the cost for a 60-second spot is double that of a: 30, the original rating is multiplied by two; for a 15-second spot that costs half, the rating also is halved (divided by two). Why is cost-equivalent ratings used? Ratings (or cost) are equivalized to make sure that comparisons between brand campaigns reflect real advertising pressure. Suppose Brand A’s schedule delivered 400 rating points, while a competitor’s brand B delivered 300. Did A have greater advertising weight than B? It looks like it – but copy length needs to be considered as well: A used 30-second spots, while B used : 60s. On a cost-equivalent basis, Brand A had 400 rating points, but Brand B had 600, a heavier weight.

Media Scenario in India

Exercise questions Page | 86

Chapter 7: Television Scenario in India Television:

Television, today, a medium of mass entertainment, has become an integral part of almost every household. Though it was considered a luxury in the early times, television in present times has become a necessity. Television or TV has emerged to be an important source of knowledge and entertainment.

History of Television in India

• Television first came to India (named as Doordarshan or DD) as the National Television Network of India.

• The first telecast started on September 15, 1959 in New Delhi. After a gap of about 13 years, second television station was established in Mumbai (Maharashtra) in 1972 and by 1975 there were five more television stations at Srinagar (Kashmir), Amritsar (Punjab), Calcutta (West Bengal), Madras (Tamil Nadu) and Lucknow (Uttar Pradesh).

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• For many years the transmission was mainly in black & white. Television industry got the necessary boost in the eighties when Doordarshan introduced color TV during the 1982 Asian Games.

• 1980s: Indian small screen programming started off in the early 1980s. At that time there was only one national channel Doordarshan, which was government owned. The Ramayana and Mahabharat was the first major television series produced. This serial notched up the world record in viewer ship numbers for a single program.

• By the late 1980s more and more people started to own television sets. Though there was a single channel, television programming had reached saturation. Hence the government opened up another channel which had part national programming and part regional. This channel was known as DD 2 later DD Metro. Both channels were broadcast terrestrially.

Television Scenario Post Liberalization

• The central government launched a series of economic and social reforms in 1991 under Prime Minister Narasimha Rao. Under the new policies the Page | 88

government allowed private and foreign broadcasters to engage in limited operations in India.

• This process has been pursued consistently by all subsequent federal administrations. Foreign channels like CNN, Star TV and domestic channels such as Zee TV and Sun TV started satellite broadcasts. Starting with 41 sets in 1962 and one channel (Audience Research unit, 1991) at present TV in India covers more than 70 million homes giving a viewing population more than 400 million individuals through more than 100 channels.

• A large relatively untapped market, easy accessibility of relevant technology[citation needed] and a variety of programmes are the main reasons for rapid expansion of Television in India. It must be stressed that Television Entertainment in India is one of the cheapest in the world.

Cable television

• In 1992, the government liberated its markets, opening them up to cable television. Five new channels belonging to the Hong Kong based STAR TV

Page | 89

gave Indians a fresh breath of life. MTV, STAR Plus, BBC, Prime Sports and STAR Chinese Channel were the 5 channels.

• Zee TV was the first private owned Indian channel to broadcast over cable. A few years later CNN, Discovery Channel, National Geographic Channel made its foray into India. Star expanded its bouquet introducing STAR World, STAR Sports, ESPN and STAR Gold.

• Regional channels flourished along with a multitude of Hindi channels and a few English channels. By 2001 HBO and History Channel were the other international channels to enter India. By 2001-2003, other international channels such as Nickelodeon, Cartoon Network, VH1, Disney and Toon Disney came into foray. In 2003 news channels started to boom.

Today, Television Industry has become multifold and has a host of functions, roles and responsibilities to manage. The main functions of a broadcast agency are as follows:

• To buy and produce creative content for audiences as well as to attract patronage Page | 90

• Promote the content in such a way that it is a cut above the competition • Sell the air time to advertisers to generate revenues for the organization

Page | 91

Chapter 8: Departments in a Broadcast Agency and their functions A Typical TV channel will have the following departments under it and based on these departments, the roles and responsibilities of an employee are defined.

Broadc ast agency

Progra mming Depart ment

Produc tion Depart ment

Market ing Depart ment

Sales Depart ment

Human Resour ce Depart ment

Admini stration Depart ment

Finance Depart ment

Technic al Depart ment

Researc h Depart ment

Distribu tion Depart ment

The first four departments, that is, the programming, production, marketing and sales department are crucial for the agency. Business is run mainly through these departments.

Page | 92

Functions of each department:

• Programming department:

Very much like the name suggests the function of the programming department is to create/acquire content for the television channel

This department analyzes the viewership trends, and schedules its content to attract target audience at the right time. They observe what type of audience likes what type of content and accordingly they plan their programmes.

• Production Department:

The production department is responsible for actually producing the content.

These channels have different independent production houses under them which produce the content for the channel.

The channel supervises and coordinates with these production houses to build the content for the programme. Page | 93

• Marketing department:

The role of marketing department is to promote the content to the audiences or the viewers so that more and more eye balls are registered for the channel. This will in turn generate more revenue for the channel through the advertisers.

The Promo planning and scheduling is also done by the marketing department to target the right audiences at the right time

• Sales department:

It is the sales departments that is responsible for generating revenues for the channel Competitive analysis is undertaken to do competitive & optimal spot pricing for advertising. The sales executives pitch to the clients for advertising spots.

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• Distribution department:

This department ensures the availability of the network channels in the relevant markets. They conduct field visits and track deals with the cable operators. It ensures that the cable operators are carrying their channel and distributing it effectively. • Technical Department

Employees under the technical department maintain automatic transmission system for the transmitter plant. The team designs and implements professional broadcast systems for a wide range of projects It is the technical team that is responsible for uplinking and downlinking the data to the satellite so that it reaches various households.

• Research department

It is the research department that analyses and infers various trends through which the management takes various decisions. Page | 95

They study the MIS reports and conduct diagnostic testing through which they identify specific target audience for specific programs They help the marketing department in promo planning They support the sales department through their research and analysis.

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Chapter 9: The current TV environment Growth of the number of channels presentation • The change in the way people access channels – how has it affected the broadcasters:

o The way in which people access television affects the availability or the non-availability of a channel. Those who don’t have a cable connection can watch only terrestrial channels like DD1 & DD News. Whereas, even within a cable home, the choice might be limited to what the operator provides on the cable. This choice is further restricted by the type of TV. While the latest TV sets come equipped with all bands necessary for accessing channels, older ones come with the capability of accessing only a few frequencies. For example a B/W TV would not receive the signals which are transmitted via the color band by the cable operator

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Year Universe TV Penetration Colour TV penetration B/W TV penetration Cable & Satellite Penetration

Source: NRS

2002 191 Mn 42.5 15.2 28 21.1

2006 219 Mn 50.9 29.5 22 31.2

Base: All India

o As the above numbers indicate, from 2002 to 2006, there has been a significant growth in the TV, Color TV and CS penetration levels. This augurs well for the broadcasting industry since there are more viewers available.

o The latest technological advancement that has spurred the TV industry in India is the advent of CAS and DTH. These digital platforms allow the user to do away with the choice restrictions that a normal cable connection had. The bouquet of Free to air channels is always available through the digital platform and the Pay channels are accessible by the user if he desires to pay for the subscription. Here the choice is completely the user’s and not the cable operator’s

o FTA and Pay channels: With growing competition and shrinking profits, the broadcasters looked forward to newer ways of revenue generation and hence some of them made themselves as pay channels. Page | 98

The user will have to bear a subscription cost to access these channels. There is a danger of losing viewership because of this since some viewers might not be willing to pay an additional cost to access the channel and might switch his loyalty to a competitor’s channel.

• Competition – how does it affect the broadcasters? o As seen in the table below, the number of active channels has gone up from 126 in 2000 to 308 in 2006. o There is a drastic increase in the competition even within niche genres. o This intense competition drives the industry to produce excellent content to be profitable in the business of attracting the attention of viewers.

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Genre Business News Cable EngEnt English Movies English News Hindi GEC Hindi Movies Hindi News Info Kids Music Others Regional Regional News Religious Sports Grand Total

2000 1 7 3 4 2 6 5 3 3 2 9 28 45 2 3 3 126

2001 1 9 3 4 5 6 6 4 4 3 9 36 50 2 3 3 148

2002 1 9 3 4 5 6 6 4 4 3 10 42 61 4 4 4 170

2003 1 9 3 4 7 6 7 6 5 3 15 46 62 7 6 4 191

2004 2 9 3 4 7 9 11 7 6 8 15 48 59 10 9 4 211

2005 4 11 3 4 8 9 10 10 8 8 23 64 65 15 10 5 257

2006 4 11 3 5 9 9 10 10 9 7 35 92 58 24 14 8 308

What is DTH and how does it work?

DTH presentation

• DTH (Direct to Home) is a satellite-aided TV rebroadcast system, featuring a compressed digital encoded signal for uplink/downlink.

• The first step in creating the digital satellite system is to raise the satellites. This requires a launch missile to raise it to a low-earth geosynchronous orbit (18,000 mph at 22,500 miles). "Geosynchronous" means that the satellite maintains a constant position relative to the earth. A geosynchronous orbit

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ensures that the antenna does not need to be re-positioned. Each DTH satellite has at least 16 transponders, and each transponder has multiple channels possible because of the digital signal compression and alternately using polarization.

• With the satellites in place, a DTH broadcast requires an Earth station for uplink. "Uplink" refers to sending data up to the satellite, which then retransmits the data down (downlink) along a particular angle.

• In order to receive DTH, you need the following components: Antenna LNB, Receiver. What is CAS? CAS presentation • CAS stands for conditional access system, which is a digital mode of transmitting TV channels trough a set-top box (STB). The transmission signals are encrypted and viewers need to buy a set-top box to receive and decrypt the signal. The STB is required to watch only pay channels, not freeto-air channels, like Doordarshan.

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• The CAS Bill and what it means: In the new system, Indian broadcasting companies will decide which channels would be 'non-pay' (free-to-air) and which would be 'pay'. The viewer will now be able to select the pay channels he wishes to watch and pay for only these. Each broadcasting channel will determine the rates for buying the channel.

• Currently, there is no segregation and subscribers pay a blanket rate for the entire service. There will soon be two levels of segregation. The first will be a broad differential according to lower, middle and upper classes of society across cable households. • The second differential will be amongst pay channels, like premium channels, which will include focused news, entertainment, sports, music channels and niche channels like nature, health and fashion. Benefits of CAS All the involved players and the viewers (consumers) can benefit greatly CAS is rolled out across the country. However, vested interests and the price of Set Top Boxes have been some of the reasons for delay in implementation of CAS all over India.

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Consumers: Consumers get the option to choose the channels they want to pay for and view, rather than receiving the whole set of channels that the Cable Operator makes available to them, and hence benefit by having to pay only for the channels they want to watch. Currently, in most of India, there is no segregation and subscribers pay a blanket rate for the entire service. Cable Operators: Cable operators get the opportunity to pay a part of the subscription fees to the broadcasters only for the actual number of end users who opt for the channel, rather than all households having cable access. Broadcasters: Broadcasters have a long-standing complaint that the Cable Operators under-declare the actual number of subscribers, and hence pass on only a fraction of the paid subscriptions. With a system like this in place, it is possible to address the exact number of subscribers with a cable operator. Advertisers: CAS gives a far more accurate indicator of programme popularity with only the actual subscribers of each channel being accounted for. Government: Since the issue of addressability ensures a fair degree of transparency in accounting across the entire value chain, it minimizes the loss of revenues to the government through mis-reporting or non-disclosure of actual

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revenue figures. The government also facilitates the introduction and development of consumer friendly systems like pay per view, interactive programming, etc. What is a set-top box? How much does it cost? The set-top box is the device that enables a subscriber view pay channels. This instrument decodes signals from the cable operator for viewing a pay channel. It can also monitor the number and duration of channels viewed by the subscriber. Analog Set Top Boxes cost between Rs 3,000-3,500, while digital STBs cost 5,500 to 7,000.

Audience Behavior o Channel share fragmentation

Today there are more than three hundred plus channels. With this virtual explosion of TV channels, the advertiser is confronted with high media fragmentation. While it makes it difficult for mass product marketers, the smaller advertiser has an option to target specific audiences at lower rates.

With the proliferation of different media forms, reaching the right audiences may mean selecting media that are highly specialized and target focused audiences. Page | 104

Media specialists now work harder as they get more complex data from so many channels. Channel share fragmentation is not a new phenomenon but with return on investment (ROI) going down over the years, it has become more challenging for media professionals to give their clients the right advice to enable them to build sustainable brands in a profitable way.

Media segmentation proves helpful for specific categories which are trying to reach out to specific audiences and want to stay away from traditional mass media.

o Growth of genres

With increasing number of channels, there is growth of channel genres as well.

For example, Music as a genre has grown almost two fold from 2004 to 2007.

The Hindi general entertainment channel as a genre has been decreasing while on the other hand, the kids’ entertainment genre is growing.

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Growth of genres is bound to take place because of the number of channels that have sprung up in the country. Sensitivity Presentation Case studies (response to events)

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Chapter 10: Broadcasters: Programming Broadcasters: Programming (ppt. presentation)

In a broadcast agency, there programming department has a major role to play. The programming department of a channel performs the following functions:

• Scheduling of the programme: Checking the potential of a given time slot, the target group that the slot attracts and the expected rating

Once the programming department decides on a particular time slot it wants to air the programme on, it needs to check the potential of that time slot. This means knowing about:

• How popular the time slot is? • What is the kind of target audience that it attracts? • What Age group and SEC class watches television during that time slot? • Will the programme match the kind of target group watching television during that time slot? Page | 107

• What can be the expected ratings if the show is aired during that time slot and how it is different from the other slots in the schedule?

The programming department has to prepare the FPC (Fixed Point Chart) which is a chart that shows the weekly/monthly/annual scheduling of the programmes to be aired on that particular channel. The scheduling is a major task and many strategies are used for this such as whether the programme should be aired two times a day or three times a day or likewise, which days should be selected – weekdays or weekends, which day part should be selected while airing the programme etc.

This is how a weekly FPC looks like. The day parts are divided into half an hour time slots. The channel name is mentioned on top. Names of the programme/movies/shows are written in the blank cells.

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Time/day 6.30 am 7.00 am 7.30 am 8.00 am 8.30 am 9.00 am 9.30 am 10.00 am 10.30 am 11.00 am 11.30 am 12.00 pm 12.30 pm 1.00 pm 1.30 pm 2.00 pm 2.30 pm 3.00 pm 3.30 pm 4.00 pm 4.30 pm 5.00 pm 5.30 pm 6.00 pm 6.30 pm 7.00 pm 7.30 pm 8.00 pm 8.30 pm 9.00 pm 9.30 pm 10.00 pm 10.30 pm 11.00 pm 11.30 pm 12.00 am 12.30 am

5th nov 07 Mon programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Film: Film: Film: Film: Film: Film: cartoon show cartoon show cartoon show serial serial serial soap soap soap reality show soap soap soap thriller show repeat show repeat show

6th nov 07 Tue programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Film: Film: Film: Film: Film: Film: cartoon show cartoon show cartoon show serial serial serial soap soap soap reality show soap soap soap thriller show repeat show repeat show

FPC Week 42 ( 5th nov - 11th nov ' 07) 7th nov 07 8th nov 07 Wed Thur programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Film: Film: Film: Film: Film: Film: cartoon show cartoon show cartoon show serial serial serial soap soap soap reality show soap soap soap thriller show repeat show repeat show

programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Film: Film: Film: Film: Film: Film: cartoon show cartoon show cartoon show serial serial serial soap soap soap reality show soap soap soap thriller show repeat show repeat show

9th nov 07 Fri programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Film: Film: Film: Film: Film: Film: cartoon show cartoon show cartoon show serial serial serial soap soap soap reality show soap soap soap thriller show repeat show repeat show

10-Nov-07 Sat programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Trailors repeat show Film: Film: Film Film: Film: Film: Film: Trailors serial serial serial serial comedy show comedy show Film: Film: Film: Film: Film: Film:

11th nov 07 Sun programme programme programme Trailors Cookery show programme programme programme programme Trailors comedy show comedy show repeat show repeat show Trailors repeat show Film: Film: Film Film: Film: Film: Film: Trailors serial serial serial serial comedy show comedy show Film: Film: Film: Film: Film: Film:

• Going through the past performance and checking the TVRs

If re-scheduling of a programme is being considered then it is the duty of the programming department to check its previous performance under the time band it was aired in. The department will also check the TVRs that the programme has already earned. Based on the previous performance the department will take decision to schedule the programme on the same time slot or re-schedule it.

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• Competitive Analysis: competitive channel’s programming schedule

Today with Indian television consisting of three hundred plus channels, competitive analysis is become very important. What are the programmes that are being aired on other channels during the time slot when a particular channel’s programme is being aired? What are the kinds of target audience that are attracted to ones show and how is this group different from the audience of competitive shows.

• Ratings of other programmes

Competitive analysis will also include checking the ratings of other programmes so that one can know about the performance of one’s programme in relation to other programmes on other channels. For example: a popular programme X on competitor’s channel has a TVR of 6.5 while the TVR of our channel is 3.5. This tells the programming department what should be done to make our programme more popular and how one should attract more eye balls for our programme.

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• The loyalty of the viewers of that programme

The loyalty of the viewers is important to analyze because it will help to schedule shows in such a way that if a new programme is launched after a popular programme with good ratings and loyalty, then the new show will be benefitted such that bunch of loyal viewers will watch the new show as well. Apart from this, if a new show is to be scheduled in place of a old popular programme, then the loyalty of that programme is affected and it may create an effect such that the new programme TVRs can be hampered.

• Scheduling of the repeat shows and checking for minimal duplication

Many programmes are repeated. While scheduling repeat shows, programmers need to take care that there is minimal duplication which means that the same target audience is watching the show again and that there are no new viewers to the show.

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How TAM data helps programmers in making right decisions:

The programming division of a broadcast agency uses TAM data for:

• Knowing the profile of the target audience- Who and Why

- You can know the genre-wise target audience and their profile - The audience profile in different dayparts - The program-wise audience profile - The Audience behavior

• Program content

- TAM provides the programme ratings which are indicative of the success of the program content. Programmes with similar content can also be compared and relative analysis can be made.

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• What are the current television programming trends?

- Based on the data collected for more than three hundred plus channels on television, TAM helps programmers to know about the trends in television. For example: Reality TV is the latest trend in TV.

• Comparative analysis (competitor’s data) - TAM provides with the rating points of all the programmes across channels. Programmers can make comparative analysis through these ratings to know how their programmes are doing in comparison to the other programmes on air. - Comparisons can be made at different level such as: day parts, programme genre, advertisement time etc. - Duplication with other channels – TAM also helps you to know the number of viewers who are present on two channels at the same time.

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• The performance of the program

- TAM provides you with minute to minute rating of the programme. This will help the programmers to know which scene in a particular episode earned what kind of ratings. The performance of the programme can thus be analyzed in detail. Reaction to particular characters can also be traced through these ratings.

• The ROI of the program

- TAM helps the programmers to know about the program performance on the basis of reach, time spent, loyalty building and reach at different frequency level. - The return on investment (ROI) of the program is also known based on which the CPRP (cost per rating point) can be calculated.

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• Appropriate Dayparts

- Through TAM, programmers also know the trends of ratings across different day parts. This data helps the programmers can schedule their programmes accordingly.

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Chapter 11: Broadcasters: Sales Division Broadcaster Sales Division presentation

In a broadcast agency, sales division is an important part of the organization because it is this department that gets the revenue for the channel. Particularly, the sales department will make pitches to the client.

The rate of a particular ad spot is dependent on the TVR/TRP of that particular programme. It is also dependent on what time the show containing the ad spot is aired. Sales executives negotiate prices with the clients for the spots

Only after the studying the target market and the reach of a particular show, the rate of the ad spot is decided.

Communication with the Advertiser • Audience profile of different programs/day parts: The sales division helps the advertiser to know about the different audience profile across different programmes or day parts (in case of news/ music channels)

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• Break reach The advertisers are mainly interested in knowing about the audience reach during commercial break. The sales division assists the advertisers in knowing that through TAM data.

• Top performing day parts/programs An advertiser will aim at maximum reach in minimum budget. Hence, the sales division provides the advertiser with data on the top performing day parts or programs that receive maximum ratings so that the advertiser can target a large set of people at one instance.

• Available Slots The sales division will let the advertiser know of the slots that are available and the slots that already have been booked.

• Different market response to different day parts The sales executives in a broadcast agency needs to know of the trends of television viewing across different day parts so that an advertiser can advertise when the brand’s target group matches with the target group of the day part. For example, most house wives view television in the afternoon. A client selling Page | 117

household cleaning products will be interested in advertising during this day part as the TG matches with that of the audience profile of that day part.

The sales division uses TAM data as a certificate to know: • Advertisers/brands in competitors: To know about the advertisers/brands present on competitor’s channels. • Audience profile – different programs and day parts: To know the audience profile viewing television across different day parts or programmes. • Comparison with competitor: Access to TAM data gives information to a sales executive on ratings of all the programmes across all the channels. This helps the sales division to know competitor’s advertising data and make comparative analysis. • Appropriate Day parts: TAM data helps the sales division to know about the appropriate day parts so that the advertiser can know which day part or programme will receive maximum eye balls.

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Chapter 12: Broadcasters: Marketing Division Broadcasters: Marketing division Presentation

• It is rightly said that ‘Content is king’ however, it is necessary to adorn the king with silken robes and royal garments! This indeed means that the marketing of television content is as much important as the content itself.

• Today, broadcasters are spending huge amounts of money for promotion of their programming. Earlier, people believed that developing good content will earn them their due TRPs however with over three hundred channels prevalent in the country today; Indian television viewers have immense choices to view different kinds of programming. Hence, with this scenario, it becomes necessary for the marketing team of a TV channel to effective use promos for advertising their programmes. And it is not just TV but radio as well that is used for promotions of the content on a television.

• The Indian television industry has experimented with a host of programming formats which has given rise to innovation in television promos. It is the link Page | 119

that holds it all together. Promo planning involves choosing the right spots on television for promotion, highlighting what will entice the audience to watch the programme, creating the right kind of curiosity and building the excitement amongst viewers.

• It is seen that promos and their effective usage have helped to gain popularity for the show and increase the viewership ratings.

TAM data helps the marketing division of a broadcast agency with the following:

• Wide choices of target Audience – To know the detailed audience profile and selecting the right target group for the program content.

• Viewership in Different Markets – Audience viewing patterns across different TV markets. Which program contents are getting maximum viewership? Which content has weak viewership? – TAM helps marketers with detail analysis to answer the above questions.

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• Appropriate Day parts – TAM data helps marketers to know about the appropriate day parts that marketers should select for specific programme schedules.

• Comparison with competitor – TAM helps marketers to know why audience prefers a particular programme or a particular channel. Marketers know about their channel share within the genre the channel falls in and the channel share amongst the potential competitors.

• Amount of Promotion required – marketers are required to know where and how should programmes be promoted.

• Promo trends – what are the trends in promotion and how has the competitor promoted the content of his channel.

• Current Evaluation – TAM also helps marketers of broadcast agency to evaluate the effect of a particular promo. Marketers can also analyze whether they need more promotion or better content for their channel.

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Statistics Speak:

• The average ads aired per day on TV rose from 35,612 ads/per day in JanSep 06 to 46,647 ads/ per day in Jan-Sep 07.

• At present, there are more than 30,000 commercial spots on television every day. About 45,000 promo spots are aired daily.

• Surprising to most people, 55% non-programming time is dedicated to promos. For English movie channels, the figure shoots up to 70%.

• Moreover, while most general entertainment channels are aggressive on content promos, music and news channels have more channel promos.

• However, while promos reach out to an estimated 65% of the viewing audience, only 11% are lured back to watch the programmes, defeating its purpose of creating appointment television.

• In today’s competitive television scenario, even promos have become a piece of entertaining content in them and hence they too need to be as Page | 122

creative as possible. TV marketing managers are investing more in promo budgets so that their programme gets top of the mind recall!

• Some of the things that need to be taken care of are that the promo should not only highlight the main contents of the programme but should also follow the same theme that the programme follows.

• Today, marketers are exploring new possibility of creating promos through product launches and advertisements and/or movie releases.

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Chapter 13: Broadcasters: Distribution Division Broadcaster’s distribution division presentation

Making the Right Connections

• Most of the talk, and consequently, the hype in the channel business are concentrated around the programming aspect. Not only channels, but the entire media industry seems more cued onto ratings, channel shares, and other viewership concepts without realizing the importance of distribution. Distribution is seen as not even half as attractive as programming.

• The relationship between programming and distribution can be viewed as: “The food was excellent but unfortunately no one turned up for the party”. The ‘food’ here represents the programming and the ‘not turning up’ representing the ‘distribution’. The axiomatic platform being that unless that there are enough people who have a chance to look at the channel’s programming, no amount of programming efforts will make the ratings increase.

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• In fact, a look at the state of the Indian media scenario will make things clearer: the following table shows the split between B/W and Colour TV sets in major metros. As can be seen they do not exactly present a rosy picture for colour TV sets.

Table 1: The Black and White Picture - Metros

Total TV Metros

% owning

Sets

B&W Col. TV

(000s)

TV

Mumbai

3198

65

35

Delhi

2314

52

48

Calcutta

1851

38

62

Madras

1319

49

51

Bangalore

1045

57

43

• Thus, even a metro like Delhi has about 50% sets as B/W sets. Now consider the fact that a B/W TV can carry about 10 channels. By law, a cable operator Page | 125

has to carry the three DD channels. So typically in a state like Maharashtra, the way a channel line-up would be is DD1, DD2, DD 10 (Sahyadri), Star Plus, Sony, Zee. These are the total six channels. Then you have about two channels of the cable operator himself and now the total is eight. So there are a maximum of two channels left in a viewer’s TV set. Given that there are potentially about 125 channels that can be received by a viewer in India, one is left with 117 (125-8) channels that are competing for those two channels. So do you want to, as a channel director, concentrate on programming, core audience, day part strategies before at least giving the viewer a chance to view your channel?

• TAM tracks availability of a channel across five typical frequency bands:

1.

Prime Band

2.

Colour Band

3.

S-Band

4.

Hyper Band

5.

UHF Band

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How TAM tracks channels: Connectivity Presentation I. Apart from the Panel Homes that are used to record viewership data TAM also has a ‘Parallel Homes’ set-up which tracks the movement of channels in a C&S household’s TV set. The data from the Panel homes and Parallel Homes are matched, processed and finally result in an output known as the Connectivity Report of the form as shown in Table 2 below: II. Though the report below shows only data pertaining to few markets it is generated for all the markets (27 towns) covered by the TAM viewership data. Due to the fact that the data is released after a gap of only four days from the last day of the week, the data is a reliable instant indicator and can be used to validate distribution efforts.

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TABLE 3 : Connectivity Report for new channel X Week X beginning 25/03/01 Band

All

Mumb Chenn B’lore RoMA RoTN RoKA

CITY

ai

ai

H

R

Prime

4.6

0.9

0.5

0

15.2

21.3

0

Colour

13

6.1

3.3

8.2

7

0.5

32.8

S-band

29.3

23.4

46.9

47.7

24.4

31.3

2.1

Hyper

2.7

7.4

0

5.7

0

0

0

Uhf

3.9

18.5

0

0

0

0

0

46.4

43.6

49.3

38.4

53.4

46.9

65.2

None

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How does one read the table?

As can be seen in the above report, the bulk of the channels’ distribution lies in the S-Band across markets. While the Rest of Tamil Nadu market is the best in terms of availability (a significant bulk in the Prime Band – i.e in the first 11/12 channels of a TV set), the channel has a long way to go as far as Bangalore is concerned. The Rest of Karnataka market doesn’t do too badly with a significant mass in the Colour band. But non-availability (the ‘none’ figure) is as high as 65% in the market. This shows that either the cable operators need convincing to actually carry the channel, or the universe of TV sets in this specific market is extremely skewed to the low end TV sets thus resulting in a large proportion of homes not able to view the channel telecast on S band, Hyper band or UHF band frequency. Hence, the distribution team needs to chalk out their strategy in lifting the channel into lower frequency bands like Prime or Colour bands.

Viewership-distribution analyses: All studies undertaken by TAM show a heavy correlation between distribution and viewership. The data can be used to pin point problems that a channel is having and will be an important factor in deciding:

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1.

Whether promotion is needed in the market to boost walk-ins into the

channel once the distribution is in place? 2.

Does the distribution still need boosting and if so, in which band?

3.

Prioritization of markets in terms of distribution and promotion

4.

Analyzing competitor trends

5.

Forecasting walk-ins by past viewership-distribution trends and an ROI

analysis. 6.

Are the efforts on the distribution front really paying off? Is the cable

operator really doing on the ground what he has promised?

What is ConnecTAM?

ConnecTAM presentation

It is a forecasting tool that is used for TV planning and scheduling. We all know the way ratings are computed: Number of people reached by the Programme and Proportion of Time Spent on the programme by the viewer. Today, Reach is dependent on: Accessibility provided by the cable

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operator

by placing a channel at a specific frequency band and Type of TV set

owned by the household (High proportion of B/W TV sets still exists).

ConnecTAM essentially tracks the availability or connectivity of a channel across: –

Frequency Bands

–

By Markets

–

By Weeks

ConnecTAM captures the required data at the Parallel Home end provides

the

channel line-up across frequencies telecast by the cable operator Channel line-up data is weighted by the type of TV set (based on frequency accessible) that the Panel Homes own

In short, ConnecTAM will play a key role in providing insights on channel distribution, thereby on expected viewership trend for TV planning & scheduling. However, this software is no longer available.

The years to come will see increased competition if anything else. While channels are all out to grab their share of viewership, it is important to realize the role that Page | 131

distribution plays and will play. All in all, the more niche the channel the more the need to get connected better.

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Chapter 14: Media Agency: Departments and Functions

Introduction:

• Advertising plays a noteworthy role in today's highly competitive media bombarding world.

• Whether it is brands, companies, personalities or even voluntary or religious organizations, all of them use some form of advertising in order to be able to communicate with the target audience.

• The structure of the advertising industry in Asia Pacific has been affected by globalization and international alignments creating a smaller number of very large agencies and the growth of independent major media buying houses.

• Very sophisticated software optimization and planning systems are now integral to the industry, enabling agencies to offer a unique positioning in the marketplace to attract new business. Page | 133

Departments:

A traditional advertising agency has the following departments however; today agencies have broken into creative ad agencies and media agencies.

The organizational structure of a traditional ad agency is as follows:

CEO

Chairman

Copywriter s

Creative Dept.

Account Management

Creative Directors

Account Supervision

Art Directors

Production Dept.

Client Servicing

Media

Media Planning

Human Resource

Research

Finance

Media Buying

Account Executive

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In a typical advertising agency, there are the following departments: a)

Creative Department

b)

Client Servicing Department

c)

Account Planning Department

d)

Media Department

Apart from these, the other usual departments are also present such as human resources, finance, HR, Research etc.

Functions: Creative Department:

• The people who create the actual ads form the creative department of an advertising agency. Advertising agencies usually form their copywriters and art directors into creative teams.

• Creative teams may be permanent partnerships or formed on a project-byproject basis. The art director and copywriter report to a creative director, usually a creative employee with several years of experience.

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• Although copywriters are usually meant to write the copy of the ad, and art directors, to design it, they both generate creative ideas to represent the advertisement or campaign's key message.

Client Servicing Department

• It is mainly the role of the client servicing department to interact with the clients on a regular basis, understand their requirements, convey the same to the other departments of the agency, plan and execute the completion of client jobs and also provide them with the finished output. Thus, the onus of managing and growing the business out of the clients is mainly the responsibility of this particular department.

• The requirements of the clients once spelt out to the client servicing employees need to be spelt out clearly and in an understandable manner to the other departments of the agency. It is on the basis of this information that the account planning and the creative department will prepare the output for the client. If the messages of the client are not communicated clearly then the product provided by the agency would be different from the one that is required by the client. Page | 136

Account Planning Department

• This department has to take an overview as to what can and cannot be done in advertising; keeping in mind the product/service. For e.g. if S.R.STEEL wants to advertise, what is it that they want to communicate, what is the purpose of communication. If they are coming with a public issue, the target audience will be different. If they are coming up with a branded steel retail showroom the TA will be different. So as a planner one needs to know these roles of communication.

• E.g. As far as, Car purchases are concerned, mass media can only generate interest. One cannot give detailed information on television. For finding information a lot of people surf the net, so detailed information should be given there. One should also be present in auto magazines. Thus an account planner’s role is to see what beyond advertising can be done. An account planner has to look at different type of communications. As far as impulse category is concerned one needs to be present at that place and time and it is most at the moment of truths that you need to be available. So as a planner one needs to define this world of moments of truths. (As told by Mr. Neeraj Bassi, Account planning, O&M) Page | 137

Media Department: Media Planning Basics Presentation

• Media Planning: There are numerous TV channels, radio stations, newspaper and magazines, cinema theaters and out-of-home sites. These are the traditional media options. Today, the word media includes online, events, mobile phones, product demonstrations, public relations and anything else that can reach and influence consumers or potential consumers for the brand. A Media planner has to effectively generate a media plan for its client that will ensure the reach to its target audience. Television can reach millions – but it is difficult to do a demonstration in 30 seconds! So each medium has strengths and weaknesses. The media planner must weigh the pros and cons and prepare a media plan.

• Media Buying: Based on the media plan that a planner creates, the media buying team buys the advertising spots for television channels and advertising space for print medium. The art of negotiations is important here so as to get the spots at a low rate! All costs can be negotiated – up to a point. So the media planner and buyer work together in ensuring that the client gets true value. Page | 138

The Media Environment: • The advertising industry in India is growing at an average rate of 10-12% per annum. Over 80% of the business is from Mumbai and Delhi followed by Bangalore and Chennai.

• The advertising industry touched $4.9 billion in 2007, growing 22 percent year-on-year, up from $4.02 billion in 2006, the report said. At present, advertising contributes 38 percent to the entire Entertainment and Media Industry's revenues.

• According to statistics, online ad spending has reached $23 billion. Nonetheless, nearly three-quarters of web advertising space goes unsold and more than 99.7 per cent of banner ads are not clicked on.

• Online advertising, touched $67.5 million in 2007 growing at a robust pace of 69 percent, and is expected to touch $275 million by 2012 at a CAGR of 32 percent.

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Demanding Advertisers: • As more and more channels have been introduced in the country, the advertisers are finding it difficult to reach their desired target audience. Hence, they demand the media planners to make their plans effective enough!

Myriad avenues of reaching consumers: • Modern consumers are online, on-air, and on mobiles. Advertisers are rethinking the channels they’re using to communicate with consumers. People are no longer just sitting in front of the TV, waiting to take in whatever advertising messages are being served up

• Marketers are rethinking the channels they're using to communicate with consumers and looking beyond traditional media. There has also been a big shift in media consumption habits and it is the consumer is now in control, and decides whether, where, and when he or she will consume media.

• Shopper marketing and in-store marketing are therefore growing in importance as marketers have realized that the in-store environment is one

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place in which they can be sure they're making contact with this new, onthe-move consumer.

Media Buying • Media buying is an art of strategic planning, negotiation and buying of media namely print, television and radio.

• It involves: - Competitive tracking so that the media buyer can negotiate through discussions - Striking deals with channels- By calculating CPRP’s basis GRP and spends data. - Annualized buying strategy - Channel-wise investment inputs.

• While buying Media, the following factors need to be considered because the price of buying media varies considerably: Cable network or local broadcast station, short or long-form, rating and size of audience delivered, package deals, seasonal influences on available media inventory, time slot for your target audience and trends in the market.

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• The Media Buyer needs to optimize what is bought and that is dependent on budget, type of medium (radio, internet, TV, print), quality of the medium (target audience, time of day for broadcast, etc.), and how much time and space is wanted.

• The Media Buyer attaches unique phone numbers to each station they purchase media from and track the sales, and make adjustments to the media plan and schedule as necessary to optimize results.

• Media Research Planning can be done by Media Buyers as well as Media Specialists. Depending on product and service, Media Buyers and Media Specialists do a fair amount of research to determine how best to spend the allotted budget. This includes research on the target audience and what type of medium will work best to reach the largest amount of consumers with the most effective method.

• Media Buyers need to buy media from a vast array of media outlets at their disposal, both traditional media and new media. Traditional media would include radio, TV, magazines, newspapers, and out of home. New media might include Satellite TV, cable TV, Satellite radio, and internet. The Page | 142

internet offers a number of Online Media that has surfaced with the improvement of technology and the accessibility of the internet. Online Media can include emails, search engines and referral links, web portals, banners, interactive games, and video clips.

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Chapter 15: Media Planning: Detailed process What is Media Planning? Media Planning is the process of selecting appropriate media vehicles for the placement of advertisement on behalf of clients. Clients want the best possible visibility and reach in minimum budgets. It is the requirement of a media planner to assist his client in achieving this. Media planning process involves analyzing target markets, knowing new media developments, analyzing market trends and understanding consumer motivation.

• The Traditional Role: Traditionally, the role of the media planner was quite close to that of the Media Buyer. The only difference was that the planner would devise a plan for advertising and the buyer would negotiate on things such as rates, copy deadlines, placement etc.

• The Modern Media Planner: The role of the modern media planner has changed and is more wide reaching now.

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A media planner, now, not just has to make plan for the traditional media like TV, print and radio but also has to integrate new media options and below the line communication plan.

Terms to keep in mind before understanding the media planning process: • Reach: The proportion of the audience that should be reached with the advertising message during a specified period. It is the number of different viewers exposed to at least one advertisement during the specified period of a campaign.

• Frequency: how frequently are the recipients being exposed to message? In other words, it is the average number of times an advertisement reaches each recipient in a given period.

• Weight: It is the amount of total advertising that is needed to accomplish advertising objectives.

• Continuity: It is the amount of advertising budget being allocated over the period. Media Planning Process Presentation Page | 145

5 step process

Channel Performance (Channel Shares)

Programme performance Plan laydown (Input channel/ programme/ Spots/ costs Creating a pre plan log (Plan optimization)

Final plan delivery

Media Planning is a very important component of the Marketing Strategy of an organization.

To understand the media planning process, one needs to understand two basic concepts i.e. medium and vehicle

A medium is a carrier of ads i.e. newspapers, television, radio, internet, outdoor, direct mail, etc whereas a vehicle is a specific media carrier. For e.g. Star plus. Page | 146

Now a television programme on Star Plus is also termed as a vehicle of television category.

Under the media planning process you need to answer how many prospects does one require to reach and based on this what are the mediums in which one should place the ads. One needs to define the target markets clearly. The media planner will analyze the target market and a particular advertisement.

Channel Performance:

• The channel share of each channel is taken into consideration while making a media plan. Channels that have a greater share on television will have expensive advertising spots. The channel share and the rating for these channels are given by TAM.

• Channel performance is a crucial evaluation criterion for media planners to select appropriate media vehicle. It is through this data that media planners know which channel will earn maximum visibility and reach to their target audience.

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Programme performance

• Once a media planner has selected the right channels for his target audience, the next step is to select the top programmes of that channel so that more and more eye balls can be guaranteed and that the product’s visibility will be ensured.

• Spots are selected by media planners based on the day parts. For example, prime time ad spots will be more expensive than non prime time spots.

• In absence of any appointment based channel, frequency channels like Movies, Music, News etc are selected.

Plan laydown (input channel/ programme/spots/ costs)

The next step in the media planning process is to build up the plan. Software is available to media planners that will assist them to build effective plan schedule.

The media planner needs to keep in mind the following parameters while preparing his media plan: Page | 148

• The channel • The Programme • The days the programme is aired • The time • The ad spot • The duration of the commercial • The rate (per ten second) • The total cost (rate * duration)

With the above parameters, the media plan is laid down. This plan will give an overview of how much budget one will need to allocate for ‘x’ no of ad spots.

Creating a pre plan log (plan optimization):

While preparing a media plan, the media planner checks on the historic data that is available, to observe the ad spots that is taken during one particular campaign (say 4 weeks). This historic data has to be taken when the programming contained the usual content and did not have any special events. This is because during such instances when the channel airs special events, the TVR (TRPs) tend to go up. Page | 149

• Evaluating the plan basis CPRP

Now, after the media plan has been prepared using the historic data, a media planner will evaluate and check it using the CPRP (cost per rating point) data. This will help him to take decisions regarding which spots are effective and should be kept whereas which spots do not give effective delivery and should be removed.

• Manually optimizing the plan:

This involves balancing the investments made in a channel with the GRP’s delivery. The challenge is to optimize your investment by maximizing the GRPs.

At this stage the media planner would strive to lower the Channel CPRP and total Investment while trying to achieve high total GRP deliveries.

Final plan delivery Media planners schedule the final plan delivery by the GRP and the frequency and reach data.

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They build up market wise channel to review the GRP’s delivered by each channel in a specified market. This helps remove any non performing channel from the plan.

The final media plan is prepared and this should fulfill the media objective of the brief to reach a particular number of people, particular times.

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Chapter 16: Advertiser and Use of Media What is the use of media for an advertiser?

For an advertiser, media is the means through which he will get his product visibility and brand awareness. The channels of media like television, newspapers, magazines, radio, and outdoor, other media help buyers to know and acquire information about various products and services. Hence media is of prime importance for advertisers.

Need for media research:

There are more than three hundred television channels and hundred plus newspapers and magazines. As an advertiser, he or she may not know which media channel he should advertise his product on. Hence, with the help of media research by specialized agencies like TAM, the advertiser will know about the channels that get the best Viewership by way of TRP/TVR. He or she will also know what type of target audience will watch what type of content on which channel.

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With the use of media research, relative strengths and weaknesses of different types of advertising media is known and it is media research that specifically explains how to choose the most effective advertising media.

The first decision that an advertiser needs to make is what category or combination of categories of advertising media should he use and this decision is based on the findings of the research. Advertisers need media to deliver the right message at the right time to the right kind of people.

Advertisers need to clearly define set of goals for an advertising campaign will help them to choose the best advertising media available.

Some of the media pros and cons are enlisted below:

Newspapers as a media for advertiser:

Benefits: Newspaper ads rank highest for believability for all media, High local coverage, immediate delivery of your message, excellent mass media, an interactive medium, flexibility in production: low cost, fast turnaround, ad shapes, size, and excellent quality for inserts. Page | 153

Disadvantages: cluttered, little control over ad position, hard to target specific audience, lifespan is short.

Radio as a media for advertiser: Benefits: can afford high frequency, low CPM, immediate attention catcher, low cost of production.

Disadvantages: clutter, no shelf life, low registration, no visualization.

Television as a media for advertiser: Benefits: 2: very high impact, good recall value, best medium to target specific audience, high reach and frequency. Disadvantages: high airtime costs, limited audience selectivity, high clutter.

Outdoor as a media for advertiser Benefits: highest reach of all media, lowest CPM of all media, Impact is good. Disadvantages: simple messages can only be delivered, difficulty in measuring results and high initial costs.

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Evaluating campaign deliveries: Importance of Evaluation of Campaign Deliveries:

• In the course of implementation of the media plan, it is imperative that the delivery/effectiveness of the campaign is evaluated and analyzed. This assessment is important because it helps to fine tune and make corrections for other media plans.

• Media Planning is a process where one is working with many variables like vehicle, content, timing, promotions, placement of ads, number of spots etc. Effective usage of these variables is what will create a good media plan for a particular campaign.

• Today, the scenario of Indian television is changing rapidly. With an influx of new channel, niche programming and innovative content, the viewership trends are indeed getting extremely dynamic.

• Therefore, before reaching to any conclusion regarding the dependability and integrity of TAM Data, it is imperative to identify factors, which could have an effect on the deliveries i.e., variations in pre and actual plan. Page | 155

Steps involved for evaluating campaign deliveries:

• Step one: The first and the foremost step in evaluating campaign delivery is checking the planned as well as the actual scheduled spots. Ideally, there should be no mismatch between these.

• However, in case of variations one will have to further filter this to daypart level for the channels. The next step is to match pre and post deliveries which mean that we will view the following: ¾ Week wise viewership of pre plan with that of post plan period ¾ Filtering channels into day-parts to comprehend, which day-parts are specifically under delivering

• After this step, one needs to now check scheduling for day-parts as well as for programme level. Also, check GRPs for the spots and viewership, timespent & reach for programmes.

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• After having filtered it down to the programme level we reach to certain conclusions which will tell us whether the under deliveries can be attributable to non-scheduling of spots or not.

• After having established conclusions on the basis of observing the trends in time spent, viewership and reach one should filter the analysis down to specific market to see where the drop is coming from, whether the drop is coming from a specific market or from all markets.

The fall in GRP trends can be attributed to the following reasons: • Electricity cuts in a particular market • Cable strike or other cable related problems • Local festival taking place in a particular market • Connectivity issues in a particular market etc

A media planner should now look at the broader picture by looking at aspects that can indirectly or directly have a bearing on the deliveries:

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Factors that can affect deliveries can be broadly divided into three categories: ¾ Internal Factors ¾ External Factors ¾ Planning Factors

Internal Factors: Gap between the pre and the actual deliveries can also be a function of internal factors, that is factors internal to the domain of TV viewership or having a direct bearing on changes in viewership, for instance:• change in FPC ( fixed point chart) • change in content of programme • change in packaging of programme • the programme is not telecasted anymore/telecast is stopped (e.g. Naam Gum Jayega on Sony) • influx of new programmes (e.g.: new programme same time band on another channel) • the viewership of a programme is variable in nature (e.g. Jeena isika naam hai) • spots were not telecasted….and or spots not telecasted as per schedule Page | 158

(Scheduling of spots) • spots not monitored events/sports/news influx of new channels

External factors: Variations in the pre and post deliveries could also be attributable to external factors, that is, elements external to the domain of TV viewership or indirectly affecting viewership for instance:• Change in viewership pattern • Change in lifestyle pattern • Electricity cuts • Cable failure and/or cable strike • Seasonality/festive seasons • Connectivity issues

Planning: Although both factors, internal and external to the domain of viewership have a bearing on the viewership and hence the post deliveries, as already discussed at length above.

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Nevertheless there can be factors at the planning end which could also be responsible for mismatch between pre and post deliveries which should also be seriously considered, some of these are stated below:-

• Mismatch of TG and programme, wherein programme selected is probably not skewed to that TG.

• Movie titles

• Pre planning could have been done on programme reach whereas the planner should be looking at the spot/commercial level reach while preparing a pre plan.

• Since the schedule of spots is not in the hands of the planners, the planner should avoid putting spots in the 1st or the last position, optimum case scenario should be chosen.

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Competitive analysis

• Competitive analysis provides you with a better understanding one’s own company, competition and industry. Media analysis can be done on a local, regional or national level. Competitive research and analysis provides insight into your business.

• For doing this analysis, MAP – Media Analyzer Package which is a TAM strategy tool helps to track TV and Press Advertising separately and make comparisons between the two.

• MAP is analysis software which represents an ideal platform for gauging the shifting trends in advertising over a period of time.

• It holds the key to information about advertisements that appear on a wide range of Media brands, be it terrestrial, free-to-Air or pay channels!

• MAP also helps to tap the new opportunities that the media provides.

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Other tools – PR tracking Prism 6

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