Like the rupee, TAM is also a currency under threat

If the rupee’s downward slide was a worry for all of us, the news that another currency - TAM, the viewership data that advertisers use to efficiently target consumers through television - is under siege.

TAM Media Research the joint venture between Nielsen (India) Private Limited and Kantar Market Research, measures and analyses television viewership in India.

“The raison d’etre for TAM (Television Audience Measurement) is to be the central Industry provider of Media and Consumer Insights to the various stakeholders of the Indian Media and Entertainment Industry,” TAM says.

[caption id=“attachment_857265” align=“alignright” width=“380”] TAM Media Research the joint venture between Nielsen (India) Private Limited and Kantar Market Research, measures and analyses television viewership in India. AFP[/caption]

But not any more, it seems. According to sources, three broadcasters, MultiScreen Media (owners of SET and SET MAX) Times Television Network (owners of Times Now and ET Now) and NDTV have written to TAM stating their intent to stop subscribing to TAM data with immediate effect.

Unhappiness with TAM data has been erupting every now and then, with the NDTV-TAM spat being the most visible, with the broadcaster filing a suit in the New York Supreme Court. The NY Supreme Court ruled against the NDTV stating, “in summary, the Court grants the motion to dismiss both on forum non conveniens grounds and with respect to the negligence claim, on that ground as well. That is the Court’s decision.” Details can be read here .

TAM might not be too worried about news channels pulling out, but the MSM decision will have them scurrying for cover. Brand outlays on news channels are small and the rates (relative to general entertainment channels) low as news channels deliver small audiences, so the importance of TAM data for advertisers is not paramount.

For high viewership channels (such as SET and SET MAX), it is independent audience measurement data that allows the channels to price their content and allows advertisers to measure how their commercials performed.

In another medium, print, major publishers across the country stopped subscribing to ABC, which certified circulation, relying on the Indian Readership Survey to market their products. In the TV instance, there is no alternative, currently, to TAM.

Once they discontinue subscribing to TAM, channels cannot use TAM data in their marketing and advertising (though the channels will still be measured and analysed by TAM and the data will be available to advertisers.

TAM is funded through the subscriptions paid by broadcasters, media agencies and advertisers. One of the major areas broadcaster unhappiness currently is the number of PeopleMeters (which capture viewer watching), which TAM has repeatedly said could be increased only if the subscribers are willing to pay more.

Now, with the income from subscriptions falling, the increase in the number of PeopleMeters is a far cry.

And, if more broadcasters decide to pull out, even maintaining the current number of meters could pose a problem for TAM.

Disclaimer: Firstpost is a part of Network 18, which runs channels that compete with NDTV, Times Television and MSM