TAM applies for ratings license with MIB as TRAI mulls multiple agencies

Media research firm TAM, a joint venture between Nielsen (USA) and Kantar (UK) with 20 years of experience in India, has applied for a license as a ratings and audience measurement body with the Ministry of Information and Broadcasting. This move aligns with the Telecom Regulatory Authority of India’s (TRAI) recent consultation paper for the National Broadcasting Policy 2024, which proposes allowing multiple ratings agencies in the country.

A member of Market Research Society of India (MRSI),TAM is a media data intelligence firm monitoring AdEx and audience behaviours for TV, print, radio and digital.

As per sources close to the development although TAM has applied for the license, it is unlikely that any permissions will be granted or considered before the conclusion of the Lok Sabha elections in June 2024.

Coming back to need for multiple agencies, the consultation paper released by TRAI on April 2nd, 2024, highlights concerns regarding the current system’s dependence on a single provider, the Broadcast Audience Research Council (BARC).

“BARC being the sole provider of rating services in India, raises concerns about market behaviour, service quality, and cost inefficiencies, highlighting the need for additional players to encourage healthy competition. Introducing more agencies not only fosters competition but also has the potential to improve service quality and reduce costs, as dependency on a single agency often lack the drive to innovate and adapt to industry demands,” said the paper.

Interestingly, TAM has done ratings in the past.
ORG-MARG’s INTAM (Indian National Television Audience Measurement) was established in 1994. INTAM’s sample size was miniscule and restricted to major cities. While INTAM was in operation, TAM was the second ratings agency formed in 1998. In 2001, INTAM and TAM were formally merged. In 2004 another rating agency, Audience Measurement and Analytics Ltd. (aMap), started operations in India. Its commercial operations, however, started in February 2007.

In 2008, Television rating services on a commercial basis were provided by TAM Media Research and Audience Measurement and Analytics Ltd.Concerns were raised regarding the credibility of the rating system in India. MIB in 2008, sought TRAI’s recommendations on various issues relating to the Television Audience Measurement (TAM)/ Television Rating Points (TRP) and the policy guidelines to be adopted for Rating Agencies.

TRAI gave its recommendations to MIB on 19th August 2008 covering various aspects including the need for the Government to regulate the system of television ratings. TRAI also recommended the approach of self-regulation through setting up an industry-led body, the Broadcast Audience Research Council (BARC).

TAM Media Research became the sole provider of Television Rating services on a commercial basis, as aMAP discontinued its services. Subsequently, MIB in 2012 sought recommendations of TRAI for laying down comprehensive guidelines/accreditation mechanism for Television Rating agencies in India to ensure transparency and accountability in the rating system.

TRAI gave its recommendations on “Guidelines/Accreditation Mechanism for Television Rating Agencies in India” to MIB on 13th September 2013. The Authority supported self-regulation of Television ratings through an industry-led body like BARC. MIB accepted TRAI’s recommendations, and notified Policy Guidelines for Television Rating Agencies in India on 10th January 2014. Under these guidelines, the industry-led body, BARC was accredited by MIB on 28th July 2015, to carry out the Television Ratings in India. TAM Media Research did not register itself with MIB and discontinued its operations.

Coming back to the existing set up, the fundamental question remains. Does the industry require additional agencies?
“Relying on multiple agencies can lead to divided accountability and make it difficult to track campaign performance comprehensively. A single agency approach can streamline communication, ensure brand consistency, and provide a clearer picture of ad effectiveness,” said Deleise Ross, Senior VP and Business Head, MudraMax. Indeed, multiple datasets can contribute to confusion.

Advertisers are already inundated with ad expenditure data. For example, in February, the latest dentsu advertising report projected AdEx to reach Rs. 1,01,591 crore in 2024, while GroupM forecasted overall ad revenue to hit Rs. 1,55,386 crore for the same year. Additionally, Madison predicted that AdEx would reach Rs. 1,11,110 crore by the year’s end. With such disparate figures, it’s evident that there is already a lack of parity in the data landscape.

“We’ve had multiple measurement systems co-existing for TV in the past like – TAM & INTAM; and TAM & AMAP. The challenge is adoption, as we need a single benchmark for all advertisers and broadcasters collectively,” said Sanchayeeta Verma, CEO, Carat India. Media experts question the necessity of adding more to this complexity.

However, another area highlighted by TRAI in the consultation paper is the necessity for a rating agency to encompass measurement beyond linear TV, particularly in light of the burgeoning streaming platforms in India. Experts concur with this perspective.

“For many clients digital advertising spend has indeed surpassed TV. However, the lack of standardized metrics across platforms creates challenges in measuring ROI. A centralized body with expertise in digital measurement can help clients understand where their money is going and optimize their campaigns for better results,” Ross added.

“Currently, what the industry needs is a unified single-source multi-media measurement system on the lines of the global WFA framework, utilizing the open-source code and frameworks provided by WFA on the ‘Halo’ platform. Given that this has been underway globally since 2020, India is lagging on this front. India’s deployment will be complex but rewarding, bringing meaningful contributions from India to this field,’ added Verma. “Putting in place industry-level multi-media measurement with a joint industry body (agencies, advertisers, and media partner ecosystem) is the need of the hour,” she added. StoryBoard18